UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 10, 2020
(Exact Name of Registrant as Specified in Its Charter)
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Registrant’s telephone number, including area code: (432 ) 683-7443
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2 of this chapter).
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TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition
SIGNATURES
Item 2.02 Results of Operations and Financial Condition
Below is a summary of estimated commodity price and derivative information for Concho Resources Inc.’s second-quarter 2020 reporting period.
1. Commodity Price Realizations
The following table presents the Company’s estimated oil and natural gas price realizations, excluding derivatives, for the three months ended June 30, 2020:
Three Months Ended June 30, 2020 | ||||
Estimated oil and natural gas price realizations (excluding derivatives) - average price per unit: | ||||
Oil (Bbl) | $ | 23.66 | ||
Natural gas (Mcf) (a) | $ | 0.68 | ||
(a) The Company derives a portion of its total natural gas revenues from the value of the natural gas liquids contained in its natural gas, with the remaining portion coming from the value of the dry natural gas residue. | ||||
2. Commodity Derivatives
The Company uses derivative financial instruments to manage its exposure to commodity price fluctuations.
The following table presents the Company’s estimated loss on derivative instruments for the three months ended June 30, 2020:
Three Months Ended June 30, 2020 | |||
Estimated loss on derivatives - in millions: | |||
Oil derivatives | $ | (497 | ) |
Natural gas derivatives | (17 | ) | |
Total | $ | (514 | ) |
The following table presents the Company’s estimated net cash receipts from derivatives for the three months ended June 30, 2020:
Three Months Ended June 30, 2020 | |||
Estimated net cash receipts from derivatives - in millions: | |||
Oil derivatives | $ | 401 | |
Natural gas derivatives | 14 | ||
Total | $ | 415 | |
The information included in this Current Report is preliminary in nature and represents management’s current estimates. Such information is not final and is subject to change in the Company’s unaudited financial statements to be included in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 (the “Form 10-Q”). Investors should consider such estimates when taken as a whole with the complete financial statements and results of operations for the period once published in the Form 10-Q.
THE INFORMATION CONTAINED IN THIS CURRENT REPORT SHALL NOT BE DEEMED “FILED” FOR THE PURPOSES OF SECTION 18 OF THE SECURITIES AND EXCHANGE ACT OF 1934, NOR SHALL IT BE DEEMED INCORPORATED BY REFERENCE INTO ANY REGISTRATION STATEMENT OR OTHER FILING PURSUANT TO THE SECURITIES ACT OF 1933, EXCEPT AS OTHERWISE EXPRESSLY STATED IN SUCH FILING.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
CONCHO RESOURCES INC. | |||
Date: July 10, 2020 | By: | /s/ Brenda R. Schroer | |
Name: | Brenda R. Schroer | ||
Title: | Senior Vice President, Chief Financial Officer and Treasurer | ||
