Free Post Earnings Research Report: Concho’s Revenues Soared 46%; Adjusted EPS Surged 41%
Stock Monitor: GeoPark Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 06, 2017 / Active-Investors free earnings report on Concho Resources Inc. (NYSE: CXO) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=CXO. Concho Resources reported its third quarter fiscal 2017 operating results on October 31, 2017. The independent oil and gas Company outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Concho Resources most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
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Earnings Highlights and Summary
For the quarter ended September 30, 2017, Concho reported operating revenues of $627 million, up 46%, compared to revenue of $430 million in Q3 2016. The Company's revenue numbers topped analysts' estimates of $616.9 million.
Concho's average realized price for crude oil and natural gas for Q3 2017, excluding the effect of commodity derivatives, was $45.29 per barrel(Bbl) and $3.18 per thousand cubic feet(Mcf), respectively, compared to $41.52 per Bbl and $2.42 per Mcf, respectively, for Q3 2016.
For Q3 2017, Concho's net loss was $113 million, or $0.77 per diluted share, compared to net loss of $51 million, or $0.38 per diluted share, for Q3 2016. The Company's adjusted net income, which excludes non-cash and unusual items, for the reported quarter was $67 million, or $0.45 per diluted share, compared with adjusted net income of $44 million, or $0.32 per diluted share, for the prior year's same quarter, and came in ahead of Wall Street's estimates of $0.26 per share.
Concho's earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) for Q3 2017 totaled $458 million compared to $441 million for Q3 2016.
Operating Results
Concho's production for Q3 2017 averaged 193.2 thousand Boe per day (MBoepd), reflecting an increase of approximately 26% on a y-o-y basis. The Company's Crude oil production for the reported quarter totaled 119.6 thousand barrels per day (MBopd), an increase of approximately 31% from the year ago same period, while average daily natural gas production totaled 441.6 million cubic feet (MMcf).
Concho averaged 19 rigs in Q3 2017. The Company was running 15 rigs, including six rigs in the Northern Delaware Basin, four rigs in the Southern Delaware Basin, four rigs in the Midland Basin and one rig in the New Mexico Shelf. Additionally, the Company is utilizing eight completion crews.
Financial Position and Liquidity
During Q3 2017, Concho completed its debut investment grade bond offering. The Company issued $1.8 billion of senior notes, consisting of $1 billion of 3.75% senior notes due 2027 and $800 million of 4.875% senior notes due 2047. Net proceeds from the offering were used to repurchase a total of $2.15 billion of senior notes, consisting of $600 million of its 5.5% senior notes due 2022 and $1.55 billion of its 5.5% senior notes due 2023.
Since Q2 2016, Concho has reduced long-term debt by approximately $580 million and refinanced all its remaining senior notes. As a result, the Company reduced the average interest rate on its senior notes outstanding to 4.3% from 5.9%, equating to approximately $90 million in annual interest expense savings. Additionally, the Company elected to convert its $2 billion credit facility to an unsecured facility. Concho ended Q3 2017 with total long-term debt of $2.7 billion, including approximately $370 million outstanding under its credit facility.
Outlook
For Q4 2017, Concho is forecasting production to average approximately 200 MBoepd to 204 MBoepd, with a 62% oil mix. Additionally, the Company expects oil and natural gas production expense will be at the high-end of the guidance range of $5.50 per Boe to $6.00 per Boe for the upcoming quarter.
Concho is projecting production growth above the high-end of its annual production growth guidance range of 24% to 26%, with oil production growth expected to exceed 27% for full year 2017.
Stock Performance Snapshot
December 05, 2017 - At Tuesday's closing bell, Concho Resources' stock marginally fell 0.63%, ending the trading session at $138.31.
Volume traded for the day: 759.53 thousand shares.
Stock performance in the last three-month – up 20.27%; previous six-month period – up 14.68%; and year-to-date – up 4.31%
After yesterday's close, Concho Resources' market cap was at $20.41 billion.
Price to Earnings (P/E) ratio was at 36.36.
The stock is part of the Basic Materials sector, categorized under the Oil & Gas Drilling & Exploration industry.
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