Shares of Concho Resources (NYSE: CXO) cratered last month after the company posted disappointing second-quarter results. Not only did the Permian Basin-focused oil producer miss analysts' earnings expectations, but it also cut its full-year forecast and reported disappointing results for a well spacing test. That shellacking has sent shares down more than 28% for the year even though oil prices have rebounded nearly 16%.
While Concho's second-quarter report was a disappointment, its value proposition hasn't changed. As a result, the energy company is taking advantage of the decline in its stock price to buy back a big chunk of its shares.
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Source: Motley Fool
(September 3, 2019 - 5:04 PM EDT)
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