Concho Resources (CXO) Tops Q3 EPS by 9c, Offers Outlook

Concho Resources (NYSE: CXO) reported Q3 EPS of $0.33, $0.09 better than the analyst estimate of $0.24.

Outlook

Fourth Quarter and Full Year 2015

For the fourth quarter of 2015, the Company expects production to average between 139 MBoepd and 143 MBoepd.

The Company currently expects its full-year 2015 capital budget, excluding acquisitions, to be approximately $1.9 billion, consisting of $1.7 billion for drilling and completion operations, including non-consents, and $0.2 billion for facilities, midstream, geological and geophysical and other. The Company’s 2015 production growth target is now a range of 27% to 28%, which compares to the Company’s prior range of 24% to 26%.

In addition, Concho updated its full-year 2015 outlook for certain items. The following table summarizes the Company’s current guidance for those items, as compared to the Company’s prior guidance.

Full Year 2015
Prior Current
Production
Year-over-year production growth 24% - 26% 27% - 28%

Operating costs and expenses
Lease operating expense $7.50 - $8.00 $7.50 - $7.75
Depreciation, depletion and amortization $23.00 - $25.00 $23.00 - $24.00
Exploration $1.50 - $2.50 $1.00 - $2.00

Full Year 2016

Concho’s base 2016 capital budget is $1.4 billion, with drilling and completion capital accounting for $1.2 billion. Based on this level of capital and assuming a NYMEX WTI crude oil price of $50 per barrel and a NYMEX Henry Hub natural gas price of $2.50 per thousand cubic feet, Concho expects to maintain 2015 production levels year-over-year, fund the capital budget within cash flow and maintain a net debt-to-EBITDAX ratio of less than two times through 2016. Concho’s 2016 capital budget excludes acquisitions and is subject to change depending upon a number of factors, including commodity prices and industry conditions. The Company plans to provide detailed guidance for 2016 in its fourth quarter and full-year 2015 earnings release.

For earnings history and earnings-related data on Concho Resources (CXO) click here.

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