Concho Resources (CXO) Update - August 19

[dan_s]

Note received from Stifel this morning.

Delaware Basin Spacing Concerns Overblown
"We believe the market has overreacted to disappointing results from an aggressive spacing test (220' within zone) at CXO's Dominator pad.
Broad based concerns that the Delaware Basin has been overcapitalized were perpetuated at EnerCom, especially with commentary from
OXY, which claimed industry well spacing and proppant intensity in the basin have been too aggressive. We note Permian well productivity
continues to improve and CXO's Northern Delaware wells have consistently outperformed OXY's."

Stifel's price target for CXO is $188/share, which is quite a bit higher than my valuation.