Concho Resources (CXO) Update - May 19

dan_s · Post by **dan_s** » Tue May 19, 2020 11:59 am

We will be sending out an updated profile on Concho Resources late today or early on Wednesday.

CXO has sold off with the rest of the upstream companies, but this large company has a lot of upside for us. I've increased my valuation by $4/share from what you see on the main Sweet 16 spreadsheet. Take a look at CXO's 52-week range. If WTI rebounds to $50/bbl in early 2021, CXO should be retesting the high of that range. FCF for 2020 is now locked in by their hedges and they hold some extremely valuable real estate in West Texas.