Concho Resources (CXO) Q3 Results - Oct 31
Posted: Thu Oct 31, 2019 9:16 am
Concho Resources Inc. (CXO) reported financial and operating results for third-quarter 2019.
Third-Quarter 2019 Highlights
Delivered total production of 330 MBoepd, exceeding the high end of the Company's guidance range. < Compares to my forecast of 321.5 MBoepd.
Achieved oil production volumes of 206 MBopd. < Compares to my forecast of 202 MBopd.
Reduced controllable cash costs per unit 3% year over year.
Surpassed year-end 2019 well cost reduction target with 20% lower well costs versus first-half 2019, led by a significant reduction in Delaware Basin well costs.
Announced strategic New Mexico Shelf divestiture for total cash consideration of $925 million, subject to customary closing and post-closing adjustments.
Authorized initiation of a $1.5 billion share repurchase program.
Generated cash flow from operating activities of $665 million; operating cash flow before working capital changes (non-GAAP) was $706 million, exceeding exploration and development costs incurred of $670 million. < Compares to my forecast of $667 million cash flow from operations before working capital changes.
Reported net income of $558 million, or $2.78 per share. Adjusted net income (non-GAAP) totaled $122 million, or $0.61 per share. < Compares to my forecast of $131 million net income or $0.65 per share.
Generated $757 million of adjusted EBITDAX (non-GAAP).
Tim Leach, Chairman and Chief Executive Officer, commented, “The fundamentals of our business are solid, as demonstrated by our strong operational and financial performance in the third quarter. We achieved our production targets and materially reduced well costs, enabling us to surpass our well cost targets for the year and generate operating cash flow that exceeded capital spending. We also made significant progress on other important initiatives, including the sale of our New Mexico Shelf assets. The transaction was an important step in high-grading our portfolio, and we will use the proceeds to achieve our debt reduction target and accelerate the return of capital to shareholders. Through our focus on enhancing capital efficiency, improving costs and actively managing our portfolio, Concho is positioned to deliver sustainable, competitive growth and superior returns for investors.”
Third-Quarter 2019 Highlights
Delivered total production of 330 MBoepd, exceeding the high end of the Company's guidance range. < Compares to my forecast of 321.5 MBoepd.
Achieved oil production volumes of 206 MBopd. < Compares to my forecast of 202 MBopd.
Reduced controllable cash costs per unit 3% year over year.
Surpassed year-end 2019 well cost reduction target with 20% lower well costs versus first-half 2019, led by a significant reduction in Delaware Basin well costs.
Announced strategic New Mexico Shelf divestiture for total cash consideration of $925 million, subject to customary closing and post-closing adjustments.
Authorized initiation of a $1.5 billion share repurchase program.
Generated cash flow from operating activities of $665 million; operating cash flow before working capital changes (non-GAAP) was $706 million, exceeding exploration and development costs incurred of $670 million. < Compares to my forecast of $667 million cash flow from operations before working capital changes.
Reported net income of $558 million, or $2.78 per share. Adjusted net income (non-GAAP) totaled $122 million, or $0.61 per share. < Compares to my forecast of $131 million net income or $0.65 per share.
Generated $757 million of adjusted EBITDAX (non-GAAP).
Tim Leach, Chairman and Chief Executive Officer, commented, “The fundamentals of our business are solid, as demonstrated by our strong operational and financial performance in the third quarter. We achieved our production targets and materially reduced well costs, enabling us to surpass our well cost targets for the year and generate operating cash flow that exceeded capital spending. We also made significant progress on other important initiatives, including the sale of our New Mexico Shelf assets. The transaction was an important step in high-grading our portfolio, and we will use the proceeds to achieve our debt reduction target and accelerate the return of capital to shareholders. Through our focus on enhancing capital efficiency, improving costs and actively managing our portfolio, Concho is positioned to deliver sustainable, competitive growth and superior returns for investors.”