Concho Resources (CXO) Q3 Results - Oct 28
Posted: Wed Oct 28, 2020 11:19 am
Concho Resources Inc. (NYSE: CXO) announced third-quarter 2020 results, reporting a net loss of $61 million, or $0.31 per share.
Adjusted net income (non-GAAP), which excludes certain non-cash and special items, for third-quarter 2020 was $282 million, or $1.43 per share. < Compares to my forecast of $231.6 million net income, $1.18 per share. First Call's EPS forecast was $1.12.
Tim Leach, Chairman and Chief Executive Officer, commented, "Despite the challenging market environment, Concho delivered excellent results that demonstrate the strength of our business, our high-quality asset base and our ability to execute. On October 19, we announced our intention to merge with ConocoPhillips. We look forward to closing the transaction in the first quarter of next year."
Because of the merger, I will be dropping CXO from the Sweet 16.
I have updated my forecast/valuation model for CXO and I am raising my valuation by $3 to $82. Their realized natural gas + NGL price doubled from Q2 to Q3. This is good news for all the Permian Basin companies as the differentials in West Texas continue to fall.
Adjusted net income (non-GAAP), which excludes certain non-cash and special items, for third-quarter 2020 was $282 million, or $1.43 per share. < Compares to my forecast of $231.6 million net income, $1.18 per share. First Call's EPS forecast was $1.12.
Tim Leach, Chairman and Chief Executive Officer, commented, "Despite the challenging market environment, Concho delivered excellent results that demonstrate the strength of our business, our high-quality asset base and our ability to execute. On October 19, we announced our intention to merge with ConocoPhillips. We look forward to closing the transaction in the first quarter of next year."
Because of the merger, I will be dropping CXO from the Sweet 16.
I have updated my forecast/valuation model for CXO and I am raising my valuation by $3 to $82. Their realized natural gas + NGL price doubled from Q2 to Q3. This is good news for all the Permian Basin companies as the differentials in West Texas continue to fall.