CXO: Good Q1 Results

[dan_s]

Concho Resources Inc. (CXO) (the “Company” or “Concho”) today reported financial and operating results for first quarter 2015.

Highlights
• Concho delivered record quarterly production of 11.9 million Boe, or 132.2 MBoepd, exceeding the high end of the Company’s guidance. < Beat my forecast of 128.0 MBoepd. - Dan
• Concho achieved 38% crude oil production growth over the same quarter a year ago and 9% crude oil growth over the fourth quarter of 2014.
• Concho raised its 2015 total production growth target to 18% to 22%. Capital expenditures are expected to range between $1.8 billion to $2.0 billion for full year 2015.
• Concho announced excellent well results from the oil-rich extension of the Avalon Shale in the northern Delaware Basin.
• Concho successfully drove all per-unit expenses lower year-over-year, while capturing significant service cost savings across all areas of operations in the Permian Basin.
• First quarter of 2015 financial results reflected the lower commodity price environment. Earnings for the first quarter of 2015 totaled $0.06 per diluted share, or $0.36 per diluted share on an adjusted basis (non-GAAP).
• First quarter of 2015 EBITDAX (non-GAAP) totaled $407.5 million.

[dan_s]

Adjusted EPS of $0.36 compare to my forecast of $0.22.

Everything looks good so far. I am updating my forecast model now.

[dan_s]

"We enter into commodity derivatives to manage our exposure to commodity price fluctuations. For the remainder of 2015, Concho has swap contracts covering more than 65% of expected crude oil production, or 57.2 thousand barrels (MBbls) per day of crude oil, at a weighted average price of $78.82 per Bbl. For 2016, Concho has swap contracts covering 34.2 MBbls per day of crude oil at a weighted average price of $83.43 per Bbl."