Energy Prospectus

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.

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

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

"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."