Energy Prospectus

Today I am updating the forecast models for all of the Sweet 16 that reported 2nd quarter results last week. I have already updated the forecast model for SM Energy. Concho is up next. 2nd quarter results beat my forecast. - Dan

Highlights
• Production for the second quarter 2015 of 13.4 million Boe, or 147.4 MBoepd, was 37% higher year-over-year and exceeded the high end of the Company’s guidance.
• Crude oil production increased by 45% over the same quarter a year ago and by 11% over the first quarter of 2015.
• 2015 production growth target raised to 24% to 26%, with the capital expenditure outlook unchanged.
• Concho reported a net loss of $1.02 per diluted share for the second quarter of 2015. This compares to net income of $0.38 per diluted share for the quarter on an adjusted basis (non-GAAP).
• EBITDAX (non-GAAP) for the second quarter of 2015 was $457.8 million.

I have updated my forecast model for CXO and it will be posted to the website this afternoon.

My Fair Value Estimate for CXO increases by $1.30/share to $142.50. Compares to the First Call Price Target of $138.97.

Increase is primarily due to an increase in there production guidance.

CXO has 69% of 2H 2015 oil production hedged at $75.20/bbl. A table with all of their hedges can be found in the press release or at the bottom of my forecast model.