Concho Resources (CXO) Q1 Results
Posted: Thu May 05, 2016 1:27 pm
Highlights
• Delivered quarterly production of 12.7 million Boe, or 139.5 MBoepd, exceeding the high end of the Company’s guidance. < 6,500 boepd above my forecast
• Executed a disciplined capital program within cash flow and further strengthened the Company’s balance sheet, with a cash position of approximately $0.5 billion at quarter end.
• Achieved per-unit lease operating expense below the low end of the Company’s guidance.
• Closed two transactions, further enhancing the Company’s high-quality portfolio and reinforcing Concho’s financial position.
Tim Leach, Chairman, Chief Executive Officer and President, commented, “Concho delivered a strong first quarter, with results ahead of expectations. Our per-unit cost structure trended lower, and drilling and completion capital was well within cash flow. Our success is a direct result of our high-quality drilling inventory across all our assets in the Permian Basin and our relentless focus on driving low costs and optimizing field development. During the first quarter, we also closed two transactions that high-graded the portfolio – selling lower rate of return assets, while adding top tier acreage – resulting in improved leverage metrics and additional cash on our balance sheet. With a strong financial position and premier asset base, we are well-positioned to execute a disciplined, returns-based capital plan and deliver differentiated value over the long term.”
Credit Facility and Liquidity Update
Concho completed the annual redetermination of its credit facility in April 2016. The bank group reaffirmed the commitment amount of $2.5 billion and reduced the borrowing base amount to $2.8 billion due to lower commodity prices.
At March 31, 2016, Concho had cash of approximately $0.5 billion, long-term debt of $3.3 billion, and a net debt-to-EBITDAX ratio of 1.7 times. Concho currently has no outstanding borrowings on its credit facility, providing the Company with total liquidity of approximately $3.0 billion.
• Delivered quarterly production of 12.7 million Boe, or 139.5 MBoepd, exceeding the high end of the Company’s guidance. < 6,500 boepd above my forecast
• Executed a disciplined capital program within cash flow and further strengthened the Company’s balance sheet, with a cash position of approximately $0.5 billion at quarter end.
• Achieved per-unit lease operating expense below the low end of the Company’s guidance.
• Closed two transactions, further enhancing the Company’s high-quality portfolio and reinforcing Concho’s financial position.
Tim Leach, Chairman, Chief Executive Officer and President, commented, “Concho delivered a strong first quarter, with results ahead of expectations. Our per-unit cost structure trended lower, and drilling and completion capital was well within cash flow. Our success is a direct result of our high-quality drilling inventory across all our assets in the Permian Basin and our relentless focus on driving low costs and optimizing field development. During the first quarter, we also closed two transactions that high-graded the portfolio – selling lower rate of return assets, while adding top tier acreage – resulting in improved leverage metrics and additional cash on our balance sheet. With a strong financial position and premier asset base, we are well-positioned to execute a disciplined, returns-based capital plan and deliver differentiated value over the long term.”
Credit Facility and Liquidity Update
Concho completed the annual redetermination of its credit facility in April 2016. The bank group reaffirmed the commitment amount of $2.5 billion and reduced the borrowing base amount to $2.8 billion due to lower commodity prices.
At March 31, 2016, Concho had cash of approximately $0.5 billion, long-term debt of $3.3 billion, and a net debt-to-EBITDAX ratio of 1.7 times. Concho currently has no outstanding borrowings on its credit facility, providing the Company with total liquidity of approximately $3.0 billion.