CXO Report Strong Q1 Results
Posted: Wed May 03, 2017 7:09 pm
Concho Resources Inc. (CXO) (the “Company” or “Concho”) today reported financial and operating results for the first quarter of 2017.
First-Quarter 2017 Highlights
Delivered quarterly production of 181.4 MBoepd (my forecast was 174.5 MBoepd), exceeding the high end of the Company’s guidance range. Raised full-year 2017 production outlook to a range of 21% - 25% annual growth and maintained capital expenditure outlook.
Increased crude oil production to 113.6 MBopd, up 28% year-over-year.
Achieved record well performance in the Company’s Delaware Basin and New Mexico Shelf assets.
Making the shift to manufacturing mode with large-scale development projects in the Delaware Basin and in the Midland Basin.
Reduced per-unit production expense and interest expense 27% and 42%, respectively, year-over-year. Lowered full-year 2017 guidance for per-unit production and depreciation, depletion and amortization expenses.
Continued to execute a disciplined capital program with cash flows exceeding capital expenditures for the seventh consecutive quarter.
Reported quarterly net income of $650 million, or $4.37 per diluted share. Adjusted net income totaled $72 million, or $0.49 per diluted share (non-GAAP).
Generated $461 million of EBITDAX (non-GAAP).
Tim Leach, Chairman, Chief Executive Officer and President, commented, “First quarter was an outstanding start to the year in which we anticipate strong growth within cash flow. We delivered exceptional production growth while preserving our low cost structure. As activity rapidly accelerates in the Permian Basin, our execution strength and scale are great advantages that together provide a tight grip on costs and logistics as well as a solid platform for creating long-term shareholder value.”
First-Quarter 2017 Highlights
Delivered quarterly production of 181.4 MBoepd (my forecast was 174.5 MBoepd), exceeding the high end of the Company’s guidance range. Raised full-year 2017 production outlook to a range of 21% - 25% annual growth and maintained capital expenditure outlook.
Increased crude oil production to 113.6 MBopd, up 28% year-over-year.
Achieved record well performance in the Company’s Delaware Basin and New Mexico Shelf assets.
Making the shift to manufacturing mode with large-scale development projects in the Delaware Basin and in the Midland Basin.
Reduced per-unit production expense and interest expense 27% and 42%, respectively, year-over-year. Lowered full-year 2017 guidance for per-unit production and depreciation, depletion and amortization expenses.
Continued to execute a disciplined capital program with cash flows exceeding capital expenditures for the seventh consecutive quarter.
Reported quarterly net income of $650 million, or $4.37 per diluted share. Adjusted net income totaled $72 million, or $0.49 per diluted share (non-GAAP).
Generated $461 million of EBITDAX (non-GAAP).
Tim Leach, Chairman, Chief Executive Officer and President, commented, “First quarter was an outstanding start to the year in which we anticipate strong growth within cash flow. We delivered exceptional production growth while preserving our low cost structure. As activity rapidly accelerates in the Permian Basin, our execution strength and scale are great advantages that together provide a tight grip on costs and logistics as well as a solid platform for creating long-term shareholder value.”