Concho Resources : Free Post Earnings Research Report: Concho’s Quarterly Revenue Surged 49%; Adjusted EPS Zoomed 230%
Stock Monitor: Kimbell Royalty Partners Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 02, 2018 /
Active-Investors.com has just released a free earnings report on Concho Resources Inc. (NYSE: CXO) ("Concho"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CXO. Concho reported its fourth quarter and fiscal 2017 operating and financial results on February 20, 2018. The US shale oil producer delivered better than expected revenue and earnings results. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the three months ended December 31, 2017, Concho's operating revenues surged 49% to $780 million compared to revenues of $525 million in Q4 2016. The Company's reported numbers beat analysts' estimates of $715.7 million.
For full year 2017, Concho's operating revenues equaled $2.59 billion, reflecting growth of 58% compared to revenues of $1.64 billion in FY16.
Concho's net income was $267 million, or $1.79 per diluted share, for Q4 2017 compared to net loss of $125 million, or $0.86 per diluted share, for Q4 2016. The Company's net income reflected income tax changes related to the Tax Cuts and Jobs Act during the reported quarter. Due to the reduction of the US federal corporate income tax rate and subsequent re-measurement of the Company's net deferred tax liability, Concho recorded a provisional non-cash decrease to its income tax provision of $398 million.
For Q4 2017, Concho reported adjusted net income, which excludes non-cash and unusual items, of $98 million, or $0.66 per diluted share, compared to adjusted net income of $28 million, or $0.20 per diluted share, for Q4 2016. The Company's earnings beat Wall Street's estimates of $0.46 per share.
For FY17, Concho's net income was $956 million, or $6.41 per diluted share, compared to net loss of $1.5 billion, or $10.85 per diluted share, for FY16. The Company's adjusted net income was $311 million, or $2.09 per diluted share, for FY17 compared to adjusted net income of $111 million, or $0.81 per diluted share, for FY16.
Concho's earnings before interest, taxes, depreciation, depletion, amortization, and exploration expenses (EBITDAX) totaled $513 million for Q4 2017 compared to $396 million for Q4 2016.
During Q4 2017, Concho's production equaled 19 million barrels of oil equivalent (MMBoe), or an average of 211 thousand Boe per day (MBoepd), representing an increase of approximately 28% from Q4 2016. The Company's average daily crude oil production for the reported quarter totaled 130 thousand barrels per day (MBopd), reflecting an increase of approximately 30% from the year earlier same quarter. Concho's Natural gas production totaled 487 million cubic feet per day (MMcfpd) for Q4 2017.
During Q4 2017, Concho averaged 16 rigs compared to 19 rigs in Q4 2017. As of the date of the earnings release, the Company was running 19 rigs, including 8 rigs in the Northern Delaware Basin, 6 rigs in the Southern Delaware Basin, and 5 rigs in the Midland Basin.
For Q4 2017, Concho's average realized price for crude oil and natural gas, excluding the effect of commodity derivatives, was $52.84 per Bbl and $3.33 per thousand cubic feet(Mcf), respectively, compared to $45.66 per Bbl and $2.93 per Mcf, respectively, for Q4 2016.
2017 Proved Reserves and Resource Potential
At December 31, 2017, Concho's estimated proved reserves totaled 840 MMBoe, representing an increase of 17% from year-end 2016. The Company's proved reserves were approximately 60% crude oil and 40% natural gas. Concho's proven developed reserves totaled 588 MMBoe, an increase of 26% from year-end 2016.
During FY17, Concho added 194 MMBoe of proved reserves primarily from drilling and completion operations, resulting in a reserve replacement ratio of 275%. The Company's proved developed finding and development cost was $8.68 per Boe for FY17.
Financial Position and Liquidity
At December 31, 2017, Concho had total long-term debt of $2.7 billion, including approximately $320 million of borrowings outstanding under its credit facility. Adjusted for divestiture proceeds received in Q1 2018, the Company had total long-term debt of $2.5 billion at December 31, 2017.
Concho is forecasting FY18 capital spending to be at the midpoint of its capital guidance range of $1.9 billion to $2.1 billion, which reflects the Company's current outlook for service cost inflation. The 2018 capital program is expected to be funded with cash flows from operations and generate 20% crude oil growth and 16% to 20% total production growth year-over-year.
For Q1 2018, Concho expects production to average between 215 MBoepd and 219 MBoepd.
Stock Performance Snapshot
March 29, 2018 - At Thursday's closing bell, Concho Resources' stock climbed 4.94%, ending the trading session at $150.33.
Volume traded for the day: 6.11 million shares, which was above the 3-month average volume of 1.44 million shares.
Stock performance in the previous six-month period ? up 13.67%; past twelve-month period ? up 16.37%; and year-to-date ? up 0.07%
After last Thursday's close, Concho Resources' market cap was at $22.19 billion.
Price to Earnings (P/E) ratio was at 40.27.
The stock is part of the Basic Materials sector, categorized under the Oil & Gas Drilling & Exploration industry. This sector was up 2.0% at the end of the session.
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