Concho Resources Inc. reported strong fourth-quarter revenues and earnings results on the back of higher commodity price realizations and robust production growth.
The company reported adjusted net earnings per share of 66 cents, comfortably beating the Zacks Consensus Estimate of 46 cents. The bottom line also improved significantly from the prior-year quarter adjusted income of 20 cents per share.
Concho Resources’ total operating revenues for the fourth quarter amounted to $780 million, which increased substantially from $525 million a year ago. The top line further surpassed the Zacks Consensus Estimate of $717 million.
Volume Analysis
Concho Resources' average quarterly volume increased 28% year over year to 211 thousand barrels of oil equivalent per day (exceeding the high-end of the company’s guidance range), of which 61.6% was liquids. Daily oil output was up 30% to 130 thousand barrels, while natural gas production came in at 487.5 million cubic feet (up 26.7%).
Realized Prices
The average realized natural gas price jumped about 13.7% from the year-ago quarter to $3.33 per thousand cubic feet, while average oil price realization increased 15.7% to $52.84 per barrel. Overall, the company fetched $40.18 per barrel compared with $34.70 a year ago.
Financial Position
As of Dec 31, Concho Resources had long-term debt of $2,691 million, representing a debt-to-capitalization ratio of 23.2%.
Guidance
Concho Resources has provided a preliminary guidance for 2018. The company expects its total production to grow 16-20%, with crude oil growth about 20%. The upstream player forecasts its output to grow at 20% CAGR over the 2017-2020 time frame. Capital expenditures for 2018 are estimated to be around $2 billion.
Zacks Rank
Concho Resources is an independent exploration and production company dealing with the exploration and development of oil and natural gas properties. The company's core operations are focused in the prolific Permian basin, providing this upstream player with an enviable acreage of low-risk top-tier assets and a multiyear drilling inventory. Its strategic acreage position in the Permian Basin is expected to drive continued productivity gains.
Concho Resources flaunts a Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other top-ranked players in the same industry include Cabot Oil & Gas Corp. , Continental Resources, Inc. and Penn Virginia Corp. . All these companies also sport a Zacks Rank #1.
Cabot’s earnings are expected to witness a year-over-year increase of 108.28% in 2018.
Continental Resources’ earnings are anticipated to witness a year-over-year rise of 326.23% in 2018.
Penn Virginia’s earnings are expected to witness a year-over-year increase of 188.37% in 2018.
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Concho's (CXO) Q4 Earnings Top on Price, Output Gains
Concho Resources Inc. reported strong fourth-quarter revenues and earnings results on the back of higher commodity price realizations and robust production growth.
The company reported adjusted net earnings per share of 66 cents, comfortably beating the Zacks Consensus Estimate of 46 cents. The bottom line also improved significantly from the prior-year quarter adjusted income of 20 cents per share.
Concho Resources’ total operating revenues for the fourth quarter amounted to $780 million, which increased substantially from $525 million a year ago. The top line further surpassed the Zacks Consensus Estimate of $717 million.
Concho Resources Inc. Price, Consensus and EPS Surprise
Concho Resources Inc. Price, Consensus and EPS Surprise | Concho Resources Inc. Quote
Volume Analysis
Concho Resources' average quarterly volume increased 28% year over year to 211 thousand barrels of oil equivalent per day (exceeding the high-end of the company’s guidance range), of which 61.6% was liquids. Daily oil output was up 30% to 130 thousand barrels, while natural gas production came in at 487.5 million cubic feet (up 26.7%).
Realized Prices
The average realized natural gas price jumped about 13.7% from the year-ago quarter to $3.33 per thousand cubic feet, while average oil price realization increased 15.7% to $52.84 per barrel. Overall, the company fetched $40.18 per barrel compared with $34.70 a year ago.
Financial Position
As of Dec 31, Concho Resources had long-term debt of $2,691 million, representing a debt-to-capitalization ratio of 23.2%.
Guidance
Concho Resources has provided a preliminary guidance for 2018. The company expects its total production to grow 16-20%, with crude oil growth about 20%. The upstream player forecasts its output to grow at 20% CAGR over the 2017-2020 time frame. Capital expenditures for 2018 are estimated to be around $2 billion.
Zacks Rank
Concho Resources is an independent exploration and production company dealing with the exploration and development of oil and natural gas properties. The company's core operations are focused in the prolific Permian basin, providing this upstream player with an enviable acreage of low-risk top-tier assets and a multiyear drilling inventory. Its strategic acreage position in the Permian Basin is expected to drive continued productivity gains.
Concho Resources flaunts a Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other top-ranked players in the same industry include Cabot Oil & Gas Corp. , Continental Resources, Inc. and Penn Virginia Corp. . All these companies also sport a Zacks Rank #1.
Cabot’s earnings are expected to witness a year-over-year increase of 108.28% in 2018.
Continental Resources’ earnings are anticipated to witness a year-over-year rise of 326.23% in 2018.
Penn Virginia’s earnings are expected to witness a year-over-year increase of 188.37% in 2018.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>