Concho Resources Inc (NYSE: CXO) recorded a net loss of $125.1 million or $0.86 per diluted share for the fourth quarter of 2016 as compared to net loss of $0.8 million, or $0.01 per diluted share in the fourth quarter of 2015. This was led by average realized price for oil and natural gas which stood at $34.70 per Boe, as compared with $29.38per Boe for the fourth quarter of 2015. Given these weak results, CXO stock lost over 6.8% on Feb 22nd, 2017 (Source: Google finance).
On the other hand, Concho Resources reported fourth quarter production of 164.3 million barrels of oil equivalent per day, an increase of 7% on a quarter-over-quarter basis. Production for full-year 2016 was 55.1 MMBoe, or an average of 150.5 MBoepd, an increase of approximately 5% over full-year 2015. During the fourth quarter of 2016, Concho averaged 18 rigs, compared to 17 rigs in the third quarter of 2016. Concho commenced drilling, or participated in, a total of 82 gross wells (64 operated wells) and completed 75 gross wells during the fourth quarter of 2016. At December 31, 2016, Concho’s estimated proved reserves totalled 720 MMBoe, an increase of 15% from year-end 2015 despite lower SEC pricing.
In February 2017, Concho and its joint interest partner closed the sale of their respective ownership interests in the Alpha Crude Connector systemfor $1.215 billion. The company will use $803 million in net proceeds for its drilling program, fund future acquisitions or reduce long-term debt.
Looking ahead, Concho announced a 2017 capital plan ranging from $1.4 to $1.6 billion which is expected to deliver peer-leading production growth of 20% to 24% and crude oil growth of 25%. Meanwhile, for the first quarter of 2017, Concho expects production to average between 172 MBoepd and 176 MBoepd.
RBC Capital Markets reaffirmed its outperform rating on CXO and raised the price target to $175 from a previous price target of $168. Also, the stock price target was raised to $169 from $165 with a maintained neutral rating. KLR Group also enhanced their price target to $189.00 as compared to their $176.00 rating and reiterated their Buy rating. CXO stock recovered over 0.6% in the after-hours market (as of Feb 22nd, 2017; Source: Google finance).