Concho Resources thinks big in Permian Basin race to the top

|About: Concho Resources Inc. (CXO)|By:, SA News Editor

Concho Resources' (CXO) plan to double its oil production in three years wins Wall Street praise, though investors mostly greeted the news with a yawn as shares fell 1% in regular trading.

CXO aims to catch Diamondback Energy (FANG) and Pioneer Natural (PXD) in the race to become top producer in the Permian Basin.

Citi analysts reiterate that CXO is their top small and mid-cap oil and gas E&P company, setting a target price of $120 on the stock.

The plan is one the company is likely to deliver, Simmons analysts say, believing it should be "the primary focus for investors as it highlights a robust inventory of drilling locations" - adding that CXO's forecast 2014 production Y/Y gain of 18%-22% might prove a conservative estimate.