Seeking Alpha

Concho Resources Inc. (CXO)

  • Mon, May 4, 12:27 PM
    • Pioneer Natural Resources (PXD -2.6%) plunges following negative comments on PXD and other frackers by Greenlight Capital's David Einhorn at the Ira Sohn conference.
    • Einhorn calls for shorting PXD, which he dubs "the motherfracker," and says PXD loses $0.20 of present value for every $1 invested, is burning cash and is not growing.
    • Of the sector, Einhorn says fracking companies offer an "almost infinite supply of negative return investment opportunities."
    • Einhorn says he also is short WLL -2.5%, CXO -1.2%, CLR -1%, EOG -0.7%.
  • Thu, Feb. 26, 4:35 PM
    • Concho Resources (NYSE:CXO) -2.8% AH after announcing a public offering of 5.6M common shares., with an underwriters option to purchase up to an additional 840K shares.
    • CXO says it expects to use the proceeds to repay all outstanding borrowings under the its credit facility and for general corporate purposes, which may include funding its drilling and development program and future acquisitions.
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  • Mon, Jan. 12, 3:17 PM
    • Goldman Sachs upgrades a few energy stocks even as it cast a pall of gloom over most of the sector today (I, II, III), raising Chesapeake Energy (CHK -3.6%) to Buy from Neutral and Parsley Energy (PE -4.2%) to Neutral from Sell as potential "shale sale" winners.
    • Despite PE's relative vulnerability to lower oil prices because of its weak balance sheet and negative projected free cash, Goldman has more confidence that its core Permian Basin position makes it an attractive M&A target.
    • Among potential "shale scale" winners - companies that either can build positions in the core and reduce costs of capital - the firm's favorites remain EOG Resources (NYSE:EOG), Range Resources (NYSE:RRC), Pioneer Natural Resources (NYSE:PXD), Cabot Oil & Gas (NYSE:COG) and Concho Resources (NYSE:CXO).
    • However, Goldman cuts Bill Barrett (BBG -8.3%) to Sell from Neutral, seeing greater downside risk to its production in a lower oil price environment, and lowers Eclipse Resources (ECR -1.5%) to Neutral from Buy due to a persistently wide funding gap through 2017 coupled with a weak balance sheet.
  • Aug. 6, 2014, 4:33 PM
    • Concho Resources (NYSE:CXO): Q2 EPS of $1.04 beats by $0.07.
    • Revenue of $704.7M (+25.2% Y/Y) beats by $27.99M.
    • Shares +1.1%.
    • Press Release
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  • May 12, 2014, 11:49 AM
    • Concho Resources (CXO -2.6%) says it will launch a public offering of 6M common shares, and will apply proceeds toward repaying all outstanding borrowings under its credit facility as well as funding its three-year accelerated growth plan and capital commitments related to the midstream joint venture and future acquisitions.
    • CXO earlier reported Q1 earnings and revenues ahead of analyst consensus, and an 18% Y/Y production increase to 9.1M boe (5.8M barrels of oil, 19.8B cf of natural gas); raises its FY 2014 production guidance range to 20%-24% Y/Y growth.
    • CXO also announced a partnership with a private company to build a crude oil pipeline in the northern Delaware Basin in Texas.
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  • Feb. 24, 2014, 12:13 PM
    • Concho Resources (CXO +4.6%) continues to push higher after a positive mention by Ron Baron on CNBC before the open as the company he likes best to exploit the U.S. shale boom.
    • CXO has been aggregating drilling lands, he says, "and once they have this acreage, they're going to be able to be acquisition candidates by the really big oil companies who don't want to do the legwork."
    • Citing rising U.S. spending on health care, Baron likes Illumina (ILMN +3.6%), which he says is taking advantage of the falling costs of sequencing the genome.
    | 1 Comment
  • Jan. 8, 2014, 2:45 PM
    • A potential collapse this year in domestic crude prices could push refiners higher, including Phillips 66 (PSX -0.3%) and PBF Energy (PBF +0.7%), Howard Weil says.
    • "From a global perspective, macro [refining & marketing] dynamics are improving into ’14 with significant crude supply growth placing a theoretical ceiling on oil prices/feedstock costs while underlying demand growth remains intact, thereby supporting product prices," the firm writes.
    • However, the firm endorses a slight tactical shift toward more defensive posturing with a focus on lower beta names and companies that screen at a discount from a valuation perspective, thus it cuts Delek US (DK -3.4%) and Tesoro (TSO -2%) to Sector Perform and raises PSX and PBF to Sector Outperform.
    • Noble Energy (NBL -0.2%), Whiting Petroleum (WLL -0.2%) and Concho Resources (CXO -1.3%) are upgraded to Focus Stock.
  • Jul. 23, 2013, 2:19 PM
    Jim Cramer proclaims the oil tanker business could be on the verge of a renaissance, and his favorite way to play it is North American Tankers (NAT +7.8%), pointing to already improving dayrates for Suezmax tankers and VLCCs; he likes the ~7% yield while you wait. "The [Brent-WTI] spread is dead," so Cramer likes several other energy names too: CLR, EOG, WLL, PXD, CXO.
  • Mar. 15, 2013, 2:39 PM
    Rosetta Resources' (ROSE +1%) purchase of some of Comstock Resources' (CRK +13.6%) oil-rich acreage in the Permian Basin will reduce its dependence on the Eagle Ford shale and "provides clarity on growth plans"; ~96% of ROSE's production last year came from Eagle Ford. Shares of other firms with prominent Permian acreage also are higher: CWEI +10%, XEC +1%, CXO +0.4%.
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  • Jan. 17, 2013, 2:59 PM
    Concho Resources (CXO +1.6%) is initiated at Outperform by Imperial Capital, which says the pure-play, oil-focused Permian Basin company benefits from strong production growth, long-lived reserves, a low-cost structure and low-risk production and growth opportunities. The firm likes CXO's commitment to rate-of-return driven growth, reinvesting cash flow into its highest margin plays.
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  • Nov. 8, 2012, 9:29 AM
    Legacy Resources (LGCY) plans a public offering to sell 8.7M units to raise funds for a $520M acquisition of oil and natural gas properties in the Permian Basin from Concho Resources (CXO). The properties contain estimated proved reserves of ~25.6 MMboe, 71% proved developed producing. LGCY -2.5% premarket.
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  • Jul. 31, 2012, 10:54 AM
    Concho Resources (CXO +3.2%) is upgraded to Outperform with a target price range of $110-$120, up from $90-$100, at Wells Fargo. "Continued execution in the Permian, strong growth within cash flow, and recent underperformance make this a very attractive name in the midcap space," the firm writes.
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  • Jun. 6, 2012, 10:58 AM
    Hess (HES +4.3%) surges as the oil and gas producer is named a top pick at BofA, which notes the stock has dropped to within 10% of its 2008 low. "Regardless of the European concerns, this is unwarranted," the firm says. Tudor Pickering also upgrades Hess as well as Occidental (OXY +2.7%) and Concho (CXO +3.7%) to Buy, while cutting Goodrich (GR) to Hold.
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  • Apr. 2, 2012, 8:46 AM
    Concho Resources (CXO) +2.7% premarket after Deutsche Bank upgrades shares to Buy from Hold, believing CXO has underperformed peers YTD on valuation concerns and rising costs, but "this has overshadowed upside drivers in Delaware Basin performance, emerging/improving plays... and potential for accretive acquisitions."
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  • Feb. 23, 2012, 3:40 PM
    Concho Resources(CXO -2.84%) dips after its Q4 loss widened on higher derivative-related losses. Revenue growth however, was better-than-expected due to increased production and higher oil prices.
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  • Feb. 22, 2012, 4:27 PM
    Concho Resources (CXO): Q4 EPS of $4.15 may not be comparable to consensus of $1.17. Revenue of $478M (+51.5% Y/Y) beats by $26M. Shares -3.5% AH. (PR)
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Company Description
Concho Resources Inc. is an oil and natural gas company, which is engaged in the acquisition, development, exploitation and exploration of producing oil and natural gas properties. It operates in the Delaware Basin.