Concho Resources reported a 42% YoY fall in net profit in 2013 to $251 million. The reduced profit was due to higher expenses, including exploration costs, impairment charges and depreciation costs.
· Revenue of $2.32 billion, up 27% YoY; boosted by a 31% YoY growth in oil sales
· Production of 92.2 MBOE/d (63% liquids), up 13% YoY, with oil production of 57.9 Mbbl/d, up 18% YoY
· Impairment charge of $65 million on long-lived assets, compared with zero costs in 2012
· Exploration and abandonment costs of $80.7 million, up from $19.9 million in 2012
Chairman, Chief Executive Officer and President of Concho, Tim Leach, stated: "Concho delivered substantial crude oil growth during 2013 while building the largest horizontal development program in the Permian Basin. As we enter the first year of our acceleration plan to double production by year-end 2016, we have significant momentum and opportunity to continue our track record of solid execution and growth."
In November 2013, Concho announced plans to achieve double production by 2016 driven by high-margin crude oil growth.
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