Drill Baby Drill: $CXO Ups Production Guidance

Here we go again. Production came in at the high end of guidance. Moreover, the company has upped production guidance to flat from -5%.

Indeed.

• Reports Q1 (Mar) loss of $0.05 per share, excluding non-recurring items, $0.05 worse than the Capital IQ Consensus of ($0.00); revenues fell 31.4% year/year to $283.6 mln vs the $273.92 mln Capital IQ Consensus
  • Delivered quarterly production of 12.7 million Boe, or 139.5 MBoepd, exceeding the high end of the co’s guidance.
  • Production for the first quarter of 2016 was 12.7 million barrels of oil equivalent (MMBoe), or an average of 139.5 thousand Boe per day (MBoepd), an increase of 6% from the first quarter of 2015 and above the high end of the co’s guidance
  • First-quarter 2016 production was comprised of 64% oil and 36% natural gas.
  • During the first quarter of 2016, Concho averaged 10 rigs, compared to 12 rigs in the fourth quarter of 2015. Concho started drilling or participating in a total of 40 gross wells (31 operated) and completed 50 gross wells during the first quarter of 2016.

Outlook:

• Co raises 2016 production growth guidance to 0%, up from -5% to 0%