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Showing posts with label CXO. Show all posts
Showing posts with label CXO. Show all posts

Wednesday, July 31, 2019

-=Concho Resources (CXO) reported earnings on Wed 31 July 2019 (a/h)



Concho Resources misses by $0.03, beats on revs
  • Reports Q2 (Jun) earnings of $0.69 per share, $0.03 worse than the S&P Capital IQ Consensus of $0.72; revenues rose 19.3% year/year to $1.13 bln vs the $1.11 bln S&P Capital IQ Consensus.
  • Production for 2Q19 was approximately 30 mln barrels of oil equivalent (MMBoe), or an average of 329 thousand Boe per day (MBoepd).
  • Average realized price for oil and natural gas for 2Q19, excluding the effect of commodity derivatives, was $56.02 per Bbl and $1.16 per Mcf, respectively, compared with $60.98 per Bbl and $3.19 per Mcf, respectively, for 2Q18.
  • Outlook: The company expects to produce between 316-322 MBoepd in 3Q19. The company's oil mix is expected to be approximately 63% in the second half of 2019 as fewer new wells are planned to come online. Additionally, due to weak natural gas and natural gas liquids pricing, the company reduced its FY19 natural gas price realization guidance to a range of 60-80% of NYMEX Henry Hub and expects to trend towards the low end of the range in 3Q19.

  • Wednesday, March 28, 2018

    =RSP Permian (RSPP) to be acquired by Concho Resources (CXO) for $50.24/share



    Concho Resources (CXO) will acquire RSPP in an all-stock transaction valued at approximately $9.5 billion, inclusive of RSP's net debt; representing consideration to each RSP shareholder of $50.24/share
    • The consideration will consist of 0.320 shares of Concho common stock for each share of RSP common stock. The transaction was unanimously approved by the board of directors of each company. Under the terms of the definitive merger agreement, shareholders of RSP will receive 0.320 shares of Concho common stock in exchange for each share of RSP common stock, representing consideration to each RSP shareholder of $50.24 per share based on the closing price of Concho common stock on March 27, 2018.
    • The consideration represents an approximately 29% premium to RSP's closing price of $38.92 on March 27, 2018. Upon closing of the transaction, Concho shareholders will own approximately 74.5% of the combined company, and RSP shareholders will own approximately 25.5%. The resulting capital structure is consistent with Concho's long-term strategy of maintaining a strong financial position.
    • The transaction, which is expected to be completed in the third quarter of 2018, is subject to the approval of both Concho and RSP shareholders, the satisfaction of certain regulatory approvals and other customary closing conditions.
    • The combined company will run the largest drilling and completion program in the Permian Basin. With a focused portfolio and substantial scale advantage, the benefits of this transaction are expected to drive corporate level savings and operational synergies by combining the complementary assets and the technical skills of both company's employees. Specific operational synergies include: asset optimization, directing capital to high-return manufacturing-style projects and utilizing shared infrastructure systems. The present value of corporate and operational synergies is expected to exceed $2 billion.
    • The acquisition is expected to be accretive in the first year to Concho's key per-share metrics, including net asset value, earnings, cash flow and debt-adjusted growth. In addition, the transaction is expected to enhance Concho's three-year outlook for annualized production growth on a capital program within cash flow from operations.