Concho Resources’ (CXO) 3Q16 production volumes totaled 152.9 thousand barrels of oil equivalent per day (or Mboepd). In comparison, its 3Q15 production volumes were 149.3 Mboepd. Concho Resources’ 2Q16 production volumes amounted to 145.2 Mboepd.
The production mix for Concho Resources’ 2Q16 production was 61% oil and 39% natural gas. As we can see in the image above, CXO has been focusing on operational efficiency by producing higher volumes while drilling fewer wells.
CXO’s average rig counts have also fallen since 4Q14. Its average rig count fell from 37 to 17 in 3Q16. In 2016, CXO’s lease operating expenses (or LOE) per boe (barrel of oil equivalent) were expected to average $6.0 per boe, compared to $7.46 per boe in 2015.
Concho Resources’ average realized price of crude oil (OIL) fell from $43.82 per barrel in 3Q15 to $41.52 per barrel in 3Q16.
Its average realized price for natural gas (UNG) fell from $2.78 per thousand cubic feet in 3Q15 to $2.46 per thousand cubic feet in 3Q16.
Concho Resources raised its 2016 production growth guidance to 5% in 3Q16, compared to the 0%–2% range it had provided in 2Q16. CXO expects its 4Q16 production to average between 164 Mboepd and 167 Mboepd.
CXO’s management noted in its 3Q16 earnings release, “As a result of drilling efficiencies, completion optimization and portfolio high grading, we are raising our 2016 production growth target to 5%.”