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What Can Investors Expect from Concho Resources in 2Q16?

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Jul. 25 2016, Published 4:44 p.m. ET

2Q16 earnings release

Concho Resources (CXO) is expected to release its fiscal 2Q16 earnings on August 3, 2016.

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Concho Resources’ 2Q16 revenue estimate

Concho Resources’ 2Q16 revenue estimates are lower than its revenue for most of the past quarters. For 2Q16, its revenue estimate is ~$561 million. That’s ~14% lower than its 2Q15 revenue but ~4% higher than its 1Q16 revenue. The higher estimate is likely because of improving crude oil prices (USO) since the beginning of this year, which could result in higher realized prices for Concho Resources in 2Q16.

The above graph shows that Concho Resources’ revenues have mostly missed or been in line with estimates in the previous quarters. Investors will watch to see how things pan out for the upstream company in 1Q16.

Concho Resources’ 2Q16 EPS estimates

Concho Resources’ 2Q16 earnings per share (or EPS) estimate is ~$0.05. Its 1Q16 loss per share was $0.05. The corresponding quarter’s earnings per share in 2015 was $0.38.

Concho Resources’ peers Apache (APA) and Newfield Exploration (NFX) are expected to report earnings per share of -$0.16 and $0.13, respectively, in 2Q16. All these companies make up 6.1% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Key highlights in 1Q16

On January 18, 2016, Concho Resources (CXO) announced three separate transactions that are expected to enhance its position in the South Delaware Basin. We will talk about this in more detail in a later part of this series.

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