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Concho Resources’s Stock Rose by 4% after 2Q16 Earnings

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Concho Resources’s stock performance

Following Concho Resources’s (CXO) 2Q16 earnings release on August 3, its stock increased by ~4%.

Year-over-year (or YoY), CXO has increased by ~21%. In this part of the series, we’ll analyze Concho Resources’s stock performance with respect to movements in the broader industry and the broader market.

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Peer comparison

Meanwhile, Apache Corp (APA) has seen its stock price increase by ~14.2% on a YoY basis.

As the graph above shows, Concho Resources’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (OIL) and natural gas prices (UNG). These have also been driving the broader industry ETF, the Energy Select Sector SPDR ETF (XLE).

From July 20 to August 3, Concho Resources’s stock was mostly over-performing the Energy Select Sector SPDR ETF (XLE). Toward the end of the period, it ended up giving higher returns compared to XLE. Concho Resources’s stock increased by ~3.6% during this period while XLE fell by ~2.6%.

Concho Resources’s stock also overperformed the SPDR S&P 500 ETF (SPY), which decreased 0.4% during this period. The outperformer in the period under discussion was natural gas prices, which increased 6.8% at the end of the period.

Concho Resources’s stock increased by ~4% on August 3, which means the Market reacted positively to CXO’s 2Q16 earnings beat. A 3% increase in crude oil prices on August 3 also likely drove CXO’s stock higher.

Please read the first part of this series to learn more about Concho Resources’s 2Q16 performance.

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