What Do Concho Resources’ Revenue Growth Trends Indicate?



Concho Resources’ revenue trends

Concho Resources’ (CXO) 2Q16 revenue fell ~13.0% YoY (year-over-year). In comparison, its YoY revenue growth was -4.0% in 2Q15 and -7.0% in 1Q16.

The above graph shows that CXO’s year-over-year revenue growth has been negative since 1Q15. Analyst estimates indicate that CXO’s year-over-year growth will be ~11.0% in 3Q16.

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The impact of lower energy prices

Lower realized energy prices (USO) (UNG) have pulled down the revenues of several upstream companies, which in turn have affected their earnings. CXO’s peers Hess (HES) and Apache (APA) reported revenue growth of -37.0% and -32.0% year-over-year, respectively, in 2Q16.


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