Can Concho Get a Boost in 4Q from Reliance Energy Acquisition?



Upcoming 4Q16 earnings release

Concho Resources (CXO) is expected to release its 4Q16 earnings on February 21, 2017.

Concho Resources’ 4Q16 revenue estimate is higher than its revenues in the previous quarters, as you can see in the above graphs. For 4Q16, its revenue estimate is ~$548.0 million. That’s ~41.0% higher than 4Q15.

The above graphs show that Concho Resources’ revenues have missed analysts’ estimates in the previous quarters. Investors will be watching to see how things pan out for the upstream company in 4Q16.

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Concho Resources’ 4Q16 EPS estimates

Concho Resources’ 4Q16 EPS (earnings per share) estimate is -$0.08. Its 3Q16 EPS was $0.32, and its 4Q15 EPS was -$0.07.

In the graphs, you can see that CXO’s earnings came in better than analysts’ expectations in the previous two quarters. So investors will be closely watching CXO’s 4Q16 earnings. Keep watching Market Realist for earnings coverage on CXO and other upstream energy companies.

CXO’s peers Apache (APA) and Continental Resources (CLR) are expected to report EPS of $0.10 and -$0.10, respectively, in 4Q16. All these companies make up ~6.0% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Concho’s 4Q16 performance will reflect production from the assets it acquired from Reliance Energy on October 4, 2016. Those assets include the production of ~10.0 Mboepd (thousand barrels of oil equivalent per day) comprised of 67.0% oil. That could boost CXO’s oil revenues in 4Q16.


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