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Concho Resources Reports a 4Q16 Earnings Beat, Revenue Miss

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Feb. 23 2017, Published 10:00 a.m. ET

Concho Resources’ 4Q16 revenue

Concho Resources (CXO) reported its 4Q16 earnings after the market closed on February 21, 2017. Its 4Q16 revenue was ~$525 million, compared to analysts’ consensus estimate of ~$548 million. Its revenue in 4Q15 was ~$389 million. In 3Q16, its revenue was $430.5 million. 

Its revenue for 2016 was $1.6 billion, compared to $1.8 billion in 2015.

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Concho Resources’ 4Q16 earnings

Concho Resources reported an adjusted net income of ~$29 million in 4Q16. Its adjusted net income in 4Q15 was -$9.4 million. The company reported adjusted EPS (earnings per share) of $0.20. Wall Street analysts’ consensus estimate for EPS was ~-$0.08.

As you can see in the graph above, Concho Resources’ 4Q16 earnings beat analysts’ expectations. Its revenue, however, missed analysts’ consensus estimate by a small margin.

Key management comments

Tim Leach, Concho’s CEO, said in the company’s 4Q16 earnings release, “Concho had an exceptional year. At the start of 2016 our production growth guidance was flat to down 5% over 2015. Over the course of the year we improved productivity per well, decreased cash costs and strengthened our balance sheet. As a result, we were able to increase production by 5% while spending within cash flow.”

Leach continued, “We remain focused on executing a disciplined capital program and enhancing the impact of each dollar we deploy. We continue to benefit from our economies of scale as we run the largest drilling program in the Permian and are uniquely positioned to generate differentiated growth within cash flow.”

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