- Concho Resources (NYSE:CXO) +1.6% after-hours following below consensus Q3 earnings and a 6% Y/Y drop in revenues to $1.12B, as production rose 15% Y/Y to 330K boe/day and exceeded the high end of its guidance range.
- CXO says Q3 operating cash flow was $706M, exceeding the $670M in costs incurred for exploration and development activities, as it materially improved well costs and surpassed its year-end 2019 well cost reduction target of 10%.
- Q3 drilling, completion and equipment costs of $955/ft. was a 20% reduction from H1 2019, led by a significant reduction in Delaware Basin well costs.
- CXO expects Q4 production of 318K-325K boe/day, which reflects the impact of the planned New Mexico Shelf sale; excluding the sale, Q4 production is seen at 334K-341K boe/day.