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Concho (CXO) Q3 Earnings Miss on Weak Prices, Revenue Tops

Zacks Equity Research

Concho Resources Inc. CXO reported net income per share (excluding special items) of 61 cents, lagging the Zacks Consensus Estimate of 66 cents and significantly below the prior-year period’s $1.42. The underperformance can be attributed to lower commodity price.

However, the Permian-focused player generated revenues of $1.1 billion, topping the consensus mark by 2.9% due to higher-than-anticipated production volumes. Precisely, the upstream player’s output of 329,803 barrels of oil equivalent per day (Boe/d) surpassed the Zacks Consensus Estimate of 323,541 Boe/d. The top line, though, fell 6.5% from the year-ago level.

As part of its efforts to improve costs and margins, the Midland, TX-based oil and gas producer managed to lower its drilling, completion and equipment costs in the third quarter to $955 per feet, down from $1,023 and $1,355 in the first and second quarters, respectively.

Concho Resources Inc. Price, Consensus and EPS Surprise

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