|Bid||72.40 x 1300|
|Ask||0.00 x 1300|
|Day's Range||71.52 - 74.01|
|52 Week Range||63.92 - 160.81|
|Beta (3Y Monthly)||1.47|
|PE Ratio (TTM)||27.93|
|Earnings Date||Oct 28, 2019 - Nov 1, 2019|
|Forward Dividend & Yield||0.50 (0.69%)|
|1y Target Est||122.44|
SVP, CFO and Treasurer of Concho Resources Inc (30-Year Financial, Insider Trades) Brenda R Schroer (insider trades) bought 1,500 shares of CXO on 08/15/2019 at an average price of $69.67 a share. Continue reading...
A slowdown in a single oil field in a single country may not seem material to some, but given the fact that the Permian produces a very substantial amount of new non-OPEC barrels, a slowdown could be very bullish for oil prices
It’s been a brutal two weeks for the shale industry after some poor financial results and oil prices crashing, and now it seems that the sectors production growth is being questioned
Pioneer Natural Resources, one of the largest U.S. independent oil producers, on Wednesday warned that the U.S. shale boom could end in all but one region by 2025, as producers exhaust the richest resource areas and drilling slows due to weak prices. Pioneer Chief Executive Scott Sheffield said just one area of the Permian Basin, the largest U.S. shale field, would continue to expand output past 2025 as oil prices remain low and many producers pull back drilling.
(Bloomberg) -- The latest crop of earnings from Permian Basin drillers shows how production continues to boom in America’s hottest oil patch.On Tuesday, Devon Energy Corp., Diamondback Energy Inc. and Parsley Energy Inc. boosted their projected output for this year while signaling they may spend a little less than previously forecast, according to earnings statements. The rosier picture contrasts with reports last week that sent Concho Resources Inc. and Whiting Petroleum Corp. plunging after they lowered growth expectations.Shareholders are demanding explorers practice frugality and deliver better returns, which have typically been poor across the shale patch. At the same time, the Permian has suffered some growing pains with the excessive waste of natural gas, not enough pipelines and troubles with well spacing that’s crimping output for some producers like Concho.Parsley soared as much as 17% in post-market trading, while Diamondback edged 0.3% lower and Devon fell as much 3.1%.\--With assistance from David Wethe.To contact the reporter on this story: Ryan Collins in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Morgan Stanley analyst Drew Venker cut his rating on Concho by two notches, to Underweight from Overweight, and more than halved his price target, to $64 from $131.
While significant output growth is expected to buoy Ring Energy's (REI) second-quarter 2019 earnings, weaker y/y commodity prices may dent overall results.
You're probably raising cash following the market's ugly recent run. Still, analysts remain convinced there are bargain S&P; 500 stocks out there.
Continental Resources earnings missed but the shale giant boosted its production outlook, while falling crude oil prices force other companies to pull back.
Concho Resources traded much of its own water infrastructure to a Houston company in exchange for cash and an equity stake.
When weighing which oil stocks to buy, consider which ones are the leaders in U.S. shale or are already big players making moves in top plays like the Permian.
(Bloomberg) -- Exxon Mobil Corp. and Chevron Corp. aren’t fazed by the drilling mistakes and funding hurdles smaller shale producers are running into in the Permian Basin.The North American supermajors said Friday their strategy for the prolific oil field spares them from the slip-ups that sent shares of one of the largest independent Permian producers down over 20% Thursday. Both oil giants reported surging output from the area over the second quarter and stuck to their plans to pour investment into the shale basin.Exxon and Chevron were late to the game in the Permian. While they’ve recently unveiled plans to eventually produce almost 2 million barrels of oil equivalent a day from the West Texas and New Mexico basin, the area was long the home of wildcatters and independent explorers.Those exploration and production companies are now facing mounting pressure from investors to cut spending and deliver returns, which for many means slowing down and selling some assets. Meanwhile, the supermajors have the means to come in with multibillion-dollar investments and ambitious growth plans.“The positions that Exxon and Chevron have relative to a lot of E&Ps -- they’re multiples of the size,” said Devin McDermott, an analyst at Morgan Stanley. “When you have decades of running room, you don’t really have to worry about tighter spacing.”Concho Resources Inc., long considered one of the Permian’s premier operators, was forced to scale back activity after drilling almost two dozen wells too closely together. That move by the Midland, Texas-based producer spooked investors across the industry, with Evercore ISI predicting the “carnage” would have a lasting impact.Concho’s problem with well spacing highlights the challenges of fracking so-called child wells: Too close to the “parent,” and output is less prolific; too far apart, and companies risk leaving oil in the ground.Exxon and Chevron say they aren’t as exposed to those problems. Because of their size relative to smaller independent producers, the oil giants are able to lock up acreage, giving them room to be more conservative in their well spacing.To contact the reporter on this story: Rachel Adams-Heard in Houston at firstname.lastname@example.orgTo contact the editors responsible for this story: Simon Casey at email@example.com, Pratish Narayanan, Carlos CaminadaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- One word to describe this week in energy stocks is “painful.” Another is prologue.Energy stocks were not particularly popular coming into this week anyway. To one degree or another, they were losing the confidence of investors that they will manage their capital responsibly and profitably.Now their deserved reputation for squeezing ever more oil and gas out of shale has also taken a big knock. Concho Resources Inc. plunged 22% on Thursday, to its lowest level since the panic of early 2016, after it cut guidance and revealed weak results from an experimental project of drilling wells much closer together than usual. Other Permian producers, such as Diamondback Energy Inc., also took a hit on fears this reflects a shale-productivity issue, rather than just a Concho issue. It’s sobering to think that Concho, valued at more than $23 billion in the spring of 2018 and having since absorbed the $7.6 billion purchase of RSP Permian Inc., now sports a market cap of less than $16 billion.Meanwhile, the industry also has a problem with a man who is nominally its champion: President Donald Trump. His offhand tweet-threat of more tariffs on Chinese goods on Thursday afternoon took what was already a flaming dumpster fire, hitched it to a truck and took it straight over a precipice (the Federal Reserve’s quarter-point rate cut fading quickly in the rear-view).Trust, trip-ups, Trump. They seem like separate problems for the sector, but they actually add up to the same problem: cost of capital.Equity and bond issuance has faltered across the energy sector. Services giant Schlumberger Ltd., which has talked consistently of a recovery for several years, just changed its CEO, and its stock languishes around levels plumbed during the financial crisis. The pipeline sector, meanwhile, is undergoing a painful transformation away from the once-dominant (and so hot) master limited partnership structure. Missed expectations there are punished swiftly, while good behavior is rewarded with a stable, rather than surging, stock price.Concho’s problems with its “Dominator” project affected only a small minority of the wells it has drilled so far this year. But investor tolerance for wasted capital – as well as sharp revisions to guidance given only a few months ago – has evaporated. When Pioneer Natural Resources Co. surprised in mid-2017 with a snafu of its own, its stock was trading at parity with the market and a one-third premium to the sector in terms of Ebitda multiple. It never recovered that poise. Today, it trades below both.Many companies in an industry predicated on growth are struggling to make the pivot to prioritizing return on capital and shareholder payouts. It has traditionally been a sector that took in capital rather than spat it out. This is a particular problem for smaller and mid-cap companies, which tend to carry higher unit costs and struggle to attract attention and investors (though not, of late, activists). And a new report from Rystad Energy, a research and analytics firm, suggests smaller is worse when it comes to productivity too(1):The basic equation here – rising cost of capital and flat-but-volatile oil prices – demands radical change. There’s really no reason why dozens and dozens of companies should be cheek-by-jowl in the Permian basin, other than a steady flow of external capital that has dried up.If, as seems likely, 2020 hosts a confluence of weaker economic growth – with added Twitter trade-war frisson – and high non-OPEC production growth, this week’s wash-out will have been a mere prologue to what’s coming. The cure is consolidation, which would cut costs and rein in the barrels pushing into an already oversupplied market. However, it appears we still aren’t quite there yet.One obvious potential acquirer, ConocoPhillips, was asked on this week’s earnings call whether falling E&P valuations had piqued its interest. In response, the COO said:We still believe that there is a mismatch between what people expect for their assets and what we compete as a use of capital for our capital, and that may change over time.Translation: Stuff isn’t cheap enough yet.One obstacle to deals is, paradoxically, something that also lies behind the sector’s chronic de-rating: misaligned incentives for management vis-a-vis shareholders. In a new report, Evercore ISI analyst Doug Terreson calculates that, for a sample of nine large E&P companies, the average value of the pool of stock and option awards held by their CEOs at the end of 2016 was $26 million. By the end of 2018, that had risen by $21 million – of which just $1 million reflected higher share prices; the rest was new awards. The total return of the E&P sector in that time was negative 35%.As long as the corner office enjoys a more positive outcome than shareholders do, it suppresses any willingness to negotiate a deal that could change the occupant of that corner office. As this week demonstrates, though, pressure for change is building inexorably. The cost of capital is getting just too damn high.(1) In the accompanying chart, 'Majors' refers to BP, Chevron, Exxon Mobil, Occidental Petroleum and Royal Dutch Shell. The 'Top-10' public companies are Anadarko Petroleum, Apache, Cimarex Energy, Concho Resources, Devon Energy, Diamondback Energy, Encana, EOG Resources, Parsley Energy, and Pioneer Natural Resources. These are the top 10 operators bynumber of horizontal unconventional well-completions in the Permian shale basin, according to Rystad Energy's figures.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
While production growth is likely to buoy second-quarter results of Diamondback (FANG), weaker y/y commodity prices may play spoilsports.