UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of report (Date of earliest event reported): November
4, 2015
Concho
Resources Inc.
(Exact Name of Registrant as Specified in
Its Charter)
Delaware
(State or Other Jurisdiction of
Incorporation)
001-33615
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76-0818600
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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One Concho Center
600 West Illinois Avenue
Midland, Texas
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79701
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(Address of Principal Executive Offices)
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(Zip Code)
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Registrant’s telephone number, including area code:
(432) 683-7443
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
TABLE OF CONTENTS
Item 2.02 Results of Operations and Financial Condition
Item 9.01
Financial Statements and Exhibits
SIGNATURES
EXHIBIT INDEX
EX-99.1
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2015, Concho Resources Inc. (the “Company”)
issued a press release announcing its financial and operating results
for the three and nine months ended September 30, 2015 (the “Earnings
Release”). A copy of the Company’s Earnings Release is furnished
as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit No.
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Description of Exhibit
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99.1
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Press release dated November 4, 2015, announcing financial and
operating results for the three and nine months ended September 30,
2015.
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THE INFORMATION CONTAINED IN THIS CURRENT REPORT, INCLUDING THE EXHIBITS
ATTACHED HERETO, SHALL NOT BE DEEMED “FILED” FOR THE PURPOSES OF SECTION
18 OF THE SECURITIES AND EXCHANGE ACT OF 1934, NOR SHALL THEY BE DEEMED
INCORPORATED BY REFERENCE INTO ANY REGISTRATION STATEMENT OR OTHER
FILING PURSUANT TO THE SECURITIES ACT OF 1933, EXCEPT AS OTHERWISE
EXPRESSLY STATED IN SUCH FILING.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
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CONCHO RESOURCES INC.
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Date: November 4, 2015
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By:
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/s/ TRAVIS L. COUNTS
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Name:
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Travis L. Counts
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Title:
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Vice President and General Counsel
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EXHIBIT INDEX
Exhibit No.
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Description of Exhibit
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99.1
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Press release dated November 4, 2015, announcing financial and
operating results for the three and nine months ended September
30, 2015.
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Exhibit 99.1
Concho
Resources Inc. Reports Third Quarter 2015 Results
Delivers
Record Quarterly Production
Raises
Full-Year 2015 Production Growth Target Range to 27% - 28%
Adds
25,000 Net Acres in Core Operating Areas
MIDLAND, Texas--(BUSINESS WIRE)--November 4, 2015--Concho Resources
Inc. (NYSE: CXO) (the “Company” or “Concho”) today reported
financial and operating results for the third quarter of 2015.
Highlights
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Production for the third quarter 2015 of 13.7 million Boe, or 149.3
MBoepd, was 32% higher year-over-year and exceeded the high-end of the
Company’s guidance.
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Crude oil production increased by 34% over the same quarter a year ago.
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2015 production growth target increased to a range of 27% to 28%.
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Year-to-date acquisitions add approximately 25,000 net acres
complementary to the Company’s core operating areas.
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Concho reported net income of $1.49 per diluted share for the third
quarter of 2015. Net income was $0.33 per diluted share for the
quarter on an adjusted basis (non-GAAP).
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EBITDAX (non-GAAP) for the third quarter of 2015 was $446.2 million.
See “Supplemental Non-GAAP Financial Measures” at the end of this
press release for a description of adjusted net income and EBITDAX
(non-GAAP measures) and a reconciliation of these measures to the
associated GAAP measures.
Tim Leach, Chairman, Chief Executive Officer and President, commented,
“I am proud of our team as we continued to deliver outstanding results
through the third quarter and once again have raised our 2015 production
growth range. Our focus on enhanced completions and long-lateral
development across our assets is driving improved efficiencies even as
we reduce activity levels due to the weak commodity price environment.
In addition, the properties we acquired in 2015 demonstrate our ability
to consolidate and grow our core positions in the Permian Basin.
Excluding acquisitions during the third quarter, we funded our capital
budget within cash flow. We plan to continue to fund our capital budget
in 2016 within cash flow in order to preserve our balance sheet and
remain positioned to opportunistically consolidate high-quality acres
within our core plays.”
Third Quarter 2015 Operations Summary
Production for the third quarter of 2015 was 13.7 million barrels of oil
equivalent (MMBoe), or an average of 149.3 thousand Boe per day
(MBoepd), an increase of 32% from the third quarter of 2014.
Third quarter 2015 production included 8.9 million barrels (MMBbls) of
crude oil, or an average of 97.2 thousand barrels of crude oil per day
(MBopd), an increase of 24.5 MBopd, or 34%, from the third quarter of
2014. Third quarter of 2015 production also included 28.7 billion cubic
feet (Bcf) of natural gas.
The Company continues to adjust its capital budget due to the weak
commodity price environment, as costs incurred, excluding property
acquisition costs, for the third quarter of 2015 were $301.2 million and
represented a 47% decrease from the second quarter of 2015. Concho
averaged 15 rigs in the third quarter of 2015, compared to 18 rigs in
the second quarter of 2015.
During the third quarter of 2015, Concho started drilling or
participating in a total of 77 gross wells (57 operated) and completed
70 gross wells. The table below summarizes the Company’s drilling
activity by core area for the third quarter of 2015.
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Number of Wells
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Number of Operated
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Number of Wells
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Drilled
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Wells Drilled
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Completed
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(Gross)
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(Gross)
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(Gross)
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Delaware Basin
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45
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35
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42
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Midland Basin
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11
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11
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8
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New Mexico Shelf
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21
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11
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20
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Total
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77
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57
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70
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Percent Horizontal
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87
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%
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91
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%
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90
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%
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Delaware Basin
Production from horizontal wells in the Delaware Basin was 88.5 MBoepd
in the third quarter of 2015, up 60% over the third quarter of 2014 and
8% over the second quarter of 2015. During the third quarter of 2015,
Concho drilled 45 wells in the Delaware Basin, including 27 wells
targeting the Bone Spring Sands, 11 wells targeting the Wolfcamp Shale
and seven wells targeting the Avalon Shale.
Concho added 51 new horizontal wells in the northern Delaware Basin with
at least 30 days of production as of the end of the third quarter of
2015. The average peak 30-day and 24-hour rates for these wells were 966
Boepd (72% oil) and 1,471 Boepd, respectively. The average lateral
length for these 51 wells reached a record for the Company in the
northern Delaware Basin at 5,158 feet, including 10 long-lateral wells
averaging 8,782 feet.
The Company’s midstream joint venture is near completion with the
construction of a 400-mile crude oil gathering and transportation
system, the Alpha Crude Connector (“ACC”), in the northern Delaware
Basin. ACC is expected to begin operations at year-end 2015. The Company
plans to transport a substantial portion of its crude oil production
from the northern Delaware Basin on ACC, which the Company expects will
contribute to better price realizations beginning in 2016.
Concho added 10 new horizontal wells in the southern Delaware Basin with
at least 30 days of production as of the end of the third quarter of
2015. The average peak 30-day and 24-hour rates for these wells were
1,188 Boepd (76% oil) and 1,537 Boepd, respectively. The average lateral
length for these wells was 5,991 feet, up approximately 7%
year-over-year, while drilling days are down 20% year-over-year to an
average of approximately 30 days per well.
The Company currently has 10 horizontal rigs in the Delaware Basin, with
eight horizontal rigs in the northern Delaware Basin and two horizontal
rigs in the southern Delaware Basin.
Midland Basin
The Company delivered strong results in the Midland Basin, with eight
new horizontal wells with at least 30 days of production as of the end
of the third quarter of 2015. The average peak 30-day and 24-hour rates
for these wells were 967 Boepd (81% oil) and 1,300 Boepd, respectively,
from an average lateral length of 6,705 feet.
The Company currently has two horizontal rigs in the Midland Basin.
New Mexico Shelf
On the New Mexico Shelf, Concho added 13 new horizontal wells with at
least 30 days of production as of the end of the third quarter of 2015.
The average peak 30-day and 24-hour rates for these wells were 294 Boepd
(84% oil) and 389 Boepd, respectively.
The Company currently has one horizontal rig on the New Mexico Shelf.
Third Quarter 2015 Financial Summary
The Company’s average realized price for oil and natural gas during the
third quarter of 2015, excluding the effect of commodity derivatives,
was $33.74 per Boe, compared with $67.07 per Boe during the third
quarter of 2014. The lower average realized price in the 2015 period
reflects continued weak crude oil, natural gas and natural gas liquids
commodity prices.
Net income for the third quarter of 2015 was $179.7 million, or $1.49
per diluted share, compared to net income of $305.2 million, or $2.69
per diluted share, in the third quarter of 2014. Adjusted net income
(non-GAAP), which excludes non-cash and unusual items, for the third
quarter of 2015 was $39.3 million, or $0.33 per diluted share, compared
with adjusted net income (non-GAAP) of $123.2 million, or $1.09 per
diluted share, for the third quarter of 2014.
EBITDAX (non-GAAP) for the third quarter of 2015 totaled $446.2 million,
compared to $536.4 million in the third quarter of 2014.
Cash flows generated from operating activities in the first nine months
of 2015 totaled $760.6 million, compared with $1.3 billion in the same
period last year. Adjusted cash flows (non-GAAP), which are cash flows
from operating activities adjusted for settlements on derivatives, were
$1.2 billion for the first nine months of 2015, as compared to $1.3
billion for the same period last year.
See “Supplemental Non-GAAP Financial Measures” at the end of this press
release for a description of adjusted net income, EBITDAX and adjusted
cash flows (non-GAAP measures) and a reconciliation of these measures to
the associated GAAP measures.
Recent Acquisitions
Concho has completed approximately $255 million in acquisitions and
leasehold additions year-to-date totaling approximately 25,000 net acres
and 1.5 MBoepd of production. The properties, which are primarily
concentrated in the Company’s existing core operating areas in the
Delaware Basin, provide for more efficient long-lateral development and
increase the Company’s working interests in these high-impact areas.
Financial Position and Liquidity
On October 6, 2015, the Company closed its previously announced public
offering of 8,855,000 shares of the Company’s common stock, including
the over-allotment option. Total net proceeds from the offering were
approximately $794 million. The Company used a portion of the net
proceeds to repay all outstanding borrowings under its credit facility,
which were used in part to finance recent acquisitions, and the Company
plans to use the remaining net proceeds for general corporate purposes,
which may include funding potential future acquisitions. Pro forma for
the common stock offering, the Company’s net debt-to-EBITDAX ratio at
September 30, 2015, was 1.7 times.
Outlook
Fourth Quarter and Full Year 2015
For the fourth quarter of 2015, the Company expects production to
average between 139 MBoepd and 143 MBoepd.
The Company currently expects its full-year 2015 capital budget,
excluding acquisitions, to be approximately $1.9 billion, consisting of
$1.7 billion for drilling and completion operations, including
non-consents, and $0.2 billion for facilities, midstream, geological and
geophysical and other. The Company’s 2015 production growth target is
now a range of 27% to 28%, which compares to the Company’s prior range
of 24% to 26%.
In addition, Concho updated its full-year 2015 outlook for certain
items. The following table summarizes the Company’s current guidance for
those items, as compared to the Company’s prior guidance.
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Full Year 2015
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Prior
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Current
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Production
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Year-over-year production growth
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24% - 26%
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27% - 28%
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Operating costs and expenses
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Lease operating expense
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$7.50 - $8.00
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$7.50 - $7.75
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Depreciation, depletion and amortization
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$23.00 - $25.00
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$23.00 - $24.00
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Exploration
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$1.50 - $2.50
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$1.00 - $2.00
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Full Year 2016
Concho’s base 2016 capital budget is $1.4 billion, with drilling and
completion capital accounting for $1.2 billion. Based on this level of
capital and assuming a NYMEX WTI crude oil price of $50 per barrel and a
NYMEX Henry Hub natural gas price of $2.50 per thousand cubic feet,
Concho expects to maintain 2015 production levels year-over-year, fund
the capital budget within cash flow and maintain a net debt-to-EBITDAX
ratio of less than two times through 2016. Concho’s 2016 capital budget
excludes acquisitions and is subject to change depending upon a number
of factors, including commodity prices and industry conditions. The
Company plans to provide detailed guidance for 2016 in its fourth
quarter and full-year 2015 earnings release.
Commodity Derivatives Update
The Company enters into commodity derivatives to manage its exposure to
commodity price fluctuations. For the fourth quarter of 2015, Concho has
swap contracts covering approximately 66.6 MBopd at a weighted average
price of $72.86 per Bbl. For 2016, Concho has swap contracts covering
approximately 63.4 MBopd at a weighted average price of $70.13 per Bbl.
Please see the table under “Derivatives Information” for more detailed
information about the Company’s current derivatives positions.
Changes and Additions to Management Group
The Company announced changes to its management group.
Gayle Burleson, formerly Vice President of New Mexico, has been named
Vice President of Business Development. Since her arrival at Concho in
2006, Mrs. Burleson has held several reservoir engineering roles for
Concho, including as Vice President of Engineering and Manager of
Corporate Engineering.
Clay Bateman, formerly Vice President of Texas, has been named Vice
President of New Mexico. Mr. Bateman joined Concho in 2008 and has
previously also served as Texas Basins Asset Manager and Texas Asset
Manager.
The Company also announced two management promotions.
Keith Corbett has been promoted to Vice President of Texas. Mr. Corbett
joined Concho in 2005 as Lead Reservoir Engineer. Previously, Mr.
Corbett has held the roles of New Mexico Basin Asset Manager, New Mexico
Shelf Asset Manager and New Mexico Operations Supervisor. Before coming
to Concho, Mr. Corbett held drilling, reservoir and production
engineering positions at Pennzoil (later Devon Energy) and Stallion
Energy. Mr. Corbett holds a Bachelor of Science in Petroleum Engineering
from Texas A&M University.
Mary Ann Berry has been promoted to Vice President, Chief of Staff and
Assistant Corporate Secretary. Mrs. Berry joined Concho in 2008 as an
attorney in the legal department and subsequently held roles of
increasing responsibility until becoming Chief of Staff in 2014. As
Chief of Staff, Mrs. Berry oversees Human Resources, equity
administration and internal communications. Before coming to Concho,
Mrs. Berry was a corporate litigator at Cooper Levenson, P.A. in
Atlantic City, New Jersey. Mrs. Berry holds a Bachelor of Arts in
Politics from The Catholic University of America and a Juris Doctor from
Seton Hall University School of Law.
Conference Call
Concho will discuss third quarter 2015 results on a conference call
tomorrow, November 5, 2015, at 8:30 AM CT (9:30 AM ET). The telephone
number and passcode to access the conference call are provided below:
Dial-in: (855) 445-9894
Intl. dial-in: (330) 863-3281
Participant
Passcode: 50093034
To access the live webcast and view the related presentation, visit
Concho’s website at www.concho.com. The replay will
also be available on the Company’s website under the “Investors” section.
Upcoming Conferences
The Company will participate in the following upcoming conferences:
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November 10, 2015 – Bank of America Merrill Lynch Global Energy
Conference
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November 11, 2015 – Jefferies Energy Conference
The Company’s presentation at the Bank of America conference is
scheduled for 8:45 AM CT (9:45 AM ET) on Tuesday, November 10, 2015, and
its presentation at the Jefferies conference is scheduled for 2:00 PM CT
(3:00 PM ET) on Wednesday, November 11, 2015. Both presentations will be
webcast and accessible on the “Events & Presentations” page under the
“Investors” section of the Company’s website. The Company will refer to
its November 2015 Investor Presentation. The presentation will be
available on the Company’s website on or prior to the day of the first
conference.
Concho Resources Inc.
Concho Resources Inc. is an independent oil and natural gas company
engaged in the acquisition, development and exploration of oil and
natural gas properties. The Company’s operations are primarily focused
in the Permian Basin of southeast New Mexico and west Texas. For more
information, visit the Company’s website at www.concho.com.
Forward-Looking Statements and Cautionary Statements
The foregoing contains “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical fact, included in this press release that
address activities, events or developments that the Company expects,
believes or anticipates will or may occur in the future are
forward-looking statements. Forward-looking statements contained in this
press release specifically include statements, estimates and projections
regarding the Company’s future financial position, operations,
performance, business strategy, oil and natural gas reserves, drilling
program, capital expenditure budget, liquidity and capital resources,
the timing and success of specific projects, outcomes and effects of
litigation, claims and disputes, derivative activities and
potential financing. The words “estimate,” “project,” “predict,”
“believe,” “expect,” “anticipate,” “potential,” “could,” “may,”
“foresee,” “plan,” “goal” or other similar expressions are intended to
identify forward-looking statements, which generally are not historical
in nature. However, the absence of these words does not mean that the
statements are not forward-looking. These statements are based on
certain assumptions and analyses made by the Company based on
management’s experience, expectations and perception of historical
trends, current conditions, anticipated future developments and other
factors believed to be appropriate. Forward-looking statements are not
guarantees of performance. Although the Company believes the
expectations reflected in its forward-looking statements are reasonable
and are based on reasonable assumptions, no assurance can be given that
these assumptions are accurate or that any of these expectations will be
achieved (in full or at all) or will prove to have been correct.
Moreover, such statements are subject to a number of assumptions, risks
and uncertainties, many of which are beyond the control of the Company,
which may cause actual results to differ materially from those implied
or expressed by the forward-looking statements. These include the risk
factors discussed or referenced in the Company’s most recent Annual
Report on Form 10-K and Current Reports on Form 8-K; risks relating to
declines in the prices the Company receives for its oil and natural gas;
uncertainties about the estimated quantities of oil and natural gas
reserves; drilling and operating risks, including risks related to
properties where the Company does not serve as the operator and risks
related to hydraulic fracturing activities; the adequacy of the
Company’s capital resources and liquidity including, but not limited to,
access to additional borrowing capacity under its credit facility; the
effects of government regulation, permitting and other legal
requirements, including new legislation or regulation of hydraulic
fracturing and the export of oil and natural gas; environmental hazards,
such as uncontrollable flows of oil, natural gas, brine, well fluids,
toxic gas or other pollution into the environment, including groundwater
contamination; difficult and adverse conditions in the domestic and
global capital and credit markets; risks related to the concentration of
the Company’s operations in the Permian Basin of southeast New Mexico
and west Texas; disruptions to, capacity constraints in or other
limitations on the pipeline systems that deliver the Company’s oil,
natural gas liquids and natural gas and other processing and
transportation considerations; the costs and availability of equipment,
resources, services and personnel required to perform the Company’s
drilling and operating activities; potential financial losses or
earnings reductions from the Company’s commodity price management
program; risks and liabilities related to the integration of acquired
properties or businesses; uncertainties about the Company’s ability to
successfully execute its business and financial plans and strategies;
uncertainties about the Company’s ability to replace reserves and
economically develop its current reserves; general economic and business
conditions, either internationally or domestically; competition in the
oil and natural gas industry; uncertainty concerning the Company’s
assumed or possible future results of operations; and other important
factors that could cause actual results to differ materially from those
projected.
Any forward-looking statement speaks only as of the date on which
such statement is made, and the Company undertakes no obligation to
correct or update any forward-looking statement, whether as a result of
new information, future events or otherwise, except as required by
applicable law.
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Concho Resources Inc.
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Consolidated Balance Sheets
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Unaudited
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September 30,
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December 31,
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(in thousands, except share and per share amounts)
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2015
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2014
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Assets
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Current assets:
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Cash and cash equivalents
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$
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20
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$
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21
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Accounts receivable, net of allowance for doubtful accounts:
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Oil and natural gas
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229,756
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250,600
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Joint operations and other
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220,137
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409,665
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Derivative instruments
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581,436
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490,351
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Prepaid costs and other
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39,332
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37,759
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Total current assets
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1,070,681
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1,188,396
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Property and equipment:
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Oil and natural gas properties, successful efforts method
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15,682,799
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13,867,831
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Accumulated depletion and depreciation
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(4,681,106
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)
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(3,790,953
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)
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Total oil and natural gas properties, net
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11,001,693
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10,076,878
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Other property and equipment, net
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160,582
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129,136
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Total property and equipment, net
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11,162,275
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10,206,014
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Deferred loan costs, net
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60,994
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68,443
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Intangible asset - operating rights, net
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26,059
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27,154
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Inventory
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21,688
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|
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14,435
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Noncurrent derivative instruments
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108,894
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262,349
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Other assets
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76,971
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33,172
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Total assets
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$
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12,527,562
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$
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11,799,963
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Liabilities and Stockholders’ Equity
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Current liabilities:
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Accounts payable - trade
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$
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26,801
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$
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20,380
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Bank overdrafts
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|
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109,741
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|
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92,541
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Revenue payable
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185,732
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|
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238,098
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Accrued and prepaid drilling costs
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303,331
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|
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718,300
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Deferred income taxes
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197,632
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162,566
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Other current liabilities
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205,417
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|
|
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195,308
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Total current liabilities
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1,028,654
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1,427,193
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Long-term debt
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|
|
3,822,274
|
|
|
|
|
3,517,320
|
|
Deferred income taxes
|
|
|
|
1,409,684
|
|
|
|
|
1,438,185
|
|
Asset retirement obligations and other long-term liabilities
|
|
|
|
133,168
|
|
|
|
|
136,477
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
Common stock, $0.001 par value; 300,000,000 authorized;
120,594,183 and 113,264,918 shares issued at September 30, 2015
and December 31, 2014, respectively
|
|
|
|
121
|
|
|
|
|
113
|
|
Additional paid-in capital
|
|
|
|
3,818,673
|
|
|
|
|
3,027,412
|
|
Retained earnings
|
|
|
|
2,346,429
|
|
|
|
|
2,279,741
|
|
Treasury stock, at cost; 304,483 and 260,124 shares at September
30, 2015 and December 31, 2014, respectively
|
|
|
|
(31,441
|
)
|
|
|
|
(26,478
|
)
|
Total stockholders’ equity
|
|
|
|
6,133,782
|
|
|
|
|
5,280,788
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
12,527,562
|
|
|
|
$
|
11,799,963
|
|
|
|
Concho Resources Inc.
|
Consolidated Statements of Operations
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
September 30,
|
(in thousands, except per share amounts)
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues:
|
|
|
|
|
|
|
|
|
|
|
Oil sales
|
|
|
$
|
391,963
|
|
|
$
|
575,611
|
|
|
|
$
|
1,212,437
|
|
|
$
|
1,696,240
|
|
Natural gas sales
|
|
|
|
71,511
|
|
|
|
124,652
|
|
|
|
|
201,984
|
|
|
|
369,684
|
|
Total operating revenues
|
|
|
|
463,474
|
|
|
|
700,263
|
|
|
|
|
1,414,421
|
|
|
|
2,065,924
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Oil and natural gas production
|
|
|
|
138,125
|
|
|
|
140,725
|
|
|
|
|
405,925
|
|
|
|
402,593
|
|
Exploration and abandonments
|
|
|
|
14,791
|
|
|
|
16,982
|
|
|
|
|
32,566
|
|
|
|
70,645
|
|
Depreciation, depletion and amortization
|
|
|
|
329,467
|
|
|
|
256,765
|
|
|
|
|
901,474
|
|
|
|
715,602
|
|
Accretion of discount on asset retirement obligations
|
|
|
|
1,853
|
|
|
|
1,769
|
|
|
|
|
5,894
|
|
|
|
5,162
|
|
Impairments of long-lived assets
|
|
|
|
7,588
|
|
|
|
15,476
|
|
|
|
|
7,588
|
|
|
|
15,476
|
|
General and administrative (including non-cash stock-based
compensation of $16,327 and $13,465 for the three months ended
September 30, 2015 and 2014, respectively, and $47,272 and $34,672
for the nine months ended September 30, 2015 and 2014,
respectively)
|
|
|
|
60,052
|
|
|
|
52,763
|
|
|
|
|
179,776
|
|
|
|
150,048
|
|
Gain on derivatives
|
|
|
|
(413,130
|
)
|
|
|
(326,229
|
)
|
|
|
|
(381,071
|
)
|
|
|
(125,907
|
)
|
Total operating costs and expenses
|
|
|
|
138,746
|
|
|
|
158,251
|
|
|
|
|
1,152,152
|
|
|
|
1,233,619
|
|
Income from operations
|
|
|
|
324,728
|
|
|
|
542,012
|
|
|
|
|
262,269
|
|
|
|
832,305
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(53,752
|
)
|
|
|
(52,601
|
)
|
|
|
|
(160,803
|
)
|
|
|
(164,124
|
)
|
Loss on extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(4,316
|
)
|
Other, net
|
|
|
|
556
|
|
|
|
2,155
|
|
|
|
|
(9,463
|
)
|
|
|
(6,833
|
)
|
Total other expense
|
|
|
|
(53,196
|
)
|
|
|
(50,446
|
)
|
|
|
|
(170,266
|
)
|
|
|
(175,273
|
)
|
Income before income taxes
|
|
|
|
271,532
|
|
|
|
491,566
|
|
|
|
|
92,003
|
|
|
|
657,032
|
|
Income tax expense
|
|
|
|
(91,873
|
)
|
|
|
(186,363
|
)
|
|
|
|
(25,315
|
)
|
|
|
(248,753
|
)
|
Net income
|
|
|
$
|
179,659
|
|
|
$
|
305,203
|
|
|
|
$
|
66,688
|
|
|
$
|
408,279
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Basic net income
|
|
|
$
|
1.49
|
|
|
$
|
2.70
|
|
|
|
$
|
0.56
|
|
|
$
|
3.74
|
|
Diluted net income
|
|
|
$
|
1.49
|
|
|
$
|
2.69
|
|
|
|
$
|
0.56
|
|
|
$
|
3.73
|
|
|
|
Concho Resources Inc.
|
Consolidated Statements of Cash Flows
|
Unaudited
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
(in thousands)
|
|
|
2015
|
|
2014
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
|
|
$
|
66,688
|
|
|
$
|
408,279
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
901,474
|
|
|
|
715,602
|
|
Accretion of discount on asset retirement obligations
|
|
|
|
5,894
|
|
|
|
5,162
|
|
Impairments of long-lived assets
|
|
|
|
7,588
|
|
|
|
15,476
|
|
Exploration and abandonments, including dry holes
|
|
|
|
25,859
|
|
|
|
56,626
|
|
Non-cash stock-based compensation expense
|
|
|
|
47,272
|
|
|
|
34,672
|
|
Deferred income taxes
|
|
|
|
6,565
|
|
|
|
219,502
|
|
Loss on disposition of assets and other
|
|
|
|
1,588
|
|
|
|
8,697
|
|
Gain on derivatives
|
|
|
|
(381,071
|
)
|
|
|
(125,907
|
)
|
Other non-cash items
|
|
|
|
8,074
|
|
|
|
11,207
|
|
Changes in operating assets and liabilities, net of acquisitions and
dispositions:
|
|
|
|
|
|
Accounts receivable
|
|
|
|
111,475
|
|
|
|
(75,963
|
)
|
Prepaid costs and other
|
|
|
|
(3,049
|
)
|
|
|
(19,317
|
)
|
Inventory
|
|
|
|
(7,236
|
)
|
|
|
3,058
|
|
Accounts payable
|
|
|
|
4,089
|
|
|
|
18,500
|
|
Revenue payable
|
|
|
|
(52,366
|
)
|
|
|
13,176
|
|
Other current liabilities
|
|
|
|
17,749
|
|
|
|
(234
|
)
|
Net cash provided by operating activities
|
|
|
|
760,593
|
|
|
|
1,288,536
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Capital expenditures on oil and natural gas properties
|
|
|
|
(2,177,144
|
)
|
|
|
(1,754,835
|
)
|
Additions to property, equipment and other assets
|
|
|
|
(45,231
|
)
|
|
|
(25,267
|
)
|
Proceeds from the disposition of assets
|
|
|
|
106
|
|
|
|
1,122
|
|
Contribution to equity method investment
|
|
|
|
(45,000
|
)
|
|
|
(30,050
|
)
|
Settlements received from (paid on) derivatives
|
|
|
|
443,441
|
|
|
|
(26,174
|
)
|
Net cash used in investing activities
|
|
|
|
(1,823,828
|
)
|
|
|
(1,835,204
|
)
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from issuance of debt
|
|
|
|
1,337,900
|
|
|
|
1,578,000
|
|
Payments of debt
|
|
|
|
(1,030,900
|
)
|
|
|
(1,828,000
|
)
|
Exercise of stock options
|
|
|
|
59
|
|
|
|
4,660
|
|
Excess tax benefit from stock-based compensation
|
|
|
|
2,429
|
|
|
|
12,049
|
|
Net proceeds from issuance of common stock
|
|
|
|
741,509
|
|
|
|
931,989
|
|
Payments for loan costs
|
|
|
|
-
|
|
|
|
(10,649
|
)
|
Purchase of treasury stock
|
|
|
|
(4,963
|
)
|
|
|
(5,820
|
)
|
Increase (decrease) in bank overdrafts
|
|
|
|
17,200
|
|
|
|
(36,718
|
)
|
Net cash provided by financing activities
|
|
|
|
1,063,234
|
|
|
|
645,511
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
|
(1
|
)
|
|
|
98,843
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
21
|
|
|
|
21
|
|
Cash and cash equivalents at end of period
|
|
|
$
|
20
|
|
|
$
|
98,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concho Resources Inc.
|
Summary Production and Price Data
|
Unaudited
|
|
|
|
|
|
|
|
|
The following table sets forth summary information concerning
production and operating data for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
Production and operating data:
|
|
|
|
|
|
|
|
|
|
Net production volumes:
|
|
|
|
|
|
|
|
|
|
|
|
Oil (MBbl)
|
|
|
|
8,945
|
|
|
6,689
|
|
|
26,042
|
|
|
18,764
|
|
|
|
Natural gas (MMcf)
|
|
|
|
28,746
|
|
|
22,513
|
|
|
78,014
|
|
|
63,798
|
|
|
|
Total (MBoe)
|
|
|
|
13,736
|
|
|
10,441
|
|
|
39,044
|
|
|
29,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily production volumes:
|
|
|
|
|
|
|
|
|
|
|
|
Oil (Bbl)
|
|
|
|
97,228
|
|
|
72,707
|
|
|
95,392
|
|
|
68,733
|
|
|
|
Natural gas (Mcf)
|
|
|
|
312,457
|
|
|
244,707
|
|
|
285,766
|
|
|
233,692
|
|
|
|
Total (Boe)
|
|
|
|
149,304
|
|
|
113,492
|
|
|
143,020
|
|
|
107,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average prices:
|
|
|
|
|
|
|
|
|
|
|
|
Oil, without derivatives (Bbl)
|
|
|
$
|
43.82
|
|
$
|
86.05
|
|
$
|
46.56
|
|
$
|
90.40
|
|
|
|
Oil, with derivatives (Bbl) (a)
|
|
|
$
|
61.23
|
|
$
|
88.19
|
|
$
|
62.65
|
|
$
|
89.33
|
|
|
|
Natural gas, without derivatives (Mcf)
|
|
|
$
|
2.49
|
|
$
|
5.54
|
|
$
|
2.59
|
|
$
|
5.79
|
|
|
|
Natural gas, with derivatives (Mcf) (a)
|
|
|
$
|
2.78
|
|
$
|
5.56
|
|
$
|
2.90
|
|
$
|
5.70
|
|
|
|
Total, without derivatives (Boe)
|
|
|
$
|
33.74
|
|
$
|
67.07
|
|
$
|
36.23
|
|
$
|
70.28
|
|
|
|
Total, with derivatives (Boe) (a)
|
|
|
$
|
45.68
|
|
$
|
68.48
|
|
$
|
47.58
|
|
$
|
69.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses per Boe:
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating expenses and workover costs
|
|
|
$
|
7.23
|
|
$
|
8.26
|
|
$
|
7.38
|
|
$
|
8.17
|
|
|
|
Oil and natural gas taxes
|
|
|
$
|
2.83
|
|
$
|
5.21
|
|
$
|
3.02
|
|
$
|
5.53
|
|
|
|
Depreciation, depletion and amortization
|
|
|
$
|
23.99
|
|
$
|
24.58
|
|
$
|
23.09
|
|
$
|
24.35
|
|
|
|
General and administrative
|
|
|
$
|
4.37
|
|
$
|
5.06
|
|
$
|
4.60
|
|
$
|
5.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Includes the effect of cash receipts from (payments on) derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
(in thousands)
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash receipts from (payments on) derivatives:
|
|
|
|
|
|
|
|
Oil derivatives
|
|
|
$
|
155,732
|
|
$
|
14,271
|
|
$
|
419,047
|
|
$
|
(20,067
|
)
|
|
|
Natural gas derivatives
|
|
|
|
8,301
|
|
|
446
|
|
|
24,394
|
|
|
(6,107
|
)
|
|
|
Total
|
|
|
$
|
164,033
|
|
$
|
14,717
|
|
$
|
443,441
|
|
$
|
(26,174
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The presentation of average prices with derivatives is a non-GAAP
measure as a result of including the cash receipts from (payments
on) commodity derivatives that are presented in our statements of
cash flows. This presentation of average prices with derivatives
is a means by which to reflect the actual cash performance of our
commodity derivatives for the respective periods and presents oil
and natural gas prices with derivatives in a manner consistent
with the presentation generally used by the investment community.
|
|
|
Concho Resources Inc.
|
Costs Incurred
|
Unaudited
|
|
The table below provides the costs incurred for oil and natural
gas producing activities for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
(in thousands)
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Property acquisition costs:
|
|
|
|
|
|
|
|
|
|
Proved
|
|
|
$
|
56,636
|
|
$
|
37,732
|
|
$
|
58,879
|
|
$
|
60,359
|
Unproved
|
|
|
|
161,921
|
|
|
71,915
|
|
|
195,971
|
|
|
107,985
|
Exploration
|
|
|
|
201,737
|
|
|
469,290
|
|
|
973,957
|
|
|
1,136,211
|
Development
|
|
|
|
99,490
|
|
|
204,938
|
|
|
622,644
|
|
|
609,780
|
Total costs incurred for oil and natural gas properties
|
|
|
$
|
519,784
|
|
$
|
783,875
|
|
$
|
1,851,451
|
|
$
|
1,914,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Concho Resources Inc.
|
Derivatives Information
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below provides data associated with the Company’s
derivatives at November 4, 2015, for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
|
|
Fourth Quarter
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
|
|
|
|
|
2015
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Total
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Swaps: (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Bbl)
|
|
|
6,124,000
|
|
|
|
6,722,000
|
|
|
|
5,985,000
|
|
|
|
5,460,000
|
|
|
|
5,054,000
|
|
|
|
23,221,000
|
|
|
|
13,782,000
|
|
Price per Bbl
|
|
$
|
72.86
|
|
|
$
|
71.99
|
|
|
$
|
73.38
|
|
|
$
|
74.21
|
|
|
$
|
59.38
|
|
|
$
|
70.13
|
|
|
$
|
59.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil Basis Swaps: (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (Bbl)
|
|
|
5,428,000
|
|
|
|
5,398,000
|
|
|
|
5,095,000
|
|
|
|
4,876,000
|
|
|
|
4,416,000
|
|
|
|
19,785,000
|
|
|
|
7,427,000
|
|
Price per Bbl
|
|
$
|
(2.41
|
)
|
|
$
|
(1.60
|
)
|
|
$
|
(1.62
|
)
|
|
$
|
(1.59
|
)
|
|
$
|
(1.62
|
)
|
|
$
|
(1.61
|
)
|
|
$
|
(1.34
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Swaps: (c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (MMBtu)
|
|
|
5,980,000
|
|
|
|
7,280,000
|
|
|
|
7,280,000
|
|
|
|
7,360,000
|
|
|
|
7,360,000
|
|
|
|
29,280,000
|
|
|
|
-
|
|
Price per MMBtu
|
|
$
|
4.16
|
|
|
$
|
3.02
|
|
|
$
|
3.02
|
|
|
$
|
3.02
|
|
|
$
|
3.02
|
|
|
$
|
3.02
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Basis Swaps: (d)
|
|
|
|
|
|
|
|
|
|
|
|
|
Volume (MMBtu)
|
|
|
1,380,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Price per MMBtu
|
|
$
|
(0.13
|
)
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The index prices for the oil contracts are based on the New
York Mercantile Exchange (“NYMEX”) – West Texas Intermediate
(“WTI”) monthly average futures price.
|
(b) The basis differential price is between Midland – WTI and
Cushing – WTI.
|
(c) The index prices for the natural gas price swaps are based on
the NYMEX – Henry Hub last trading day futures price.
|
(d) The basis differential price is between the El Paso Permian
delivery point and NYMEX – Henry Hub delivery point.
|
|
|
Concho Resources Inc.
|
Supplemental Non-GAAP Financial Measures
|
Unaudited
|
|
The following tables provide information that the Company believes
may be useful to investors who follow the practice of some
industry analysts who adjust reported company net income and
earnings per share to exclude certain non-cash and unusual items
and cash flows from operating activities to adjust for settlements
on derivatives.
|
|
Adjusted Net Income and Adjusted Earnings per Share
|
|
The following table provides a reconciliation from the United
States generally accepted accounting principles (“GAAP”) measure
of net income to adjusted net income (non-GAAP) for the periods
indicated:
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
(in thousands, except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Net income - as reported
|
|
$
|
179,659
|
|
|
$
|
305,203
|
|
|
$
|
66,688
|
|
|
$
|
408,279
|
|
|
|
|
|
|
|
|
|
|
Adjustments for certain non-cash and unusual items:
|
|
|
|
|
|
|
|
|
Gain on derivatives
|
|
|
(413,130
|
)
|
|
|
(326,229
|
)
|
|
|
(381,071
|
)
|
|
|
(125,907
|
)
|
Cash receipts from (payments on) derivatives
|
|
|
164,033
|
|
|
|
14,717
|
|
|
|
443,441
|
|
|
|
(26,174
|
)
|
Impairments of long-lived assets
|
|
|
7,588
|
|
|
|
15,476
|
|
|
|
7,588
|
|
|
|
15,476
|
|
Leasehold abandonments
|
|
|
13,283
|
|
|
|
4,618
|
|
|
|
16,646
|
|
|
|
19,756
|
|
Loss on extinguishment of debt
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,316
|
|
(Gain) loss on disposition of assets and other
|
|
|
(32
|
)
|
|
|
(760
|
)
|
|
|
1,588
|
|
|
|
8,697
|
|
Tax impact
|
|
|
87,879
|
|
|
|
110,151
|
|
|
|
(33,954
|
)
|
|
|
39,146
|
|
Change in statutory effective income tax rates
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,826
|
)
|
|
|
-
|
|
Adjusted net income
|
|
$
|
39,280
|
|
|
$
|
123,176
|
|
|
$
|
119,100
|
|
|
$
|
343,589
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.33
|
|
|
$
|
1.09
|
|
|
$
|
1.00
|
|
|
$
|
3.15
|
|
Diluted
|
|
$
|
0.33
|
|
|
$
|
1.09
|
|
|
$
|
1.00
|
|
|
$
|
3.14
|
|
|
|
|
|
|
|
|
|
|
Tax rates
|
|
|
38.5
|
%
|
|
|
37.7
|
%
|
|
|
38.5
|
%
|
|
|
37.7
|
%
|
|
Adjusted Cash Flows
|
|
The following table provides a reconciliation of cash flows from
operating activities (GAAP) to adjusted cash flows (non-GAAP) for
the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
September 30,
|
(in thousands)
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
$
|
760,593
|
|
$
|
1,288,536
|
|
Settlements received from (paid on) derivatives (a)
|
|
|
|
443,441
|
|
|
(26,174
|
)
|
Adjusted cash flows
|
|
|
$
|
1,204,034
|
|
$
|
1,262,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Amounts are presented in cash flows from investing activities
for GAAP purposes.
|
|
EBITDAX
EBITDAX (as defined below) is presented herein and reconciled from the
GAAP measure of net income because of its wide acceptance by the
investment community as a financial indicator of a company's ability to
internally fund exploration and development activities.
The Company defines EBITDAX as net income, plus (1) exploration and
abandonments expense, (2) depreciation, depletion and amortization
expense, (3) accretion expense, (4) impairments of long-lived assets,
(5) non-cash stock-based compensation expense, (6) gain on derivatives,
(7) cash receipts from (payments on) derivatives, (8) (gain) loss on
disposition of assets and other, (9) interest expense, (10) loss on
extinguishment of debt and (11) federal and state income taxes. EBITDAX
is not a measure of net income or cash flows as determined by GAAP.
The Company’s EBITDAX measure provides additional information which may
be used to better understand the Company’s operations. EBITDAX is one of
several metrics that the Company uses as a supplemental financial
measurement in the evaluation of its business and should not be
considered as an alternative to, or more meaningful than, net income as
an indicator of operating performance. Certain items excluded from
EBITDAX are significant components in understanding and assessing a
company's financial performance, such as a company's cost of capital and
tax structure, as well as the historic cost of depreciable assets, none
of which are components of EBITDAX. EBITDAX, as used by the Company, may
not be comparable to similarly titled measures reported by other
companies. The Company believes that EBITDAX is a widely followed
measure of operating performance and is one of many metrics used by the
Company’s management team and by other users of the Company’s
consolidated financial statements. For example, EBITDAX can be used to
assess the Company’s operating performance and return on capital in
comparison to other independent exploration and production companies
without regard to financial or capital structure, and to assess the
financial performance of the Company’s assets and the Company without
regard to capital structure or historical cost basis.
The following table provides a reconciliation of net income (GAAP) to
EBITDAX (non-GAAP) for the periods indicated:
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
(in thousands)
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
179,659
|
|
|
$
|
305,203
|
|
|
$
|
66,688
|
|
|
$
|
408,279
|
|
Exploration and abandonments
|
|
|
|
14,791
|
|
|
|
16,982
|
|
|
|
32,566
|
|
|
|
70,645
|
|
Depreciation, depletion and amortization
|
|
|
|
329,467
|
|
|
|
256,765
|
|
|
|
901,474
|
|
|
|
715,602
|
|
Accretion of discount on asset retirement obligations
|
|
|
|
1,853
|
|
|
|
1,769
|
|
|
|
5,894
|
|
|
|
5,162
|
|
Impairments of long-lived assets
|
|
|
|
7,588
|
|
|
|
15,476
|
|
|
|
7,588
|
|
|
|
15,476
|
|
Non-cash stock-based compensation
|
|
|
|
16,327
|
|
|
|
13,465
|
|
|
|
47,272
|
|
|
|
34,672
|
|
Gain on derivatives
|
|
|
|
(413,130
|
)
|
|
|
(326,229
|
)
|
|
|
(381,071
|
)
|
|
|
(125,907
|
)
|
Cash receipts from (payments on) derivatives
|
|
|
|
164,033
|
|
|
|
14,717
|
|
|
|
443,441
|
|
|
|
(26,174
|
)
|
(Gain) loss on disposition of assets and other
|
|
|
|
(32
|
)
|
|
|
(760
|
)
|
|
|
1,588
|
|
|
|
8,697
|
|
Interest expense
|
|
|
|
53,752
|
|
|
|
52,601
|
|
|
|
160,803
|
|
|
|
164,124
|
|
Loss on extinguishment of debt
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,316
|
|
Income tax expense
|
|
|
|
91,873
|
|
|
|
186,363
|
|
|
|
25,315
|
|
|
|
248,753
|
|
EBITDAX
|
|
|
$
|
446,181
|
|
|
$
|
536,352
|
|
|
$
|
1,311,558
|
|
|
$
|
1,523,645
|
|
CONTACT:
Concho Resources Inc.
Megan P. Hays, 432-685-2533
Director
of Investor Relations
or
Gabriel Middendorf, 432-685-2577
Financial
Analyst
Concho Resources (NYSE:CXO)
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