Concho Resources Inc (CXO) remains volatile, but bullish, following its latest earnings report.
Company Description
Concho Resources is an oil and natural gas exploration company. Most of the company’s properties are located in New Mexico and Texas. Concho also is involved in several emerging plays.
Huge Surprise
On Aug 3 the company reported second-quarter results that included production of 2.7 million barrels of oil equivalents, up 88%. Proven reserves are up 13% to 154.5.
Earnings per share came in at 34 cents on just under $30 million in net income. This compares to the Zacks Consensus Estimate of 19 cents, breaking its streak of missing forecasts.
Words from the Top
Timothy A. Leach, Chairman, CEO and President said, “The Company’s significant production and reserve growth through the first six months of 2009 continues to validate our efforts in both of our core areas.” He also continued that the company planned increase activity levels.
Estimates Spiking
Following the announcement 16 upward revisions were submitted from 18 analysts polled by Zacks. The consensus estimate is now $1.17, up from 88 cents. Forecasts for next year are averaging $1.44, up from $1.03.
The Chart
Shares of CXO are quite volatile but the general trend continues to be bullish. Take a look at the chart below.
