Stocks for Your Case: Concho Resources, Inc. (NYSE:CXO)


Concho Resources, Inc. (NYSE:CXO) added 12.32% and closed its last session at $143.02. The stock has the market capitalization of $20.89 Billion with the total outstanding shares of 146.05 Million. Concho Resources, Inc.. has Analysts’ Mean Recommendation of 1.45 between the scale of 1 to 5 (1 represents Strong Buy and 5 means Sell). The stock currently has P/E of 0 for trailing twelve months while its Forward P/E is 13001.82.

Concho Resources, Inc. (NYSE:CXO) touched its 52-Week High of $143.66 on Nov 30, 2016 while it’s 52-Week Low of $69.94 on Jan 20, 2016. The company currently has Return on Assets of -11.5 percent, Return on Equity of -20.4% and Return on Investment of 3.4 percent. The stock currently showing Weekly Volatility of 4.02%% and Monthly Volatility of 3.74% Percent with Average True Range of 5.59 and Beta of 1.22.

The 35 analysts offering 12-month price forecasts for Concho Resources Inc have a median target of 155.00, with a high estimate of 189.00 and a low estimate of 75.00. The median estimate represents a +8.38% increase from the last price of 143.02.

Press Release:

The Company on 21 November declared it has reached a definitive agreement to acquire approximately 24,000 gross (16,400 net) acres in the northern Delaware Basin for approximately $430 million. The acquired acreage is complementary to the Company’s leasehold position in the northern Delaware Basin, with approximately 12,000 gross (10,000 net) acres located in the Red Hills area in Lea County, New Mexico.

Acquisition Highlights

  • Includes approximately 2.5 MBoepd (69% oil) of current production
  • Expands position in Red Hills area by more than 25% to approximately 47,000 net acres
  • Doubles long-lateral drilling inventory in Red Hills
  • Provides significant development upside across multiple, de-risked zones
  • Accretive to cash flow per share and leverage neutral

Consideration in the transaction includes approximately $150 million of cash and 2.18 million shares of Concho’s common stock. Concho expects to fund the cash portion of the transaction with cash on hand, borrowings under its credit facility and potential non-core asset sales. The acquisition is expected to close in January 2017 and is subject to customary closing conditions.

Company Profile:

Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and exploration of oil and natural gas properties. The Company’s conventional operations are primarily focused in the Permian Basin of Southeast New Mexico and West Texas. In addition, the Company is involved in a number of unconventional emerging resource plays.