Concho Resources Inc. Reports Second Quarter 2012 Financial And Operating Results

Concho Resources Inc. (NYSE: CXO) (“Concho” or the “Company”) today reported financial and operating results for the three and six months ended June 30, 2012. Highlights for the three and six months ended June 30, 2012 include:
  • Production of 6.8 million barrels of oil equivalent (“MMBoe”) for the second quarter of 2012, a 22% increase over the second quarter of 2011
  • Net income of $319.3 million, or $3.07 per diluted share, for the second quarter of 2012, as compared to net income of $232.2 million, or $2.24 per diluted share, in the second quarter of 2011
  • Adjusted net income 1 (non-GAAP) of $80.5 million, or $0.78 per diluted share, for the second quarter of 2012, as compared to $113.2 million, or $1.09 per diluted share, for the second quarter of 2011
  • EBITDAX 2 of $327.4 million for the second quarter of 2012, a 5% increase over the second quarter of 2011

1 Adjusted net income (non-GAAP) is comparable to securities analyst estimates. For an explanation of how we calculate adjusted net income (non-GAAP) and a reconciliation of net income (GAAP) to adjusted net income (non-GAAP), please see "Supplemental Non-GAAP Financial Measures" below.

2 For an explanation of how we calculate and use EBITDAX (non-GAAP) and a reconciliation of net income (GAAP) to EBITDAX (non-GAAP), please see "Supplemental Non-GAAP Financial Measures" below.

The Company closed its previously announced acquisition of the oil and natural gas assets of Three Rivers Operating Company (“Three Rivers”) on July 2, 2012, paying a total of approximately $1.0 billion in cash funded by the Company’s revolving credit facility. Accordingly, results from the Three Rivers acquisition did not contribute to the Company’s second quarter results.

Second Quarter 2012 Financial Results

Production for the second quarter of 2012 totaled 6.8 MMBoe (4.2 million barrels of oil (“MMBbls”) and 15.6 billion cubic feet of natural gas (“Bcf”)), an increase of 22% as compared to 5.6 MMBoe (3.5 MMBbls and 12.3 Bcf) produced in the second quarter of 2011. During the second quarter of 2012, the Company estimates that production was negatively impacted by 3,000 barrels of oil equivalent per day (“Boepd”) due to scheduled and unscheduled maintenance and expansion work at two gas processing plants and a compression station in southeast New Mexico.

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