Concho Resources Inc.
) has released its operational update for 2013 including
production, year-end estimated proved reserves and expenses
CABOT OIL & GAS (COG): Free Stock Analysis
CHENIERE ENERGY (CQP): Get Free Report
CONCHO RESOURCS (CXO): Free Stock Analysis
NGL ENERGY PART (NGL): Free Stock Analysis
To read this article on Zacks.com click here.
Total production for the year 2013 was 33.6 million barrels of
oil equivalent (MMBoe), up 20% from 2012 production from
continuing operations. Of the total production, crude oil was
21.1 MMBbls and natural gas comprised 75.1 Bcf.
During 2013, midstream and infrastructure delays led to an
estimated net production loss of over 500,000 Boe in the New
Mexico Shelf. Moreover, severe winter weather during the fourth
quarter prevented the company from delivering full-year
production within the upper-half of its original guidance range.
Crude oil output increased 25% over 2012 output and formed 63% of
total production versus 60% in 2012.
Concho's year-end estimated proved reserves jumped to 503 MMBoe
from 447 MMBoe in 2012. Majority of the company's proved reserves
are located in the Permian Basin, which remains one of the most
active and prolific oil basins in the continental U.S. The
primary growth driver for 2013 reserves addition was exploration
and development activity. The company added over 105 MMBoe of
proved reserves and replaced 266% of full-year 2013 production
after adjusting for revisions.
In 2013, Concho incurred total expenses of $1.87 billion. In sync
with its full-year 2013 guidance, the company invested about
$1.77 billion through its exploration and development program.
Drill-bit F&D costs for 2013 was $16.79 per Boe versus $16.56
per Boe in 2012.
Concho carries a Zacks Rank #3 (Hold). However, better-ranked
stocks in the oil and gas sector include
NGL Energy Partners LP
Cheniere Energy Partners L.P.
Cabot Oil & Gas Corporation
). All these stocks hold a Zacks Rank #1 (Strong Buy).