Concho Resources Q1 Results Beat Estimates - Quick Facts

(RTTNews) - Concho Resources Inc. (CXO) said that its first quarter of 2014 net income significantly increased to $91.3 million or $0.87 per share, from $30.1 million or $0.29 per share in the first quarter of 2013.

The company's first quarter 2014 results were impacted by several non-cash and unusual items including: a $35.6 million loss on derivatives not designated as hedges; $14.8 million in cash payments on commodity derivatives; $3.9 million of leasehold abandonments and a $0.1 million net gain on disposition of assets.

Adjusted net income for the quarter rose to $106.6 million or $1.01 per shares from $60.3 million or $0.58 per share in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.97 per share for the quarter. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter grew to $660.96 million from $472.13 million in the year ago quarter. Wall Street expected revenues of $629.78 million.

The company said it has formed a midstream joint venture with a private entity to construct a crude oil transportation system in the northern Delaware Basin. This aligns with the Company's midstream strategic objectives of improving price realizations and securing transportation for its crude oil volume. The joint venture will connect a substantial portion of the Company's crude oil production in the northern Delaware Basin and increase optionality by providing multiple delivery points. Current expectations are for the system to be operational in the second half of 2015.

Concho's upstream capital budget increased to $2.6 billion, excluding acquisitions, as operational efficiencies continue to improve. The company expects it will drill approximately 40 additional net wells with the incremental capital before the end of 2014. Additionally, the Company's recently announced midstream joint venture and previously announced acreage acquisitions in the southern Delaware Basin are expected to add approximately $100 million to the overall 2014 capital budget.

The company raised its 2014 annual production guidance range to 20% - 24% growth over 2013. For the second quarter of 2014, the Company expects production to average between 104 - 108 MBoepd.