Concho Resources
Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States. The last earnings update was 110 days ago. More info.
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CXO Share Price and Events
7 Day Returns
1 Year Returns
CXO Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Concho Resources (CXO) | 5.6% | -1.5% | -8.1% | -16.1% | 29.5% | 3.7% |
| US Oil and Gas | 1% | 3.6% | -3.7% | -4.5% | 17.3% | -25% |
| US Market | 1.2% | 6.6% | 1.2% | 0.9% | 44.3% | 41.3% |
1 Year Return vs Industry and Market
- CXO underperformed the Oil and Gas industry which returned -4.5% over the past year.
- CXO underperformed the Market in United States of America which returned 0.9% over the past year.
CXO Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Concho Resources
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Concho Resources.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 20 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.4% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 7.3% |
| Oil and Gas Unlevered Beta | Simply Wall St/ S&P Global | 0.92 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.924 (1 + (1- 21%) (17.3%)) |
1.051 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.05 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.051 * 7.27%) |
10.37% |
Discounted Cash Flow Calculation for NYSE:CXO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Concho Resources is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 335.93 | 988.73 | 287.00 | 297.80 | 309.00 |
| Source | Analyst x6 | Analyst x8 | Analyst x1 | Est @ 3.76% | Est @ 3.76% |
|
Present Value Discounted (@ 10.37%) |
304.37 | 811.70 | 213.48 | 200.70 | 188.69 |
| Present value of next 5 years cash flows | $1,718.94 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $309.00 × (1 + 2.73%) ÷ (10.37% – 2.73%) |
$4,156.09 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $4,156.09 ÷ (1 + 10.37%)5 |
$2,537.90 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $1,718.94 + $2,537.90 |
$4,256.83 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $4,256.83 / 198.88 |
$21.4 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $21.40 |
| Current discount | Discount to share price of
$122.97
= -1 x ($122.97 - $21.40) / $21.40 |
-474.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Concho Resources is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Concho Resources's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Concho Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-09-30) in USD | $6.53 |
| NYSE:CXO Share Price ** | NYSE (2019-02-15) in USD | $122.97 |
| United States of America Oil and Gas Industry PE Ratio | Median Figure of 93 Publicly-Listed Oil and Gas Companies | 11.86x |
| United States of America Market PE Ratio | Median Figure of 3,045 Publicly-Listed Companies | 16.97x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Concho Resources.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:CXO Share Price ÷ EPS (both in USD) = 122.97 ÷ 6.53 |
18.84x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Concho Resources is overvalued based on earnings compared to the US Oil and Gas industry average.
- Concho Resources is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Concho Resources's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 18.84x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts |
26.1%per year |
| United States of America Oil and Gas Industry PEG Ratio | Median Figure of 66 Publicly-Listed Oil and Gas Companies | 0.52x |
| United States of America Market PEG Ratio | Median Figure of 2,115 Publicly-Listed Companies | 1.36x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 18.84x ÷ 26.1% |
0.72x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Concho Resources is good value based on expected growth next year.
Price based on value of assets
What value do investors place on
Concho Resources's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-09-30) in USD | $86.65 |
| NYSE:CXO Share Price * | NYSE (2019-02-15) in USD | $122.97 |
| United States of America Oil and Gas Industry PB Ratio | Median Figure of 194 Publicly-Listed Oil and Gas Companies | 1.08x |
| United States of America Market PB Ratio | Median Figure of 5,122 Publicly-Listed Companies | 1.82x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:CXO Share Price ÷ Book Value per Share (both in USD) = 122.97 ÷ 86.65 |
1.42x |
* Primary Listing of Concho Resources.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Concho Resources is overvalued based on assets compared to the US Oil and Gas industry average.
Value checks
We assess Concho Resources's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check) Concho Resources has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
CXO Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Concho Resources's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Concho Resources's earnings growth is expected to exceed the United States of America market average.
- Concho Resources's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:CXO Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts | 26.1% |
| NYSE:CXO Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts | 17.6% |
| United States of America Oil and Gas Industry Earnings Growth Rate | Market Cap Weighted Average | 8.8% |
| United States of America Oil and Gas Industry Revenue Growth Rate | Market Cap Weighted Average | 5.8% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 9,057 | 6,957 | 3,615 | 2 |
| 2022-12-31 | 8,647 | 6,481 | 3,221 | 3 |
| 2021-12-31 | 7,493 | 5,257 | 2,688 | 3 |
| 2020-12-31 | 6,859 | 4,858 | 1,825 | 14 |
| 2019-12-31 | 5,061 | 3,435 | 1,007 | 20 |
| 2018-12-31 | 4,141 | 2,661 | 1,065 | 19 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-09-30 | 3,785 | 2,371 | 1,032 |
| 2018-06-30 | 3,255 | 1,980 | 1,119 |
| 2018-03-31 | 2,901 | 1,776 | 1,133 |
| 2017-12-31 | 2,586 | 1,695 | 949 |
| 2017-09-30 | 2,281 | 1,550 | 559 |
| 2017-06-30 | 2,097 | 1,513 | 620 |
| 2017-03-31 | 1,936 | 1,421 | 203 |
| 2016-12-31 | 1,635 | 1,384 | -1,462 |
| 2016-09-30 | 1,421 | 1,789 | -1,338 |
| 2016-06-30 | 1,486 | 1,717 | -1,109 |
| 2016-03-31 | 1,657 | 1,774 | -962 |
| 2015-12-31 | 1,804 | 1,530 | 65 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (4 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
All data from Concho Resources Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 14.01 | 15.20 | 12.81 | 2.00 |
| 2022-12-31 | 13.53 | 15.75 | 12.14 | 3.00 |
| 2021-12-31 | 11.07 | 11.76 | 10.22 | 3.00 |
| 2020-12-31 | 8.69 | 16.18 | 6.48 | 11.00 |
| 2019-12-31 | 4.83 | 6.91 | 3.29 | 16.00 |
| 2018-12-31 | 6.08 | 7.06 | 5.54 | 11.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-09-30 | 6.53 |
| 2018-06-30 | 7.57 |
| 2018-03-31 | 7.68 |
| 2017-12-31 | 6.44 |
| 2017-09-30 | 3.81 |
| 2017-06-30 | 4.32 |
| 2017-03-31 | 1.46 |
| 2016-12-31 | -10.85 |
| 2016-09-30 | -10.25 |
| 2016-06-30 | -8.78 |
| 2016-03-31 | -7.79 |
| 2015-12-31 | 0.54 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Concho Resources's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Concho Resources has a total score of 4/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
CXO Past Performance
How has Concho Resources performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Concho Resources's year on year earnings growth rate has been positive over the past 5 years.
- Concho Resources's 1-year earnings growth exceeds its 5-year average (84.6% vs 14.4%)
- Concho Resources's earnings growth has exceeded the US Oil and Gas industry average in the past year (84.6% vs 82.8%).
Earnings and Revenue History
All data from Concho Resources Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-09-30 | 3,785.00 | 1,032.00 | 315.00 | |
| 2018-06-30 | 3,255.00 | 1,119.00 | 298.00 | |
| 2018-03-31 | 2,901.00 | 1,133.00 | 284.00 | |
| 2017-12-31 | 2,586.00 | 949.00 | 276.00 | |
| 2017-09-30 | 2,281.00 | 559.00 | 277.00 | |
| 2017-06-30 | 2,097.00 | 620.00 | 261.00 | |
| 2017-03-31 | 1,936.00 | 203.00 | 262.00 | |
| 2016-12-31 | 1,635.00 | -1,462.00 | 253.00 | |
| 2016-09-30 | 1,421.15 | -1,337.78 | 233.35 | |
| 2016-06-30 | 1,485.63 | -1,108.97 | 239.91 | |
| 2016-03-31 | 1,657.05 | -962.17 | 248.41 | |
| 2015-12-31 | 1,804.00 | 65.00 | 265.00 | |
| 2015-09-30 | 2,008.64 | 194.66 | 266.42 | |
| 2015-06-30 | 2,245.43 | 318.54 | 269.98 | |
| 2015-03-31 | 2,412.71 | 449.41 | 265.11 | |
| 2014-12-31 | 2,660.15 | 532.21 | 271.66 | |
| 2014-09-30 | 2,698.01 | 508.19 | 281.45 | |
| 2014-06-30 | 2,650.67 | 236.53 | 260.58 | |
| 2014-03-31 | 2,508.75 | 308.86 | 241.47 | |
| 2013-12-31 | 2,319.92 | 236.18 | 229.61 | |
| 2013-09-30 | 2,165.36 | 212.77 | 196.24 | |
| 2013-06-30 | 1,977.78 | 179.57 | 193.76 | |
| 2013-03-31 | 1,818.16 | 404.46 | 184.72 | |
| 2012-12-31 | 1,819.81 | 408.23 | 161.24 | |
| 2012-09-30 | 1,698.52 | 206.80 | 147.95 | |
| 2012-06-30 | 1,687.64 | 566.18 | 131.91 | |
| 2012-03-31 | 1,730.72 | 489.48 | 116.42 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Concho Resources has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Concho Resources used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
- Concho Resources's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Concho Resources's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Concho Resources has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
CXO Health
How is Concho Resources's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Concho Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
- Concho Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Concho Resources's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Concho Resources Company Filings, last reported 4 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-09-30 | 17,232.00 | 4,230.00 | 24.00 |
| 2018-06-30 | 9,891.00 | 2,371.00 | 55.00 |
| 2018-03-31 | 9,738.00 | 2,442.00 | |
| 2017-12-31 | 8,915.00 | 2,807.00 | |
| 2017-09-30 | 8,631.00 | 2,806.00 | |
| 2017-06-30 | 8,729.00 | 2,741.00 | 662.00 |
| 2017-03-31 | 8,532.00 | 2,741.00 | 771.00 |
| 2016-12-31 | 7,623.00 | 2,741.00 | 53.00 |
| 2016-09-30 | 7,194.58 | 2,740.85 | 1,158.94 |
| 2016-06-30 | 5,903.71 | 3,333.53 | 481.23 |
| 2016-03-31 | 6,158.77 | 3,332.85 | 466.82 |
| 2015-12-31 | 6,942.55 | 3,332.19 | 228.55 |
| 2015-09-30 | 6,133.78 | 3,932.02 | 0.02 |
| 2015-06-30 | 5,938.15 | 3,664.64 | 0.28 |
| 2015-03-31 | 6,042.35 | 3,396.15 | 0.02 |
| 2014-12-31 | 5,280.79 | 3,561.68 | 0.02 |
| 2014-09-30 | 5,143.78 | 3,378.48 | 98.86 |
| 2014-06-30 | 4,815.33 | 3,379.14 | 365.49 |
| 2014-03-31 | 3,861.19 | 3,764.72 | 0.02 |
| 2013-12-31 | 3,757.95 | 3,667.14 | 0.02 |
| 2013-09-30 | 3,644.71 | 3,658.09 | 0.02 |
| 2013-06-30 | 3,599.27 | 3,516.79 | 0.05 |
| 2013-03-31 | 3,505.48 | 3,303.63 | 0.97 |
| 2012-12-31 | 3,466.20 | 3,125.38 | 2.88 |
| 2012-09-30 | 3,382.44 | 3,641.51 | 0.29 |
| 2012-06-30 | 3,355.57 | 2,556.89 | 0.71 |
| 2012-03-31 | 3,025.72 | 2,351.91 | 0.61 |
- Concho Resources's level of debt (24.5%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (100.3% vs 24.5% today).
- Debt is well covered by operating cash flow (56.1%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 4.4x coverage).
Financial health checks
We assess Concho Resources's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Concho Resources has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
CXO Dividends
What is Concho Resources's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Concho Resources
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Concho Resources's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Concho Resources's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| United States of America Oil and Gas Industry Average Dividend Yield | Market Cap Weighted Average of 61 Stocks | 3.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1998 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | ||
| 2020-12-31 | 0.21 | 5.00 |
| 2019-12-31 | 0.25 | 6.00 |
| 2018-12-31 | 0.00 | 7.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Concho Resources has not reported any payouts.
- Unable to verify if Concho Resources's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Concho Resources's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Concho Resources afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Concho Resources has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
CXO Management
CEO
| COMPENSATION | $12,238,760 |
| AGE | 58 |
| TENURE AS CEO | 13 years |
CEO Bio
Mr. Timothy A. Leach, also known as Tim, serves as Chairman and Chief Executive Officer at Concho Resources Inc. since February 2006 and served as its President from July 1, 2009 to May 18, 2017. Mr. Leach serves as Chairman of the Board, Chief Executive Officer and President at COG Operating LLC. He has been Chief Executive Officer and Director of RSP Permian, Inc. since July 19, 2018. Mr. Leach served as Chairman and Chief Executive Officer of Concho Equity Holdings Corp. since April 2004. He served as Chief Executive Officer of Concho Oil & Gas of Corp. from its inception in January 2001 until its sale in January 2004 and Concho Resources Inc. from its inception in August 1997 until its sale in June 2001. From January 2004 to April 2004, Mr. Leach was involved in private investments. From September 1989 to May 1997, he was employed by Parker & Parsley Petroleum Company (now Pioneer Natural Resources Company) in a variety of capacities, including serving as Executive Vice President. Mr. Leach served as Chairman and Director of Concho Oil & Gas of Corp. from January 2001 to January 2004 and Concho Resources Inc. from August 1997 to June 2001. He serves as Director at Concho Resources Inc. since February 2006. Mr. Leach has been a Board Member of Texas A&M University System Board of Regents since February 1, 2017. He served as Director of Concho Equity Holdings Corp. since April 2004. Mr. Leach is a member of the Texas A&M University Dwight Look College of Engineering Advisory Council and serves on the board of governors for Midland Memorial Foundation. He also serves on the board of directors of the Midland College Foundation, the Association of Former Students of Texas A&M University and the Scharbauer Foundation. Mr. Leach holds a Bachelor of Science in Petroleum Engineering from Texas A&M University and a Master of Business Administration from the University of Texas of the Permian Basin.
CEO Compensation
- Tim's compensation has been consistent with company performance over the past year.
- Tim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Concho Resources management team in years:
- The average tenure for the Concho Resources management team is less than 2 years, this suggests a new team.
Management Team
Tim Leach
Chairman of the Board & CEO
$12M
58
13 yrs
Jack Harper
President & CFO
$6M
46
1.8 yrs
Joe Wright
Executive VP
$6M
58
8.3 yrs
Will Giraud
Executive VP & COO
$5M
38
0.1 yrs
J. Guthrie
Special Advisor
$3M
56
0.1 yrs
Brenda Schroer
Senior VP
41
0.1 yrs
Jacob Gobar
VP & Chief Accounting Officer
37
0.1 yrs
Kang Chen
VP & Chief Information Officer
Scott Kidwell
Senior Vice President of Administration
0.1 yrs
Megan Hays
Vice President of Investor Relations & Public Affairs
Board of Directors Tenure
Average tenure and age of the Concho Resources board of directors in years:
- The tenure for the Concho Resources board of directors is about average.
Board of Directors
Joe Wright
Executive VP
$6M
58
1.8 yrs
Steve Beal
Director
$293K
59
13 yrs
Tim Leach
Chairman of the Board & CEO
$12M
58
13 yrs
Bill Easter
Director
$293K
68
11 yrs
Mark Puckett
Lead Director
$313K
66
Tucker Bridwell
Director
$260K
66
13 yrs
Gary Merriman
Director
$280K
63
7.1 yrs
John Surma
Director
$279K
64
4.9 yrs
Susan Helms
Director
$196K
60
1.9 yrs
Steve Gray
Director
59
0.6 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 13. Sep 18 | Sell | J. Guthrie | Individual | 11. Sep 18 | 11. Sep 18 | -12,500 | $136.54 | $-1,706,750 | ||
| 13. Sep 18 | Sell | Gayle Burleson | Individual | 12. Sep 18 | 12. Sep 18 | -3,600 | $140.82 | $-506,934 | ||
| 13. Sep 18 | Sell | Price Moncrief | Individual | 12. Sep 18 | 12. Sep 18 | -4,000 | $139.86 | $-559,451 | ||
| 31. Aug 18 | Sell | Steven Beal | Individual | 29. Aug 18 | 29. Aug 18 | -2,500 | $137.24 | $-343,100 | ||
| 24. Aug 18 | Sell | Erick Nelson | Individual | 23. Aug 18 | 23. Aug 18 | -11,000 | $133.98 | $-1,473,780 | ||
| 07. Aug 18 | Buy | Mark Puckett | Individual | 06. Aug 18 | 06. Aug 18 | 2,000 | $134.39 | $268,780 | ||
Management checks
We assess Concho Resources's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Concho Resources has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
CXO News
Simply Wall St News
Concho Resources Inc. (NYSE:CXO): Earnings Expected To Remain Subdued
Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … Looking at Concho Resources Inc.'s (NYSE:CXO) earnings update in September 2018,
Simply Wall St - – Full articleIs Concho Resources Inc.'s (NYSE:CXO) Stock Available For A Good Price After Accounting For Growth?
However its last closing price of $117.26 left investors wondering whether this growth has already been factored into the share price. … Let’s look into this by assessing CXO's expected growth over the next few years. … If you are bullish about Concho Resources's growth potential then you are certainly not alone
Simply Wall St - – Full articleWhy Concho Resources Inc. (NYSE:CXO) Is A Financially Healthy Company
(NYSE:CXO), a large-cap worth US$22b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an abundance of stock in the public market available for trading. … Take the survey and be part of one of the most advanced studies of stock market investors to date?
Simply Wall St - – Full articleHere's What Concho Resources Inc.'s (NYSE:CXO) P/E Is Telling Us
We'll show how you can use Concho Resources Inc.'s (NYSE:CXO) P/E ratio to inform your assessment of the investment opportunity. … How Do I Calculate Concho Resources's Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleShould You Be Worried About Insider Transactions At Concho Resources Inc (NYSE:CXO)?
So before you buy or sell Concho Resources Inc (NYSE:CXO), you may well want to know whether insiders have been buying or selling. … Concho Resources Insider Transactions Over The Last Year. … So we know that an insider sold shares at around the present share price of US$127
Simply Wall St - – Full articleWhy Concho Resources Inc (NYSE:CXO) Could Be Your Next Investment
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Concho Resources Inc (NYSE:CXO) due to its excellent fundamentals in more than one area.
Simply Wall St - – Full articleIs Concho Resources Inc's (NYSE:CXO) ROE Of 11% Impressive?
By way of learning-by-doing, we'll look at ROE to gain a better understanding Concho Resources Inc (NYSE:CXO). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleHow Much is Concho Resources Inc's (NYSE:CXO) CEO Getting Paid?
Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability
Simply Wall St - – Full articleIs Concho Resources Inc (NYSE:CXO) Attractive At Its Current PE Ratio?
I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While this makes CXO appear like a stock to avoid or sell if you own it, you might change your mind after I explain the assumptions behind the P/E ratio.
Simply Wall St - – Full articleWho Are The Top Investors In Concho Resources Inc (NYSE:CXO)?
In this article, I will take a quick look at Concho Resources Inc’s (NYSE:CXO) recent ownership structure – an unconventional investing subject, but an important one. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.
Simply Wall St - – Full articleCXO Company Info
Map
Description
Concho Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, and exploration of oil and natural gas properties in the United States. The company’s principal operating areas are located in the Permian Basin of southeast New Mexico and west Texas. As of December 31, 2017, its total estimated proved reserves were 840 million barrels of oil equivalent. Concho Resources Inc. was founded in 2006 and is headquartered in Midland, Texas.
Details
| Name: | Concho Resources Inc. |
| CXO | |
| Exchange: | NYSE |
| Founded: | 2006 |
| $24,456,076,479 | |
| 198,878,397 | |
| Website: | http://www.concho.com |
| Address: |
Concho Resources Inc. One Concho Center, 600 West Illinois Avenue, Midland, Texas, 79701, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | CXO | Common Stock | New York Stock Exchange | US | USD | 03. Aug 2007 | |
| DB | KIJ | Common Stock | Deutsche Boerse AG | DE | EUR | 03. Aug 2007 | |
| LSE | 0I2T | Common Stock | London Stock Exchange | GB | USD | 03. Aug 2007 | |
| BMV | CXO * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 03. Aug 2007 |
Number of employees
Current staff
Industry
| Oil and Gas Exploration and Production | |
| Energy |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/02/18 02:13 |
| End of day share price update: | 2019/02/15 00:00 |
| Last estimates confirmation: | 2019/02/13 |
| Last earnings filing: | 2018/10/31 |
| Last earnings reported: | 2018/09/30 |
| Last annual earnings reported: | 2017/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
