Concho Resources
Market Cap
US$16.5b
Last Updated
2020/01/26 00:22 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet and good value.
Similar Companies
Share Price & News
How has Concho Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CXO has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-8.4%
CXO
-4.6%
US Oil and Gas
-1.3%
US Market
1 Year Return
-30.4%
CXO
-10.3%
US Oil and Gas
22.0%
US Market
Return vs Industry: CXO underperformed the US Oil and Gas industry which returned -4.2% over the past year.
Return vs Market: CXO underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| CXO | Industry | Market | |
|---|---|---|---|
| 7 Day | -8.4% | -4.6% | -1.3% |
| 30 Day | -3.3% | -6.1% | 1.6% |
| 90 Day | 27.0% | -2.8% | 8.9% |
| 1 Year | -30.0%-30.4% | -7.0%-10.3% | 24.7%22.0% |
| 3 Year | -42.4%-42.7% | -12.0%-20.1% | 49.4%39.7% |
| 5 Year | -25.1%-25.5% | -13.8%-26.2% | 78.1%58.5% |
Price Volatility Vs. Market
How volatile is Concho Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Read This Before Buying Concho Resources Inc. (NYSE:CXO) Shares2 weeks ago | Simply Wall St
Should You Be Worried About Concho Resources Inc.'s (NYSE:CXO) 6.9% Return On Equity?3 weeks ago | Simply Wall St
We Think Concho Resources (NYSE:CXO) Can Stay On Top Of Its DebtValuation
Is Concho Resources undervalued compared to its fair value and its price relative to the market?
10.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CXO ($89.65) is trading below our estimate of fair value ($100.12)
Significantly Below Fair Value: CXO is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: CXO is poor value based on its PE Ratio (14.1x) compared to the Oil and Gas industry average (10.2x).
PE vs Market: CXO is good value based on its PE Ratio (14.1x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: CXO is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: CXO is good value based on its PB Ratio (0.9x) compared to the US Oil and Gas industry average (1x).
Next Steps
Future Growth
How is Concho Resources forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?
35.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CXO's forecast earnings growth (34.2% per year) is above the savings rate (1.7%).
Earnings vs Market: CXO's earnings (34.2% per year) are forecast to grow faster than the US market (14.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: CXO's revenue (9.5% per year) is forecast to grow faster than the US market (7.5% per year).
High Growth Revenue: CXO's revenue (9.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CXO's Return on Equity is forecast to be low in 3 years time (8.9%).
Next Steps
Past Performance
How has Concho Resources performed over the past 5 years?
34.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CXO has a large one-off gain of $566.0M impacting its September 30 2019 financial results.
Growing Profit Margin: CXO's current net profit margins (30.6%) are higher than last year (28.6%).
Past Earnings Growth Analysis
Earnings Trend: CXO's earnings have grown significantly by 34.1% per year over the past 5 years.
Accelerating Growth: CXO's earnings growth over the past year (22.8%) is below its 5-year average (34.1% per year).
Earnings vs Industry: CXO earnings growth over the past year (22.8%) exceeded the Oil and Gas industry -13.3%.
Return on Equity
High ROE: CXO's Return on Equity (6.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Concho Resources's financial position?
Financial Position Analysis
Short Term Liabilities: CXO's short term assets ($2.0B) exceed its short term liabilities ($1.3B).
Long Term Liabilities: CXO's short term assets ($2.0B) do not cover its long term liabilities ($6.3B).
Debt to Equity History and Analysis
Debt Level: CXO's debt to equity ratio (23.8%) is considered satisfactory.
Reducing Debt: CXO's debt to equity ratio has reduced from 65.7% to 23.8% over the past 5 years.
Debt Coverage: CXO's debt is well covered by operating cash flow (62.8%).
Interest Coverage: CXO's interest payments on its debt are well covered by EBIT (6.6x coverage).
Balance Sheet
Inventory Level: CXO has a high level of physical assets or inventory.
Debt Coverage by Assets: CXO's debt is not covered by short term assets (assets are 0.5x debt).
Next Steps
Dividend
What is Concho Resources's current dividend yield, its reliability and sustainability?
0.60%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CXO's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: CXO's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (3.66%).
Stability and Growth of Payments
Stable Dividend: CXO is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: CXO is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: CXO is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CXO's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of Concho Resources's salary, the management and board of directors tenure and is there insider trading?
2.7yrs
Average management tenure
CEO
Tim Leach (59yo)
13.9yrs
Tenure
US$13,317,156
Compensation
Mr. Timothy A. Leach, also known as Tim, serves as Chairman and Chief Executive Officer at Concho Resources Inc. since February 2006 and served as its President from July 1, 2009 to May 18, 2017. Mr. Leach ...
CEO Compensation Analysis
Compensation vs Market: Tim's total compensation ($USD13.32M) is about average for companies of similar size in the US market ($USD10.76M).
Compensation vs Earnings: Tim's compensation has been consistent with company performance over the past year.
Management Age and Tenure
2.7yrs
Average Tenure
45yo
Average Age
Experienced Management: CXO's management team is considered experienced (2.7 years average tenure).
Board Age and Tenure
8.0yrs
Average Tenure
62.5yo
Average Age
Experienced Board: CXO's board of directors are considered experienced (8 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Financial Officer Senior VP |
| Shares | 1,500 |
| Max Price | US$70.05 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 2,000 |
| Max Price | US$68.48 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 700 |
| Max Price | US$70.12 |
| Entity | Individual |
| Role | President President |
| Shares | 10,000 |
| Max Price | US$65.40 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | US$69.90 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 7,000 |
| Max Price | US$70.32 |
| Entity | Individual |
| Role | Chief Executive Officer Chairman of the Board & CEO |
| Shares | 54,545 |
| Max Price | US$109.36 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 7,500 |
| Max Price | US$99.90 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | US$111.51 |
| Entity | Individual |
| Role | Chief Administrative Officer Senior Vice President of Administration |
| Shares | 4,200 |
| Max Price | US$110.02 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26%.
Management Team
Jack Harper (47yo)
President
- Tenure: 2.7yrs
- Compensation: US$6.42m
Tim Leach (59yo)
Chairman of the Board & CEO
- Tenure: 13.9yrs
- Compensation: US$13.32m
Will Giraud (39yo)
Executive VP & COO
- Tenure: 1yrs
- Compensation: US$5.91m
Gayle Burleson (53yo)
Senior Vice President of Business Development & Land
- Tenure: 2.7yrs
Travis Counts (41yo)
Senior VP
- Tenure: 6.7yrs
Brenda Schroer (43yo)
Senior VP
- Tenure: 1yrs
Megan Hays
VP of Investor Relations & Public Affairs
- Tenure: 3yrs
Kang Chen
VP & Chief Information Officer
Scott Kidwell (51yo)
Senior Vice President of Administration
- Tenure: 1yrs
Jacob Gobar (38yo)
VP & Chief Accounting Officer
- Tenure: 1yrs
Board Members
John Surma (65yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$290.47k
Steve Gray (60yo)
Independent Director
- Tenure: 1.5yrs
- Compensation: US$131.63k
Mark Puckett (67yo)
Lead Independent Director
- Compensation: US$330.47k
Tim Leach (59yo)
Chairman of the Board & CEO
- Tenure: 13.9yrs
- Compensation: US$13.32m
Bill Easter (69yo)
Independent Director
- Tenure: 11.9yrs
- Compensation: US$313.47k
Tucker Bridwell (67yo)
Independent Director
- Tenure: 13.9yrs
- Compensation: US$290.47k
Gary Merriman (64yo)
Independent Director
- Tenure: 8yrs
- Compensation: US$296.71k
Joe Wright (59yo)
Director
- Tenure: 2.7yrs
- Compensation: US$5.46m
Steve Beal (60yo)
Independent Director
- Tenure: 13.9yrs
- Compensation: US$309.63k
Susan Helms (61yo)
Independent Director
- Tenure: 2.8yrs
- Compensation: US$290.47k
Company Information
Concho Resources Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Concho Resources Inc.
- Ticker: CXO
- Exchange: NYSE
- Founded: 2006
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: US$16.465b
- Shares outstanding: 199.46m
- Website: https://www.concho.com
Number of Employees
Location
- Concho Resources Inc.
- One Concho Center
- 600 West Illinois Avenue
- Midland
- Texas
- 79701
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CXO | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Aug 2007 |
| KIJ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 2007 |
| CXO * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Aug 2007 |
| 0I2T | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Aug 2007 |
| C1XO34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 2 COM | BR | BRL | Dec 2019 |
Biography
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, 2018, its estimated proved reserves totaled 1.2 billion barrels of oil equivalent. The company was founded in 2006 and is headquartered in Midland, Texas.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/26 00:22 |
| End of Day Share Price | 2020/01/24 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.