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Concho Resources

NYSE:CXO
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CXO
NYSE
$24B
Market Cap
  1. Home
  2. US
  3. Energy
Company 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 last earnings update was 110 days ago. More info.


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CXO Share Price and Events
7 Day Returns
5.6%
NYSE:CXO
1%
US Oil and Gas
1.2%
US Market
1 Year Returns
-16.1%
NYSE:CXO
-4.5%
US Oil and Gas
0.9%
US Market
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.
Price Volatility
CXO
Industry
5yr Volatility vs Market

CXO Value

 Is Concho Resources undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Concho Resources.

NYSE:CXO Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:CXO
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.

NYSE:CXO DCF 1st Stage: Next 5 year cash flow forecast
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
NYSE:CXO DCF 2nd Stage: Terminal Value
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
NYSE:CXO Total Equity Value
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
NYSE:CXO Discount to Share Price
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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NYSE:CXO PE (Price to Earnings) Ratio Data Sources
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.

NYSE:CXO PE (Price to Earnings) Ratio Calculation
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?
Raw Data
NYSE:CXO PEG (Price to Earnings to Growth) Ratio Data Sources
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 .

NYSE:CXO PEG (Price to Earnings to Growth) Ratio Calculation
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?
Raw Data
NYSE:CXO PB (Price to Book) Ratio Data Sources
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
NYSE:CXO PB (Price to Book) Ratio Calculation
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.
X
Value checks
We assess Concho Resources's value by looking at:
  1. 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. )
  2. 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)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. 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

 How is Concho Resources expected to perform in the next 1 to 3 years based on estimates from 20 analysts?

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!
Annual Growth Rate
26.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Concho Resources expected to grow at an attractive rate?
  • 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
Raw Data
NYSE:CXO Future Growth Rates Data Sources
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
Raw Data
NYSE:CXO Analysts Growth Expectations Data Sources
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 numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CXO Future Estimates Data
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
NYSE:CXO Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Concho Resources's earnings are expected to grow significantly at over 20% yearly.
  • Concho Resources's revenue is expected to grow by 17.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CXO 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.

NYSE:CXO Future Estimates Data
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
NYSE:CXO Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Concho Resources is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Concho Resources's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Concho Resources's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Concho Resources's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Concho Resources Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CXO Past Revenue, Cash Flow and Net Income Data
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).
X
Past performance checks
We assess Concho Resources's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Concho Resources's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Concho Resources Company Filings, last reported 4 months ago.

NYSE:CXO Past Debt and Equity Data
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).
X
Financial health checks
We assess Concho Resources's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Concho Resources has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
0%
Current annual income from Concho Resources dividends. Estimated to be 0.19% next year.
If you bought $2,000 of Concho Resources shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Raw Data
NYSE:CXO Annualized Past and Future Dividends
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.

NYSE:CXO Future Dividends Estimate Data
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.
Current Payout to shareholders
What portion of Concho Resources's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Concho Resources has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Concho Resources's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Concho Resources's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Concho Resources's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tim Leach
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:

0.1
Average Tenure
46
Average Age
  • The average tenure for the Concho Resources management team is less than 2 years, this suggests a new team.
Management Team

Tim Leach

TITLE
Chairman of the Board & CEO
COMPENSATION
$12M
AGE
58
TENURE
13 yrs

Jack Harper

TITLE
President & CFO
COMPENSATION
$6M
AGE
46
TENURE
1.8 yrs

Joe Wright

TITLE
Executive VP
COMPENSATION
$6M
AGE
58
TENURE
8.3 yrs

Will Giraud

TITLE
Executive VP & COO
COMPENSATION
$5M
AGE
38
TENURE
0.1 yrs

J. Guthrie

TITLE
Special Advisor
COMPENSATION
$3M
AGE
56
TENURE
0.1 yrs

Brenda Schroer

TITLE
Senior VP
AGE
41
TENURE
0.1 yrs

Jacob Gobar

TITLE
VP & Chief Accounting Officer
AGE
37
TENURE
0.1 yrs

Kang Chen

TITLE
VP & Chief Information Officer

Scott Kidwell

TITLE
Senior Vice President of Administration
TENURE
0.1 yrs

Megan Hays

TITLE
Vice President of Investor Relations & Public Affairs
Board of Directors Tenure

Average tenure and age of the Concho Resources board of directors in years:

7.1
Average Tenure
61.5
Average Age
  • The tenure for the Concho Resources board of directors is about average.
Board of Directors

Joe Wright

TITLE
Executive VP
COMPENSATION
$6M
AGE
58
TENURE
1.8 yrs

Steve Beal

TITLE
Director
COMPENSATION
$293K
AGE
59
TENURE
13 yrs

Tim Leach

TITLE
Chairman of the Board & CEO
COMPENSATION
$12M
AGE
58
TENURE
13 yrs

Bill Easter

TITLE
Director
COMPENSATION
$293K
AGE
68
TENURE
11 yrs

Mark Puckett

TITLE
Lead Director
COMPENSATION
$313K
AGE
66

Tucker Bridwell

TITLE
Director
COMPENSATION
$260K
AGE
66
TENURE
13 yrs

Gary Merriman

TITLE
Director
COMPENSATION
$280K
AGE
63
TENURE
7.1 yrs

John Surma

TITLE
Director
COMPENSATION
$279K
AGE
64
TENURE
4.9 yrs

Susan Helms

TITLE
Director
COMPENSATION
$196K
AGE
60
TENURE
1.9 yrs

Steve Gray

TITLE
Director
AGE
59
TENURE
0.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
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
X
Management checks
We assess Concho Resources's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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 -

Is 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 -

Why 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 -

Here'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 -

Should 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 -

Why 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 -

Is 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 -

How 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 -

Is 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 -

Who 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 -

CXO 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
Staff numbers
1,203
Concho Resources employees.
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.