Concho Resources Inc. (NYSE: CXO) today reported financial and operating results for first-quarter 2020.

First-Quarter 2020 Highlights

Delivered oil production volumes of 209 MBopd, exceeding the high end of the Company's guidance range.

Generated cash flow from operating activities of $836 million. Operating cash flow before working capital changes (non-GAAP) was $744 million, exceeding capital expenditures of $556 million and resulting in $188 million of free cash flow (non-GAAP).

Included in the Company's first-quarter 2020 results are $12.6 billion in impairment charges related to the substantial weakness in commodity prices. As such, the Company reported a net loss of $9.3 billion, or $47.49 per share.

Adjusted net income (non-GAAP) totaled $142 million, or $0.72 per share.

Generated $784 million of adjusted EBITDAX (non-GAAP).

Returned capital to shareholders through the Company's common dividend of $0.20 per share, up 60% year over year, and $100 million of share repurchases.

2020 Outlook Update

Further reducing planned capital expenditures to $1.6 billion, representing a 40% decrease from the Company's initial capital spending expectations for the year.

Targeting $100 million in operating and G&A cost reductions.

The Company expects production to remain relatively consistent with 2019 divestiture-adjusted production volumes. The Company's production outlook includes current voluntary curtailments, but does not include any potential future curtailments.

Tim Leach, Chairman and Chief Executive Officer, commented, 'This is an extremely challenging environment, but our first priority is the safety and well-being of our employees, business partners and communities. Due to the hard work and dedication of our team, we delivered strong operational and financial results for the first quarter. The operating environment has changed considerably since our last update, and we expect a sustained period of low commodity prices. We are managing through the volatility and uncertainty from a position of strength, which we are focused on maintaining by aligning our operations with current market realities. We are further reducing capital spending in 2020 and targeting $100 million in operating cost reductions. We expect these actions will improve our capital efficiency and better position Concho to deliver value over the long term.'

About Concho Resources

Concho Resources (NYSE: CXO) is one of the largest unconventional shale producers in the Permian Basin, with operations focused on safely and efficiently developing and producing oil and natural gas resources. We are working today to deliver a better tomorrow for our shareholders, people and communities.

Forward-Looking Statements and Cautionary Statements

The foregoing contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. The words 'estimate,' 'project,' 'predict,' 'believe,' 'expect,' 'anticipate,' 'potential,' 'could,' 'may,' 'enable,' 'strategy,' 'intend,' 'positioned,' 'foresee,' 'plan,' 'will,' 'guidance,' 'outlook,' 'goal,' 'target' or other similar expressions that convey the uncertainty of future events or outcomes are intended to identify forward-looking statements, which generally are not historical in nature. However, the absence of these words does not mean that the statements are not forward-looking. These statements are based on certain assumptions and analyses made by the Company based on management's experience, expectations and perception of historical trends, current conditions, current plans, anticipated future developments, expected financings, the impact of the COVID-19 pandemic and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the risk factors and other information discussed or referenced in the Company's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. In particular, the unprecedented nature of the current economic downturn, pandemic and industry decline may make it particularly difficult to identify risks or predict the degree to which identified risks will impact the Company's business and financial condition. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Information on Concho's website is not part of this press release.

Use of Non-GAAP Financial Measures

To supplement the presentation of the Company's financial results prepared in accordance with U.S. generally accepted accounting principles ('GAAP'), this press release contains certain financial measures that are not prepared in accordance with GAAP, including adjusted net income, adjusted earnings per share, adjusted EBITDAX, operating cash flow before working capital changes and free cash flow.

Contact:

Megan P. Hays

Tel: 432.685.2533

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