Permian Basin heavyweight Concho Resources Inc., now in a quiet period as the mega-merger with ConocoPhillips is readied, said its oil and gas production, along with profits, declined in the third quarter.
Earlier this month, Houston-based ConocoPhillips clinched an all-stock takeover of Concho worth $9.7 billion. The Midland, TX-based independent is the fifth-largest producer in the Permian.
Concho’s third-quarter results issued on Tuesday were abbreviated because of the merger, which is set to be completed by early next year.
Total production fell year/year by around 10,000 boe/d, averaging 320,000 boe/d. Oil output declined to 201,000 b/d from 204,000. Natural gas production fell to 716 MMcf/d from 764.
However, controllable costs, which include production and general/administration expenses, also were down, off by 27% year/year to average $7.06/boe.
Concho fetched on average $39.23/bbl for its oil and $1.64/Mcf for natural gas during the period. A year earlier, realized prices averaged $54.01 oil and $1.34 gas.
During 3Q2020, Concho also drilled and completed 63 wells, with 57 turned to sales.
Net losses totaled $61 million (minus 31 cents/share) in 3Q2020, versus year-ago profits of $558 million ($2.78). Revenue fell year/year $834 million from $1.12 billion.
Concho ended September with long-term debt of $3.9 billion. It also reported $400 million in cash and cash equivalents. In other news, the board declared a quarterly dividend of 20 cents/share on outstanding common stock payable Dec. 18.
Concho produced on average 319,000 boe/d in 2Q2020, more than six times the volumes that ConocoPhillips pumped in the Permian. The acquisition is expected to boost ConocoPhillips’ net acreage in the Permian to 700,000 net acres from about 170,000.
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