Why Concho Resources Stock Is Cratering Today
Shares of Concho Resources (NYSE: CXO) tumbled more than 23% by 10:45 a.m. EDT on Thursday. Driving the downdraft in the Permian Basin-focused driller's stock was its second-quarter report and guidance for the balance of the year.
Renewed oil price volatility is wreaking havoc on Concho Resources' operations in the Permian Basin. Slumping crude prices during the quarter, as well as weaker prices for natural gas and NGLs, weighed on Concho's earnings. While the company posted $139 million, or $0.69 per share, of adjusted net income, that missed analysts' expectations by $0.03 per share. This underperformance came even though Concho's production rocketed 43% year over year thanks to a needle-moving acquisition and the company's drilling program.
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