Conco Resources Production Remains Strong

Dahlman Rose has published a research report on Concho Resources, Inc.

after the company reported strong production and realized pricing in its 3Q. In the report, Dahlman Rose writes "Concho reported EPS/CFPS of $0.76/$1.82 vs our estimate of $0.63/$1.70 and consensus of $0.63/$1.65. Variance from our estimates was driven by stronger than expected production and realized pricing and lower than expected operating costs. 3Q10 production was 3.9 MMBOE, ahead of our estimate of 3.8 MMBOE. G&A and LOE were $3MM ($0.03/sh) and $2MM ($0.02/sh) less than our respective estimates. The company continues to reap the benefit of strong natural gas processing agreements in the Permian, and its realized natural gas price was again 151% of Henry Hub benchmarks during the quarter." Dahlman Rose maintains its Buy rating and $75 price target. Concho Resources closed yesterday at $71.86.