Dahlman Rose & Company Reiterates A Buy Rating On Concho Resources Inc. (CXO) Bonds

Sunny Sekhon, Dahlman Rose & Company analyst, reiterated a buy rating on Concho Resources Inc. CXO bonds, encouraged by better than expected earnings results. He believes that Concho (CXO) will continue its strong performance in 2011. The analyst added that Concho Resources (CXO) will be able to receive a significant premium on natural gas prices, because of the higher liquid content in its natural gas production. Concho Resources (CXO) is aligning CAPEX with its cash flow, and Sunny Sekhon estimates that it will be able to fund 90% of its budget with internal cash flows if oil drops to $75, and natural gas trades at $4. Concho Resources (CXO) spiked 7.11% today, and closed at $76.97.