Sunny Sekhon, Dahlman Rose & Company analyst, reiterated a buy rating on Concho Resources Inc. (NYSE:

) bonds, encouraged by better than expected earnings results. He believes that Concho (

) will continue its strong performance in 2011. The analyst added that Concho Resources (

) 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 (

) 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 (

) spiked 7.11% today, and closed at $76.97.