MIDLAND, TX – Within the context of a dynamic environment and a substantial decrease in oil and natural gas prices, Concho Resources Inc. is prioritizing its strong balance sheet and capital returns to shareholders. The Company has reduced its 2020 capital program to approximately $2 billion from the $2.6 to $2.8 billion range previously announced.
The revised capital range is approximately 25% lower than the Company’s prior capital spending expectations for the year.
Chairman and Chief Executive Officer Tim Leach , commented, “Concho is well positioned to weather the turmoil in the oil markets due to our high-quality asset base, low cost structure, strong balance sheet and large, uncomplicated hedge book. While our hedge position minimizes the volatility of our cash flow over the near term, we are quickly adjusting our activity to ensure we execute a capital allocation strategy that creates value for our shareholders over the long term. We will continue to focus on improving our cost structure. Additionally, we will monitor and be responsive to market conditions and have flexibility to lower our spending further. In this environment, our priorities are protecting our balance sheet and the dividend, generating free cash flow and preserving our flexibility and opportunity set.”
With conditions evolving, Concho Resources will continuously review its plans, make necessary adjustments and plan to provide a detailed update to the Company’s operational and financial outlook in its first-quarter 2020 earnings materials.
Concho Resources Inc. is an independent exploration and production company engaged in the acquisition, development and exploration of oil and natural gas properties. Concho’s operations are concentrated in the Permian Basin of Southeast New Mexico and West Texas. visit eogresources.com for more information.