Concho Resources Inc. (NYSE: CXO) announced Dec. 12 that the combined effect of two severe winter storms across the Permian Basin in late November and early December significantly impacted the company’s production.
The company experienced widespread power outages and considerable icing across all three of its core areas - New Mexico Shelf, Delaware Basin and Texas Permian.
The impact of the severe winter weather was not included in Concho’s 2013 annual production guidance, as described in the company’s earnings release on Nov. 6. The company does not plan to adjust its production guidance; however, the unexpected impact of the severe winter storms is expected to cause 2013 annual production to fall near the low end of its guidance range.
In addition, Concho reported that the rig count additions associated with its accelerated growth plan are ahead of schedule. The company is now running 24 rigs, of which 20 are drilling horizontally. Concho expects to add at least two additional horizontal rigs before the end of the year.
Concho Resources Inc. is an independent energy company engaged in the acquisition, development, and exploration of oil and natural gas properties in the U.S. The company is headquartered in Midland, Texas.