Concho Resources Inc. (CXO, Financial) filed Quarterly Report for the period ended 2010-09-30.
Concho Resources Inc. has a market cap of $6.6 billion; its shares were traded at around $71.86 with a P/E ratio of 32.4 and P/S ratio of 12.1. CXO is in the portfolios of RS Investment Management, Ron Baron of Baron Funds, Jeremy Grantham of GMO LLC, Pioneer Investments.
Cash flow from financing activities. Net cash provided by financing activities was $107.2 million and $7.7 million for the nine months ended September 30, 2010 and 2009, respectively. During the nine months ended September 30, 2010, we reduced our outstanding balance on our credit facility by $157.5 million primarily using proceeds from the issuance of common stock. During the nine months ended September 30, 2009, we had net borrowings of $15.7 million under our credit facility.
Our credit facility, as amended, has a maturity date of July 31, 2013. At September 30, 2010, we had letters of credit outstanding under the credit facility of approximately $25,000, and our availability to borrow additional funds was approximately $807.5 million based on the borrowing base of $1.2 billion. On October 7, 2010, in connection with the closing of the Marbob acquisition, we entered into an amendment to our credit facility to increase the borrowing base from $1.2 billion to $2.0 billion, as further discussed below. The next scheduled borrowing base redetermination will be in April 2011. Between scheduled borrowing base redeterminations, we and, if requested by 66 2/3 percent of the lenders, the lenders, may each request one special redetermination.
On October 7, 2010, we amended our credit facility simultaneously with the closing of the Marbob acquisition to increase the borrowing base from $1.2 billion to $2.0 billion. We paid our bank group, now a total of 34 banks, approximately $23.6 million associated with the amendment and for the previous commitments to increase the borrowing base. Pro forma at September 30, 2010, after taking into account the closing of the Marbob acquisition, the resolution of the Marbob preferential right dispute, the closing of the credit facility amendment, the private placement and estimated related transaction costs, we estimate our outstanding indebtedness under our credit facility would have been approximately $1.5 billion and our availability under our credit facility would have been approximately $470 million.
At September 30, 2010, we had (i) oil price swaps that settle on a monthly basis covering future oil production from July 1, 2010 through June 30, 2015 and (ii) a natural gas price swap, natural gas price collars and natural gas basis swaps covering future natural gas production from July 1, 2010 to December 31, 2012. See Note I of the Condensed Notes to Consolidated Financial Statements included in Item 1. Consolidated Financial Statements (Unaudited) for additional information on our commodity derivative contracts. The average NYMEX oil price and average NYMEX natural gas price for the nine months ended September 30, 2010, was $77.60 per Bbl and $4.54 per MMBtu, respectively. At November 2, 2010, the NYMEX oil price and NYMEX natural gas price were $83.90 per Bbl and $3.87 per MMBtu, respectively. A decrease in oil and natural gas prices would increase the fair value asset of our commodity derivative contracts from their recorded balance at September 30, 2010. Changes in the recorded fair value of the undesignated commodity derivative contracts are marked-to-market through earnings as unrealized gains or losses. The potential increase in our fair value asset would be recorded in earnings as an unrealized gain. However, an increase in the average NYMEX oil and natural gas prices above those at September 30, 2010, would result in a decrease in our fair value asset and be recorded as an unrealized loss in earnings. We are currently unable to estimate the effects on the earnings of future periods resulting from changes in the market value of our commodity derivative contracts.
We have incurred debt amounting to approximately $688.6 million as of September 30, 2010. At September 30, 2010, the borrowing base under our credit facility was $1.2 billion. At September 30, 2010, we had $807.5 million of available borrowing capacity. On October 7, 2010, in connection with the closing of the Marbob acquisition, we entered into an amendment to our credit facility to increase the borrowing base from $1.2 billion to $2.0 billion. Pro forma at September 30, 2010, after taking into account the closing of the Marbob acquisition, the resolution of the Marbob preferential right dispute, the closing of the credit facility amendment, the private placement and estimated related transaction costs, we estimate our outstanding indebtedness under our credit facility would have been approximately $1.5 billion and our availability under our credit facility would have been approximately $470 million.
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Concho Resources Inc. has a market cap of $6.6 billion; its shares were traded at around $71.86 with a P/E ratio of 32.4 and P/S ratio of 12.1. CXO is in the portfolios of RS Investment Management, Ron Baron of Baron Funds, Jeremy Grantham of GMO LLC, Pioneer Investments.
Highlight of Business Operations:
Acquisitions. Our expenditures for acquisitions of proved and unproved properties (which includes customary leasehold acreage acquisitions) during the three months ended September 30, 2010 and 2009 totaled approximately $14.6 million and $7.2 million, respectively, and approximately $49.4 million and $10.7 million during the nine months ended September 30, 2010 and 2009,Cash flow from financing activities. Net cash provided by financing activities was $107.2 million and $7.7 million for the nine months ended September 30, 2010 and 2009, respectively. During the nine months ended September 30, 2010, we reduced our outstanding balance on our credit facility by $157.5 million primarily using proceeds from the issuance of common stock. During the nine months ended September 30, 2009, we had net borrowings of $15.7 million under our credit facility.
Our credit facility, as amended, has a maturity date of July 31, 2013. At September 30, 2010, we had letters of credit outstanding under the credit facility of approximately $25,000, and our availability to borrow additional funds was approximately $807.5 million based on the borrowing base of $1.2 billion. On October 7, 2010, in connection with the closing of the Marbob acquisition, we entered into an amendment to our credit facility to increase the borrowing base from $1.2 billion to $2.0 billion, as further discussed below. The next scheduled borrowing base redetermination will be in April 2011. Between scheduled borrowing base redeterminations, we and, if requested by 66 2/3 percent of the lenders, the lenders, may each request one special redetermination.
On October 7, 2010, we amended our credit facility simultaneously with the closing of the Marbob acquisition to increase the borrowing base from $1.2 billion to $2.0 billion. We paid our bank group, now a total of 34 banks, approximately $23.6 million associated with the amendment and for the previous commitments to increase the borrowing base. Pro forma at September 30, 2010, after taking into account the closing of the Marbob acquisition, the resolution of the Marbob preferential right dispute, the closing of the credit facility amendment, the private placement and estimated related transaction costs, we estimate our outstanding indebtedness under our credit facility would have been approximately $1.5 billion and our availability under our credit facility would have been approximately $470 million.
At September 30, 2010, we had (i) oil price swaps that settle on a monthly basis covering future oil production from July 1, 2010 through June 30, 2015 and (ii) a natural gas price swap, natural gas price collars and natural gas basis swaps covering future natural gas production from July 1, 2010 to December 31, 2012. See Note I of the Condensed Notes to Consolidated Financial Statements included in Item 1. Consolidated Financial Statements (Unaudited) for additional information on our commodity derivative contracts. The average NYMEX oil price and average NYMEX natural gas price for the nine months ended September 30, 2010, was $77.60 per Bbl and $4.54 per MMBtu, respectively. At November 2, 2010, the NYMEX oil price and NYMEX natural gas price were $83.90 per Bbl and $3.87 per MMBtu, respectively. A decrease in oil and natural gas prices would increase the fair value asset of our commodity derivative contracts from their recorded balance at September 30, 2010. Changes in the recorded fair value of the undesignated commodity derivative contracts are marked-to-market through earnings as unrealized gains or losses. The potential increase in our fair value asset would be recorded in earnings as an unrealized gain. However, an increase in the average NYMEX oil and natural gas prices above those at September 30, 2010, would result in a decrease in our fair value asset and be recorded as an unrealized loss in earnings. We are currently unable to estimate the effects on the earnings of future periods resulting from changes in the market value of our commodity derivative contracts.
We have incurred debt amounting to approximately $688.6 million as of September 30, 2010. At September 30, 2010, the borrowing base under our credit facility was $1.2 billion. At September 30, 2010, we had $807.5 million of available borrowing capacity. On October 7, 2010, in connection with the closing of the Marbob acquisition, we entered into an amendment to our credit facility to increase the borrowing base from $1.2 billion to $2.0 billion. Pro forma at September 30, 2010, after taking into account the closing of the Marbob acquisition, the resolution of the Marbob preferential right dispute, the closing of the credit facility amendment, the private placement and estimated related transaction costs, we estimate our outstanding indebtedness under our credit facility would have been approximately $1.5 billion and our availability under our credit facility would have been approximately $470 million.
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