For reasons already discussed, we sold both Anadarko and Weatherford during the quarter, and we purchased one new holding, Concho Resources. We believe Concho (NYSE:CXO) is one of the highest quality oil and gas producers in the U.S., with an enormous acreage position in the most attractive parts of the Permian Basin. This large inventory of future drilling locations can allow the company to invest at high returns for years to come. We think the market is currently valuing this strategically attractive set of assets at a discount to recent private market transactions and below Permian peers on a per acre basis, despite the company’s superior economics and high-quality management team, which has a long history of creating value for shareholders through both efficient operations and savvy capital allocation. We believe shareholders can once again be rewarded as Concho develops and monetizes its acreage footprint.
From Bill Nygren (Trades, Portfolio)'s second-quarter 2019 Oakmark Fund shareholder commentary.
