Concho Resources Cuts 2015 CapEx, Production Growth Outlook

(RTTNews) - Concho Resources Inc. (CXO) on Monday cut its 2015 capital expenditure outlook to $2.0 billion from its prior outlook of $3.0 billion, as a result of the sharp decline in commodity prices.

The company's updated 2015 capital program of $2.0 billion includes about $1.8 billion for drilling and completion activities and about $200 million for facilities, midstream and other capital.

The independent oil and natural gas company also said it now expects to generate 16% to 20% year-over-year production growth in 2015, compared to its prior forecast of 28% to 32% growth.

Tim Leach, Concho Chairman, Chief Executive Officer and President, said, "Reducing the capital program while delivering robust growth reflects our commitment to a strong balance sheet and highlights the quality of our assets in the Permian Basin. In the current environment, we intend to prudently manage our 2015 capital program around anticipated cash flows and retain significant flexibility to scale our activity level up or down depending on service costs and commodity prices."