Concho Resources (NYSE: CXO ) has been battered by the weather. The company announced that, due to a pair of winter storms across the Permian Basin in late November and early this month, its production was "significantly affected." As a result, it believes its previously announced annual production guidance will come in at the low end of the range.
This past February, Concho Resources said it anticipated production of 33.4 million to 34.8 million barrels of oil equivalent. Even the bottom of that range is notably higher than the 29.8 MMBoe the company produced in 2012.
The company added that its rig count additions were proceeding ahead of schedule. At the moment, Concho Resources operates 24 rigs, out of which 20 are drilling horizontally. It expects to add another two to the latter total by the end of this year.
The resource-rich Permian Basin is the area located in Texas and New Mexico, where the company concentrates its operations.