Permian Basin player Concho Resources lowered its well costs by 20%, and third-quarter production gains proved a shift to wider spacing to correct past missteps is paying off.

The Midland, Texas-based company also reported this week production grew by 15% to 330,000 barrels of oil equivalent per day (boe/d) compared to a year ago, and it generated $665 million of cash flow from operating activities.

The improvements contributed to Concho’s reported net income of $558 million for third-quarter 2019, compared to a loss of $199 million a year earlier, bolstering the company’s confidence in its ability to meet expectations.

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