Oil and natural gas company Concho Resources Inc. swung to profit in the fourth quarter of 2017 from a loss in the comparable prior-year period, as it recorded a total of $473 million income tax benefit.
The company posted net income of $267 million, or $1.79 per diluted share, for the quarter that ended Dec. 31, 2017, compared with a loss of $125 million, or 86 cents per share, in the prior-year quarter.
The company said the new U.S. tax law resulted to $398 million provisional noncash decrease to its income tax provision and a corresponding provisional reduction to its net non-current deferred tax liability.
On a non-GAAP basis, adjusted net income was $98 million, or 66 cents per share, from $28 million, compared with 20 cents per share in the same quarter in 2016.
Operating revenues stood at $780 million for the quarter, up from $525 million, reflecting oil sales of $631 million and natural gas sales of $149 million.
The company reported operating costs amounting to $959 million for the fourth quarter from $674 million in the same period in 2016, resulting in a fourth-quarter loss from operations of $179 million, up from a loss of $149 million.
For full year 2017, Concho Resources' net income stood at $956 million, or $6.41 per share, from a net loss of $1.46 billion in 2016.