Concho Resources (CXO) has reported solid Q1-2020 results but its earnings will decline substantially in the coming quarters due to the plunge in oil prices. Concho Resources has reduced its capital budget by 40% from its original forecast and will now focus on preserving cash flows. The company can further reduce spending if the oil price environment gets worse. The Midland, Texas-based shale oil producer will, however, receive a lot of support from its crude oil hedges that will soften the blow coming from weak oil prices. The company also benefits from having