Trying to strike the right balance between short-term and long-term goals continues to be a precarious pursuit for many E&Ps. Multiyear projects in, say, the offshore are almost a rarity, and instead the focus has been on short-cycle unconventional projects that, ideally, can move into "manufacturing mode" in a matter of months. But apparently even such projects risk giving investors heartburn in today's market. An example is offered by Concho Resources Inc. in releasing its second-quarter results and providing guidance for production and capex levels following its merger with RSP Permian Inc. Full-year 2018 production guidance was close to Street estimates, albeit with fourth-quarter volumes trailing expectations, while full-year 2018 capex guidance came in roughly 10% above expectations.
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