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Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc.

Concho Resources, Inc. · May 14, 2012 · 16 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 1
    May 14, 2012 Acquisition of Three Rivers Operating Company Permian Assets
  2. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 2
    Summary of Terms Concho Resources is acquiring all of the oil and natural gas assets of Three Rivers Operating Company (Three Rivers or 3ROC) Full step up in tax basis Transaction value: 1.0 billion No debt assumed…
  3. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 3
    Transaction Rationale 58 MMBoe1 of proved reserves (50% oil; 55% PD) Current daily production of approximately 7.0 MBoe/d High Quality Over 1,500 identified drilling locations within the Companys existing core areas Asset Base…
  4. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 4
    Attractive Permian Basin Consolidation Acquisition Combined Permian Basin Acreage Position Strategic Rationale Represents a significant consolidation transaction i ini the h Permian P i B Basin i Drilling opportunities across…
  5. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 5
    Northern Delaware Basin Enhancing Leading Core Position Active Horizons Northern DB Consolidation Delaware sands Avalon shale (upper and lower) Bone Spring sand (1st/2nd/3rd) Material acreage overlap in the proven northern…
  6. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 6
    Delaware Basin Play A Leading Operator Overview Hz Delaware Basin Play Production (MBoe/d)1 Concho is an industry leader in horizontal development in the Delaware Basin Combined position and scale provide 12.4 11.0 meaningful…
  7. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 7
    Midland Basin Meaningful Addition to Wolfberry Play Midland Basin Addition Significant addition to vertical drilling inventory across the Midland Basin Increases net acreage by 42% Primary targets include Wolfberry and shallow…
  8. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 8
    Midland Basin Expanding Into The Emerging Southern Midland Basin Southern Midland Basin Expansion Continued expansion into emerging southern Midland Basin Acquired acreage currently being developed with vertical wells targeting…
  9. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 9
    New Mexico Shelf Complementing Core Legacy Position New Mexico Shelf Bolt-on Provides bolt-on acreage across core legacy New Mexico Shelf position Concho has drilled over 1,000 wells in the Yeso Expanding the play boundary…
  10. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 10
    Conventional Permian Basin Potential Source of Divestitures Conventional Permian Targeting divestitures of 200 - 400 million in existing and newly acquired assets post-close Timing expected within 9 months Conventional Permian…
  11. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 11
    Updated 2012 Capital Budget and Activity 2012 Capital Budget: 1.5bn 2012 Drilling & Completion Budget: 1.4bn 4% 4% 34% 36% Drilling & Completion New Mexico Shelf Texas Permian Facilities Delaware Basin Leasehold & G&G…
  12. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 12
    Track Record of Production & Reserve Growth Annual Production (MMBoe) Proved Reserves (MMBoe) 28.7 - 29.8 386.5 323.5 23 6 23.6 15.6 211.5 10.9 137.3 7.1 7 91 0 91.0 77.8 5.0 3.9 3.8 17.9 17.8 1.2 12.5…
  13. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 13
    Acquisition Consistent with Conchos Operational Strategy A leading Permian producer with a proven track record of creating shareholder value through accretive acquisitions Value creation through accelerating development and…
  14. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 14
    Appendix 16
  15. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 15
    Three Rivers Acquisition Guidance Three Rivers Estimated Contribution (2H 2012 & FY 2013) Acquisition Impact 2H 2012 FY 2013 Production: Oil equivalent (MMBoe) 1.2 - 1.3 4.6 - 5.1 % Oil 45% - 55% 50% - 60% Operating costs and…
  16. Acquisition of Three Rivers Operating Company Permian Assets – Concho Resources, Inc. – slide 16
    Hedges as of May 13, 2012 Current Oil and Natural Gas Swaps 2012 Second Fourth Quarter T hird Quarter Quarter T otal 2013 2014 2015 2016 2017 Oil Swaps Volume (Bbl) ............................................ 3,949,500 3,87…

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