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Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc.

Concho Resources, Inc. · Aug 14, 2008 · 25 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. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 1
    Enercoms 2008 Oil and Gas Conference August 14, 2008 1
  2. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 2
    Company Overview Map of operations Ticker: ND Market Cap1: 2.6 billion NM AR Midland Enterprise Value2: 3.3 billion Core operating area TX Emerging resource plays Headquarters New Mexico Shelf properties Texas Permian…
  3. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 3
    Recent Highlights Revenues of 244.1 million in 1st half '08; 93% above 1st half '07 of 126.4 million Net cash provided by operating activities in 1st half '08 of 162.9 million, a 156% increase over 1st half '07 1 EBITDAX in 1st…
  4. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 4
    Margin Analysis Strong price realizations due to 2007 Cash Margin1 60/40 oil/gas mix and liquid 8.00 7.38 content in gas stream 7.00 Favorable cost structure in core 6.00 5.66 area due to concentration of assets 5.00…
  5. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 5
    Overview of Henry Petroleum Acquisition 6
  6. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 6
    Transaction Overview Concho Resources acquired Henry Petroleum plus additional interests for approximately 588 million Funded by borrowings under amended senior credit facility and the proceeds from common stock private placement…
  7. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 7
    Strategic Rationale Established second proven growth engine within the Permian Basin Technical/operational synergies with Southeast New Mexico Shelf asset Strategic Increased portfolio of identified opportunities by 68% (2,500 to…
  8. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 8
    CXO Assets and Henry Petroleum Assets SENM Shelf Artesia W. Wolfberry E. Wolfberry Midland Spraberry Trend CXO Acreage Henry Petroleum Wolfberry Acreage 9
  9. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 9
    Henry Petroleum Acquisition Key Takeaways Established second proven growth engine in the Permian Basin Immediately accretive to recurring EPS and CFPS Incremental capital development plan is selffunding Enhanced Conchos growth…
  10. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 10
    Combined Concho Assets 11
  11. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 11
    Concho Assets (Post Henry Acquisition) New Mexico Shelf NM TX 782 Bcfe proved reserves1 61% of proved reserves 61% oil Majority of Northwest Shelf 56% proved developed opportunities < 7,000 Tatum Basin June 08 pro forma average…
  12. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 12
    Southeast New Mexico Shelf Core asset from Chase acquisition NM TX Producing approximately 60% of Companys total production1 Northwest 100,603 gross (49,306 net) acres Shelf Tatum Historic production from shallower zones including…
  13. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 13
    Southeast New Mexico Shelf Approximately 270 million (68% of 2008 capital budget) allocated to Shelf properties NM TX 132 drill wells Northwest 96 Paddock add pays Shelf Tatum Basin 63 Paddock restimulations Midland Basin 39…
  14. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 14
    Southeast New Mexico Shelf Concho Leasehold Acquired Wells + Other Producers 2006/07 Drilling Program 2008 Drilling Program PUD Locations Unproved Locations Total Proved1 Large Conventional Resource Additional Potential 51%…
  15. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 15
    Texas Permian - Wolfberry Over 500 Wolfberry wells drilled 8 Rigs currently drilling, executing a 9 year drilling schedule Approximately 1,600 drilling locations on 80 and 40 acre spacing Approximately Spraberry 300…
  16. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 16
    Type Curve and Return Analysis Wolfberry Well Yeso Well Wolfberry Yeso Initial Production: 90 BO/D + 230 MCF/D Initial Production: 145 BO/D + 346 MCF/D Final Decline Rate: 5% Final Decline Rate: 8% Gross EUR: 97 MBO + 321 MMCF…
  17. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 17
    Drilling and Recompletion Inventory Drilling1 Recompletions1 1,420 Wolfberry 346 Shallower than Yeso 547 Blinebry / Paddock 310 Paddock re-stimulations Yeso 380 Paddock standalone Drilling 41 Yeso recompletions 63 Blinebry…
  18. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 18
    Emerging Resource Plays Summary1 NM TX Northwest Southeast New Mexico (NM) Fayetteville Shale (AR) Shelf Tatum 55,668 gross (23,699 net) acres 17,022 gross (14,452 net) acres Basin Targeting Wolfcamp Carbonate Midland Williston…
  19. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 19
    Appendix 20
  20. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 20
    Hedging Schedule 1 The index prices for the oil price swaps are based on NYMEX West Texas Intermediate monthly average futures price. 2 The index price for the natural gas price collar is based on the Inside FERCEl Paso Permian…
  21. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 21
    EBITDAX Reconciliation ( thousands) EBITDAX (as defined above) is presented herein, and reconciled to the generally accepted accounting principle (GAAP) measure of net income because of its wide acceptance by the investment…
  22. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 22
    Wolfberry Geologic Model Central Basin Wolfberry Fairway / Eastern Platform Henry Petroleum Acreage Shelf A A 7,500 8,500 Wolfcamp shelf 9,500 edge 10,500 Leonard shelf carbonates Wolfcamp shelf carbonates…
  23. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 23
    Updated 2008 Capital Budget of 389 million Drilling & recompletion projects in core areas Drilling & recompletion projects by core area Nonoperated New Mexico Basin Texas 4% 3% 15% Operated 96% New Mexico Shelf 82% Total…
  24. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 24
    Production & Reserve Growth Annual production 2004 through 2007 illustrates growth through acquisitions and drilling 50 42 43.5 40 Organic production growth driven by activity on core 30 30 23 southeast NM shelf asset…
  25. Enercoms 2008 Oil and Gas Conference – Concho Resources, Inc. – slide 25
    Combined Guidance 1 Includes results from Henry acquisition 2 Production Expense includes Lease Operating expenses and Ad Valorem 26

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