Concho Resources Premier Permian Basin Assets Strategic acreage position in the Permian Basin New Mexico Shelf 1.1 million gross (690,000 net) acres Core areas in the Delaware Basin, Midland Basin and New Mexico Shelf High-quality,…
Conchos Strategy Focused on Creating Value Highly technical, motivated team People Legacy of successful consolidation in the Permian Basin High-quality assets in the Delaware Basin, Midland Basin & New Mexico Shelf Assets…
Delivering on our Strategy Positioning for Long-Term Growth Improving Capital Efficiency Expanding Growth Platforms Executing a disciplined capital program within cash flows1 New Mexico Shelf CXO Acreage 2015 Acquisitions Resilient…
Executing a Disciplined Capital Program Preserving Financial Strength; Improving Capital Productivity Capital Discipline Spending Within Cash Flows (mm) Uniquely Positions Concho D&C Capital Operating Cash Flows Production & Cash…
Execution Strength Conchos Development Machine Enhances Asset Value 1,040 17 18,000 Total Horizontal Rigs Running Identified Horizontal Wells Drilled Largest Rig Program Drilling Locations 2011-2Q16 in the Permian Large-scale,…
Improving Well Performance and Reducing Costs Continuous improvement in well performance Decrease in Total Well Cost / Lateral Foot Drilling & completion optimization driving strong well performance Since 1Q15 Advancing multi-zone…
Oil-Rich Avalon Shale Completion Optimization Enhancing Well Performance Avalon Cumulative Production NORTHERN DELAWARE BASIN Completion optimization 200 enhancing well performance 2016 Avg. 2015 Avg. Delineated Upper and Lower…
Recent Acquisition Highlights Expanding Core Midland Basin Position Acquiring high-quality assets in the Midland Basin Purchase price 1.625bn, consisting of approximately 1.1bn cash and 3.96mm shares War of CXO common stock1 ANDREWS…
Building for Long-Term Value Creation in the Midland Basin Expands core Midland Basin position by 35% to more than 150,000 net Regional Overview acres Combined production totals 30 MBoepd Premier resource and returns proven by…
Leveraging Our Execution Strength to Add Value Lower Spraberry Well Performance Completion Optimization Drives Better Performance 200 Lower Spraberry Well Proppant Loading 180 CXO Vintage Count (lbs/ft) CXO 2 2,300 Cumulative…
Low-Risk Inventory Assessment Acquired Assets Inventory Assessment War Admiral Gallant Fox High-quality acreage position with multi-zone potential de- 24 Wells/Section 16 Wells/Section risked by consistently strong War Admiral…
Development Upside Substantial Multi-Bench and Increased Density Potential Upside Potential Regional Activity Development Upside Regional geology and industry activity of Industry Wells Drilled by Zone1 52 Wells/Section suggests…
Key Messages Conchos Development Optimization Enhances Asset Value Consistent execution of our strategy Large-scale, diversified asset base within the Permian provides competitive advantage Capital flexibility across assets Intense…
Appendix
2016 Capital Program 2016 Capital Allocation 2017 OUTLOOK 20% annual Drilling & Completion Infrastructure and other Activity 2016 capital plan 1.1bn to 1.3bn1 production growth, driven by 20% oil 10% 35% less capital…
Northern Delaware Basin Industry-Leading Position with Multi-Zone Potential 2016 Plans ACREAGE POSITION 355,000 gross Multi-well pad drilling to drive operational (250,000 net) acres efficiencies EDDY Primary targets include 2nd…
Southern Delaware Basin Core Position in Rapidly Advancing Oil Play 2016 Plans ACREAGE POSITION 200,000 gross REEVES WARD Focused development on Wolfcamp (125,000 net) acres Delineating 3rd Bone Spring Sand zone CURRENT RIG 2Q16…
Midland Basin Optimizing Development HORIZONTAL CORE 2016 Plans ACREAGE POSITION Build on long-lateral success and shift to multi-well pad 240,000 gross ANDREWS MARTIN drilling (150,000 net) acres Optimize completion technique…
New Mexico Shelf Enhancing Value in Legacy Oil Play 2016 Plans ACREAGE POSITION 150,000 gross Rate-of-return competitive at low oil prices (100,000 net) acres Focus on Upper Blinebry and Paddock EDDY LEA Optimize well spacing and…
Operating Cash Flows & Cash Settlements from Derivatives (Unaudited) The following table summarizes operating cash flows and cash settlements from derivatives for the periods indicated: Three Months Ended June 30, March 31, December…
Costs Incurred (Unaudited) The following table summarizes costs incurred for oil and natural gas producing activities for the periods indicated: Three Months Ended June 30, March 31, December 31, September 30, June 30, March 31,…
Reinforcing Financial Position Significant Liquidity with Less Debt Unaudited Pro Forma Balance Sheet (as of 6/30/2016) BALANCE SHEET Adjustments STRENGTH Actual Pro Forma Reducing leverage 6/30/16 Reliance Equity Offering1 Bond…
Hedge Position 2016 Fourth 2H16 OIL HEDGES Third Quarter Quarter Total 2017 2018 Oil Swaps1: 57.1 MBopd Volume (Bbl) 5,460,000 5,054,000 10,514,000 20,865,500 12,000,000 Price per Bbl 74.21 59.38 67.08 54.91 49.40 Oil Basis…
Operational & Financial Outlook 2016 3Q16 OUTLOOK Guidance Production Production: Annual growth 1% - 3% 144 to 148 MBoepd Oil mix 60% - 64% Price realizations, excluding commodity derivatives Crude oil differential to NYMEX (per…
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