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Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc.

Concho Resources, Inc. · Mar 27, 2017 · 22 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. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 1
    Howard Weil 45th Annual Energy Conference MARCH 2017
  2. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 2
    Concho Resources Largest Pure-Play Permian Company Premier Permian Assets Leading exposure to the Permian Basin New Mexico Shelf 930,000 gross (600,000 net) acres Four core areas benefit capital flexibility Midland Northern Basin…
  3. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 3
    2016 Was a Great Year for Concho Well Positioned for Long-Term Value Creation Delivered 5% production growth year-over-year within cash flow Expanded resource capture Proved reserves grew 15% to 720 MMBoe, replacing 344% of…
  4. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 4
    Executing a Disciplined Capital Program Preserving Financial Strength; Improving Capital Productivity Cash Inflows vs. Outflows (mm) Prior 18 Months Ended December 31, 2016 2,146 Over past 18 months, operating cash flow exceeded D&C…
  5. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 5
    Resource Expansion Reflects Sustainable Capital Efficiency Improvements Resource Capture Provides Confident Growth Platform Net Resource Potential Up 3 BBoe Significant Inventory Depth Identified Drilling Locations 8.0 +60% y/y…
  6. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 6
    Our Crystal Ball We expect more So, were sticking with our Oil Price Volatility Strategy Key Factors Our Focus High inventory levels Exercise capital discipline U.S. shale production & technology Maximize resource recovery OPEC…
  7. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 7
    2017 Capital Program Capital-Efficient Growth & Value Creation 2017 Capital Program Allocation Extending Efficiency Gains Total capital program range: 1.6bn 1.8bn1 21 2 19 90% of capital directed to drilling and completion 5 2 4…
  8. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 8
    Robust Long-Term Outlook Delivering Differentiated Growth Visible Growth from High-Quality Assets Expect 2017 annual production growth of MMBoe 20% - 24% within cash flow Crude oil production expected to grow 25% Performance…
  9. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 9
    Proven Strategy Yields Unique Advantages Execution Strength Depth of High- Superior Capital Financial Strength & Scale Quality Inventory Efficiency Most active driller Prolific resource ROR-driven & Low leverage in the Permian…
  10. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 10
    Strong Balance Sheet Enhances Flexibility YE16 Net Debt / EBITDAX1 Peers 5.4x CXO Today vs. YE15 4.7x 600mm less absolute debt 55mm less annual interest expense Lower cost of capital 3.3x 2.6x Average2: 2.4x 2.3x 2.2x 2.2x 2.2x…
  11. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 11
    Track Record of Peer-Leading Execution 10-Year Production Growth per Debt-Adjusted Share (CAGR)1 Peers 23% 19% 20% 13% 9% 9% 8% Average2: 6% 6% 5% 2% A B C D E F G H I J K L M N -1% -1% -1% -3% -3% Data per…
  12. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 12
    Key Messages Consistent Execution of Our Strategy High-quality, balanced asset base in the Permian with over 19,000 horizontal locations and 8 billion barrels of net resource potential Disciplined capital program Enhancing capital…
  13. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 13
    Northern Delaware Basin Industry-Leading Exposure to Prolific Stacked Resource 4Q16 Results 12,000 380,000 gross Running Added 16 horizontal wells (avg. lateral length 6,379) Total Horizontal Drilling (260,000 net) acres 8…
  14. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 14
    Northern Delaware Basin Red Hills Area Oil-Rich, Multi-Zone Resource Potential Northern Delaware Basin Recent Red Hills Production Highlights CXO Acreage 360 Upper Avalon (Vast 4-well test and Monet 4-well test) Upper Wolfcamp Sands…
  15. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 15
    Southern Delaware Basin Core Position in Rapidly Advancing Oil Play 1,300 4Q16 Results 160,000 gross Running Total Horizontal Drilling Added 6 horizontal wells (avg. lateral length 6,349) (100,000 net) acres 5 Horizontal Rigs…
  16. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 16
    Midland Basin Multi-Well Pad Development Driving Record Production 4Q16 Results Achieved record average 30-day peak rate Added 11 horizontal wells (avg. lateral length 9,601) MARTIN Avg. 30-day peak rate: 1,299 Boepd (85% oil)…
  17. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 17
    New Mexico Shelf 4Q16 Results 2,100 130,000 gross Running Total Horizontal Drilling Achieved record average 30-day peak rate (80,000 net) acres Inventory (Gross) 2 Horizontal Rigs Added 18 horizontal wells (avg. lateral length…
  18. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 18
    2017 Operational & Financial Outlook 2017 Guidance 1Q17 GUIDANCE Production Annual growth 20% - 24% 172 to 176 MBoepd Oil mix 62% - 64% Price realizations, excluding commodity derivatives Crude oil differential to NYMEX (per Bbl)…
  19. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 19
    Hedge Position 2017 2018 2019 First Second Third Fourth Total Total Total 2017 OIL HEDGES 1 Oil Swaps : 77.7 MBopd Volume (Bbl) 7,423,870 7,708,480 6,898,370 6,333,080 28,363,800 21,537,124 8,854,000 Price per Bbl 56.91 57.22 51.87…
  20. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 20
    Pro Forma Capitalization ACC Sale & Northern Delaware Basin Acquisition Endurance As of Pro Forma Strong Financial Acquisition ACC Sale Adj. 12/31/16 Balance Sheet Position Adj.1 ( millions) Recent transactions Cash 53 (107) 803…
  21. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 21
    Reconciliation of Net Income (Loss) to EBITDAX (Unaudited) EBITDAX (as defined below) is presented herein and reconciled from the GAAP measure of net income (loss) because of its wide acceptance by the investment community as a financial…
  22. Scotia Howard Weil 45th Annual Energy Conference – Concho Resources, Inc. – slide 22
    Costs Incurred (Unaudited) The following table summarizes costs incurred for oil and natural gas producing activities for the periods indicated: Three Months Ended December 31, September 30, June 30, March 31, December 31, September…

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