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Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc.

Concho Resources, Inc. · Mar 26, 2018 · 26 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 2018 Energy Conference – Concho Resources, Inc. – slide 1
    Howard Weil 46th Annual Energy Conference MARCH 2018
  2. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 2
    Concho Resources Largest Pure-Play Permian Company Premier Permian Assets Headquartered in Midland, Texas New Mexico Shelf Strategic acreage position in the Permian Basin Prolific growth platform Northern Delaware Midland…
  3. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 3
    Permian Basin Oil Production Innovation and New Technology Game Changers for Permian Oil Growth 13% 14% 17% 15% 13% 11% 33% 3,000 Total Permian Basin Oil Production 2,500 2,000 Current Permian Basin (MBopd) rig count…
  4. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 4
    Conchos Proven Strategy Yields Unique Advantages People, Assets, Returns and Balance Sheet Execution Strength Depth of High- Superior Capital Financial Strength & Scale Quality Inventory Efficiency Most active driller Prolific…
  5. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 5
    2017 Was A Great Year for Concho Executing Near-Term Goals, Focusing on Long-Term Returns Delivering Strong, Consistent Execution 29% crude oil production growth and 28% total production growth 17% increase in proved reserves, driven…
  6. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 6
    2017 by the Numbers Capital-Efficient Portfolio Exceeding Expectations 2017 Guidance 2017 Results 20%-24% total production growth 28% total production growth Expanded resource base Enhanced cash 25% crude oil growth 29% crude…
  7. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 7
    Delivering Strong, Consistent Execution Delivering Differentiated Production Growth & Maintaining Low Cash Costs Production (MBoepd) Cash Cost Structure (/Boe) Oil Gas Production Expense Cash G&A Interest Expense 193 14.62 151 3.95…
  8. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 8
    Actively Managing Portfolio Executing on Efficient Growth While Building for the Future 1Q18 Closed Transactions Enhancing core positions for long-lateral and manufacturing-style development Non-Core Divestiture Aligning capital to…
  9. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 9
    Midland Basin Mabee Ranch Consolidating Core Acreage Adding Scale & High-Quality Drilling Locations with CXO Acreage ANDREWS Reliance Contiguous Leasehold MARTIN October 2016 Relative Size Among Pure-Play Permian Operators Acquired…
  10. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 10
    High-Quality Resource Capture Premium Resource Depth Drives Differentiated Growth Outlook Growing Proved Reserves & Expanding Resource Proved Reserves (MMBoe) 10 BBoe of Captured Horizontal Resource Proved Developed Proved…
  11. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 11
    Prioritizing Capital Discipline Generating Free Cash Flow Over the Long Term Operating Cash Flow vs. D&C Capital (mm) Performance Track Record 211 193 Returns-focused capital program generating 60.00 Cumulative free cash 181 185…
  12. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 12
    Strengthening Financial Position Fortified Balance Sheet Provides Significant Flexibility Long-Term Debt Profile (mm) Key Highlights 3,350 Investment grade credit ratings Reduced long-term debt by 900mm since 2Q16 600 7.0% due…
  13. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 13
    2018 Outlook Leveraging Scale Advantage to Deliver Long-Term, Sustainable Performance 2018 Capital Program & Activity Overview New Long-Term Outlook Targeting midpoint of 1.9bn - 2.1bn capital program guidance1 Prior Outlook 93% for…
  14. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 14
    2017 Key Operational Milestones Execution Machine Firing on all Cylinders Long-Lateral Development Completion Optimization Productivity Uplift Avg. Lateral Length (ft.) Gross Stages Avg. Peak 90-Day Rate (Boepd) Proppant / Lateral…
  15. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 15
    Manufacturing Mode Scaling Development to Maximize Returns & Recoveries Economic Benefits Key Projects 2018 & 2019 Technology Drilling 1 Dominator 20+ well 4 Mabee 240A 10+ well multi-zone project multi-zone project 2 Eider 10+ well…
  16. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 16
    Track Record of Peer-Leading Execution 10-Year Production Growth per Debt-Adjusted Share (CAGR)1 Peers 23% 23% 21% 20% 17% 10% 9% Average2: 6% 0% 1% 1% A B C D E F G H I J K L M N O -2% 0% -3% -2% -4% -6% Data per…
  17. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 17
    Key Messages Executing Clear, Disciplined Capital Industry-Leading Scale Cycle-Tested Strategy Allocation and Execution Hire the best Capital spending on Drive productivity gains high-return projects Develop the best asset base…
  18. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 18
    Asset Update
  19. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 19
    Northern Delaware Basin Industry-Leading Exposure to Prolific Stacked Resource Premier Acreage Position 2016-2017 Well Completions1 340,000 gross (230,000 net) acres Well Avg. Peak Rate (Boepd) Lateral Formation Count 30-Day % Oil…
  20. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 20
    Southern Delaware Basin Core Position in Rapidly Advancing Oil Play Focused Position Ready for Full-Field Development 100,000 gross (70,000 net) acres 4Q17 Results CXO Acreage Added 3 horizontal wells (record avg. lateral length…
  21. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 21
    Midland Basin Building Momentum with Large-Scale Development Projects Blocky Acreage Driving Growth 280,000 gross (170,000 net) acres 4Q17 Results Added 6 horizontal wells targeting the Wolfcamp A and Wolfcamp B MARTIN (record avg.…
  22. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 22
    Appendix
  23. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 23
    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…
  24. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 24
    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…
  25. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 25
    Hedge Position 2018 2019 2020 First Second Third Fourth Total Total Total FY18 OIL HEDGES Oil Price Swaps1: 105 MBopd Volume (Bbl) 11,038,629 10,178,170 8,944,318 8,106,007 38,267,124 27,306,500 4,026,000 Price per Bbl 53.01 53.30…
  26. Scotia Howard Weil 2018 Energy Conference – Concho Resources, Inc. – slide 26
    2018 Operational & Financial Outlook 2018 Guidance 1Q18 GUIDANCE Production 215 219 MBoepd Total production growth 16% - 20% Crude oil production growth 20% Price realizations, excluding commodity derivatives Crude oil…

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