J.P. Morgan 2018 Energy Conference Tim Leach, Chairman & CEO June 2018
Concho Resources Strong Track Record of Creating Profitable Growth The Permian Basin The Permian Basin: Our home for 30+ years Home-field advantage with HQ in Midland, Texas NEW MEXICO Our strategy focuses on: SHELF MIDLAND BASIN…
U.S. Energy Independence on the Horizon Innovation and New Technology Game Changers for U.S. Oil Growth U.S. Lower 48 Oil Production U.S. Net Imports of Crude & Petroleum Products (MMBopd) (MMBpd) 8 14 7 12 6 10 5 8 4 6 3 2 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…
Portfolio Management Executing on Efficient Growth While Building for the Future Leadership Position in the Permian Basin New Mexico Shelf Consolidating the Permian Entered into agreement to acquire RSPP Enhancing Core Positions…
2014: Significant Private-Company Ownership Permian Basin Ripe for Consolidation Permian Acreage Overview 2014 Permian Basin fragmented among public and private operators Public Private CXO acreage position 8
Today Public Companies Dominate Permian Basin M&A Permian Acreage Overview Today Over past 5 years public companies have looked to either establish or enhance a Permian position Strong industrial logic for in-basin…
The Playbook for In-Basin Consolidation Building Value in the Permian Basin Criteria Enhances Premium Resource Base Provides Significant Scale & Operational Synergies Accretive to Key Per-Share Metrics Reinforces Financial…
Announced Acquisition of RSP Permian Creating the Largest Unconventional Shale Producer in the Permian Basin Combined Position 640,000 Net Acres Transaction Overview Transaction Timing Update Acquiring RSPP in all-stock transaction…
Increased Scale Creates Long-Term Competitive Advantage Solidified and Strengthened Leading Position in the Permian Basin Permian Rig Count 31 28 23 23 21 19 18 16 15 13 8 8 8 7 Market share enhances supply chain and Pro XOM…
Northern Midland Basin Building a Super Block Executing Our Consolidation Playbook Has Built a Super Block in the Core of the Midland Basin October 2016 July 2017 February 2018 March 2018 CXO Acreage CXO Acreage CXO Acreage CXO…
Operational Value Levers Expands Value Proposition for All Shareholders Key Value Levers Single-Zone Development Comparison Long-lateral development Large-scale, multi-zone Small-Scale Development Large-Scale, Long-Lateral…
Prioritizing Capital Discipline Differentiated Production Growth & Free Cash Flow 228 80.00 Operating Cash Flow vs. D&C Capital (mm) High-Quality Assets & 211 Disciplined 70.00 Reinvestment Drives 193 Cumulative free 185 Free Cash…
2018 Capital Program Excludes RSPP 2018 Capital Program & Activity Overview CXO Long-Term Outlook Targeting midpoint of 1.9bn - 2.1bn capital program guidance1 2017-2020 93% for D&C activity and 7% for other 20% total production…
Midstream Strategy A Decade of Proactive Infrastructure Investment Ahead of Growth Regional Gathering Systems No production constraints and multiple options to secure flow assurance Gathering systems move 85% of CXO crude to key…
Track Record of Peer-Leading Execution 10-Year Production Growth per Debt-Adjusted Share (CAGR)1 Peers 22% 21% 20% 10% 8% 7% 7% 6% Average2: 4% 0% 0% 0% A B C D E F G H I J K L M N O P -1% -3% -3% -6% -7% Source:…
Key Investment Thesis Conchos Value Proposition Executing Clear, Disciplined Capital Industry-Leading Scale Cycle-Tested Strategy Allocation and Execution Hire the best Capital spending on Drive productivity gains high-return…
Appendix
Delivering Long-Term Differentiated Performance Leading Permian Portfolio Positioned to Win Running Our Playbook Enhancing Our Financial Strength Long-Term Debt Profile (mm) Reduced Driving Strong, Prioritizing Capital 3,350…
Reconciliation of Net Income to EBITDAX (Unaudited) EBITDAX (as defined below) is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator.…
Costs Incurred (Unaudited) The following table summarizes costs incurred for oil and natural gas producing activities for the periods indicated: Three Months Ended March 31, December 31, September 30, June 30, March 31, December 31,…
Hedge Position The table below provides data associated with the Companys derivatives at May 1, 2018, for the periods indicated: REMAINING 2018 OIL HEDGES 2018 2019 2020 Second Third Fourth Total Total Total 112 MBopd Oil Price…
2018 Operational & Financial Outlook Excludes RSPP 2018 2Q18 Production Guidance Guidance Production Total production growth 18% - 20% 226 to 230 MBoepd Crude oil production growth 20% Price realizations, excluding commodity…
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