Concho Resources Leading Development of the Permian Basin Leadership Position The Permian Basin 640,000 net acres Our home for 30+ years Permian Basin Home-field advantage with HQ in Midland, Texas New Mexico The pillars of our…
Global Context Innovation and Technology Game Changers for U.S. Oil Growth Millions of Barrels of Crude Oil Produced Per Day The U.S. Oil Growth Story Is a Permian 2008 2018 Oil Growth Story Russia 9.3 United States Permian Other…
Well Positioned with Unique Competitive Advantages Leveraging Our Advantages to Deliver Growth and Value Our Advantages Breadth and Depth Execution Strength Superior Capital of High-Quality Financial Strength and Scale Efficiency…
Execution Strength and Scale Leading Large-Scale Development in the Permian Running a Large, Manufacturing-Like Program to Maximize Resource Recovery and Economics Four Dimensions of Full-Field Development: 1 Vertical Spacing 2…
High-Quality Portfolio High-Grading Assets Through Continuous Portfolio Management Concho Acreage Then: 2016 New Mexico Shelf Midland Basin Delaware Basin CXO Acreage Note: Concho acreage as of January 31, 2016. 7
High-Quality Portfolio High-Grading Assets Through Continuous Portfolio Management Building for the Future: Concho Acreage Now Balanced portfolio within the New Mexico Shelf Permian Big, blocky position with high Midland Basin…
Financial Strength Low Leverage Provides Significant Flexibility Average Coupon Rate 5.72% 4.37% Investment grade credit ratings Reducing cost of capital Lower interest expense supporting margin expansion Avg. Maturity 6.5…
Superior Capital Efficiency 10-Year Production Growth per Debt-Adjusted Share Peers 23% 21% 21% 11% 9% 9% 6% Average: 5.1% 5% 2% 1% 1% 0% 0% A B C D E F G H I J K L M N P -3% -3% -6% Oil-Weighted Peers Gas-Weighted…
Track Record of Delivering Production Growth & Free Cash Flow Foundation for New Capital Allocation Framework Cash Flow from Operating Activities 287 Takeaways Organic vs. D&C Capital (mm) Growth & RSP Free cash flow 771 80.00…
New Capital Allocation Framework Driving Shareholder Returns Our Mindset Reflects evolution Historically Disciplined approach to growth of the E&P Historically guided by Enhance free cash business model guided by growth…
2019 Development Sets Up Strong 2020+ 2019 Development Outlook More Capital to Large-Scale Projects Significant Increase in Lateral Length Production Starts 2H19-Weighted Capital Allocated to Large-Scale Projects Average Lateral…
2019 Development Sets Up Strong 2020+ 2019-2020 Financial Outlook Exit Rate Outlook 2019e 2019e-2020e 4Q 2018 4Q 2019 Run 34 rigs in 19; +25% crude oil Capital Program 3.4-3.6bn 38 rigs in 20 growth Free Cash Flow (FCF) FCF+ FCF+…
Key Messages Leveraging Competitive Advantages to Deliver Sustainable Performance Well Positioned to Delivering production growth and free cash flow Deliver Sustainable, Strong oil growth and 630mm of free cash flow over past 13…
Appendix
3Q 2018 Operational Highlights Scaling Development to Maximize Recoveries and Economics Activity Overview Asset Performance Delaware Basin Midland Basin Added 31 horizontal wells (avg. lateral Added 34 horizontal wells (avg.…
Large-Scale Project Update Status of 2Q18 Announced Projects Delaware Basin Project Well Count Drilling Completion Production Midland Basin Tiger Cat 4 Gettysburg 5 4Q18 Delaware Basin Dominator 23 In progress 1H19 Eider…
Reconciliation of Net Loss to EBITDAX (Unaudited) EBITDAX (as defined below) is presented herein and reconciled from the GAAP measure of net loss because of its wide acceptance by the investment community as a financial indicator. The…
Costs Incurred (Unaudited) The table below provides the costs incurred for oil and natural gas producing activities for the periods indicated: Three Months Ended September 30, June 30, March 31, December 31, September 30, June 30,…
2018 Operational & Financial Outlook Updated as of October 30, 2018 2018 4Q18 PRODUCTION Guidance 305-310 MBoepd Production (65% oil) Production (MBoepd) 260 - 263 Crude oil production mix 64% Price realizations, excluding…
Hedge Position Updated as of October 30, 2018 2018 2019 2020 4Q 1Q 2Q 3Q 4Q Total Total Oil Price Swaps1: Volume (Bbl) 11,902,007 11,992,250 10,835,750 10,066,000 9,484,000 42,378,000 26,534,000 Price per Bbl 56.86 56.80 56.40…
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