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3Q 2019 Quarterly Update – Concho Resources, Inc.

Concho Resources, Inc. · Oct 29, 2019 · 20 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. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 1
    3Q 2019 Quarterly Update October 29, 2019
  2. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 2
    3Q19 Summary Solid operational Strong financial Strategic portfolio Increasing quarter performance management shareholder returns Production of 330 Controllable cash costs Planned 925mm New Board authorized MBoepd above high 3% lower…
  3. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 3
    3Q19 Operational Performance High-Quality Asset Base Production Above High End of Guidance Diversified portfolio provides capital Quarterly Volumes & 4Q19 Outlook (MBoepd) allocation flexibility Oil (MBopd) Gas Federal lands…
  4. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 4
    3Q19 Financial Performance Lower Costs Driving Excess Cash Flow Controllable Cash Costs Financial Highlights (mm) Cash Expenses excl. GP&T ( per Boe) LOE G&A Interest 2Q19 3Q19 Realized price 37.68 36.74 14.62 (/Boe) 12.36…
  5. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 5
    Strategic Focus Strategic Focus Progress Capital Efficiency Develop fewer wells per project on less dense 2020+ program to prioritize smaller projects spacing & improve cycle times with wider spacing to maximize returns Reduce well…
  6. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 6
    Improving Capital Efficiency Reducing Well Costs Ongoing Plan for Further Basin-Level DC&E Costs ( per foot) Reducing Well Costs Achieved cost targets Further optimize drilling, completion & Focus on continued improvement in 2020+…
  7. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 7
    Our Extensive Development Program is Outperforming Industry 2018-2019 program 180-day cumulative oil production (MBo) Northern Delaware Basin Midland Basin 200 100 Transitioning to Transition to optimal wider spacing spacing…
  8. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 8
    Optimizing Development 2018-2019 Project Development Go-Forward Plan: Prioritize Returns Wells per Reservoir vs. Spacing Optimizing Spacing Illustrative Example 2018 1H19 2H19 Multiple decades of inventory at More suitable for…
  9. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 9
    Active Portfolio Management Accelerates Value New Mexico Shelf Asset Sale Transaction Summary Accelerates value from legacy asset Focuses portfolio while maintaining leading Permian resource depth Minimal impact to corporate base…
  10. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 10
    Cash Proceeds Jumpstart Share Repurchase & Reinforce Financial Strength Capital Allocation Framework Allocation of Asset Sale Proceeds Sources Uses Dividend Cash Flow 40% Share Priorities Fund with cash flow from…
  11. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 11
    Insight into Capital Planning for 2020+ Capital Allocation Strategy FCF Potential Post Planned Shelf Sale 2020 FCF Outlook (mm) Run a steady program with measured rig Generate robust FCF adds over course of the year 50/Bbl Increase…
  12. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 12
    Appendix
  13. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 13
    Our Extensive Development Program Informs Optimization Strategy Horizontal Wells Drilled by Zone (Gross Operated) Delaware Basin Midland Basin Formation 2009 - 2019 Well Count 2018 - YTD19 Formation 2009 - 2019 Well Count 2018 - YTD19…
  14. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 14
    Operational Performance Northern Delaware Basin Wolfcamp A Generating Strong Well Performance Reducing Well Costs 180-day Cumulative Oil Production (MBo) DC&E Costs ( per foot) 250 2018-2019 Activity Whats driving the savings 1,390…
  15. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 15
    Our Extensive Development Program is Outperforming Industry 2017-2019 Wells Put on Production Top 100 Wells in the Permian Basin by Six Month Cumulative Oil Production 20 18 16 14 Well Count 12 10 8 6 4 2…
  16. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 16
    Our Commitment to Sustainability Reduce Expand Water Manage Climate Flaring Recycling Risk 50% Asset-Wide Published Inaugural 2016-2018 Focus Report 20% Gas Capture Performance 14% Texas Permian 9% 9% Basin 6% 5% 4% 3% 3%…
  17. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 17
    Operating Cash Flow Before Changes in Working Capital Non-GAAP Reconciliation The Company provides operating cash flow (OCF) before working capital changes, which is a non-GAAP financial measure. OCF before working capital changes…
  18. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 18
    Activity Overview YTD 2019 Activity Well Counts YTD 2019 Activity Drilling Rigs & Frac Crews Number of Wells Number of Wells Number of Wells Total 1Q19 2Q19 3Q19 Total Gross Drilled Completed Put on Production Avg. Rig Count 33 26 19…
  19. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 19
    Hedge Position Updated as of October 29, 2019 2019 2020 2021 4Q 1Q 2Q 3Q 4Q Total Total Oil Price Swaps - WTI1: Volume (MBbl) 13,469 12,517 11,075 10,067 9,586 43,245 17,517 Price per Bbl 56.46 57.01 56.88 56.93 57.01 56.96 54.30…
  20. 3Q 2019 Quarterly Update – Concho Resources, Inc. – slide 20
    2019 Guidance Updated as of October 29, 2019 2019 4Q19 Guidance Guidance Production Production guidance (Post-Shelf Total production growth 23% - 27% Sale): 318 MBoepd-325 MBoepd Oil production growth 22% - 26% 64% oil mix…

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