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July 2014 Investor Presentation – Concho Resources, Inc.

Concho Resources, Inc. · Jul 3, 2014 · 24 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. July 2014 Investor Presentation – Concho Resources, Inc. – slide 1
    July 2014 July Investor Presentation
  2. July 2014 Investor Presentation – Concho Resources, Inc. – slide 2
    Concho Resources Inc. Leading Permian Basin Operator Company Highlights Permian Basin 503 MMBoe year-end 2013 estimated proved reserves1 266% reserve replacement ratio2 22,000 drilling locations; 3 billion Boe of resource…
  3. July 2014 Investor Presentation – Concho Resources, Inc. – slide 3
    Superior Execution Strong 1Q14 production and cash flow: 101.6 MBoepd (64% Quarterly Crude Oil Growth (MBopd) crude oil), above high-end of guidance; 483mm EBITDAX1 62.5 65.0 1Q14 average daily production growth: +5% over 4Q13,…
  4. July 2014 Investor Presentation – Concho Resources, Inc. – slide 4
    Low Cost, High Margin Operations Unhedged Cash Margin1 1Q14 Product Mix Midland / Cushing Crude Oil Wet Gas Basis Widening 75.20 Realized Price (/Boe) 70.82 72.27 67.85 36% 61.05 64% Cash Margin 71% 75% 77% 74% 75% 1Q14…
  5. July 2014 Investor Presentation – Concho Resources, Inc. – slide 5
    Executing the 2 x 3 Growth Plan Execution Goals On Track YTD14 2015 2016 1 Double production 2x 2013 2 Reduce leverage ratio Volume 3 Expand drilling inventory 4 Pursue operational efficiencies 33.6 2014 Production (MBoepd)…
  6. July 2014 Investor Presentation – Concho Resources, Inc. – slide 6
    Operational Efficiencies Accelerating Growth Horizontal Drilling Days1 2014e Total Upstream Capital: 2.6bn 2014e D&C Capital: 2.3bn Drilling & Completion Facilities Delaware Basin Texas Permian 28 Leasehold & G&G New Mexico Shelf…
  7. July 2014 Investor Presentation – Concho Resources, Inc. – slide 7
    Delaware Basin The Growth Engine Horizontal Delaware Basin Production Delaware Basin Operations Production (MBoepd) Average Rig Count Horizontal Delaware Basin remains highest growth core 42.3 25 area 40.0 +18% over 4Q13 35.9 +82%…
  8. July 2014 Investor Presentation – Concho Resources, Inc. – slide 8
    Northern Delaware Basin Consistently Strong Performance Quarterly Well Performance Average Rates (Boepd) 30-day IP 24-hour Peak Boepd / Deep Brushy Canyon 1,000 Lat. 909 210 Lusk Avalon 1Q14 39 wells 1,488 344 1st Bone Spring…
  9. July 2014 Investor Presentation – Concho Resources, Inc. – slide 9
    Northern Delaware Basin Robust Inventory Northern Delaware Basin acreage: Average IP Rate (Boepd) YE13 Gross Well Count 1 365,000 gross (217,000 net) 30-Day 24-Hr Peak Inventory Brushy Canyon 8 568 850 850 Avalon 56 690…
  10. July 2014 Investor Presentation – Concho Resources, Inc. – slide 10
    Southern Delaware Basin Improving Well Performance Southern Delaware Basin Southern Delaware Basin Activity High-graded and increased acreage exposure through North Harpoon multiple transactions 165,000 gross / 140,000 net acres…
  11. July 2014 Investor Presentation – Concho Resources, Inc. – slide 11
    Midland Basin Optimizing Horizontal Development Midland Basin Horizontal Activity Current focus on Wolfcamp A/B: Targeting other zones in Wolfcamp and Spraberry for horizontal development Moving towards extended laterals…
  12. July 2014 Investor Presentation – Concho Resources, Inc. – slide 12
    New Mexico Shelf Infrastructure Improving New Mexico Shelf Overview Takeaway capacity is improving with further relief coming in 2H14 Failed high-pressure gas line has been replaced and is operational Third-party plant expansion…
  13. July 2014 Investor Presentation – Concho Resources, Inc. – slide 13
    Enhanced Midstream Strategy Developing a more comprehensive midstream and marketing solution is critical to long-term value creation in the Permian Basin Strategy has three primary objectives: Improve the prices received for crude…
  14. July 2014 Investor Presentation – Concho Resources, Inc. – slide 14
    Appendix
  15. July 2014 Investor Presentation – Concho Resources, Inc. – slide 15
    Permian Basin Oil Takeaway Capacity Existing Takeaway Borger Cushing Refineries MBopd Big Spring 70 Holly Frontier Navajo 100 Borger Refinery (net from Permian) 115 Western 125 Wichita Falls Total 410 Oil Pipelines MBopd…
  16. July 2014 Investor Presentation – Concho Resources, Inc. – slide 16
    Permian Basin NGL Takeaway Capacity Existing Takeaway NGL Pipelines MBblpd Existing NGL Infrastructure 707 Inflows from Rockies Recent NGL Infrastructure Additions Lone Star West Texas 210 DCP Sand Hills 200 Texas Express* 280…
  17. July 2014 Investor Presentation – Concho Resources, Inc. – slide 17
    Northern Delaware Basin State Line Recent Developments State Line Area 2nd Bone Spring Brushy Canyon Increased frac size improving economics Higher density tests in 2014 Avalon 3rd Bone Spring Extended productive area 1st Bone…
  18. July 2014 Investor Presentation – Concho Resources, Inc. – slide 18
    Northern Delaware Basin Lusk, Deep and Red Hills Recent Developments Northern Delaware Basin Avalon shale Deep Brushy Canyon Recent oil cuts 50 - 75% 1st Bone Spring Avalon Encouraging results in Loving County Lusk Further…
  19. July 2014 Investor Presentation – Concho Resources, Inc. – slide 19
    Northern Delaware Basin Brushy Canyon Recent Developments Northern Delaware Basin Drilled 11 Brushy Canyon Deep Lamar Bell Canyon wells Delaware Group 8 wells with 30 days of production Cherry Canyon 850 drilling locations…
  20. July 2014 Investor Presentation – Concho Resources, Inc. – slide 20
    EBITDAX Reconciliation Historical EBITDAX T hree Months Ended March 31, (in thousands) 2014 2013 Net incom e…
  21. July 2014 Investor Presentation – Concho Resources, Inc. – slide 21
    Adjusted Net Income Reconciliation Historical Adjusted Net Income T hree Months Ended March 31, (in thousands, ex cept per share am ounts) 2014 2013 Net incom e - as reported…
  22. July 2014 Investor Presentation – Concho Resources, Inc. – slide 22
    Unhedged Cash Margin Historical Unhedged Cash Margin 2013 2014 ( in thousands, ex cept per unit data) 1Q13 2Q13 3Q13 4Q13 1Q14 Net incom e . 30,093 84,7 00 30,421 1 05,7 89 91 ,307 Ex ploration and abandonments 1 8,407 8,398 1…
  23. July 2014 Investor Presentation – Concho Resources, Inc. – slide 23
    Hedges as of 6/2/2014 Current Hedges 2014 2Q 3Q 4Q T otal 2015 2016 2017 Oil Swaps: (a) V olume (Bbl) ............................... 4,984,000 4,57 1 ,000 4,1 7 3,000 1 3,7 28,000 1 3,952,000 429,000 1 68,000 Price per Bbl…
  24. July 2014 Investor Presentation – Concho Resources, Inc. – slide 24
    Production and Operating Guidance as of 5/12/2014 Annual Guidance 2014 Production: 2Q14 Production Guidance: A nnual Production 20% - 24% 62% - 64% 104 108 MBoepd % Oil Price differentials to NY MEX (90/Bbl; 4/MMBtu): (ex…

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