#1CONCHO May 14, 2012 Acquisition of Three Rivers Operating Company Permian Assets#2CONCHO Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, including, among others, statements and projections regarding the completion of the acquisition and the Company's future financial position, operations, performance, business strategy, capital expenditures, returns, budgets, reserves, levels of production and costs and statements regarding the plans and objectives of the Company's management for future operations, are forward-looking statements. The words "believe," "expect," "anticipate," "plan," "intend," "estimate," "potential," "should," "would," "could," or other similar expressions are intended to identify forward-looking statements, which generally are not historical in nature. However, the absence of these words does not mean that the statements are not forward-looking. Without limiting the generality of the foregoing, these statements are based on certain assumptions made by the Company based on management's experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance. Actual results may differ materially from those implied or expressed by the forward-looking statements. Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the factors discussed or referenced in the "Risk Factors" section of the Company's Form 10-K and Form 10-Qs filed with the Securities and Exchange Commission ("SEC") and risks relating to declines in the prices we receive for our oil and natural gas, including natural gas liquids; uncertainties about the estimated quantities of oil and natural gas reserves; the effects of government regulation, permitting and other legal requirements, including new legislation or regulation of hydraulic fracturing; risks related to new federal oversight or regulation of over-the-counter derivatives; risks related to the elimination of certain federal income tax deductions currently available to oil and natural gas exploration activities; drilling and operating risks; the adequacy of our capital resources and liquidity, including access to additional borrowing capacity under our credit facility; difficult and adverse conditions in the domestic and global capital and credit markets; risks related to the concentration of our operations in the Permian Basin of Southeast New Mexico and West Texas; potential financial losses or earnings reductions from our commodity price risk management program; shortages of oilfield equipment, services and qualified personnel and increased costs for such equipment, services and personnel; risks and liabilities associated with acquired properties or businesses; uncertainties about our ability to successfully execute our business and financial plans and strategies; uncertainties about our ability to replace reserves and economically develop our current reserves; general economic and business conditions, either internationally or domestically or in the jurisdictions in which we operate; competition in the oil and natural gas industry; uncertainty concerning our assumed or possible future results of operations; our substantial existing indebtedness and other important factors that could cause actual results to differ materially from those projected. Accordingly, you should not place undue reliance on any of the Company's forward-looking statements. All forward-looking statements speak only as of the date on which such statements are made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. 2#3CONCHO Cautionary Statement Regarding Oil and Gas Quantities The SEC requires oil and gas companies, in their filings with the SEC, to disclose proved reserves, which are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible-from a given date forward, from known reservoirs, and under existing economic conditions (using the trailing 12-month average first-day-of-the-month prices), operating methods, and government regulations- prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The SEC also permits the disclosure of separate estimates of probable or possible reserves that meet SEC definitions for such reserves; however, we currently do not disclose probable or possible reserves in our SEC filings. In this presentation, proved reserves attributable to the Company at December 31, 2011 are estimated utilizing SEC reserve recognition standards and pricing assumptions based on the trailing 12-month average first-day-of-the-month prices of $92.71 per Bbl of oil and $4.12 per MMBtu of natural gas. The Company's estimate of its total proved reserves at December 31, 2011 is based on reports provided by Cawley, Gillespie & Associates, Inc. and Netherland, Sewell & Associates, Inc., independent petroleum engineers. Proved reserves estimated for the Three Rivers acquisition are internal estimates based on a price of $98.20 per Bbl of oil and $4.24 per MMBtu of natural gas held flat over the life of the reserves, and are not determined in accordance with SEC rules. Accordingly, proved reserves actually booked for the Three Rivers acquisition in the Company's SEC filings may be lower than the internal estimates included in this presentation. We may use the terms "unproved reserves," "EUR" per well and "upside potential" to describe estimates of potentially recoverable hydrocarbons that the SEC rules prohibit from being included in filings with the SEC. These are the Company's internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques. These quantities may not constitute "reserves" within the meaning of the Society of Petroleum Engineer's Petroleum Resource Management System or SEC rules and do not include any proved reserves. EUR estimates and drilling locations have not been risked by Company management. Actual locations drilled and quantities that may be ultimately recovered from the Company's interests could differ substantially. There is no commitment by the Company to drill all of the drilling locations which have been attributed to these quantities. Factors affecting ultimate recovery include the scope of our ongoing drilling program, which will be directly affected by the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals and other factors; and actual drilling results, including geological and mechanical factors affecting recovery rates. Estimates of unproved reserves, per well EUR and upside potential may change significantly as development of the Company's oil and gas assets provide additional data. Our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or drilling cost increases. 3#4• • • CONCHO Summary of Terms Concho Resources is acquiring all of the oil and natural gas assets of Three Rivers Operating Company ("Three Rivers" or "3ROC") - Full step up in tax basis Transaction value: $1.0 billion - No debt assumed Consideration: - All cash transaction expected to be funded with borrowings under the credit facility Timing: - - Effective April 1, 2012 - Expected closing in July 2012 CONCHO BROC THREE RIVERS OPERATING COMPANY 4#5CONCHO Transaction Rationale High Quality Asset Base Fits The Concho Acquisition Mold Strategically Significant Larger Platform, Same Strategy • 58 MMBoe¹ of proved reserves (50% oil; 55% PD) • Current daily production of approximately 7.0 MBoe/d • Over 1,500 identified drilling locations within the Company's existing core areas • Approximately 65% of the acreage is held by production Material upside through multi-zone and horizontal development • Opportunity set consistent with previous acquisitions (Chase Oil, Henry Petroleum and Marbob Energy) • Provides Concho with greater scale and visible growth opportunities across its core operating areas in the Permian Basin • Expected to be immediately accretive to all key per share metrics • Material consolidation opportunity within the proven core of the Delaware Basin • Meaningful addition of acreage and vertical drilling locations to core Midland Basin • • Continued expansion into the emerging southern Midland Basin horizontal Wolfcamp and Cline shale plays Continued focus on oil and liquids-rich plays in the Permian Basin Commitment to rate-of-return driven growth Pursuit of acquisitions that enhance existing portfolio 1 As of April 1, 2012. 5#61 CONCHO Combined Permian Basin Acreage Position CHAVES ARTESIA NORTHWEST SHELF CULBERSON EDDY LOVING DELAWARE BAILEY LANTE HALE Attractive Permian Basin Consolidation Acquisition ROOSEVELT COCHRAN HOCKLEY LUBBOCK CROSBY DICKENS LEA BASIN WARD REEVES SIERRA DIABLO PLATFORM NEW MEXICO TEXAS YOAKUM TERRY LYNN GARZA KENT MIDLAND BASIN GAINES DAWSON BORDEN SCURRY FIS Strategic Rationale . • Represents a significant consolidation transaction in the Permian Basin • ⚫ Drilling opportunities across all three. of Concho's core areas Additional exposure to emerging oil and liquids-rich plays WINKLER CENTRAL BASIN PLATFORM ANDREWS "MARTIN HOWARD MITCHELL NO Combination Impact - Consolidated MIDLAND EASTERN SHELF CXO¹ 3ROC PF ECTOR MIDLAND GLASSCOCK COM STERLING Proved Reserves (MMBoe) 400 58 458 TOM GR 1Q12 Net Production (MBoe/d) 76.0 7.0 83.0 CRANE UPTON REAGAN IRIOM Gross Drilling Locations 9,275 1,560 10,835 Gross Acreage ('000s) 980 310 1,290 PECOS SCHLEICH CROCKETT Net Acreage ('000s) Rig Count (Current/2H12) 544 200 744 37/36 TERRELL SUTTON 3/7 40/43 JEFF DAVIS Concho Acreage VAL VERDE BASIN Three Rivers Acreage Concho year end reserves as of 12/31/11 at SEC pricing. Adjusted for 1Q12 Midland Basin acquisition which includes proved reserves of 13 MMBoe (as of November 1, 2011), 10,700 gross (10,000 net) acres, 170 40-acre Wolfberry locations and 200 20-acre Wolfberry locations.#7CONCHO ARTESIA Active Horizons • Avalon shale (upper and lower) ⚫ Bone Spring sand (1st/2nd/3rd) Wolfcamp shale 1 CULBERSON - Northern Delaware Basin – Enhancing Leading Core Position CHAVES Active Horizons Delaware sands • Avalon shale (upper and lower) • Bone Spring sand (1st/2nd/3rd) LT LEA EDDY Northern DB Consolidation Material acreage overlap in the proven northern Delaware Basin Increases net acreage by 23% • Engineered locations largely assume one zone per location targeting: Delaware sands • - Avalon shale -Bone Spring sands -Wolfcamp shale Meaningful upside potential through multi-zone development ☑ REEVES ☑ Concho Acreage Concho Rig As of 12/31/11. ☑ NEW MEXICO TEXAS LOVING Three Rivers Acreage Three Rivers Rig Combination Impact - Northern DB CXO¹ 3ROC PF Hz Drilling Locations 1,417 377 1,794 Gross Acreage ('000s) 289 61 350 WIN Net Acreage ('ooos) 166 39 204 Rig Count (Current/2H12) 7/8 1/2 8/10 7#8CONCHO Delaware Basin Play - A Leading Operator Overview • Concho is an industry leader in horizontal development in the Delaware Basin • Combined position and scale provide meaningful opportunity to continue rapid growth of oil and liquids-rich production Successfully delineating multi-zone potential High-impact wells currently producing from seven unique zones • . - Well performance exceeding expectations Hz Delaware Basin Play Production (MBoe/d)¹ ~33% Quarterly Growth 12.4 11.0 8.6 5.5 4.0 1Q11 2Q11 Permian Horizontal Wells Drilled by Public Companies (2009 - 2012 YTD) 300 250 3Q11 4Q11 1Q12 200 150 100 50 O 216 CXO DVN KMI XEC EOG APC CHK XTO APA EGN Source: DI Desktop and IHS. 1 Based on net production contribution from horizontal wells in the Delaware Basin. 8#9CONCHO Midland Basin - Meaningful Addition to "Wolfberry" Play Midland Basin Addition • Significant addition to vertical drilling inventory across the Midland Basin Increases net acreage by 42% - Primary targets include Wolfberry and shallow Wolfcamp •Ability to accelerate vertical development through robust drilling program within low-risk, high- margin oil play • •Attractive bolt-on to existing northern Midland Basin acreage (Terry County) • Evaluating horizontal upside Combination Impact - Midland Basin BAILEY LAMB HALE FLOYD MOTLEY COCHRAN HOCKLEY LUBBOCK CROSBY DICKENS YOAKUM TERRY LYNN GARZA KENT GAINES DAWSON BORDEN SCURRY FISHER ANDREWS MIDLAND MARTIN HOWARD MITCHELL NOLAN WINKLER ECTOR MIDLAND GLASSCOCK COKE STERLING CXO¹ 3ROC PF TOM GREEN Vertical Locations 4,585 1,141 5,726 WARD CRANE Horizontal Locations Under Evaluation UPTON REAGAN IRION Gross Acreage ('ooos) 224 72 295 Net Acreage ('ooos) Rig Count (Current / 2H12) 102 43 145 CROCKETT SCHLEICHER 19/18 2/5 21/23 1 Three Rivers Acreage As of 12/31/11. Adjusted for 1Q12 Midland Basin acquisition which includes 10,700 gross (10,000 net) acres, 170 40-acre Wolfberry locations and 200 20-acre Wolfberry locations. Concho Acreage#10CONCHO Midland Basin - Expanding Into The Emerging Southern Midland Basin Southern Midland Basin Expansion • . Continued expansion into emerging southern Midland Basin Acquired acreage currently being developed with vertical wells targeting shallow Wolfcamp - Additional zones include Dean, Clearfork, Canyon, Strawn • Industry ramping up horizontal development across the area . ― Results improving • Operators primarily targeting the Wolfcamp shale • - Multiple producing zones within the Wolfcamp - Cline shale offers multi-zone potential No horizontal drilling activity to date on Three Rivers acreage - Evaluating horizontal upside ASSCO ConCHO AREDO REAGAN PETROLE RANGE RESOURCES" LING EXCO Oeog resources elpaso CROCKE Approach Hesources Inc IRION Concho Acreage Three Rivers Acreage COLE devon Three Rivers Acreage •Gross: 39,700 •Net: 29,000 CHEFICHER SUTTON TOM GREEN Three Rivers Rig 10#11CONCHO ARTESIA 11 CHAVES EDDY New Mexico Shelf - Complementing Core Legacy Position LOWER ABO LEA - YESO DELAWARE BASIN 148-310 Concho Acreage Three Rivers Acreage New Mexico Shelf Bolt-on Provides bolt-on acreage across core legacy New Mexico Shelf position Concho has drilled over 1,000 wells in the Yeso • • Expanding the play boundary through horizontal development Currently operating 9 Yeso rigs, 1 Lower Abo rig - Two horizontal Yeso rigs; converting 3rd in 2Q12 11#12CONCHO Conventional Permian Basin - Potential Source of Divestitures LOCITY CHAVES ARTESIA NORTHWEST SHELF EDDY DELAWARE CULBERSON BASIN SIERRA DIABLO PLATFORM JEFF DAVIS LEA NEW MEXICO TEXAS LOVING WINKLER REEVES Concho Acreage ROAKUM TERRY LYNN GARZ MIDLAND BASIN INES BORDEN Conventional Permian Position ANDREWS CENTRAL BASIN PLATFORM ECTOR MIDLAND MARTIN HOWARD MIDLAND GLASSCOCK WARD CRANE UPTON REAGAN PECO CROCKER Three Rivers Acreage Three Rivers Conventional Permian Boundary Conventional Permian • Targeting divestitures of $200 - $400 million in existing and newly acquired assets post-close • -Timing expected within 9 months Three Rivers conventional Permian assets are a source of potential divestment - Current net production is approximately 1.5 MBoe/d • Long-lived production mix • Large PDP component • Minimal development capital • Over 70% held by production 12#13CONCHO 2012 Capital Budget: $1.5bn 4% 4% 92% New Mexico Shelf 123 Average 10 rigs in 2H12 Drilling & Completion ■Facilities ■Leasehold & G&G Expect to drill ~390 wells in 2012 • 54% of proved reserves¹ 55% of production in 2011 2,755 drilling opportunities² - 1,995 Yeso Delaware Basin Updated 2012 Capital Budget and Activity 2012 Drilling & Completion Budget: $1.4bn 34% 30% 36% Texas Permian New Mexico Shelf Texas Permian Delaware Basin • • Average 10 rigs in 2H12 Expect to drill ~160 wells in 2012 • 13% of proved reserves¹ 20% of production in 2011 Activity concentrated in the Bone Spring, Avalon and Wolfcamp • Average 23 rigs in 2H12 . Expect to drill ~400 wells in 2012 • 33% of proved reserves¹ • 25% of production in 2011 • Activity concentrated in Wolfberry play • • ~472,000 gross (312,000 net) acres² 2,248 drilling opportunities² • 5,833 drilling opportunities³ 2,151 40-acre Wolfberry 2,626 20-acre Wolfberry As of 12/31/11 at SEC pricing. Excludes 13 MMBoe of proved reserves from 1Q 2012 Midland Basin acquisition and 58 MMBoe of proved reserves from Three Rivers acquisition. As of 12/31/11. Adjusted for Three Rivers acquisition. As of 12/31/11. Adjusted for (i) 1Q12 Midland Basin acquisition which includes 170 40-acre Wolfberry locations and 200 20-acre Wolfberry locations, and (ii) the Three Rivers acquisition. 13#14CONCHO Annual Production (MMBoe) 1.2 0.1 2006 - 2011 43% CAGR 7.1 5.0 3.9 10.9 15.6 23.6 28.7-29.8 2004 2005 2006 2007 2008 2009 2010 2011 2012e Track Record of Production & Reserve Growth Proved Reserves (MMBoe) 17.9 12.5 91.0 77.8 2006 - 2011 38% CAGR 137.3 211.5 2004 2005 2006 2007 2008 2009 323.5 2010 2011 386.5 14#15CONCHO Acquisition Consistent with Concho's Operational Strategy • . A leading Permian producer with a proven track record of creating shareholder value through accretive acquisitions - Value creation through accelerating development and expanding resource base (Chase Oil, Henry Petroleum and Marbob Energy) Concentrated oil and liquids-rich asset base with significant scale in three core operating areas - Delaware Basin, Texas Permian and the New Mexico Shelf - Over 10,800 drilling locations 1 Committed to rate-of-return driven growth • History of taking disciplined approach to funding growth - Committed to debt / EBITDAX <2.0x - Expect to divest $200 - $400 million of non-core assets within next 9 months - Ample liquidity, with approximately $1.8 billion available under credit facility as of 3/31/12 •Concho remains well positioned to grow both organically and through strategic acquisitions that enhance existing portfolio 1 As of 12/31/11. Adjusted for (i) 1Q12 Midland Basin acquisition which includes 170 40-acre Wolfberry locations and 200 20-acre Wolfberry locations, and (ii) the Three Rivers acquisition, which includes 1,560 locations. 15#16CONCHO Appendix 16#17CONCHO Three Rivers Estimated Contribution (2H 2012 & FY 2013) Production: Oil equivalent (MMBoe) % Oil Operating costs and expenses: Direct lease operating expense ($/Boe) Capital expenditures ($ in millions) Three Rivers Acquisition Guidance Acquisition Impact 2H 2012 1.2 1.3 45% -55% FY 2013 4.6-5.1 50% - 60% $10.00 $11.00 $8.00 - $10.00 $145 $425 17#18CONCHO Current Oil and Natural Gas Swaps Hedges as of May 13, 2012 2012 Fourth Quarter Total 2013 2014 2015 2016 2017 Second Quarter Third Quarter Oil Swaps Volume (Bbl). 3,949,500 3,876,500 NY MEX price (Bbl) (a) $ 95.27 $ 96.39 $ 3,539,500 96.23 $ 11,365,500 95.95 $ 12,031,000 96.08 $ 4,513,000 92.85 $ 1,076,000 86.69 $ 429,000 88.31 168,000 $ 87.00 Natural Gas Swaps Volume (MMBtu) NY MEX price (MMBtu) (b). $ 75,000 6.54 $ 75,000 6.54 $ 75,000 6.54 $ 225,000 6.54 (a) The index prices for the oil contracts are based on the NYMEX-West Texas Intermediate monthly average futures price. (b) The index prices for the natural gas contracts are based on the NYMEX-Henry Hub last trading day of the month futures price. 18