Permian Basin Consolidation and Strategic Acreage Acquisition

CONCHO 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

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