Permian Basin Consolidation and Strategic Acreage Acquisition

CONCHO 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

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