Permian Basin Consolidation and Strategic Acreage Acquisition

CONCHO 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

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