The $225 million acquisition that the Company announced on November 23 was closed, after the effects of the participation rights and other adjustments, for $213 million in cash, subject to usual and customary post-closing adjustments.

In addition, in a separate transaction in December 2009 the Company purchased additional rights and interests in the Wolfberry trend for approximately $47 million from multiple private sellers, subject to usual and customary post-closing adjustments. These acquired interests are included in 522 producing wells and 848 identified locations in which the Company currently operates.

Combined Transactions Highlights:

• 290 net Wolfberry drilling locations; a 61% increase over the Company's mid-year 2009 total
• Net proved reserves of approximately 20 Million Barrels of Oil Equivalents ("MMBoe")
• 18 MMBoe of identified unproved reserves
• December 2010 estimated exit rate production associated with the property interests acquired of approximately 4,500 Boepd
• In conjunction with these transactions, Concho has entered into additional derivatives for substantially all the proved developed producing oil production and a portion of the natural gas production at average prices of $86.23 per barrel and $6.28 per mmbtu for the period from 2010 through 2012. See attached hedging schedule for the Company's current commodity derivatives position

Timothy A. Leach, Concho's Chairman, CEO and President, commented, "Both of these acquisitions are consistent with our strategy of consolidating interests and acquiring assets in our core areas of operation. We plan to add four additional drilling rigs in the Texas Permian by the end of the second quarter on the newly acquired acreage, which we expect will significantly grow production on these assets throughout the year. The addition of these rigs on our newly acquired acreage and the additional working interest we acquired in our existing assets will increase our 2010 capital forecast and production guidance and should provide excellent momentum into 2011."

Financial and Operational Guidance

In late December 2009, Concho's Board of Directors approved an updated capital budget for 2010 of approximately $625 million. This budget includes an additional $120 million to develop the newly acquired Wolfberry trend assets, and the Company's updated budget now averages twenty operated rigs in the Permian Basin for 2010. The Company currently estimates that its 2010 production will total between 13.6 MMBoe and 14.1 MMBoe. At the high end of the production guidance range and at current 2010 NYMEX strip prices (approximately $84 per barrel and $6 per Mcf), the Company expects that its updated capital budget can be substantially funded with internally generated after-tax cash flow. The Company will continue to monitor its capital expenditures in relation to its cash flow and expects to adjust its activity and capital spending level based on changes in commodity prices and the cost of goods and services and other considerations.

Forward-Looking Statements and Cautionary Statements

The foregoing 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 press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, derivatives activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. 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 risks relating to financial performance and results, prices and demand for oil and natural gas, availability of drilling equipment and personnel, availability of sufficient capital to execute the Company's business plan, its ability to replace reserves and efficiently develop and exploit its current reserves and other important factors that could cause actual results to differ materially from those projected as described in the Company's reports filed with the Securities and Exchange Commission ("SEC").

In its filings with the SEC, Concho discloses only proved reserves that it has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Concho uses certain terms in this press release, such as "unproved or unproven" in relation to reserves that it does not disclose in filings with the SEC. These estimates are subject to substantially greater risk of the Company not actually realizing them. Investors are urged to closely consider Concho's disclosure of its proved reserves, along with certain risks and uncertainties inherent in its business, set forth in its filings with the SEC.

Any forward-looking statement speaks only as of the date on which such statement is 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.

About Concho Resources Inc.

Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and exploration of oil and natural gas properties. The Company's operations are focused in the Permian Basin of Southeast New Mexico and West Texas. In addition, the Company is involved in a number of emerging plays. For more information, visit Concho's website at www.conchoresources.com.

SOURCE: Concho Resources Inc.

Concho Resources Inc.
Jack Harper, 432-683-7443
Vice President - Capital Markets and Business Development