Concho Resources Inc. Completes Non-Core Asset Divestiture

  Concho Resources Inc. Completes Non-Core Asset Divestiture

Business Wire

MIDLAND, Texas -- December 20, 2012

Concho Resources Inc. (NYSE: CXO) ("Concho" or the "Company") today announced
that it has closed its previously announced divestiture of certain non-core
producing properties located primarily in the Permian Basin of West Texas and
Southeast New Mexico to Legacy Reserves LP (NASDAQ: LGCY) for cash
consideration of approximately $520 million, subject to customary post-closing
adjustments.

Proceeds from the non-core divestiture will be used to reduce outstanding
borrowings under the Company’s credit facility. Giving effect to these
proceeds, the Company’s pro forma outstanding borrowings under its credit
facility as of September 30, 2012 would have been $284 million.

Tim Leach, Concho's Chairman, CEO and President, commented, “This non-core
asset divestiture completes our financing strategy for the Three Rivers
acquisition and represents good value for mature, producing assets. Going
forward, we are well positioned to execute our growth strategy targeting a
deeper inventory of high rate-of-return drilling opportunities in the Delaware
Basin, New Mexico Shelf and Midland Basin.”

About Concho Resources Inc.

Concho Resources Inc. is an independent oil and natural gas company engaged in
the acquisition, development 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. For more information, visit Concho’s
website at www.concho.com.

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 statements, estimates and projections
regarding the Company’s anticipated financial condition and results, future
production, and future liquidity 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. 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. 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.

Contact:

Concho Resources Inc.
Price Moncrief, 432-683-7443
Vice President of Capital Markets and Strategy
 
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