Concho Resources Inc. Responds to Severe Winter Weather Impact on Operations
MIDLAND, Texas -- December 12, 2013
Concho Resources Inc. (NYSE: CXO) (“Concho” or the “Company) announced today
that the combined effect of two severe winter storms across the Permian Basin
in late November and early December significantly impacted the Company’s
production. The Company experienced widespread power outages and considerable
icing across all three of its core areas (New Mexico Shelf, Delaware Basin and
The impact of the severe winter weather was not included in Concho’s 2013
annual production guidance, as described in the Company’s earnings release on
November 6, 2013. The Company does not plan to adjust its production guidance;
however, the unexpected impact of the severe winter storms is expected to
cause 2013 annual production to fall near the low end of its guidance range.
In addition, Concho is pleased to report that the rig count additions
associated with its accelerated growth plan are ahead of schedule. The Company
is now running 24 rigs, of which 20 are drilling horizontally. Concho expects
to add at least two additional horizontal rigs before the end of the year.
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 future financial position, operations, performance,
production growth, returns, divestitures, capital expenditure budget, the
timing and estimated proceeds of the closing of the sale of the non-core
properties, oil and natural gas reserves, number of identified drilling
locations, drilling program, derivative activities, costs and other guidance.
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. These include the
factors discussed or referenced in the "Risk Factors" section of the Company's
most recent Form 10-K filing and risks relating to declines in the prices
Concho receives for the Company’s oil and natural gas; uncertainties about the
estimated quantities of reserves; risks related to the integration of acquired
assets; the effects of government regulation, permitting and other legal
requirements, including new legislation or regulation of hydraulic fracturing;
drilling and operating risks; the adequacy of the Company’s capital resources
and liquidity; risks related to the concentration of the Company’s operations
in the Permian Basin; the results of the Company’s hedging program; weather;
litigation; shortages of oilfield equipment, services and qualified personnel
and increases in costs for such equipment, services and personnel;
uncertainties about the Company’s ability to replace reserves and economically
develop the Company’s current reserves; competition in the oil and natural gas
industry; and other important factors that could cause actual results to
differ materially from those projected.
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 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.
Concho Resources Inc.
Price Moncrief, 432-683-7443
Vice President of Capital Markets and Strategy
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