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Concho Resources Inc. Announces Pricing of Common Stock Offering

MIDLAND, Texas, Dec 08, 2010 (BUSINESS WIRE) -- Concho Resources Inc. (NYSE:CXO) ("Concho") today announced that it has priced an offering of 2,500,000 shares of common stock at a price to the public of $82.50 per share. Concho has granted the underwriters a 30-day option to purchase up to an additional 375,000 shares of common stock. Concho expects issuance and delivery of the shares to occur on December 14, 2010, subject to customary closing conditions. Concho intends to use the net proceeds from the offering to repay a portion of the outstanding borrowings under its credit facility. Any amounts repaid with proceeds from this offering may be reborrowed in the future.

Goldman, Sachs & Co., Barclays Capital Inc., J.P. Morgan Securities LLC and Raymond James & Associates, Inc. will act as joint book-running managers for the common stock offering. The offering will be made only by means of a prospectus supplement and the accompanying base prospectus, copies of which may be obtained on the Securities and Exchange Commission website at Alternatively, the underwriters will arrange to send you the prospectus supplement and related base prospectus if you request them by contacting Goldman, Sachs & Co. at 200 West Street, New York, NY 10282, Attention: Prospectus Department, by calling 866-471-2526, by sending a facsimile to 212-902-9316 or by sending an email to; Barclays Capital Inc., c/o Broadridge Financial Solutions at 1155 Long Island Avenue, Edgewood, NY 11717, by calling 888-603-5847 or by sending an email to; J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions at 1155 Long Island Avenue, Edgewood, NY 11717, or by calling 866-803-9204; or Raymond James & Associates, Inc. at 880 Carillon Parkway, Tower 3, 5th Floor, St. Petersburg, FL 33716, Attention: Andrea J. Borum, or by calling 727-567-2400.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. A registration statement, as amended, relating to the securities has been filed and became effective September 9, 2009.

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, liquidity and capital resources, operations, performance, business strategy, returns, capital expenditure budgets, oil and natural gas reserves, number of identified drilling locations, the timing and success of specific projects, outcomes and effects of litigation, claims and disputes, potential financing, levels of production, drilling program, derivative activities, costs and other guidance included in this press release. 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 and Form 10-Q filings and risks relating to sustained or further declines in the prices we receive for our oil and natural gas; uncertainties about the estimated quantities of oil and natural gas reserves; risks related to the integration of the Marbob assets and employees with our operations; 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 our capital resources and liquidity including, but not limited to, access to additional borrowing capacity under our credit facility; difficult and adverse conditions in the domestic and global capital and credit markets; risks related to the concentration of our operations in the Permian Basin of Southeast New Mexico and West Texas; potential financial losses or earnings reductions from our commodity price risk management program; shortages of oilfield equipment, services and qualified personnel and increases in costs for such equipment, services and personnel; risks and liabilities associated with acquired properties or businesses; uncertainties about our ability to successfully execute our business and financial plans and strategies; uncertainties about our ability to replace reserves and economically develop our current reserves; general economic and business conditions, either internationally or domestically or in the jurisdictions in which we operate; competition in the oil and natural gas industry; uncertainty concerning our assumed or possible future results of operations; our existing indebtedness, as well as the significant increase in our indebtedness as a result of the Marbob acquisition; 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. In addition, the Company is involved in a number of emerging plays. For more information, visit Concho's website at

SOURCE: Concho Resources Inc.

Concho Resources Inc.
Toffee McAlister, Manager of Investor Relations, 432-683-7443