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About Concho Resources Inc.

Fracking company Concho Resources (Concho) explores, develops and extracts oil and gas assets in the Permian Basin, the hottest energy resource region on US shores. It has about 549,000 net acres to its name, along with over 255 net wells, primarily underground, in Southeastern New Mexico and West Texas. Its over 1,000 million barrels of proved reserves is split between crude oil and natural gas. Concho produces roughly 330 million barrels of oil equivalent each day, ranking it among the region's top producers and the only companies operating exclusively in the Permian.


Concho has one operating segment and one reporting unit, which is oil and natural gas development, exploration and production. 

The company has estimated proved reserves in Delaware Basin area of some 555 MMBoe, representing around 55% of the company's total proved reserves. It commenced drilling or participated in the drilling of some 300 (nearly 150 net) wells in the area, and completed some 295 (around 175 net) wells that are producing. In the Midland Basin, Concho had estimated proved reserves in the area of around 445 MMBoe, representing some 45 percent of the company's total proved reserves. The company commenced drilling or participated in the drilling of 155 (about 110 net) wells in the area, and completed some 185 (around 130 net) wells that are producing.

Approximately 90% of the company's total sales were generated from the oil, while the remaining 10% accounts for natural gas sales.

Geographic Reach

Headquartered in Midland, Texas, Concho's operations are focused in Delaware Basin and the Midland Basin. It also includes the Permian Basin, which underlies an area of West Texas and Southeast New Mexico. The company also has offices in Houston, Dallas, and New Mexico. All of the company's operations are conducted in one geographic area of the United States.

Sales and Marketing

Concho sells its oil and natural gas production principally to marketers and other purchasers that have access to pipeline facilities, under individually negotiated natural gas purchase contracts. Major customers include Plains Marketing and Transportation and Enterprise Crude Oil LLC, bringing in a combined over 25% of total revenue.

Financial Performance

Concho's sales have grown strong in recent years as it builds its presence in the Permian, increasing acreage and drilling sites. 

In 2019, the company's sales grew 11% to $4.6 billion. The increase was primarily due to the increase in oil and natural gas production, in part due to the RSP Acquisition, partially offset by the decrease in realized oil and natural gas prices (excluding the effects of derivative activities).

Net loss of the company for 2019 was $705 million due to $1.7 billion change in a loss on derivatives, $890 million of impairments of long-lived assets, $282 million of impairments of goodwill, $630 million decrease in gain on disposition of assets, and $486 million increase in depreciation, depletion and amortization expense.

Concho has a cash balance of $70 million at the end of fiscal 2019. The company's operating activities generated $2.8 billion, while its investing activities used $2 billion, and its financing used $773 million. Concho's main cash uses were oil and gas asset purchases and payments on its debt.


Concho is built on a strategy that fits its strengths. It focuses on hiring the best people and being a good business partner and member of its community, investing in high-quality assets in the Permian Basin, executing a returns-based capital program, and maintaining a strong financial position. The consistent execution of its strategy enables Concho to deliver long-term value for its stakeholders.

The company's biggest competitive advantage is its people; they make its future as bright as its past. The company starts by hiring the best, and to ensure that the talent it hires is the talent it keeps, Concho is committed to investing heavily in its people.

Concho is one of the largest unconventional shale producers in the Permian Basin. Its assets span the Delaware Basin and the Midland Basin. Its legacy in the Permian Basin provides it with the technical, operational, and economic advantages that it uses to aggregate high-quality properties in the Permian.

Through the years, it has built value for its shareholders by profitably growing production, leveraging its competitive advantages, and keeping a relentless focus on improving capital productivity. Oil and gas market conditions change, so protecting its financial position is a key priority. Its financial strength is one of the most powerful levers for delivering predictable growth and solid returns.

Company Background

In 2004, Concho Equity Holdings Corp. is formed, and represents the third of three Permian Basin-focused companies formed since 1997 by Tim Leach and certain members of the Company's management. Concho acquires oil and natural gas properties from Lowe Partners, LP for approximately $117 million.

In 2006, Concho Resources Inc. is formed as result of the combination of Concho Equity Holdings Corp. and a portion of the oil and natural gas properties owned by Chase Oil Corporation and its affiliates, establishing Concho's New Mexico Shelf core area within the Yeso play.

Concho Resources Inc.

600 W Illinois Ave
Midland, TX 79701-4882
Phone: 1 (432) 683-7443

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: CXO
Stock Exchange: , NYSE
EVP, CFO and Treasurer: Jack F. Harper
Chairman, CEO, and President: Timothy A. Leach
EVP and COO: E. Joseph Wright
Employees (This Location): 332
Employees (All Locations): 1,453

Major Office Locations

Midland, TX

Other Locations

Artesia, NM
Santa Fe, NM
Houston, TX