Concho Resources Inc. Completes Its Marbob Acquisition

Concho Resources Inc.

today announced that it has closed its previously-announced acquisition of the oil and natural gas assets of Marbob Energy Corporation and certain affiliated entities. In addition, the Company purchased additional non-operated rights and interests in certain Marbob properties owned by persons affiliated with Marbob for approximately $32 million. As of June 30, 2010, estimated proved reserves associated with these additional interests totaled approximately 1.3 million barrels of oil equivalents. Aggregate consideration paid to Marbob at closing consisted of approximately $1.1 billion of cash, the issuance of approximately 1.1 million shares of Concho common stock and a $150 million senior unsecured note issued to Marbob due in 2018. The cash consideration was funded with borrowings under the Company's amended credit facility and with proceeds from a previously-announced $300 million private placement of Concho common stock.