Market Overview

Concho Resources Inc. Completes Acquisition of RSP Permian, Inc.


Concho Resources Inc. (NYSE:CXO) ("Concho" or the "Company")
today announced that it has completed its acquisition of RSP Permian,
Inc. (NYSE:RSPP) ("RSP"). The transaction creates the largest
unconventional shale producer in the Permian Basin.

Tim Leach, Chairman and Chief Executive Officer of Concho, commented,
"We are excited to complete this transaction and welcome the RSP team to
Concho. By combining two great companies focused on the highest quality
resources in the Permian Basin, we are creating a compelling enterprise
with the scale and technical expertise necessary to compete globally.
The transition to large-scale development has been one of our most
important operational and strategic priorities. RSP's incredible asset
base enhances our development platform within the Permian Basin to drive
continued performance, innovation and stronger returns for our

"Concho's solid financial position, which includes a low cost of capital
and investment-grade ratings, underpins our scale advantage and enables
Concho to accelerate value across the combined portfolio through capital
efficient, large-scale development," Mr. Leach continued.

Acquisition Details

Under the terms of the merger, each share of RSP common stock was
converted into the right to receive 0.320 shares of Concho common stock.
As a result, Concho expects to issue approximately 51 million shares of
common stock in connection with the merger. In addition, RSP common
stock will no longer be listed for trading on NYSE, and RSP will no
longer have reporting obligations under the Securities Exchange Act of

In connection with the closing of the transaction, Concho announced the
appointment of Steve Gray, formerly Chief Executive Officer of RSP, to
the Company's Board of Directors.

Maintaining a Strong Financial Position

Concho recently closed its previously announced offering of $1,600
million aggregate principal amount of senior unsecured notes, consisting
of $1,000 million aggregate principal amount of 4.300% senior unsecured
notes due 2028 and $600 million aggregate principal amount of 4.850%
senior unsecured notes due 2048. The proceeds from the offering were
used to redeem RSP's 6.625% senior notes due 2022 and 5.250% senior
notes due 2025 for approximately $1.2 billion as well as repay a portion
of the outstanding balance under RSP's existing credit facility. Concho
repaid the remaining balance under RSP's credit facility with borrowings
under Concho's credit facility.

Concho plans to provide an update to its 2018 outlook with second
quarter 2018 results.

About Concho Resources

Concho Resources Inc. is an independent oil and natural gas company
engaged in the acquisition, development, exploration and production 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 the Company's website at

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 fact, 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. Forward-looking statements contained in this press release
specifically include statements relating to benefits of the acquisition
of RSP. The words "estimate," "project," "predict," "believe," "expect,"
"anticipate," "potential," "could," "may," "foresee," "plan," "will,"
"guidance," "outlook," "goal" or other similar expressions that convey
the uncertainty of future events or outcomes are intended to identify
forward-looking statements, which generally are not historical in
nature. However, the absence of these words does not mean that the
statements are not forward-looking. These statements are based on
certain assumptions and analyses 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 risk
factors discussed or referenced in the Company's most recent Annual
Report on Form 10-K and other filings with the SEC. 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.

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