Market Overview

Concho Resources Inc. Announces Sale of Its Interest in Oryx I Oil Gathering System


Generates Additional Net Proceeds to Concho of Approximately $300

Concho Resources Inc. (NYSE:CXO) ("Concho" or the "Company")
today announced that Oryx Southern Delaware Holdings, LLC, ("Oryx"), the
owner of the Oryx I oil gathering and transportation system, has entered
into an agreement to sell 100% of the equity interests in its
subsidiaries to Stonepeak Infrastructure Partners for $2.07 billion.
Concho owns a 23.75% equity interest in Oryx and will receive
approximately $300 million at closing after repayment of Oryx's
outstanding borrowings.

In February 2018, Concho received a $157 million distribution related to
a recapitalization of Oryx. The sale proceeds from Oryx combined with
the earlier distribution total approximately $457 million, representing
a 10 times multiple on invested capital of approximately $45 million
since December 2015.

Jack Harper, Concho's President, commented, "Our investment in Oryx
supported the continued growth of our assets in the Southern Delaware
Basin with secured transportation for our production and improved oil
price realizations. This sale represents an excellent return on
investment for our shareholders. A strong balance sheet underpins our
ability to execute a resilient high-margin growth and returns strategy,
and we will use the proceeds of this sale to further strengthen our
balance sheet by repaying borrowings on our revolver.

"We congratulate the Oryx management team. Their demonstrated execution
and expertise created tremendous midstream and upstream value."

This transaction is not expected to impact oil price realizations or
transportation costs as Concho's existing gathering agreement remains
unchanged. Upon closing, the net cash proceeds from the transaction will
be used to repay borrowings outstanding on the Company's credit
facility. Closing is expected to occur in the second quarter of 2019,
subject to customary terms and conditions, including clearance under the
Hart-Scott-Rodino Antitrust Improvements Act.

Concho Resources Inc.

Concho Resources (NYSE:CXO) is one of the largest unconventional shale
producers in the Permian Basin, with operations focused on acquiring,
exploring, developing, and producing oil and natural gas resources.
Concho is at the forefront of applying advanced technology and
large-scale development to safely and efficiently maximize resource
recovery while delivering attractive, long-term economic returns. We are
working today to deliver a better tomorrow for our shareholders, people
and communities. For more information about Concho, visit

Forward-Looking Statements and Cautionary Statements

The foregoing contains "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. 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. The words "estimate," "project," "predict,"
"believe," "expect," "anticipate," "potential," "could," "may,"
"enable," "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, current plans, anticipated future
developments, expected financings 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 and other
information 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.
Information on Concho's website is not part of this press release.

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