CXO Q1 Results

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First-Quarter 2018 Highlights. Q1 production compares to my forecast of 213,000 Boepd. Beat is almost all oil. Adjusted net income per share compares to my forecast of $0.94. GREAT QUARTER!

Announced agreement to acquire RSP Permian, Inc.
Increased crude oil production volumes by approximately 14 MBopd, or 11%, quarter-over-quarter to 144 MBopd.
Delivered total production of 228 MBoepd, exceeding the high end of the Company’s guidance range.
Raised full-year 2018 production growth outlook to a range of 18% - 20% and maintained capital expenditure guidance. Concho’s outlook excludes the RSP Permian transaction.
Achieved record 30-day production rates in the Company’s Northern and Southern Delaware Basin assets and set a Company record average lateral length in the Northern Delaware Basin.
Received $157 million cash distribution from Oryx Southern Delaware Holdings, LLC.
Reduced total debt by approximately $320 million from year-end 2017.
Reported net income of $835 million, or $5.58 per diluted share. Adjusted net income totaled $149 million, or $1.00 per diluted share (non-GAAP).
Generated $570 million of EBITDAX (non-GAAP).
See “Supplemental Non-GAAP Financial Measures” at the end of this press release for a description of non-GAAP measures adjusted net income, adjusted earnings per share and EBITDAX as well as a reconciliation of these measures to the associated GAAP measure.

Tim Leach, Chairman and Chief Executive Officer, commented, “Our team achieved another outstanding quarter of operational and financial results, driving significant production growth while maintaining a disciplined capital program. Our results reflect our focus on large-scale project development, which enables us to maximize ultimate recovery, efficiencies and returns. Looking ahead, we intend to build on our strong momentum and capitalize on our execution strength, cost control and strong balance sheet to extend our track record of delivering growth and returns. We are excited about our pending transaction with RSP, which reinforces our scale advantage. We look forward to completing the acquisition and delivering the value creating benefits of the transaction to the shareholders of both companies.”