Concho

Corporate Responsibility

Leading Responsibly

We prioritize our corporate responsibility initiatives and align them with our overarching business strategy. Our strategy is built upon four key principles: hiring the best people and being a good business partner and member of our community; investing in high-quality assets in the Permian Basin; executing a returns-based capital program; and keeping a strong financial position. We believe that consistently executing our strategy and integrating our focus on corporate responsibility will contribute to sustainable performance over the long term. To that end, we prioritize the safety and health of our employees, manage our environmental impact, empower our workforce and serve the communities where we operate. Our goal is to embed corporate responsibility at every level of our company.

The following highlights the key corporate responsibility initiatives we are undertaking and will continue to build on across our business and operations.

We are the largest pure-play Permian Basin operator

We are committed to the communities where we operate and where our employees live. The Permian Basin, where we solely operate, has served as a home to oil and gas development for nearly a century, something we don’t take for granted.

We operate more than 6,200 gross vertical and horizontal wells and have drilled more horizontal wells than any other operator in the Permian Basin over the past five years. Our unique focus and legacy in the Permian gives us an advantage in understanding the operating and geological trends of our assets and enables us to implement leading-edge technology and drive significant operational efficiencies. These operational efficiencies, such as our focus on horizontal drilling, long-lateral development and multi-well projects, significantly minimize our footprint. In addition, the states where we operate – New Mexico and Texas – have strong regulatory regimes. The regulatory requirements of these states, combined with federal provisions, cover safety reporting, environmental impact assessments, endangered species protection and resource reclamation work.

Because we only operate in the Permian Basin, we are able to avoid many of the mainstream environmental and social issues of concern for some exploration and production companies. For example:

  • We do not face any of the challenges that arise in countries with less strict environmental, financial, ethical or disclosure regimes.
  • We are not at risk for foreign nationalization of our assets.
  • None of our operations are in mountainous areas, arctic conditions, fragile shorelines, offshore or in major hurricane zones or flood plains.
  • None of our operations are on reservations for indigenous peoples and as a result, Concho does not have a stated policy on indigenous peoples.

We promote corporate responsibility practices in our operations and will continue to build and improve our definition of best practices as we look to the future. We invite you to provide us with your thoughts and comments on how we can improve our environmental, social and governance practices – we always seek the best ideas, whatever their sources, especially from our stockholders.