|
Operations
CORE PROPERTIES:
New Mexico Shelf
Delaware Basin
Texas Permian
|
The Permian Basin is one of the most prolific producing oil and gas regions in the United States. It underlies an area of Southeastern New Mexico and West Texas approximately 250 miles wide and 300 miles long. Commercial accumulations of hydrocarbons occur in multiple stratigraphic horizons, at depths ranging from approximately 1,000 feet to over 25,000 feet. This basin is characterized by long life shallow decline reserves.
Our core operating areas are located in the Permian Basin region of Southeastern New Mexico and West Texas, the largest onshore oil and gas basin in the United States. We refer to our core operating areas as the New Mexico Shelf, the Delaware Basin and the Texas Permian.
In 2010, we drilled or participated in 662 wells (565 operated) and we increased our average net daily production from 30.6 thousand barrels of oil equivalent per day in the fourth quarter of 2009 to 54.4 MBoepd in the fourth quarter of 2010. At December 31, 2010, Concho had identified 6,253 drilling opportunities, with proved reserves associated with 2,042 of such opportunities. Concho's total proved oil and natural gas reserves at December 31, 2010 were 323.5 million barrels of oil equivalent (“MMBoe”), a 53% increase over year end 2009 proved reserves. Production for 2010 totaled 15.6 MMBoe, an increase of 42% as compared to 10.9 MMBoe produced in 2009.
Summary of Core Operating Areas and Other Plays
The following is a summary of information regarding our core operating areas and other plays that are further described below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
December 31, 2010 |
|
|
December 31, |
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
|
|
|
|
|
|
2010 Average |
|
|
|
Proved |
|
|
|
|
|
|
|
|
|
|
|
Identified |
|
|
Total |
|
|
Total |
|
|
Daily |
|
|
|
Reserves |
|
|
|
|
|
|
|
|
%
Proved |
|
|
Drilling |
|
|
Gross |
|
|
Net |
|
|
Production |
|
Areas |
|
(MBoe) |
|
|
PV-10 |
|
|
% Oil |
|
|
Developed |
|
|
Locations |
|
|
Acreage |
|
|
Acreage |
|
|
(Boe per Day) |
|
|
|
|
|
|
($ in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Operating Areas: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Mexico Shelf |
|
|
192,934 |
|
|
$ |
3,979.4 |
|
|
|
65.0 |
% |
|
|
62.4 |
% |
|
|
2,897 |
|
|
|
219,825 |
|
|
|
114,210 |
|
|
|
26,904 |
|
Delaware Basin |
|
|
22,093 |
|
|
|
355.7 |
|
|
|
40.5 |
% |
|
|
72.2 |
% |
|
|
1,101 |
|
|
|
266,962 |
|
|
|
148,457 |
|
|
|
2,721 |
|
Texas Permian |
|
|
100,498 |
|
|
|
1,594.8 |
|
|
|
70.5 |
% |
|
|
45.2 |
% |
|
|
1,800 |
|
|
|
210,666 |
|
|
|
65,855 |
|
|
|
11,606 |
|
Other |
|
|
7,927 |
|
|
|
131.3 |
|
|
|
78.4 |
% |
|
|
34.4 |
% |
|
|
455 |
|
|
|
90,914 |
|
|
|
46,221 |
|
|
|
1,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
323,452 |
|
|
$ |
6,061.2 |
(a) |
|
|
65.4 |
% |
|
|
57.0 |
% |
|
|
6,253 |
(b) |
|
|
788,367 |
|
|
|
374,743 |
|
|
|
42,643 |
(c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Our Standardized Measure at December 31, 2010 was $4,176.1 million. The present value of estimated future net revenues discounted at an annual rate of 10 percent ("PV-10") is not a GAAP financial measure and is derived from the Standardized Measure which is the most directly comparable GAAP financial measure. PV-10 is a computation of the Standardized Measure on a pre-tax basis. PV-10 is equal to the Standardized Measure at the applicable date, before deducting future income taxes, discounted at 10 percent. We believe that the presentation of the PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to our estimated proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of our oil and natural gas assets. Further, investors may utilize the measure as a basis for comparison of the relative size and value of our reserves to other companies. We use this measure when assessing the potential return on investment related to our oil and natural gas assets. PV-10, however, is not a substitute for the Standardized Measure. Our PV-10 measure and the Standardized Measure do not purport to present the fair value of our oil and natural gas reserves. See "Item 1. Business — Non-GAAP Financial Measures and Reconciliations." |
| |
(b) |
Of the 6,253 gross identified drilling locations, 2,042 locations were associated with proved reserves. |
| |
(c) |
Includes production, from the respective close dates in October 2010, from the Marbob and Settlement Acquisitions of 1,139 MBoe (3,120 Boe of daily production for 2010). Also, includes production of 508 MBoe (1,393 Boe of daily production for 2010) for the assets divested in December 2010. |
|
|
|
