2017 marks Concho's 10th year as a publicly traded company, and the Company delivers another year of strong results. Daily production volumes for 2017 increase 28%, capital invested totals $1.7 billion, and for the second year in a row, Concho generates cash flow in excess of capital invested for drilling and completion operations. During the year, the company focuses on transitioning development to large-scale, multi-zone projects to maximize resource recovery and economics. The team is also busy actively managing the asset portfolio. Concho monetizes its midstream joint venture interest in Alpha Crude Connector for $800 million in proceeds and acquires complementary assets in the Midland Basin.
Concho adapts to the market reality of lower oil prices by decreasing costs and increasing well productivity. A strong focus on operations and consolidation within the company’s core areas leads to a production increase of 5% year-over-year, while underspending cash flow by more than $200 million. Capital spending on drilling and completion operations totals $1.3 billion for the year, as compared to $1.8 billion in 2015. During the year, Concho reduces long-term debt by $600 million. The Company also acquires approximately 70,000 net acres in its core areas, allowing for more efficient extended lateral development.
Despite a challenging commodity price environment, Concho delivers excellent results while maintaining a strong financial position. Daily production volumes increase 28%, with crude oil growing by 31%, and exploration and development capital totaling $1.8 billion for the year, as compared to $2.6 billion in 2014. In total, resource capture for the company increases by 35% to five billion barrels of oil equivalent, including proved reserves.
Operating one of the largest horizontal drilling programs in the Permian Basin, Concho grows production 22% to 112 thousand barrels of oil equivalent per day and proved reserves by 27% to 637 million barrels of oil equivalent. Concho also achieves record EBITDAX of $2 billion, which supports a robust drilling and completion program, and approximately $400 million in acquisitions that expands Concho’s acreage position in the Permian Basin by approximately 70,000 net acres.
Concho delivers year-over-year production growth from continuing operations of 20% and year-over-year crude oil growth of 25%. Concho nearly doubles its drilling locations, identifying approximately 22,000 locations at year-end. Concho produces 33.6 million barrels of oil equivalent with a capital budget of approximately $1.8 billion.
Concho acquires the assets of Three Rivers Operating Company for approximately $1 billion, significantly adding to the Company’s positions in the core northern Delaware Basin, and in the Midland Basin. Concho partially funds the acquisition with a $520 million divestiture of non-core Permian Basin assets. Concho produces 29.8 million barrels of oil equivalent with a capital budget of approximately $1.5 billion.
Concho divests its North Dakota Bakken assets for approximately $200 million and redeploys this capital in the Permian Basin, making several acquisitions totaling over $500 million in the Midland and Delaware Basins. These acquisitions significantly add to the Company’s inventory in the Midland Basin and in the Delaware Basin. Concho produces 23.6 million barrels of oil equivalent with a capital budget of approximately $1.4 billion.
Concho acquires Marbob Energy Corporation, its affiliates and certain related assets for a total purchase price of $1.6 billion. As a result of these transactions, Concho increases its position in the Yeso play on the New Mexico Shelf and adds a new third core area in the Delaware Basin. In addition, Concho divests approximately $103 million in non-core Permian Basin assets. Concho produces 15.6 million barrels of oil equivalent with a capital budget of approximately $700 million.
Concho purchases interests in the Midland Basin trend for approximately $271 million, enhancing its Texas Permian asset base. Concho produces 10.9 million barrels of oil equivalent with a capital budget of approximately $400 million.
Concho acquires Henry Petroleum, LP and its affiliates for approximately $584 million, establishing a second core area for the Company in the Midland Basin. Concho produces 7.1 million barrels of oil equivalent with a capital budget of approximately $390 million.
Concho prices its initial public offering of its common stock at $11.50 per share. The shares are listed on the New York Stock Exchange under the symbol CXO. Concho produces 5.0 million barrels of oil equivalent with a capital budget of approximately $155 million.
Concho Resources Inc. is formed as result of the combination of Concho Equity Holdings Corp. and a portion of the oil and natural gas properties owned by Chase Oil Corporation and its affiliates, establishing Concho’s New Mexico Shelf core area within the Yeso play.
Concho Equity Holdings Corp. is formed, and represents the third of three Permian Basin-focused companies formed since 1997 by Tim Leach and certain members of the Company’s management. Concho acquires oil and natural gas properties from Lowe Partners, LP for approximately $117 million.