Exhibit 99.1

Concho Resources Inc. Reports Second Quarter 2011 Financial and Operating Results

MIDLAND, Texas--(BUSINESS WIRE)--August 3, 2011--Concho Resources Inc. (NYSE: CXO) (“Concho” or the “Company”) today reported financial and operating results for the three and six months ended June 30, 2011. Highlights for the three and six months ended June 30, 2011 include:

• Production of 5.6 million barrels of oil equivalents (“MMBoe”) for the second quarter of 2011, a 61% increase over the second quarter of 2010 and a 7% increase over the first quarter of 2011
• Mid-year proved reserves increased to 342.6 MMBoe, up 6% from year-end 2010
• Reserve replacement ratio¹ of 354% for the first six months of 2011
• Net income of $232.2 million, or $2.24 per diluted share, for the second quarter of 2011, as compared to net income of $124.2 million, or $1.35 per diluted share, in the second quarter of 2010
• Adjusted net income² (non-GAAP) of $113.2 million, or $1.09 per diluted share, for the second quarter of 2011, as compared to $57.9 million, or $0.63 per diluted share, for the second quarter of 2010
• EBITDAX³ of $310.7 million for the second quarter of 2011, an increase of 92% over the second quarter of 2010

¹ The Company uses the reserve replacement ratio as an indicator of the Company's ability to replenish annual production volumes and grow its reserves, thereby providing some information on the sources of future production. It should be noted that the reserve replacement ratio is a statistical indicator that has limitations. The ratio is limited because it typically varies widely based on the extent and timing of discoveries and property acquisitions. Its predictive and comparative value is also limited for the same reasons. In addition, since the ratio does not imbed the cost or timing of future production of new reserves, it cannot be used as a measure of value creation. The reserve replacement ratio of 354% was calculated by dividing net proved reserve additions of 38.2 MMBoe (the sum of extensions, discoveries, revisions and purchases) by production of 10.8 MMBoe.

² Adjusted net income (non-GAAP) is comparable to securities analyst estimates. For an explanation of how the Company calculates adjusted net income (non-GAAP) and a reconciliation of net income (GAAP) to adjusted net income (non-GAAP), please see "Supplemental Non-GAAP Financial Measures" below.

³ For an explanation of how the Company calculates and uses EBITDAX (non-GAAP) and a reconciliation of net income (GAAP) to EBITDAX (non-GAAP), please see "Supplemental Non-GAAP Financial Measures" below.

Second Quarter 2011 Financial Results

Production for the second quarter of 2011 totaled 5.6 MMBoe (3.5 million barrels of oil (“MMBbls”) and 12.3 billion cubic feet of natural gas (“Bcf”)), an increase of 61% as compared to 3.5 MMBoe (2.3 MMBbls and 6.7 Bcf) produced in the second quarter of 2010.

As of July 1, 2011, the Company estimated that its total proved reserves were 342.6 MMBoe (62% proved developed) utilizing SEC reserve recognition standards and pricing assumptions based on the trailing 12-month average first-day-of-the-month prices as of June 2011 of $86.60 per barrel (“Bbl”) of oil and $4.21 per million British thermal unit (“MMBtu”) of natural gas. The Company's estimate of its total proved reserves as of July 1, 2011 is based on the Company's internal reserve analysis and has not been prepared by, reviewed or audited by the Company's independent petroleum engineers. This total represents a 6% increase from year-end 2010 total proved reserves of 323.5 MMBoe (57% proved developed). The total proved reserves estimate as of July 1, 2011 would have been reduced by approximately 2.2 MMBoe had the Company utilized the average twelve month 2010 SEC pricing of $75.96 per Bbl of oil and $4.38 per MMBtu of gas.

Timothy A. Leach, Concho's Chairman, CEO and President commented, "Our business delivered outstanding results in the first half of 2011. Despite the many factors that have challenged our operations, we remain on track to accomplish the goals we established for 2011. I am pleased with our reserve and production growth in the first six months of 2011 and the significant additions to our drilling inventory, particularly in our core Wolfberry and Delaware Basin assets. Finally, our results in the Delaware Basin are encouraging, and the significant quarter over quarter production growth from the Delaware Basin is indicative of the momentum we expect this area to carry into 2012."

For the second quarter of 2011, the Company reported net income of $232.2 million, or $2.24 per diluted share, as compared to net income of $124.2 million, or $1.35 per diluted share, for the second quarter of 2010. The Company’s second quarter 2011 results were impacted by several non-cash items including: (1) a $192.6 million unrealized mark-to-market gain on commodity and interest rate derivatives and (2) $0.1 million of impairments of long-lived assets and leasehold abandonments, combined. Excluding these items and their tax effects, the second quarter 2011 adjusted net income (non-GAAP) was $113.2 million, or $1.09 per diluted share. Excluding these similar items and an impairment of long-lived assets included in discontinued operations recorded in the second quarter of 2010, our adjusted net income (non-GAAP) for the second quarter of 2010 was $57.9 million, or $0.63 per diluted share. For a reconciliation of net income (GAAP) to adjusted net income (non-GAAP), please see “Supplemental Non-GAAP Financial Measures” below.

EBITDAX (defined as net income, plus (1) exploration and abandonments expense, (2) depreciation, depletion and amortization expense, (3) accretion expense, (4) impairments of long-lived assets, (5) non-cash stock-based compensation expense, (6) bad debt expense, (7) unrealized (gain) loss on derivatives not designated as hedges, (8) (gain) loss on sale of assets, net, (9) interest expense, (10) federal and state income taxes, and (11) similar items listed above that are presented in discontinued operations) increased to $310.7 million in the second quarter of 2011, as compared to $161.7 million in the second quarter of 2010. For a reconciliation of net income (GAAP) to EBITDAX (non-GAAP), please “Supplemental Non-GAAP Financial Measures” below.

Operating revenues for the second quarter of 2011 increased 124% when compared to the second quarter of 2010. This increase is attributable to the 76% increase in production and the 30% increase in the Company’s unhedged realized oil price and the 32% increase in the Company’s unhedged realized natural gas price in the second quarter of 2011 compared to the same period in 2010.

Oil and natural gas production expense for the second quarter of 2011, including taxes, totaled $69.6 million, or $12.48 per Boe, an 8% increase per Boe over the second quarter of 2010. This increase was primarily due to higher commodity prices, which resulted in more oil and natural gas taxes (which averaged $6.51 per Boe in the second quarter of 2011 as compared to $4.99 per Boe in the second quarter of 2010).

Depreciation, depletion and amortization for the second quarter of 2011 totaled $98.9 million, or $17.74 per Boe, a 13% increase per Boe from $49.6 million, or $15.66 per Boe, in the second quarter of 2010.

General and administrative expense (“G&A”) for the second quarter of 2011 totaled $22.6 million, or $4.06 per Boe, compared to $17.8 million, or $5.61 per Boe, in the second quarter of 2010. The decrease in per Boe expense in the second quarter of 2011 over the second quarter of 2010 was primarily due to increased production, offset by a 27% increase in absolute G&A costs due to increased staffing across the Company and the addition of employees from the Marbob acquisition.

The Company's cash flows from operating activities (GAAP) for the six months ended June 30, 2011 was $485.8 million, as compared to $239.5 million for the six months ended June 30, 2010, an increase of 103%. Adjusted cash flows (non-GAAP), which are cash flows from operating activities adjusted for settlements paid on derivatives not designated as hedges, was $409.8 million for the six months ended June 30, 2011, as compared to $230.2 million for the six months ended June 30, 2010, an increase of 78%. For a description of the use of adjusted cash flows (non-GAAP) and for a reconciliation of cash flows from operating activities (GAAP) to adjusted cash flows (non-GAAP), please “Supplemental Non-GAAP Financial Measures” below.

In the second quarter of 2011, the Company made cash payments for settlements on derivatives contracts not designated as hedges of $47.8 million and the non-cash unrealized mark-to-market gain for the derivatives contracts not designated as hedges was $192.6 million. This is compared to cash receipts of $1.5 million on derivatives contracts not designated as hedges and a $111.2 million non-cash unrealized mark-to-market gain on contracts not designated as hedges in the second quarter of 2010. To better understand the impact of the Company’s derivatives positions and their impact on the statement of operations, please see the “Summary Production and Price Data” and “Derivatives Information” tables at the end of this press release.

Operations

For the quarter ended June 30, 2011, the Company commenced the drilling of or participated in a total of 229 gross wells (196 operated), 72 of which had been completed as producers and 157 of which were in progress at June 30, 2011. In addition, during the second quarter of 2011, the Company completed 127 wells that were drilled prior to the second quarter of 2011. Currently, the Company is operating 36 drilling rigs, all in the Permian Basin; 12 of these rigs are drilling Yeso wells on the New Mexico Shelf, 16 are drilling Wolfberry wells in the Texas Permian, 6 are drilling Bone Spring wells in the Delaware Basin and 2 rigs are drilling Lower Abo wells on the New Mexico Shelf.

New Mexico Shelf

During the second quarter of 2011, the Company drilled 131 wells (106 operated) on its New Mexico Shelf assets, which included both the Yeso and the Lower Abo, with a 100% success rate on the 60 wells that had been completed by June 30, 2011. In addition, during the second quarter of 2011, the Company completed 52 wells that were drilled prior to the second quarter of 2011. At June 30, 2011, on its New Mexico Shelf assets, the Company had identified 2,846 drilling locations, with proved undeveloped reserves attributable to 637 of such locations. Of these 2,846 drilling locations, 2,113 target the Yeso formation and 327 target the Lower Abo formation.

Texas Permian

During the second quarter of 2011, the Company drilled 73 wells (100% operated) on its Texas Permian assets with a 100% success rate on the 10 wells that had been completed by June 30, 2011. In addition, during the second quarter of 2011, the Company completed 58 wells that were drilled prior to the second quarter of 2011. At June 30, 2011, on its Texas Permian assets, the Company had identified 4,449 drilling locations, with proved undeveloped reserves attributable to 1,240 of such locations. Of these 4,449 drilling locations, 1,893 target the Wolfberry play through 40-acre spacing and 2,444 target the Wolfberry play on 20-acre spacing.

Delaware Basin

During the second quarter of 2011, the Company drilled or participated in 25 wells (17 operated) with a 100% success rate on the 2 wells that had been completed by June 30, 2011. In addition, during the second quarter of 2011, the Company completed 17 wells that were drilled prior to the second quarter of 2011. The Company’s net production from the Bone Spring in the second quarter of 2011 averaged approximately 5,600 Boepd, an increase of 40% over the first quarter of 2011. At June 30, 2011, on its Delaware Basin assets, the Company had identified 1,464 drilling locations, with proved undeveloped reserves attributable to 106 of such locations. Of these drilling locations, 1,039 target horizontal objectives and 332 target the vertical Wolfbone play.

Derivative Update

The Company maintains an active hedging program and continued to add to its derivative positions through July 2011. Please see the “Derivatives Information” tables at the end of this press release for more detailed information about the Company’s current derivative positions.

Conference Call Information

The Company will host a conference call on Thursday, August 4, 2011 at 9:00 a.m. Central Time to discuss the second quarter 2011 financial and operating results. Interested parties may listen to the conference call via the Company’s website at http://www.concho.com or by dialing (866) 271-5140 (passcode: 82868431). A replay of the conference call will be available on the Company’s website or by dialing (888) 286-8010 (passcode: 88954595).

About Concho Resources Inc.

Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company's operations are focused in the Permian Basin of Southeast New Mexico and West Texas. For more information, visit Concho’s website at www.concho.com.

Forward-Looking Statements and Cautionary Statements

The foregoing contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, 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. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Company's future financial position, liquidity and capital resources, operations, performance, production growth, acquisitions, returns, capital expenditure budgets, oil and natural gas reserves, number of identified drilling locations, drilling program, derivative activities, costs and other guidance included in this press release. These statements are based on certain assumptions made by the Company based on management's experience, expectations and perception of historical trends, current conditions, anticipated future developments 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 factors discussed or referenced in the "Risk Factors" section of the Company's most recent Form 10-K filing and risks relating to declines in the prices we receive for our oil and natural gas; uncertainties about the estimated quantities of reserves; the effects of government regulation, permitting and other legal requirements, including new legislation or regulation of hydraulic fracturing; drilling and operating risks; the adequacy of our capital resources and liquidity; risks related to the concentration of our operations in the Permian Basin; the results of our hedging program; weather; litigation; shortages of oilfield equipment, services and qualified personnel and increases in costs for such equipment, services and personnel; uncertainties about our ability to replace reserves and economically develop our current reserves; competition in the oil and natural gas industry; our existing indebtedness; and other important factors that could cause actual results to differ materially from those projected.

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.

EBITDAX

EBITDAX (as defined below) is presented herein, and reconciled from the generally accepted accounting principles ("GAAP") measure of net income because of its wide acceptance by the investment community as a financial indicator of a company's ability to internally fund exploration and development activities.

We define EBITDAX as net income, plus (1) exploration and abandonments expense, (2) depreciation, depletion and amortization expense, (3) accretion expense, (4) impairments of long-lived assets, (5) non-cash stock-based compensation expense, (6) bad debt expense, (7) unrealized (gain) loss on derivatives not designated as hedges, (8) (gain) loss on sale of assets, net, (9) interest expense, (10) federal and state income taxes, and (11) similar items listed above that are presented in discontinued operations. EBITDAX is not a measure of net income or cash flows as determined by GAAP.

Our EBITDAX measure (which includes continuing and discontinued operations) provides additional information which may be used to better understand our operations. EBITDAX is one of several metrics that we use as a supplemental financial measurement in the evaluation of our business and should not be considered as an alternative to, or more meaningful than, net income, as an indicator of our operating performance. Certain items excluded from EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic cost of depreciable assets, none of which are components of EBITDAX. EBITDAX, as used by us, may not be comparable to similarly titled measures reported by other companies. We believe that EBITDAX is a widely followed measure of operating performance and is one of many metrics used by our management team, and by other users, of our consolidated financial statements. For example, EBITDAX can be used to assess our operating performance and return on capital in comparison to other independent exploration and production companies without regard to financial or capital structure, and to assess the financial performance of our assets and our company without regard to capital structure or historical cost basis.

The following table provides a reconciliation of net income to EBITDAX:

Adjusted Net Income

The following tables provide information that the Company believes may be useful to investors who follow the practice of some industry analysts who adjust reported company earnings and cash flows from operating activities to match realizations to production settlement months and make other adjustments to exclude certain non-cash items. The following table provides a reconciliation of net income (GAAP) to adjusted net income (non-GAAP).

Adjusted Cash Flows

The following table provides a reconciliation of cash flows from operating activities (GAAP) to adjusted cash flows (non-GAAP).

CONTACT:
Concho Resources Inc.
Toffee McAlister, 432-683-7443
Director, Investor Relations & Corporate Communications