Exhibit 99.1

Concho Resources Inc. Reports Third Quarter 2011 Financial and Operating Results and Provides 2012 Capital Budget Detail and Guidance

MIDLAND, Texas--(BUSINESS WIRE)--November 2, 2011--Concho Resources Inc. (NYSE: CXO) (“Concho” or the “Company”) today reported financial and operating results for the three and nine months ended September 30, 2011. Highlights for the three months ended September 30, 2011 include:

• Production of 6.3 million barrels of oil equivalent (“MMBoe”) for the third quarter of 2011, an increase of 73% over the third quarter of 2010 and a 13% increase over the second quarter of 2011
• Net income of $356.2 million, or $3.44 per diluted share, for the third quarter of 2011, as compared to net income of $20.8 million, or $0.22 per diluted share, in the third quarter of 2010
• Adjusted net income¹ (non-GAAP) of $117.8 million, or $1.14 per diluted share, for the third quarter of 2011, as compared to $71.4 million, or $0.77 per diluted share, for the third quarter of 2010
• EBITDAX² (non-GAAP) of $349.6 million for the third quarter of 2011, an increase of 90% over the third quarter of 2010

¹ Adjusted net income (non-GAAP) is comparable to securities analyst estimates. For an explanation of how we calculate 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.

² For an explanation of how we calculate and use EBITDAX (non-GAAP) and a reconciliation of net income (GAAP) to EBITDAX (non-GAAP), please see "Supplemental Non-GAAP Financial Measures" below.

Third Quarter 2011 Financial Results

Production for the third quarter of 2011 totaled 6.3 MMBoe (3.9 million barrels of oil (“MMBbls”) and 14.7 billion cubic feet of natural gas (“Bcf”)), an increase of 73% as compared to 3.6 MMBoe (2.5 MMBbls and 7.1 Bcf) produced in the third quarter of 2010 from continuing operations. The increase in production is due in part to the Marbob acquisition in the fourth quarter of 2010 and the Company’s successful 2010 and 2011 drilling program.

Timothy A. Leach, Concho's Chairman, CEO and President, commented, “Our third quarter results reflect outstanding execution by the entire Concho organization. Our team achieved record levels of production and cash flows while finishing the quarter in excellent financial position with a healthy balance sheet and significant liquidity. Looking forward to 2012, we expect to continue our trend of delivering substantial organic production growth while spending within cash flow and focusing on rate-of-return. We will allocate a greater proportion of our 2012 drilling budget to our Delaware Basin Bone Spring play, where we are expanding and testing the multiple horizons across our acreage. With our recent expansion efforts in the Delaware Basin Bone Spring play, I believe that we have assembled a premier acreage position that will enhance our future growth. Looking to the fourth quarter, we remain on track to meet our goals for 2011 and expect the momentum from our operational success to carry into 2012.”

For the third quarter of 2011, the Company reported net income of $356.2 million, or $3.44 per diluted share, as compared to net income of $20.8 million, or $0.22 per diluted share, for the third quarter of 2010. The Company’s third quarter 2011 results were impacted by several non-cash items, including a $387.0 million unrealized mark-to-market gain on commodity derivatives and $0.6 million of leasehold abandonments. Excluding these items and their tax effects, the third quarter 2011 adjusted net income (non-GAAP) was $117.8 million, or $1.14 per diluted share. Excluding these similar items and an impairment of long-lived assets recorded in the third quarter of 2010, our adjusted net income (non-GAAP) for the third quarter of 2010 was $71.4 million, or $0.77 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 $349.6 million in the third quarter of 2011, as compared to $184.3 million in the third quarter of 2010. For a reconciliation of net income (GAAP) to EBITDAX (non-GAAP), please see “Supplemental Non-GAAP Financial Measures” below.

Operating revenues for the third quarter of 2011 increased 101% when compared to the third quarter of 2010. This increase is attributable to the 73% increase in production, the 19% increase in the Company’s unhedged realized oil price and the 22% increase in the Company’s unhedged realized natural gas price in the third quarter of 2011 compared to the same period in 2010.

Oil and natural gas production expense for the third quarter of 2011, including taxes, totaled $84.1 million, or $13.32 per Boe, a 16% increase per Boe over the third quarter of 2010. This increase was primarily due to higher lease operating expenses and workover costs, in part due to higher third-party labor costs and a prior period underestimate of costs.

Depreciation, depletion and amortization for the third quarter of 2011 totaled $115.7 million, or $18.34 per Boe, a 16% increase per Boe from $57.6 million, or $15.82 per Boe, in the third quarter of 2010. The increase in depletion expense was primarily due to capitalized costs associated with new wells that were successfully drilled and completed in 2010 and 2011 and the Marbob acquisition.

General and administrative expense (“G&A”) for the third quarter of 2011 totaled $22.9 million, or $3.62 per Boe, compared to $15.3 million, or $4.20 per Boe, in the third quarter of 2010. The decrease in per Boe expense in the third quarter of 2011 over the third quarter of 2010 was primarily due to increased production, offset by a 50% increase in absolute G&A costs due in part 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 nine months ended September 30, 2011 was $779.0 million, as compared to $402.8 million for the nine months ended September 30, 2010, an increase of 93%. Adjusted cash flows (non-GAAP), which are cash flows from operating activities adjusted for settlements paid on derivatives not designated as hedges, was $701.2 million for the nine months ended September 30, 2011, as compared to $397.5 million for the nine months ended September 30, 2010, an increase of 76%. 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 see “Supplemental Non-GAAP Financial Measures” below.

In the third quarter of 2011, the Company made net cash payments for settlements on derivatives contracts not designated as hedges of $1.8 million and the non-cash unrealized mark-to-market gain for the derivatives contracts not designated as hedges was $387.0 million. This is compared to net cash receipts of $4.1 million on derivatives contracts not designated as hedges and a $70.2 million non-cash unrealized mark-to-market loss on contracts not designated as hedges in the third 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 Operating Data” and “Derivatives Information” tables at the end of this press release.

Operations

For the quarter ended September 30, 2011, the Company commenced the drilling of or participated in a total of 223 gross wells (194 operated), 69 of which had been completed as producers and 154 of which were in progress at September 30, 2011. In addition, during the third quarter of 2011, the Company completed 170 wells that were drilled prior to the third quarter of 2011. Currently, the Company is operating 30 drilling rigs in the Permian Basin; 10 of these rigs are drilling Yeso wells in the New Mexico Shelf, 13 are drilling Wolfberry wells in the Texas Permian, 6 are drilling in the Delaware Basin Bone Spring play and 1 rig is drilling Lower Abo wells in the New Mexico Shelf.

New Mexico Shelf

During the third quarter of 2011, the Company drilled 122 wells (105 operated) on its New Mexico Shelf assets, which included both Yeso and Lower Abo wells, with a 100% success rate on the 55 wells that had been completed by September 30, 2011. In addition, during the third quarter of 2011, the Company completed 71 wells that were drilled prior to the third quarter of 2011.

Texas Permian

During the third quarter of 2011, the Company drilled 77 wells (74 operated) on its Texas Permian assets with a 100% success rate on the 12 wells that had been completed by September 30, 2011. In addition, during the third quarter of 2011, the Company completed 77 wells that were drilled prior to the third quarter of 2011.

Delaware Basin

During the third quarter of 2011, the Company drilled 24 wells (15 operated) on its Delaware Basin assets with a 100% success rate on the 2 wells that had been completed by September 30, 2011. In addition, during the third quarter of 2011, the Company completed 22 wells that were drilled prior to the third quarter of 2011. The Company’s net production in the third quarter of 2011 from the Bone Spring play, which includes the Avalon shale, the Bone Spring sands and the Wolfcamp shale, averaged approximately 8,900 Boepd, an increase of 59% over the second quarter of 2011.

2012 Capital Budget

Concho’s capital budget for 2012 is approximately $1.3 billion, which the Company believes will yield production in the range of 27.0 – 28.0 MMBoe. This budget contemplates operating an average of 35 drilling rigs for 2012. The Company estimates that its 2012 capital budget can be funded entirely out of its after-tax cash flow assuming (i) a NYMEX crude oil price of $85 per barrel and a NYMEX natural gas price of $4 per thousand cubic feet of natural gas (“Mcf”) for the Company’s unhedged production and (ii) that the Company achieves the mid-point of its 2012 production guidance. The Company intends to monitor both the direction of commodity prices and the costs of goods and services and may adjust its capital budget, and resultant estimated production and cash flows, as conditions warrant.

Of the approximately $1.1 billion dedicated to the Company's core areas, approximately $500 million will be dedicated to drilling and recompletion projects on its New Mexico Shelf assets (primarily in the Yeso and Lower Abo plays), approximately $375 million will be dedicated to drilling projects on its Delaware Basin assets (primarily in the Bone Spring play) and approximately $260 million will be dedicated to drilling and recompletion projects on its Texas Permian assets (primarily in the Wolfberry play). The Company expects to drill or participate in a total of 850 gross wells (700 operated), which includes 359 Yeso wells, 13 Lower Abo wells, 113 Bone Spring play wells and 309 Wolfberry wells. The remaining $160 million of capital will be allocated between leasehold acquisition, geological and geophysical (“G&G”), exploratory costs and other ($110 million) and facilities ($50 million).

2012 Guidance

Liquidity Update

Lenders under Concho's revolving credit facility recently completed their semi-annual redetermination of the borrowing base, voting unanimously to reaffirm the $2.5 billion borrowing base and aggregate commitment of $2.0 billion. At September 30, 2011, Concho had $293.0 million outstanding on the credit facility.

Derivative Update

The Company maintains an active hedging program and continued to add to its derivative positions through October 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, November 3, 2011 at 9:00 a.m. Central Time to discuss the third quarter 2011 financial and operating results and the 2012 capital budget and guidance. Interested parties may listen to the conference call via the Company’s website at http://www.concho.com or by dialing (800) 659-2032 (passcode: 39505486). A replay of the conference call will be available on the Company’s website or by dialing (888) 286-8010 (passcode: 60178210).

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 and 10-Q filings and risks relating to declines in the prices we receive for our oil and natural gas; uncertainties about the estimated quantities of reserves; risks related to the integration of acquired assets; 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.

Concho Resources Inc.
Supplemental Non-GAAP Financial Measures
Unaudited

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