Exhibit 99.1

Concho Resources Inc. Reports First Quarter 2012 Financial and Operating Results

MIDLAND, Texas--(BUSINESS WIRE)--May 2, 2012--Concho Resources Inc. (NYSE: CXO) (“Concho” or the “Company”) today reported financial and operating results for the three months ended March 31, 2012. Highlights for the three months ended March 31, 2012 include:

• Production from continuing operations of 6.9 million barrels of oil equivalent (“MMBoe”) for the first quarter of 2012, an increase of 36% over the first quarter of 2011 and a 6% increase over the fourth quarter of 2011
• Net income of $31.1 million, or $0.30 per diluted share, for the first quarter of 2012, as compared to net income of $42.6 million, or $0.42 per diluted share, in the first quarter of 2011
• Adjusted net income (non-GAAP)¹ of $109.3 million, or $1.05 per diluted share, for the first quarter of 2012, as compared to $81.3 million, or $0.79 per diluted share, in the first quarter of 2011
• EBITDAX (non-GAAP)² of $362.1 million for the first quarter of 2012, a 40% increase over the first quarter of 2011

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.

First Quarter 2012 Financial Results

Production for the first quarter of 2012 totaled 6.9 MMBoe (4.2 million barrels of oil (“MMBbls”) and 16.2 billion cubic feet of natural gas (“Bcf”)), an increase of 32% as compared to 5.2 MMBoe (3.2 MMBbls of oil and 12.0 Bcf of natural gas) produced in the first quarter of 2011.

Timothy A. Leach, Concho's Chairman, CEO and President, commented, “This year is off to a strong start; Concho had outstanding production growth during the first three months of 2012. Today, we are running 37 drilling rigs, of which eleven are horizontal – the most in Concho history. The Permian renaissance continues to evolve in a manner that is positive for Concho. For the remainder of this year, we will focus on capital efficiency in all of our areas of operation, but with a particular emphasis on the emerging Delaware Basin.”

For the first quarter of 2012, the Company reported net income of $31.1 million, or $0.30 per diluted share, as compared to net income for the first quarter of 2011 of $42.6 million, or $0.42 per diluted share. The Company’s first quarter 2012 results were impacted by several non-cash items, including a $126.2 million unrealized mark-to-market loss on commodity derivatives. Excluding this item and its tax effects, the first quarter 2012 adjusted net income (non-GAAP) was $109.3 million, or $1.05 per diluted share. Excluding similar non-cash items and a gain on the sale of assets and their tax impact, adjusted net income (non-GAAP) for the first quarter of 2011 was $81.3 million, or $0.79 per diluted share. For a description and a reconciliation of net income (GAAP) to adjusted net income (non-GAAP), please see “Supplemental Non-GAAP Financial Measures” below.

EBITDAX was $362.1 million in the first quarter of 2012, an increase of 40% from $259.5 million reported in the first quarter of 2011. For a description and a reconciliation of net income (GAAP) to EBITDAX (non-GAAP), please see “Supplemental Non-GAAP Financial Measures” below.

Oil and natural gas sales from continuing operations for the first quarter of 2012 increased 41% when compared to the first quarter of 2011. This increase was attributable to the 36% increase in production and the 8% increase in the Company’s unhedged realized oil price, which was slightly offset by the 11% decrease in the Company’s unhedged realized natural gas price in the first quarter of 2012 compared to the first quarter of 2011.

Oil and natural gas production expense from continuing operations for the first quarter of 2012, including oil and natural gas taxes, totaled $92.2 million, or $13.32 per barrel of oil equivalent (“Boe”), a 7% increase per Boe from the first quarter of 2011. This increase was due primarily to higher lease operating expenses and workover costs, which averaged $7.28 per Boe in the first quarter of 2012 as compared to $6.67 per Boe in the first quarter of 2011, and higher oil and natural gas taxes, which averaged $6.04 per Boe in the first quarter of 2012 as compared to $5.80 per Boe in the first quarter of 2011. The increase in lease operating expenses per Boe over the first quarter 2011 is primarily due to an increase in the cost of services, including labor related expenses. The per Boe lease operating expense for the first quarter 2012 decreased 9% over the fourth quarter 2011 lease operating expense of $8.03 per Boe.

Depreciation, depletion and amortization expense (“DD&A”) from continuing operations for the first quarter of 2012 totaled $135.9 million, or $19.64 per Boe, an 11% increase per Boe from the first quarter of 2011.

General and administrative expense (“G&A”) from continuing operations for the first quarter of 2012 totaled $27.4 million, or $3.96 per Boe, as compared to $21.4 million, or $4.19 per Boe, in the first quarter of 2011. Cash G&A for the first quarter of 2012 totaled $21.3 million and stock-based compensation (non-cash) totaled $6.1 million. The decrease in per Boe expense for the first quarter of 2012 over the first quarter of 2011 was primarily due to increased production, offset in part by a 28% increase in absolute G&A expenses primarily due to increased staffing across the Company, which is needed to support the growth of the Company.

The Company’s cash flow from operating activities (GAAP) was $345.9 million in the first quarter of 2012, as compared to $165.5 million in the first quarter of 2011, an increase of 109%. Adjusted cash flows (non-GAAP), which are cash flows from operating activities (GAAP) adjusted for settlements paid on derivatives not designated as hedges, were $314.0 million for the first quarter of 2012, as compared to $137.2 million for the first quarter of 2011, an increase of 129%. 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 first quarter of 2012, the Company made net cash payments on derivatives not designated as hedges of $31.9 million and the non-cash unrealized mark-to-market loss on derivatives not designated as hedges was $126.2 million. In comparison, the Company made net cash payments of $28.3 million on derivatives not designated as hedges and had a $204.8 million non-cash unrealized mark-to-market loss on derivatives not designated as hedges in the first quarter of 2011. To better understand the impact of the Company’s derivative positions and their impact on the statements of operations, please see the “Summary Production and Operating Data” and “Derivatives Information” tables at the end of this press release.

Operations

During the first quarter of 2012, the Company commenced the drilling of or participated in a total of 210 gross wells (172 operated), 66 of which had been completed as producers, all of which were successful, and 144 of which were in progress at March 31, 2012. In addition, during the first quarter of 2012, the Company completed 113 wells that were drilled prior to 2012.

As of May 2, the Company had 37 drilling rigs operating in the Permian Basin; 9 of these rigs are drilling Yeso wells in the New Mexico Shelf, 1 is drilling Lower Abo wells in the New Mexico Shelf, 19 are drilling Wolfberry wells in the Texas Permian, 1 is drilling in the Northern Midland Basin in the Texas Permian, 7 are drilling in the Delaware Basin, which includes Delaware sands, Avalon shale, Bone Spring sands, Wolfcamp shale and Pennsylvanian shale. Included in the 37 operated rigs, the Company is currently running 11 horizontal drilling rigs, including 7 in the Delaware Basin, 3 on the New Mexico Shelf and 1 in the Texas Permian.

New Mexico Shelf

During the first quarter of 2012, the Company drilled 106 wells (85 operated) on its New Mexico Shelf assets, which included both Yeso and Lower Abo wells, with a 100% success rate on the 48 wells that had been completed by March 31, 2012. Of the 106 wells drilled, 10 were horizontal, which included 8 Yeso wells and 2 Lower Abo wells. In addition, during the first quarter of 2012, the Company completed 48 wells that were drilled prior to the first quarter of 2012.

Texas Permian

During the first quarter of 2012, the Company drilled 76 wells (71 operated) on its Texas Permian assets with a 100% success rate on the 16 wells that had been completed by March 31, 2012. Of the 76 wells drilled, we drilled 1 horizontal Cline shale well. In addition, during the first quarter of 2012, the Company completed 50 wells that were drilled prior to the first quarter of 2012.

Delaware Basin

During the first quarter of 2012, the Company drilled 28 wells (16 operated) on its Delaware Basin assets with a 100% success rate on the 2 wells that had been completed by March 31, 2012. Of the 28 wells drilled, 25 wells were horizontal, which included 15 Bone Spring sand wells, 4 Avalon shale wells, 5 Wolfcamp shale wells and 1 Delaware sands well. In addition, during the first quarter of 2012, the Company completed 15 wells that were drilled prior to the first quarter of 2012. The Company’s net production in the first quarter of 2012 from horizontal Delaware Basin wells averaged approximately 12,400 barrels of oil equivalent per day (“Boepd”), an increase of 9% over the fourth quarter of 2011 and a 210% increase over the first quarter of 2011.

Liquidity

At March 31, 2012, the Company’s total debt balance was approximately $2.3 billion, of which $185 million was indebtedness outstanding under the Company’s credit facility. The Company’s total commitments under its credit facility are $2.0 billion, leaving approximately $1.8 billion available to be borrowed at March 31, 2012. The borrowing base for the Company’s assets is $2.5 billion.

Derivative Update

The Company maintains an active hedging program and continues to add to its derivative positions. Please see the “Derivatives Information” table 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, May 3, 2012, at 9:00 a.m. CT to discuss its first quarter financial and operating results. Interested parties may listen to the conference call via the Company’s website at www.concho.com or by dialing (800) 901-5226 (passcode: 90559182). A replay of the conference call will be available on the Company’s website or by dialing (888) 286-8010 (passcode: 29334342)

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; 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

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 make other adjustments to exclude certain non-cash items.

Adjusted Net Income

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).

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 loss on derivatives not designated as hedges, (8) loss on sale of assets, net, (9) interest expense, (10) federal and state income taxes on continuing operations 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:

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 loss on derivatives not designated as hedges, (8) loss on sale of assets, net, (9) interest expense, (10) federal and state income taxes on continuing operations and (11) similar items listed above that are presented in discontinued operations. EBITDAX is not a measure of net income or cash flow as determined by GAAP.

Our EBITDAX measure provides additional information which may be used to better understand our operations, and it is also a material component of one of the financial covenants under our credit facility. 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 financial statements, including by lenders pursuant to a covenant in our credit facility. 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.

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