Exhibit 99.1

Concho Resources Inc. Reports Fourth Quarter and Full Year 2011 Financial and Operating Results

MIDLAND, Texas--(BUSINESS WIRE)--February 22, 2012--Concho Resources Inc. (NYSE: CXO) (“Concho” or the “Company”) today reported financial and operating results for the three months and year ended December 31, 2011. Highlights for the year ended December 31, 2011 include:

• Production of 23.6 million barrels of oil equivalent (“MMBoe”), an increase of 51% over 2010
• Net income of $548.1 million, or $5.28 per diluted share, as compared to net income of $204.4 million, or $2.18 per diluted share, in 2010
• Adjusted net income (non-GAAP)¹ of $430.1 million, or $4.15 per diluted share, as compared to $254.1 million, or $2.71 per diluted share, in 2010
• EBITDAX (non-GAAP)² of $1,275.2 million for 2011, a 72% increase over 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.

Year End 2011 Financial Results

Production for 2011 totaled 23.6 MMBoe (14.7 million barrels of oil (“MMBbls”) and 53.7 billion cubic feet of natural gas (“Bcf”)), an increase of 51% as compared to 15.6 MMBoe (10.3 MMBbls of oil and 31.4 Bcf of natural gas) produced in 2010. Production from continuing operations in 2011 increased 27% over 2010 production (after giving pro forma effect for all of 2010 to the properties acquired from Marbob Energy Corporation (“Marbob”) and the acquisition of certain properties in connection with the Marbob preferential purchase right dispute in 2010). The Company’s 2010 and 2011 production includes production from its non-core Permian Basin asset divestiture in the fourth quarter of 2010 and its Bakken asset divestiture in the first quarter of 2011 that are now being reflected in discontinued operations in the Company’s historical results. For more information, please see the “Summary Production and Operating Data” tables at the end of this press release.

Timothy A. Leach, Concho's Chairman, CEO and President commented, “In 2011, Concho achieved record levels of production, cash flow and earnings. In addition to these achievements, we increased our net acreage position by over 40% in 2011 through bolt-on acquisitions and additional leasing efforts, furthering our resource exposure to the multiple pay intervals present in the Permian Basin. Today, we are well positioned to continue to execute our business strategy and to capitalize on the emerging opportunities in the Permian.”

For 2011, the Company reported net income of $548.1 million, or $5.28 per diluted share, as compared to net income for 2010 of $204.4 million, or $2.18 per diluted share. The Company’s 2011 results were impacted by several non-cash items, including a $61.5 million unrealized mark-to-market gain on commodity and interest rate derivatives, $5.7 million of leasehold abandonments, $0.4 million in impairments of long-lived assets and a $135.9 million gain related to the sale of the Bakken assets included in discontinued operations. Excluding these items and their tax effects, the 2011 adjusted net income (non-GAAP) was $430.1 million, or $4.15 per diluted share. Excluding similar non-cash items, and their tax impact plus a change in state statutory effective income tax rate for 2010, adjusted net income (non-GAAP) would have been $254.1 million, or $2.71 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 (defined as net income (loss), 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 on continuing operations, and (11) similar items listed above that are presented in discontinued operations) increased to $1,275.2 million in 2011, as compared to $743.0 million in 2010. For 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 2011 increased 85% when compared to 2010. This increase is attributable to the 61% increase in production, the 19% increase in the Company’s unhedged realized oil price and the 11% increase in the Company’s unhedged realized natural gas price in 2011 compared to 2010.

Oil and natural gas production expense from continuing operations for 2011, including taxes, totaled $308.0 million, or $13.10 per barrel of oil equivalent (“Boe”), a 15% increase per Boe from 2010. This increase was due primarily to higher lease operating expenses and workover costs, which averaged $7.08 per Boe in 2011 as compared to $5.94 per Boe in 2010, and higher oil and natural gas taxes, which averaged $6.02 per Boe in 2011 as compared to $5.48 per Boe in 2010. The per Boe increase in lease operating expenses is primarily due to an increase in the cost of services, primarily labor related and higher costs related to routine environmental related costs.

Depreciation, depletion and amortization expense (“DD&A”) from continuing operations for 2011 totaled $428.4 million, or $18.21 per Boe, a 10% increase per Boe from 2010. The increase in depletion expense was primarily due to capitalized costs associated with new wells that were successfully drilled and completed in 2011 and the Marbob acquisition and the acquisition of certain properties in connection with the Marbob preferential purchase right dispute in 2010.

General and administrative expense (“G&A”) from continuing operations for 2011 totaled $96.3 million, or $4.09 per Boe, as compared to $64.3 million, or $4.41 per Boe in 2010. Recurring cash G&A for 2011 totaled $77.0 million and stock-based compensation (non-cash) totaled $19.3 million. The decrease in per Boe expense for 2011 over 2010 was primarily due to increased production, offset in part by a 50% increase in absolute G&A costs due in part to increased staffing across the Company and a full year effect from additional employees from the Marbob acquisition.

The Company’s 2011 cash flow from operating activities (GAAP) was $1,199.5 million, as compared to $651.6 million, an increase of 84%. Adjusted cash flows (non-GAAP), which are cash flows from operating activities (GAAP) adjusted for settlements paid on derivatives not designated as hedges, was $1,114.6 million for 2011, as compared to $637.8 million for 2010, an increase of 75%. 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 2011, the Company made net cash payments on derivatives not designated as hedges of $84.9 million and the non-cash unrealized mark-to-market gain on derivatives not designated as hedges was $61.5 million. This is compared to net cash payments of $13.8 million on derivatives not designated as hedges and a $73.5 million non-cash unrealized mark-to-market loss on derivatives not designated as hedges in 2010. 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 2011, the Company commenced the drilling of or participated in a total of 810 gross wells (708 operated), 681 of which had been completed as producers, all of which were successful, and 124 of which were in progress at December 31, 2011. In addition, during 2011, the Company completed 153 wells that were drilled prior to 2011. Currently, the Company is operating 31 drilling rigs in the Permian Basin; 9 of these rigs are drilling Yeso wells in the New Mexico Shelf, 14 are drilling Wolfberry wells in the Texas Permian, 7 are drilling in the Delaware Basin targeting the Bone Spring play, which includes the Avalon shale, the Bone Spring sands and the Wolfcamp shale, and 1 rig is drilling Lower Abo wells in the New Mexico Shelf.

New Mexico Shelf

During the fourth quarter of 2011, the Company drilled 92 wells (86 operated) on its New Mexico Shelf assets, which included both Yeso and Lower Abo wells, with a 100% success rate on the 44 wells that had been completed by December 31, 2011. In addition, during the fourth quarter of 2011, the Company completed 66 wells that were drilled prior to the fourth quarter of 2011. During 2011, the Company drilled 443 wells (385 operated) on the New Mexico Shelf.

Texas Permian

During the fourth quarter of 2011, the Company drilled 64 wells (61 operated) on its Texas Permian assets with a 100% success rate on the 18 wells that had been completed by December 31, 2011. In addition, during the fourth quarter of 2011, the Company completed 66 wells that were drilled prior to the fourth quarter of 2011. During 2011, the Company drilled 272 wells (266 operated) in the Texas Permian.

Delaware Basin

During the fourth quarter of 2011, the Company drilled 15 wells (12 operated) on its Delaware Basin assets with a 100% success rate on the 3 wells that had been completed by December 31, 2011. In addition, during the fourth quarter of 2011, the Company completed 22 wells that were drilled prior to the fourth quarter of 2011. During 2011, the Company drilled 87 wells (57 operated) in the Delaware Basin. The Company’s net production in the fourth quarter of 2011 from the Bone Spring play averaged approximately 11,400 Boepd, an increase of 28% over the third quarter of 2011 and a 250% increase over the fourth quarter of 2010.

Liquidity

At December 31, 2011, the Company’s total debt balance was approximately $2.1 billion, of which $583.5 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 $1.4 billion available to be borrowed at December 31, 2011.

2012 Guidance Update

The Company’s 2012 production guidance range is 27.5 to 28.5 MMBoe. In the Company’s current forecast, oil comprises 60% - 63% of its total production, in line with 2011 levels, and during 2011, over 90% of the Company’s total revenue was derived from the sale of oil and natural gas liquids. The Company currently estimates that its 2012 direct lease operating expense will average $6.80 - $7.20 per Boe as compared to its previous guidance for the year of $6.40 - $6.80 per Boe. Additionally, the Company estimates that its 2012 DD&A expense will average $18.00 - $20.00 per Boe as compared to its previous guidance for the year of $18.00 - $19.00 per Boe.

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, February 23, 2012 at 9:00 a.m. Central Time to discuss the fourth quarter and full year 2011 financial and operating results. Interested parties may listen to the conference call via the Company’s website at www.concho.com or by dialing (866) 713-8563 (passcode: 12630565). A replay of the conference call will be available on the Company’s website or by dialing (888) 286-8010 (passcode: 80842393).

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 (loss), 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 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 (loss) 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 make other adjustments to exclude certain non-cash items and match realizations to production settlement months. The following table provides a reconciliation of net income (loss) (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).

Concho Resources Inc.
Costs Incurred
Unaudited

The table below provides the costs incurred for the three months and years ended December 31, 2011 and 2010.

Concho Resources Inc.
Derivatives Information
Unaudited

The table below provides data associated with the Company’s derivatives at February 22, 2012.

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