Exhibit 10.1
September 4, 2009
Concho Resources Inc.
550 West Texas Ave., Suite 100
Midland, Texas 79701
Attention: Darin G. Holderness

     Re:   Limited Consent and Waiver

Dear Mr. Holderness:
     We refer to that certain Amended and Restated Credit Agreement, dated as of
July 31, 2008, among Concho Resources Inc. (the “Borrower”), the lenders from
time to time party thereto (the “Lenders”), and JPMorgan Chase Bank, N.A., as
administrative agent for the Lenders (in such capacity, the “Administrative
Agent”) (as the same has been and may hereafter be amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”).
Capitalized terms used and not otherwise defined herein shall have the meanings
given such terms in the Credit Agreement. References herein to any Section or
Article shall be to a Section or Article of the Credit Agreement unless
otherwise specifically provided.
     We understand that on or before September 30, 2009, and in accordance with
Section 7.03(f), the Borrower intends to issue Senior Notes in an aggregate
principal amount not to exceed $300,000,000 (the “2009 Senior Notes”). Pursuant
to Section 3.05, upon the issuance of the 2009 Senior Notes, the Borrowing Base
and the Conforming Borrowing Base then in effect must be reduced by $300 for
every $1,000 in stated amount of the 2009 Senior Notes and consequently, the
Aggregate Commitments will be reduced by an amount equal to the reduction in the
Borrowing Base. Currently, the Borrowing Base is equal to the Conforming
Borrowing Base. The Borrower has requested that the Lenders waive the reductions
of the Borrowing Base and the Conforming Borrowing Base required as a result of
the issuance of the 2009 Senior Notes and that each Lender consent to the
postponement of any reduction in its Commitment resulting from any reduction in
the Borrowing Base. Subject to the conditions described herein, each Lender a
party hereto is willing to waive the adjustments to the Borrowing Base and
Conforming Borrowing Base required as a result of the issuance of the 2009
Senior Notes and consent to the postponement of any such reduction in its
Commitment as a result of any reduction in the Borrowing Base.
     Accordingly, each Lender a party hereto hereby waives the adjustments to
the Borrowing Base and Conforming Borrowing Base required as a result of the
issuance of the 2009 Senior Notes and consents to the postponement of any
reduction in its Commitment as a result of any such reduction in the Borrowing
Base; provided, that, (i) no Default or Event of Default has occurred and is
continuing on the date the 2009 Senior Notes are issued, (ii) the 2009 Senior
Notes are issued in accordance with Section 7.03(f), (iii) the issuance of the
2009 Senior Notes occurs on or before September 30, 2009 and (iv) on the date
the proceeds from the issuance of

 

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the 2009 Senior Notes are received by Borrower, Borrower pays to the
Administrative Agent any amounts required to eliminate any Borrowing Base
Deficiency arising as a result of the issuance of the 2009 Senior Notes.
     By its signature below, the Borrower agrees that nothing herein shall be
construed as a continuing waiver of the provisions of Section 3.05 or of a
waiver of Section 7.03(f) or any other provision of the Credit Agreement or any
other Loan Document. The waiver and consent set forth herein is expressly
limited as follows: (i) such waiver and consent is limited solely to the
adjustments to the Borrowing Base and Conforming Borrowing Base required as a
result of the issuance of the 2009 Senior Notes and (ii) such waiver and consent
is a limited one-time waiver and consent, and nothing contained herein shall
obligate any Lender to grant any additional or future waiver or consent with
respect to Section 3.05 or any other provision of the Credit Agreement or any
other Loan Document.
     By its signature below, the Borrower acknowledges and agrees that except as
expressly provided herein, the Credit Agreement and each of the other Loan
Documents is hereby ratified and confirmed in all respects and shall remain in
full force and effect.
     If the foregoing is acceptable to you, please execute a copy of this letter
in the spaces provided below to evidence your acceptance and approval of the
foregoing and return a fully-executed counterpart to the attention of the
undersigned.
[Remainder of Page Intentionally Left Blank]

 

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            Very truly yours,

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and a Lender
      By:   /s/ Kimberly A. Bourgeois         Name:   Kimberly A. Bourgeois     
  Title:   Senior Vice President     

 

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            BANK OF AMERICA, N.A.,
as Syndication Agent and a Lender
      By:   /s/ Jeffrey H. Rathkamp         Name:   Jeffrey H. Rathkamp       
Title:   Managing Director     

 

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            BNP PARIBAS,
as a Co-Documentation Agent and a Lender
      By:   /s/ David Dodd         Name:   David Dodd        Title:   Managing
Director              By:   /s/ Richard Hawthorne         Name:   Richard
Hawthorn        Title:   Director     

 

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            CALYON NEW YORK BRANCH,
as a Co-Documentation Agent and a Lender
      By:   /s/ Sharada Manne         Name:   Sharada Manne        Title:  
Director              By:   /s/ Mark Roche         Name:   Mark Roche       
Title:   Managing Director     

 

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            ING CAPITAL LLC,
as a Co-Documentation Agent and a Lender
      By:   /s/ Charles E. Hall         Name:   Charles E. Hall        Title:  
Managing Director     

 

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            BANK OF SCOTLAND, plc,
as a Lender
      By:   /s/ Karen Weich         Name:   Karen Weich        Title:   Vice
President     

 

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            BANK OF TEXAS, N.A.,
as a Lender
      By:   /s/ Jeff Olmstead         Name:   Jeff Olmstead        Title:  
Assistant Vice President     

 

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            CITIBANK, N.A. (formerly Citibank Texas, N.A.),
as a Lender
      By:   /s/ Gary T. Brednich         Name:   Gary T. Brednich       
Title:   Vice President     

 

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            FORTIS CAPITAL CORP.,
as a Lender
      By:   /s/ Michele Jones         Name:   Michele Jones        Title:  
Director              By:   /s/ Darrell Holley         Name:   Darrell Holley   
    Title:   Managing Director     

 

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            THE FROST NATIONAL BANK,
as a Lender
      By:   /s/ Alex Zemkoski         Name:   Alex Zemkoski        Title:   Vice
President     

 

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            NATIXIS (formerly Natexis Banques Populaires),
as a Lender
      By:   /s/ Donovan C. Broussard         Name:   Donovan C. Broussard       
Title:   Managing Director              By:   /s/ Liana Tchernysheva        
Name:   Liana Tchernysheva        Title:   Director     

 

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            SCOTIABANC INC.,
as a Lender
      By:   /s/ J.F. Todd         Name:   J.F. Todd        Title:   Managing
Director     

 

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            STERLING BANK,
as a Lender
      By:   /s/ Jeff Forbis         Name:   Jeff Forbis        Title:   Senior
Vice President     

 

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            U.S. BANK NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ Tara R. McLean         Name:   Tara R. McLean        Title:  
Assistant Vice President     

 

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            WACHOVIA BANK, NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ Reed Thompson         Name:   Reed Thompson        Title:  
Senior Vice President     

 

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            UNION BANK, N.A.,
as a Lender
      By:   /s/ Timothy Brendel         Name:   Timothy Brendel        Title:  
Vice President     

 

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            COMPASS BANK,
as a Lender
      By:   /s/ Kathleen J. Bowen         Name:   Kathleen J. Bowen       
Title:   Senior Vice President     

 

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            KEY BANK NATIONAL ASSOCIATION,
as a Lender
      By:   /s/ Angela McCracken         Name:   Angela McCracken       
Title:   Senior Vice President     

 

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            WELLS FARGO BANK, N.A.,
as a Lender
      By:   /s/ Reed Thompson         Name:   Reed Thompson        Title:  
Senior Vice President     

 

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            SUNTRUST BANK,
as a Lender
      By:   /s/ Yann Pirio         Name:   Yann Pirio        Title:   Director 
   

 

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            DEUTSCHE BANK TRUST COMPANY AMERICAS,
as a Lender
      By:   /s/ Dusan Lazarov         Name:   Dusan Lazarov        Title:   Vice
President              By:   /s/ Michael M. Meagher         Name:   Michael M.
Meagher        Title:   Vice President     

 

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            ACCEPTED AND AGREED TO:

BORROWER:

CONCHO RESOURCES INC.,
a Delaware corporation
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer       
GUARANTORS:

COG OPERATING LLC,
a Delaware limited liability company
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer        COG REALTY
LLC,
a Texas limited liability company
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer        CONCHO
ENERGY SERVICES LLC,
a Texas limited liability company
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer     

 

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            QUAIL RANCH LLC,
a Texas limited liability company
      By:   /s/ Darin G. Holderness         Name:   Darin G. Holderness       
Title:   Vice President, Chief Financial Officer and Treasurer