Crude oil prices were volatile during 2016, dipping to a twelve-year low at the start of the year and averaging $45 for the year. Concho adapted to the market reality of lower oil prices by decreasing costs and increasing well productivity. A strong focus on our operations and consolidation of our core areas led to a production increase of 5% year-over-year, while underspending cash flow by more than $200 million. Capital spending on drilling and completion operations totaled $1.3 billion in 2016, as compared to $1.8 billion in 2015. During the year, Concho reduced long-term debt by $600 million. The Company also consolidated approximately 70,000 net acres in our core areas. These acquisitions blocked up acreage, allowing for more efficient extended lateral development and further enhanced our drilling inventory.
Despite a challenging commodity price environment, where oil prices declined 47% compared to 2014, Concho delivered excellent results while maintaining a strong financial position. Daily production volumes for 2015 increased 28%, with crude oil growing by 31%, and exploration and development capital totaled $1.8 billion for the year, as compared to $2.6 billion in 2014. In total, resource capture for the company increased by 35% to five billion barrels of oil equivalent, including proved reserves.
Operating one of the largest horizontal drilling programs in the Permian Basin, Concho grew production 22% to 112 thousand barrels of oil equivalent per day and proved reserves by 27% to 637 million barrels of oil equivalent. Concho also achieved record EBITDAX of $2 billion, which supported a robust drilling and completion program, and approximately $400 million in acquisitions that expanded Concho’s acreage position in the Permian Basin by about 70,000 net acres.
Concho delivers year-over-year production growth from continuing operations of 20% and year-over-year crude oil growth of 25%. Concho nearly doubles its drilling locations, identifying approximately 22,000 locations at year-end. Concho produces 33.6 million barrels of oil equivalent with a capital budget of approximately $1.8 billion.
Concho acquires the assets of Three Rivers Operating Company for approximately $1 billion, significantly adding to the Company’s positions in the core northern Delaware Basin play, the Midland Basin Wolfberry play and the emerging southern Midland Basin horizontal Wolfcamp play. Concho partially funds the acquisition with a $520 million divestiture of non-core Permian Basin assets. Concho produces 29.8 million barrels of oil equivalent with a capital budget of approximately $1.5 billion.
Concho divests its North Dakota Bakken assets for approximately $200 million and redeploys this capital in the Permian Basin, making several acquisitions totaling over $500 million in the Midland and Delaware Basins. These acquisitions significantly add to the Company’s inventory in the Wolfberry play in the Midland Basin and the Avalon Shale, Bone Spring and Wolfcamp horizontal plays within the Delaware Basin. Concho produces 23.6 million barrels of oil equivalent with a capital budget of approximately $1.4 billion.
Concho acquires Marbob Energy Corporation, its affiliates and certain related assets for a total purchase price of $1.6 billion. As a result of these transactions, Concho increases its position in the Yeso play on the New Mexico Shelf and adds a new third core area in the Delaware Basin. In addition, Concho divests approximately $103 million in non-core Permian Basin assets. Concho produces 15.6 million barrels of oil equivalent with a capital budget of approximately $ 700 million.
Concho purchases interests in the Midland Basin Wolfberry trend for approximately $271 million, enhancing its Texas Permian asset base. Concho produces 10.9 million barrels of oil equivalent with a capital budget of approximately $400 million.
Concho acquires Henry Petroleum, LP and its affiliates for approximately $584 million, establishing a second core area for the Company in the Midland Basin Wolfberry play. Concho produces 7.1 million barrels of oil equivalent with a capital budget of approximately $390 million.
Concho prices its initial public offering of its common stock at $11.50 per share. The shares are listed on the New York Stock Exchange under the symbol CXO. Concho produces 5.0 million barrels of oil equivalent with a capital budget of approximately $155 million.
Concho Resources Inc. is formed as result of the combination of Concho Equity Holdings Corp. and a portion of the oil and natural gas properties owned by Chase Oil Corporation and its affiliates, establishing Concho’s New Mexico Shelf core area within the Yeso play.
Concho Equity Holdings Corp. is formed, and represents the third of three Permian Basin-focused companies formed since 1997 by Tim Leach and certain members of the Company’s management. Concho acquires oil and natural gas properties from Lowe Partners, LP for approximately $117 million.