EXECUTION CONTINUED HIGHLIGHTS Closed Southern Midland sale for net cash proceeds of 245MM (Feb. production 4,000 boepd / 52% oil / 20% decline) Updated 2019 production guidance midpoint to 38.8 from 40.5 Mboepd following sale with…
2019 GUIDANCE UPDATE PRIOR UPDATED FY19 GUIDANCE FY19 GUIDANCE Total production (MBoepd) 39.5 41.5 38.0 39.5 Oil production 77 - 78% 78 - 79% Income statement expenses (per BOE) LOE, including workovers 5.50 - 6.50 5.50 - 6.50…
ALIGNED TO RETURNS OVER GROWTH MANAGEMENT COMPENSATION EVOLUTION Compensation criteria are squarely aligned with cost and value focused metrics that drive long-term enterprise value and profitability 2014 2019 100% DISCRETIONARY 40%…
2019 PLAN PROGRESSION SUMMARY HIGHLIGHTS TRANSITION TO LARGE PAD DEVELOPMENT Solid operational efficiencies 350 2Q19E DUC inventory of 28 gross (24 net) wells to support larger 300 projects ahead of plan Average D&C costs below 1MM…
CO-DEVELOPMENT OF THREE CORE AREAS NORTHERN MIDLAND BASIN (HOWARD COUNTY) MSBY Large pad development focuses on cost reductions LSBY while maximizing NPV per section with retained organic DEAN delineation upside WC A (1) Recent well…
CONSISTENT PERFORMANCE IMPROVEMENTS DELAWARE: AVERAGE WELL PERFORMANCE GAINS DELAWARE: DRILLING DAYS IMPROVE MEASURABLY 250 30% 0 20% Thousands 2019 YTD Average Well 1 Improvement YoY Outperformance vs. 2018/2017 2 3 29 Days…
LEADING DELAWARE OIL PRODUCTION (1) 160 22 140 20 First Six Month Cumulative Production (MBo) / 1,000' 2H18: CPE Meaningfully Exceeding Peers in Average 6 Month Oil Cum and Oil Cum/1,000 First Six Month Cumulative Production…
WATER INFRASTRUCTURE VALUE UNLOCKED FINANCIAL ENVIRONMENTAL 1,400 truckloads per day eliminated from water infrastructure (1Q19) INFRASTRUCTURE ADVANTAGES 95% Produced Water on Pipe (1Q19) 65% reduction in spill volume YoY (2018)…
STRONG MARGINS DRIVE CASH FLOW GROWTH MARGIN ENHANCEMENTS MARGIN PRESERVATION ACROSS COMMODITY CYCLES AND OIL GROWTH (1) Longer ESP run times (reduced 3,000 150% Adj. EBITDA / Unhedged Revenue workovers, improved uptime) Total…
FINANCIAL POSITIONING HIGHLIGHTS PRO FORMA CAPITALIZATION (MM) Prioritizing sustainable FCF generation 1Q19 Corporate-level free cash flow in 4Q19 at planning price deck Cash 10 Corporate-level free cash flow generation in 2020…
DIVERSIFICATION WITH PRICING UPSIDE ACCESS TO PREMIUM MARKETS All sales agreements are Multiple deals providing price point diversification into local onshore markets and do not rely 15,000 bbls/d on Gray Oak (starting late 2019) on…
OUTLOOK RESPONSIBILITY: EXECUTION AND SAFETY OPTIMIZE HIGH-QUALITY PERMIAN INVENTORY DRIVE CORPORATE LEVEL RETURNS WITH PEER LEADING CASH MARGINS EFFICIENT CAPITAL CONVERSION WITHIN CASH FLOWS GENERATES DOUBLE DIGIT…
APPENDIX
SUSTAINABILITY DRIVING POSITIVE OUTCOMES Environmental and STOP WORK authority Annual code of safety metrics are resides with all conduct certification by ENVIRONMENTAL SOCIAL GOVERNANCE key component of workers all…
QUARTERLY CASH FLOW STATEMENT 1Q18 2Q18 3Q18 4Q18 1Q19 Cash flows from operating activities: Net income (loss) 55,761 50,474 37,931 156,194 (19,543) Adjustments to reconcile net income to net cash provided by operating activities:…
NON-GAAP RECONCILIATION (1) Adjusted EBITDA Reconciliation 1Q18 2Q18 3Q18 4Q18 1Q19 Net income (loss) 55,761 50,474 37,931 156,194 (19,543) Net (gain) loss on derivatives, net of settlements (3,978) 8,572 25,100 (105,512) 66,970…
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