Core Oil Delaware Basin Pure-Play Second Quarter 2020 Earnings Presentation August 3, 2020
Centennial Resource Development Overview Key Company Statistics Q2 2020 Highlights Operational Overview Reduced capital expenditures by 84% compared to Q1 2020 Production Reduced year-to-date average well costs by over 20% compared…
Centennials Response to Macro Environment Operational Initiatives Reduced operated rig count from five to zero in April 2020 and halted completion activity Total capital budget reduced by 60% from original guidance Curtailed 20%…
Focused on Operating Cost Control and Margin Expansion Operational Cost Improvement Historical Cash Unit Costs (/Boe) Improving operational LOE efficiency GP&T 10.81 Cash G&A Lowering water 10.24 disposal, electricity, 1.81 9.57…
Review of Key LOE Initiatives 1 In-Field Generator Usage () 2 Trucked Produced Water (% of total) 1 Electricity: Transitioning more facilities to electric power, 11% resulting in lower equipment 135 rental costs Phase 1 of…
DC&F Cost Evolution Review of DC&F Cost Initiatives DC&F Cost / Lateral Foot - Extended Lateral Average (1.5 & 2 Section)1 Significant reduction in cycle 1,600 times 1,400 1,350 25% decrease in spud to rig release days from 2019…
Debt Exchange Overview Debt Exchange Overview ( mm)1 Debt Exchange Transaction Impacts Closed debt exchange transaction in May 2020 Annualized Interest Expense ( mm) Sr. Unsec. Note due 2027 Sr. Unsec. Note due 2026 254mm of senior…
Capital Structure and Liquidity Overview Capital Structure Overview Capitalization and Liquidity at 6/30/20 ( mm) As of First Lien debt / LTM EBITDAX of 0.9x and Net debt / LTM Capitalization 6/30/20 EBITDAX of 2.6x Cash and cash…
2H2020 Capital to be Funded With Cash Flow FY 2020 Total Capital Expenditures (mm)1 255 2H20 80% of estimated FY 2020 Capital: total capital spent in 1H2020 52 Anticipated 2H 2020 capital 203 spend expected to be funded 175…
FY 2020 Guidance Summary Guidance Summary FY 2020 Guidance Summary Updated production guidance ranges reflect FY 2020 Guidance revised development plans Production No drilling rigs currently active Net Average Daily Production…
Hedge Position Overview Hedge Strategy Summary Hedge Position Overview as of July 31, 2020 FY 2020 FY 2021 Hedge strategy represents a shift Q3 Q4 Bal. 2020 Q1 2021 in corporate philosophy WTI Fixed Price Swaps Total Volume (Bbl)…
Key Centennial Objectives Operational and Financial Mindset: Focusing on what we can control Improve cash margin through LOE optimization and corporate cost control Continue to drive structural improvements to D&C costs and…
Reconciliation of Adjusted EBITDAX to Net Income (Loss) Adjusted EBITDAX reconciliation ( thousands)1 FY 2019 FY 2020 ( in thousands , unless specified) Q1 Q2 Q3 Q4 Q1 Q2 Net incom e (loss ) attributable to common shareholders…
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