Successfully Aligning Operations with Market Realities Quickly reducing capital Exceeding cost reduction Strengthening balance spending targets sheet Focus on FCF generation, while Cost reduction initiatives and Capital…
Quickly Reducing Spending Prudently & dynamically managing capital program Capital Spending (mm) 2Q20 Capital Spend Averaged 11 rigs & 4 completion crews 90 0 781 DC&E costs benefitting from better 80 0 70 0 645…
Reducing Controllable Costs Controllable Costs ( per Boe) Cost Initiatives Support FCF Generation Capturing cost efficiencies LOE G&A Interest Labor & supply chain costs decreasing Optimizing well maintenance activity Reducing…
Reducing Well Costs DC&E Costs (/ft) Operational Efficiencies Delaware Basin Midland Basin Improving Cycle Times 35% INCREASE FEET COMPLETED PER 1,700 1,200 DAY (PER CREW) 1,450 33% 1,350 1,240…
Lower Well Costs & Better Well Productivity Improving Capital Efficiency 2020 Well Productivity In Line with Historical Performance & Exceeding Industry Average Avg. Cumulative Oil Production per Well (MBo) 2017 2018 2019 2020 YTD…
Strengthening Balance Sheet Industry Leading Balance Sheet Targeting Reduction in Net Debt Debt maturity profile (mm) Net debt (bn) Net debt is down 1,000 1,000 0.7bn y/y 4.3 800 3.6 3.0 600 500 No maturities until 2027…
Focusing on Free Cash Flow Capital discipline supports strong FCF outlook for 2020+ Free Cash Flow Generation (mm) Near-Term Capital Investment Framework Generate FCF & remain disciplined with capital investment 4 Consecutive…
Change in Net Debt A Good Proxy for Real FCF Generation Change in Net Debt Across Peers (bn) 6/30/20 vs. 12/31/19 1.0 0.5 Change in Net Debt 0.0 (0.25) -0.5 Net Debt of Companies Decreased Net Debt (0.2bn) 1…
Federal Acreage Exposure High-Quality Growth Platform Spans the Delaware & Midland Basins with Manageable Federal Acreage Exposure High-quality acreage position across the core fairways in the Delaware and Midland Basins Midland…
Advancing Sustainability Progress Reducing Emissions & Flaring Increasing Water Recycling Total GHG Emissions Flaring Performance Reused Water Volumes (MMBbls) Total Facility Emissions (Metric tons CO 2e) Gross Natural Gas Produced…
OUR STRATEGIC FOCUS Oil market indicators have strengthened, although Generate free cash flow uncertainty regarding global oil supply & demand persists Maintain financial strength We continue to execute from a position of strength, with…
Appendix
2Q20 Summary 2Q20 Operational & Financial Highlights Strong Performance in a Challenging Environment (mm, unless noted) 1Q20 2Q20 Record quarterly FCF driven by consistent hedging strategy & cost control Oil production (MBopd) 209…
Track Record of Capital Discipline OCF Before Changes in Working Capital vs. CapEx (mm) 90 2,801 80 700 70 LTM Cash Flow Reinvestment Rate: 75% 2,101 60 WTI Price (/Bbl) 50 40 30 213 188 61 801 20 706 744 238…
Net Debt Non-GAAP reconciliation The Company defines net debt as debt less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure.…
Extensive Development Program Optimizing multi-zone development Horizontal Wells Drilled by Zone (Gross Operated) Delaware Basin Midland Basin Formation 2009 - 2020 Well Count 2020 Formation 2009 - 2020 Well Count 2020 Brushy Canyon 23…
Hedge Position Updated as of July 29, 2020 2020 2021 2022 3Q 4Q Total Total Total Explanatory Notes Oil Price Swaps - WTI1: 1 These oil derivative contracts are settled based on the New York Volume (MBbl) 14,147 12,116 26,263 32,482…
Outlook Updated as of September 2, 2020 As previously disclosed, the Companys prior annual guidance is no longer applicable given continued uncertainty associated with the COVID-19 pandemic Under current assumptions, the Company…
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