Core Oil Delaware Basin Pure-Play Barclays CEO Energy-Power Conference September 9, 2020
Centennial Resource Development Overview Key Company Statistics Company Overview Operational Overview Large contiguous oil-rich acreage in the core of the Southern and Northern Delaware Production Basins Q2 Total Production…
Centennials Response to Macro Environment 1 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%…
Significant Reduction in Cycle Times Drilling Efficiency (Spud to RR)1 Completion Stages Pumped Per Day1 Spud to RR decrease of 25% from 2019 Stages per day increase of 34% from 2019 31.8 8.2 24.5 6.1 18.3 4.8 2018…
Well Cost Evolution Lower Well Costs Driven by Higher Efficiencies and Structural Cost Reductions Review of DC&F Cost Initiatives DC&F Cost / Lateral Foot - Extended Lateral Average (1.5 & 2 Section)1 Higher drilling and completion…
Review of Key LOE Initiatives 1 Artificial Lift: Ongoing transition 1 Historical Artificial Lift Method Allocation 2 In-Field Generator Usage () from ESPs to gas lift 135 Lower failure rate, resulting in ESP Gas Lift Flowing Rod /…
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…
Capital Structure and Liquidity Overview Capitalization and Liquidity Overview ( mm) Capital Structure Overview Capitalization 3/31/20 6/30/20 First Lien debt / LTM EBITDAX of 0.9x and Net debt / Cash and cash equivalents 3.8 7.2…
Hedge Strategy and Position Overview Hedge Strategy Summary Oil Hedges (MBbls/d) and Weighted Average Price (/Bbl)1 Hedge strategy represents a shift in corporate philosophy 48.25 48.50 48.01 46.85 Brent 25.0 Manage potential…
Final Thoughts: Centennial 2.0 Sustained Well Cost Reductions Lower Unit Cost Structure Improved Capital Shallowing Corporate Decline Rate Efficiency & FCF Profile High-Quality Asset Base No Near-Term Debt Maturities Ample…
Appendix 14
Hedge Position Overview Hedge Position Overview (as of Sept 8, 2020) FY 2020 FY 2021 Q3 Q4 Bal. 2020 Q1 Q2 Q3 Q4 2021 WTI Fixed Price Swaps Total Volume (Bbl) 2,300,000 1,196,000 3,496,000 90,000 91,000 92,000 92,000 365,000 Daily…
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 income (loss) attributable to common shareholders…
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