J.P. Morgan 2021 Energy, Power & Renewables Conference June 23, 2021
A DIFFERENTIATED VALUE PROPOSITION COMPLIMENTARY ASSET PORTFOLIO Premier asset portfolio for sustained free cash flow generation Midland Basin: Over 1,100 risked locations with breakeven pricing at 40/Bbl (WTI) and Mid-cycle…
PATH TO DECARBONIZATION 2021 INITIATIVES GREENHOUSE GAS (GHG) INTENSITY REDUCTION TARGETS1 50% Targeting 40-50% reduction in Expand field GHG Emissions Intensity by 20252 electrification to By 2025 By 2030 eliminate diesel…
EVOLVING EXECUTIVE COMPENSATION FOR 2021 ANNUAL BONUS ALIGNED WITH SHAREHOLDER PRIORITIES REDESIGNED ANNUAL INCENTIVE FRAMEWORK - 2021 Returns Advancement of strategic initiatives 80% Quantitative Metrics 20% Prioritizing ESG…
SUCCESSFUL TEST OF E-FRAC TECHNOLOGY1 INITIAL E-FRAC PROJECT OVERVIEW Chapparal Unit (Howard County) Three-well pad targeting Lower Spraberry, WCA, and WCB 160 total stages completed More than 56 million pounds of proppant…
STRONG ADJUSTED FCF FOR ABSOLUTE DEBT REDUCTION OPERATIONAL CAPITAL EXPENDITURES Planning Price Reinvestment Period Assumption Rate1 650 600 50/Bbl 75% 550 MM 500 450 2022E / 2023E 55/Bbl 70% 400 350 60/Bbl 65% 2020 2021E…
MANAGING CASH COSTS FOR IMPROVED MARGINS ALL-IN CASH COSTS1 VS REALIZATIONS2 1Q21 Results Permian Eagle Ford 50 Daily production (MBoe/d) 57.8 23.2 % Oil 59% 76% 40 Cash G&A % NGL Prod &21% Ad Val 11% Realized price3 (/Boe)…
ROBUST PORTFOLIO FOR SCALED DEVELOPMENT PRIMARY ZONE INVENTORY OVERVIEW DEVELOPMENT STRATEGY Primary zone inventory limited to delineated zones in active development Over 1,100 risked locations with breakeven economics at INVENTORY…
DRILLING AND COMPLETIONS CONTINUE TO IMPROVE LOWERING COSTS FOR FULL FIELD DEVELOPMENT DRILLING PRODUCTIVITY DRIVES SAVINGS1 Continued application of combined learnings driving 400 25% consistent well results at low cost First…
CASH FLOW PROTECTION WITH UPSIDE PARTICIPATION 2Q-4Q FY21 Oil Hedges1 2021 PROTECTED WITH 2022 UPSIDE POTENTIAL 2Q-4Q FY21 oil production 70% hedged Unhedged 60% hedged in 2H21 0% 20% 40% 60% 80% 100% Ongoing optimization has…
MULTIPLE INITIATIVES DRIVING DEBT REDUCTION Organic adjusted free cash flow generation Combined 146.8 million in adjusted FCF since 2Q201 Monetization Projecting 500 to 800 million through 2023 at oil opportunities prices between 50…
FINANCIAL POSITION HIGHLIGHTS CAPITALIZATION TABLE (pro forma for 2028 notes) Path to further debt reduction Million 1Q21 Adjusted FCF positive in 1Q21 despite winter storm impact Cash 24 Monetization opportunities improving with…
GUIDING PRINCIPLES FOR A SUSTAINABLE BUSINESS 65% - 75% Reinvestment Rate < 5% Continued Year-Over-Year ESG Production Improvement Growth Returning Value to Shareholders Commitment Commitment to Sustainable to…
APPENDIX 16
2021 GUIDANCE PRIOR PENDING GUIDANCE GUIDANCE Total production (MBoe/d) 90.0 - 92.0 89.0 - 91.0 Oil 63% 64% NGL 18% 19% Gas 19% 17% Income statement expenses (in millions, except where noted) LOE, including workovers 190.0 -…
GAS AND NGL HEDGES(1) 2Q21 3Q21 4Q21 2Q21-4Q21 1Q22 2Q22 3Q22 4Q22 FY 2022 NYMEX HENRY HUB (MMBtu, /MMBtu) Sw aps Total Volumes 3,822,000 3,864,000 3,437,000 11,123,000 - 910,000 920,000 310,000 2,140,000 Total Daily Volumes 42,000…
NON-GAAP ADJUSTED EBITDA1 (000s) 1Q 21 Net loss (80,407) Loss on derivative contracts 214,523 Loss on commodity derivative settlements, net (62,280) Non-cash stock-based compensation expense 7,608 Other income (3,306) Income tax…
NON-GAAP ADJUSTED FREE CASH FLOW1 (000s) 2Q 20 3Q 20 4Q 20 1Q 21 Net cash provided by operating activities 97,801 135,701 134,578 137,665 Changes in working capital and other 40,078 14,473 12,011 30,913 Change in accrued hedge…
NON-GAAP ADJUSTED G&A CASH COMPONENT AND FULL CASH G&A COSTS1 (000s) FY 20 1Q 21 Total G&A 37,187 16,799 Change in the fair value of liability share-based awards (non-cash) 4,110 (5,943) Adjusted G&A total 41,297 10,856 Equity-settled,…
NON-GAAP NET DEBT RECONCILIATION1 As of March 31, 2021 (in millions) Long-term debt 2,978 Less: Cash and cash equivalents 24 Net Debt 2,954 1. See Important Disclosures slide for additional information related to Supplemental…
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