Delivering Outsized Free Cash Flow and Meaningful Return of Capital Increased base dividend, executed 200MM of share repurchases, raised buyback authorization to 2.5B Third quarter was once again characterized by both strong safety…
Whats New Key takeaways from 3Q21 earnings release FINANCIAL OPERATIONAL Now expecting 2B of 2021 FCF (strip) No change to full year capex or total Company production guidance Meaningful sequential increase in FCF expected 4Q21…
Framework for Success Corporate Returns Disciplined reinvestment in strongest rate-of-return opportunities Committed Free Cash Flow Sustainable free cash flow across wide range of commodity prices to our Framework Return of…
Committed to Sustainability ESG excellence is foundational to long-term financial outperformance Safety & Environmental1 Social Responsibility Governance 2020 safety performance best in Company 20% increase in female leadership and in…
Clear Priorities for Capital Allocation Return of capital framework uniquely prioritizes equity investors as the first call on cash flow Significant Price Support Return at least 40% of (CFO) to equity investors; 1B of capital return…
Comprehensively Executing Against our Framework Expect to return 50% of 4Q21 cash flow from operations to equity holders 1B capital budget expected to deliver 2B of FCF1, with meaningful sequential FCF increase 4Q21 2021 Outlook…
2021 Plan Update: Delivering Outsized Financial Outcomes No change to full year capital budget or total production guidance Delivering Strong Financial Outcomes Significant Free Cash Flow Generation1 Expect 2021 FCF of 2B at forward…
2021 Plan Update: Accelerating Return of Capital to Shareholders Near-term gross debt and leverage targets achieved; future debt expected to be retired at maturity Achieved Balance Sheet Objectives Gross Debt Progression Total 2021…
2021 Plan Update: Outperforming E&P Peers and S&P 500 Top tier capital efficiency, free cash flow, and balance sheet 2021e Reinvestment Rate 2021e FCF Yield (FCF / Mkt Cap) 70% S&P 500 Peer Average Peer FCF Yield S&P500 FCF Yield Peer…
U.S. Resource Play Update Eagle Ford Bakken 3Q21 production of 95 net MBOED with 29 gross operated 3Q21 production of 107 net MBOED with 27 gross operated wells to sales wells to sales 3Q21 CWC1 of 575 per lateral foot, outperforming…
Resource Play Exploration Update: Texas Delaware Oil Play Strong early results from initial multi-well pad Early Rates Outperforming Best of Delaware Basin Texas Delaware Acreage Overview (50K net acres) Recently brought online first…
Equatorial Guinea Update World class gas development generates significant FCF 3Q21 production of 61 net MBOED with production E.G. Production and Sales Volumes costs of 2.17 per BOE 90 3.0 2.0 3Q21 equity earnings of 86MM vs. cash…
2022 Outlook: Priorities Unchanged, Peer Leading Return of Capital Capital allocation framework prioritizes the shareholder as the first call on cash flow generation Positioned for Top Tier FCF & Return of Capital in 2022 2022E…
APPENDIX
Competitively Advantaged Multi-Basin Portfolio High quality U.S. assets complemented by FCF generative integrated E.G. business Bakken SCOOP / STACK 255k net acres 250k net acres Eagle Ford Permian 160k net acres 135k net…
3Q21 U.S. Resource Play Production and Wells to Sales Eagle Ford Production Volumes and Wells to Sales Bakken Production Volumes and Wells to Sales 120 50 120 50 Operated Wells to Sales Operated Wells to Sales 100 40 100 40 80…
Five Year Benchmark Maintenance Scenario Integrating our capital allocation priorities with our Maintenance Scenario 2021-2025 Benchmark Maintenance Case & Capital Return Framework Material and sustainable free cash flow generation…
Top Tier Portfolio Drives Sustainability Positioned for continued industry leading capital efficiency Historical MRO vs. Historical Industry Capital Efficiency1 (Since 2018) Established track record of top tier capital efficiency…
Eagle Ford and Bakken Capital Efficiency Best of U.S. Shales MROs average results exceed industry top quartile of all U.S. Basins 40 Average Top Quartile Avg 180D Cum mboe / TWC 30 (20:1 mboe/MM)1 20 10 0 MRO MRO…
2021 Plan: Continuously Optimizing our Cost Structure Additional action taken to continue multi-year cost reduction trend All-in 2020 unit cash cost structure 7% below 2020 Unit Cash Costs (/boe)1 peer average; top quartile among…
ESG Excellence: Safety & Environmental Performance Driving continuous improvement in GHG emissions intensity MRO GHG Intensity Significant Progress to Date Top quartile safety performance in 2019 and GHG Emissions Intensity 30…
ESG Excellence: Executive Compensation Reduced and Redesigned Continuing to enhance alignment with shareholders; growth metrics eliminated STI Scorecard Consistent with Financial and ESG Framework Executive & Board Compensation Reduced…
2021 Production Guidance & Capital Budget Midpoint of 2021 total Company oil and oil-equivalent production unchanged; 2021 capex unchanged Oil Production Equivalent Production (MBOED) Net Production (MBOPD) 2021 Guidance 3Q21 2Q21…
2021 Cost, Tax Rate, and Equity Method Guidance EG equity income guidance raised by 30% 2021 Guidance United States Cost Data ( per BOE) Production Operating 4.25 4.75 DD&A 19.00 20.00 S&H and Other1 4.75 5.75 International Cost Data (…
U.S. Crude Oil Derivatives as of November 1, 2021 4Q21 1Q22 2Q22 3Q22 4Q22 NYMEX WTI Three-Way Collars Volume (Bbls/day) 40,000 40,000 40,000 20,000 20,000 Ceiling 78.05 91.13 91.13 92.80 92.80 Floor 50.00 50.00 50.00 50.00 50.00…
U.S. Natural Gas Derivatives as of November 1, 2021 4Q21 1Q22 Natural Gas Henry Hub (HH) Two-Way Collars Volume (MMBtu/day) 200,000 - Weighted Avg Price per MMBtu Ceiling 3.05 - Floor 2.50 - Henry Hub (HH) Three-Way Collars…
NGL Derivatives as of November 1, 2021 4Q21 NGL Fixed Price Ethane Swaps1 Volume (Bbls/day) 5,000 Weighted average price per Bbl 10.92 Fixed Price Propane Swaps2 Volume (Bbls/day) 5,000 Weighted average price per Bbl 23.19…
Definitions and Footnotes Slide 6 Slide 11 Slide 23 1) Methodology and definitions based on information from online 2020 1) CFO: Cash Flow from Operations + E.G. Return of Capital and Other 1) 2020 unit cash costs based on 2020…
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