FEBRUARY 23, 2022 1) Footer(s) Fourth Quarter & Full Year 2021 Earnings Presentation 1
Centennial Resource Development Overview FREE CASH FLOW GENERATION WITH NM: 24,700 TX: 48,900 DISCIPLINED GROWTH net acres net acres Maintaining current two-rig program Expect to generate FCF of 400mm at current strip, while Ward…
Recent Company Highlights & Initiatives Q4 2021 FINANCIAL & OPERATIONAL HIGHLIGHTS Generated record free cash flow of 85mm during Q421 Closed non-core asset divestiture in Reeves County for 101mm Repaid 180mm in borrowings under the…
Centennial Capital Allocation Framework Prioritize Balance Sheet Evaluate Value Creation Rooted in Execute By Achieving & Opportunities to Disciplined Investment in On Shareholder…
Share Repurchase Program Overview INAUGURAL SHAREHOLDER RETURN PROGRAM Board authorized 2-year, 350mm share repurchase program (authorization through April 1, 2024) Represents 15% of current market capitalization Begin execution…
2022 Targets and Two-Year Outlook Free Cash Flow (mm) Net Debt / LTM EBITDAX Oil Production (MBo/d) 36.5 400 1.4x…
Executing on FY 2021 Financial Targets SUSTAINABLE FREE CASH FY 2021 Free Cash Flow (mm) 200 - 220 207 FLOW GENERATION Generated 207mm of free 140 - 170 cash flow in FY 2021 compared to initial estimate of 55 - 75mm 55 - 75…
Continued Balance Sheet Improvement LEVERAGE REDUCTION ABSOLUTE DEBT REDUCTION Realized a 2.7x reduction in leverage over the course Reduced total debt by 262mm over the course of FY21 of FY21, driven by a 118% increase in EBITDAX and…
Q4 2021 Well Highlights Brought Online 3 of the Companys Top 10 Wells of All-Time Q4 2021 Highlight Wells CDEV NM Acreage Position 225 Avg. FY'20 - '21 1.5 Section Lateral Juliet Fed Com 513H Juliet Fed Com 514H Sheba Fed Com…
Continued Operational Efficiencies OPERATIONAL EFFICIENCIES Continue to perform at a high level, building upon efficiencies seen to date and continuing to find ways to increase capital efficiency and drill times Increasing average…
Key Environmental Initiatives 2021 PERFORMANCE REVIEW Reduced natural gas volumes flared by 75% Increased recycled water volumes by 15% Limited both oil and produced water spills to 0.006% of total produced Transported 99% of…
Capital Structure & Liquidity Overview Actual CAPITAL STRUCTURE OVERVIEW Capitalization (mm, unless otherwise noted) 12/31/21 Repaid 180mm of credit facility borrowings during Q421 Cash and cash equivalents 9.4 25mm drawn on RCF as…
Maturity Profile & Credit Facility Extension CREDIT FACILITY Debt Maturity Overview (mm) AMEND & EXTEND Credit Facility Borrowings New Borrowing 1,150 Announced successful 5.375% Sr. Unsecured Notes Base refinancing of existing…
2022 Development Plan Overview FY 2022 DEVELOPMENT PLAN Maintain current 2-rig plan balancing disciplined production growth with significant free cash flow Continued focus on Lea County (NM) development, representing 80% of expected…
2022 Financial & Operational Guidance OPERATIONAL OVERVIEW FY 2022 Guidance Continue operating a two-rig Production program across both Northern & Net Average Daily Production (Boe/d) 61,500 - 67,500 Southern Delaware acreage…
Hedge Position Overview HEDGING PHILOSOPHY Crude Oil Hedge Position Overview WTI Swaps Designed to provide 14,500 14,500 WTI Collars balance between 2,500 2,500 12,232 downside protection and 10,500 upside commodity price 9,500…
Centennial Strategic Overview Asset Quality, Inventory & Balance Sheet to Drive Returns Robust Commitment to Free Cash Flow Balance Sheet Shareholder Capital Discipline Generation Prioritization Return Program Continue to…
Reconciliation of Adjusted EBITDAX1 to Net Income (Loss) Adjusted EBITDAX1 Reconciliation ( thousands) FY 2021 ( in thousands, unless specified) FY 2020 Q1 Q2 Q3 Q4 FY 2021 Net income (loss) attributable to Class A Common Stock…
Reconciliation of Free Cash Flow to Operating Cash Flow Free Cash Flow (Deficit) Reconciliation ( thousands)1 Three Months Ended December 31, Year Ended December 31, ( in thousands) 2021 2020 2021 2020 Net cash provided by operating…
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