Civitas Disrupting Energy for Good Company history Formed in November 2021 as a combination of multiple DJ DJ BASIN Basin E&P companies 371,000 net acres Enhanced the scale, quality, and diversity of the portfolio with…
Key Takeaways From 2Q 1 2 Continued strong D&C efficiencies driving well cost performance; Raising full-year reductions across portfolio, led by sales volume outlook by 1.5% and reducing capital expectations by 10% Midland Basin…
Strategy Delivering Value Pillar 2Q Highlights 2024 Outlook 918 MM Adjusted EBITDAX(1) 1.3 B FCF(1) at 75/Bbl and 2.75/Mcf Generate Free 343 MBoe/d; 155 MBbl/d oil Capital expenditures reduced 50 MM (2.5%) Cash Flow 8.97 Cash…
Improved 2024 Capital Plan Full-year capital expectations 1.85 - 1.95 Bn; Well cost reductions achieved down 50 MM (2.5%) from well cost efficiencies Permian - accelerated D&C efficiencies, scale purchasing, and 10% 3% design changes…
2024 Sales Volume Outlook Raised 1.5% Updated guidance represents 3% increase, 2024E total sales volume 335 345 MBoe/d adjusted for 1H24 non-core DJ asset sales 343 MBoe/d 336 MBoe/d Strong 2Q24 production (2% higher than expectation)…
Efficiency-Driven Cycle Time Improvements Drilling cycle times (days) Completions cycle times (days) 20 8 (13)% (22)% (26)% 15 6 (14%) (7%) 10 4 (6%) 5 2 0 0 Midland Delaware (1) DJ Midland Delaware (1) DJ 2Q23…
Permian Basin Quarterly Overview 2Q Highlights 2Q Operational Results Capex: 303 MM (32 spuds, 30 fracs, net) Continued efficiency improvements 1 have driven well cost decreases of 10% Production: 186 MBoe/d, 47% oil 2 in the…
Accelerating Permian Well Cost Reductions Midland Basin average 2-mile well cost (DC&E, per foot) Drilling and completions savings 850 driven by: Utilization of higher-spec drilling rigs 10% Optimized drilling bottom-hole assembly…
Reduced Costs Uplifting Permian Returns YE 2023 well costs Current well costs Target well costs Midland 2-mile lateral / lateral ft. 850 765 725 Improved Permian cost structure enhances well-level returns and Midland program avg.…
DJ Basin Quarterly Overview WY 2Q Highlights 371k net acres NE UT TILd 13 four-mile laterals in Watkins late June, increasing accessible KS KS acreage for resource recovery by 25% AZ NM Multi-party agreement achieved, 2Q…
Watkins Longer Laterals, Better Returns Successfully executed first 4-mile wells in CO with Four-mile wells online in Watkins improved efficiencies 13 four-mile laterals turned in line June 2024 5% decrease in DC&E per foot vs. 3-mile…
Enhanced Capital Return Framework Historical return of capital (MM) Nearly 1.5 billion returned to shareholders since beginning of 2023 473 Share repurchases Variable dividend Base dividend Represents 20% of current market cap in 1.5…
Compelling Upside to Civitas Valuation Peer EV / 2025E EBITDA multiples(1) 6.5x Positioned with operating scale in 2 of the lowest-cost breakeven basins in U.S. 5.3x 4.5x 4.4x 4.1x 4.1x 4.0x 3.9x 3.8x 3.7x Leading track record of…
2024 Updated Guidance Original Outlook Updated Plan Change Commentary Total Production Strong YTD performance; 325 345 335 345 UP 5 (MBoe/d) 2H expected higher than 1H Oil Production 4Q oil anticipated highest 155 165 157 163 FLAT…
Demonstrating ESG Leadership Environmental Social Governance Reducing our environmental footprint We believe a diverse, inclusive, and is not only the right thing to do, but Our commitment to strong agile workforce is a value also a…
Appendix
3Q24 Dividend 3Q24 Total Dividend Calculation (MM) Average Quarterly Free Cash Flow Over Prior 12 Months(1) 200 (2) Plus: Permian Acquisition Free Cash Flow Contribution 49 Less: Quarterly Base Dividend (49) Average Quarterly…
Capital Structure Illustrative Cap Table: Total liquidity of 1.4 B as of June 30, 2024 with Revolving Credit (MM) As of 06/30/2024 Facility commitments increasing to 2,200 MM from 1,850 MM Revolving Credit Facility due 2028 850 Total…
Oil Hedge Position Summary Contract Period 3Q24 4Q24 1Q25 2Q25 3Q25 Crude Oil Derivatives (volumes in Bbl/day and prices in /Bbl) Swaps NYMEX WTI Volumes 24,036 25,997 19,000 19,000 22,000 Weighted-Average Contract Price 71.15…
Natural Gas Hedge Position Summary Contract Period 3Q24 4Q24 FY2025 Natural Gas Derivatives (volumes in MMBtu/day and prices in /MMBtu) Swaps NYMEX HH Volumes 161,578 131,701 -- Weighted-Average Contract Price 2.68 2.71 -- Two-Way…
Adjusted EBITDAX Reconciliation Adjusted EBITDAX is a non-GAAP measure that represents earnings before interest, income taxes, depreciation, depletion, and amortization, exploration expense, and other non-cash and non-recurring charges.…
Adjusted Free Cash Flow Reconciliation Adjusted Free Cash Flow is a supplemental non-GAAP financial measure that is calculated as net cash provided by operating activities before changes in operating assets and liabilities and less…
Cash General and Administrative Reconciliation Cash general and administrative is a non-GAAP measure that excludes stock-based compensation, that we believe affects the comparability of operating results as it is non-cash. Cash general…
Net Debt Reconciliation Net Debt is a supplemental non-GAAP financial measure that is used by management and external users of the Companys consolidated financial statements, such as industry analysts, investors, lenders and rating…
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