Maximizing Returns 2023 Results and 2024 Outlook February 2024
Key Takeaways Expanded scale with high-quality assets; approximately 7 billion 1 in accretive acquisitions transformed Civitas Legacy DJ Basin asset continues to outperform; Permian Basin 2 integration on track Shareholder…
Substantial Transformation in 2023 Gross Development Locations Production DJ Basin Permian Basin Oil (MBbl/d) Gas + NGL (MBoe/d) 1,900 335 90% 97% 1,000 170 YE 2022 Now FY 2022A FY 2024E Annual EBITDAX(1) (B) Total G&A / Boe…
2023 Accomplishments Sales volumes of 212 MBoe/d 2.4 B Adjusted Returned 1 B to shareholders; EBITDAX(1) 16% of Market capitalization Top end of guidance 660 MM Dividends & 7 B in accretive 320 MM Share repurchases Credit Rating…
Strategy Delivering Value Pillar Key Ingredients 2024 Outlook Capital efficient asset base 1.3 B FCF(1) at 75/Bbl and 2.75/Mcf Generate Free 1 Cash Flow Low operating costs Minimizing reinvestment rates 5 change in WTI is 275 MM…
2024 Plan Highlights Maintaining Production Outlook on 150 MM Less Capex (7% Reduction) 2024 Drill & Complete Counts 325 345 MBoe/d FY 2024E (48% oil) DJ Basin 90 110 1.8 2.1 B capital program Permian Basin 130 150 95% D&C, 5%…
Permian Basin Overview Asset Highlights Premier rock in Lower 48 with multiple 4Q23 Production: 106 MBoe/d, 49% oil(1) 1,120 Gross Development proven targets Locations 1 2024 Activity: 130 150 gross wells (88% WI) 2024 Avg. Lateral…
Permian Basin Integration on Track Leadership Team in Place with Deep Permian Midland Spud to Rig Release (2-mile Wolfcamp A/B Wells) Basin Experience 14 days Hibernia (Midland) 20% Full operational handover occurred in late 2023 11…
Strong Permian Performance Exiting 2023 Permian Basin Production New Wells Performing In-line with 170 MBoe/d Acquisition Assumptions December 2023 Permian Avg. 120 MBoe/d (50% oil) 4Q23 production impacted due to 110 MBoe/d…
DJ Basin Overview WY NE 454k net acres One of the lowest UT breakeven oil basins in the U.S. KS KS AZ NM Track record of continuous improvement Asset Highlights 4Q23 Production: 173 MBoe/d, 46% oil 2024 development…
DJ Basin Watkins Area Outperformance Comprehensive Area Plans (CAPs) Securing Future Watkins Development Area Box Elder CAP approved (ongoing development), Lowry CAP Box Elder CAP hearing mid-2024 (2025+ development), Arapa CAP recently…
Track Record of Reducing Emissions in the DJ 40% Reduction 50% Reduction 38% reduction from pneumatic retrofits 420,000 mT-CO2e eliminated in 2023 campaign 80,000 mT-CO2e planned eliminations in 2024 campaign 12% reduction from…
Leading FCF & Shareholder Returns Asset Quality and Low Reinvestment Rate Illustrative FCF Allocation at 75 WTI and 2.75 HH Driving Best-in-Class Free Cash Flow 10% 2024 reinvestment rate estimated at 52%(1) Dividend Yield Free cash…
Track Record of Robust Dividend Payout Shareholder Return Highlights Dividend Yield(1)(2) 9.2% Base Variable 8.6% 660 MM in base and variable dividends paid to 7.0% shareholders in 2023 (7.60 per share) 5.6% 6.0% 5.4% 4.4%…
2024 Guidance at 75 WTI and 2.75 HH 2023 Previous 2024 New 2024 Comment Actuals Outlook Guidance Total Production 212 325 345 325 345 Modest increase throughout year (MBoe/d) Oil Production 101 155 165 155 165 1Q pipeline linefill…
Pro Forma Capital Structure Illustrative Cap Table: As of 12/31/2023 Maintaining Long-Term Balance Sheet Strength (MM) Pro Forma Acquisitions(1) Revolving Credit Facility as of 1/31/2024 600 0.75x long-term net leverage(2) target at…
Appendix
1Q24 Dividend Calculation Quarterly Variable Dividend Framework 50% of Free Cash Flow (before changes in 1Q' 24 Total Dividend Calculation (MM) (1) working capital and after base dividend) ( 2) Av erage Quarterly Free Cash Flow Ov…
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