September 2024 Investor Presentation September 3, 2024
Expanded Permian Basin Scale Enhances Financial Performance Oil Production, MBO/d Permian Basin Summary Midland 53.1 58.5 59.2 Net Acres3 290,500 TX 44.4 49.0 38.5 2Q-24 Total Production 129.4 MBOE/d Howard Co. % Oil 46% 1Q-23…
Building a Decade of Inventory through Targeted Acquisitions and Organic Additions +350 Locations Acquired through six strategic +185 Locations Organically added through technical evaluation, +119 Locations Organically added from…
Horseshoe Wells Lower Breakevens Across Portfolio VTLE Acreage Horseshoe Well Productivity Point Energy Acreage 250 Allison Unit (Midland Basin) Horseshoe Location Producing Horseshoe Location Teller Unit (Delaware Basin) Howard…
Point Energy Acquisition Adds High-Value, Low-Breakeven Delaware Basin Inventory Highly Productive, Low-Breakeven Inventory WCA Primary targets in 3BS, WCA and WCB underpin underwritten value 200 3BS Shale WCB 68 gross (49 net)…
Optimizing Delaware Basin Development Program Continuously Improving Well Cost and Optimizing Lateral Length 20% increase to well productivity vs. prior operators 1,200 1,050 - 1,070 1,030 - 1,050 15% decrease to current well…
2024 Development Program Rig Count Completion Crews 820 - 870 59.0 - 61.0 127.0 - 131.0 4 5 2 2 2 4 4 5% Capital Investments (MM) Oil Production (MBO/d) Total Production (MBOE/d) 30% 25% 50% 1.2 53% 88% 69% 95% 33% Delaware…
Strong Capital Structure Supported by Robust 2024 and 2025 Oil Hedges Pro Forma Debt Maturity Profile, MM Debt refinancing reduced weighted-average coupon on term debt from 9.5% to 8.2% Credit Facility Current Pro Forma Impact1…
Investment Opportunity Driven by Consistent Value Creation 1 Proven track record of integrating acquisitions and improving returns 2 Consistently expanding inventory…
Appendix
2H-24 & FY-24 Guidance Guidance Commodity Prices Used for 3Q-24 3Q-24 4Q-24 FY-24 Jul-24 Aug-24 Sep-24 3Q-24 Avg. Production: Crude Oil: Total Production (MBOE/D) 121.0 - 127.0 134.0 - 140.0 127.0 - 131.0 WTI NYMEX (/BBO) 80.48…
Active Hedge Program Protecting Adjusted Free Cash Flow and Returns 1Hedges executed as of September 3, 2024. 13
Asset Overview1 Delaware Midland Combined Net Acres 87,800 202,700 290,500 Inventory Locations2 350 Gross 535 Gross 885 Gross Avg. Lateral Length 11,250 11,800 11,600 DC&E Well Cost3 10.3 - 10.5 MM 8.4 MM - Wells per…
2023 Sustainability Report Highlights1 Significant Progress Toward Our Environmental Targets Social and Governance Highlights Category 2019 Baseline Target 2022 Performance Target Status Diversity, Equity and Inclusion by below 12.5…
Supplemental Non-GAAP Financial Measures Adjusted Free Cash Flow Adjusted Free Cash Flow is a non-GAAP financial measure that the Company defines as net cash provided by operating activities (GAAP) before net changes in operating…
Supplemental Non-GAAP Financial Measures Consolidated EBITDAX Consolidated EBITDAX is a non-GAAP financial measure defined in the Company's Senior Secured Credit Facility as net income or loss (GAAP) plus adjustments for share-settled…
Supplemental Non-GAAP Financial Measures Consolidated EBITDAX The following table presents a reconciliation of net income (loss) (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented: Three months Trailing twelve months…
Supplemental Non-GAAP Financial Measures Consolidated EBITDAX The following table presents a reconciliation of net cash provided by operating activities (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented: Three…
Supplemental Non-GAAP Financial Measures Net Debt Net Debt is a non-GAAP financial measure defined in the Company's Senior Secured Credit Facility as the face value of long-term debt plus any outstanding letters of credit, less cash…
Supplemental Non-GAAP Financial Measures PV-10 PV-10 is a non-GAAP financial measure that is derived from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10…
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