Slide 1: Transformational Combination of Centennial & Colgate
Exhibit 99.2 MAY 19, 2022 1) Footer(s) Transformational Combination of Centennial & Colgate
Slide 2: Important Information: Forward-Looking Statements
Important Information Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historica
Slide 3: Establishing a Premier Permian Pure-Play
Establishing a Premier Permian Pure-Play Combined business uniquely ~180,000 Net Acres in positioned to drive value creation the Delaware Basin Core Northern Delaware ü Highly-aligned management team, with a (NM) track record of execution and strong returns Estimated Current Eddy Lea Production of ~
Slide 4: Transaction Overview
Transaction Overview TRANSACTION STRUCTURE Transaction Highly Accretive 1 § CDEV to combine with Colgate in a ~$7.0bn merger of equals transaction, valuing Colgate at ~$3.9bn Across all Key Metrics ‒ 269.3mm CDEV shares issued to the current Colgate equity holders 2 ‒ CDEV to assume Colgate outstand
Slide 5: Colgate Energy Overview
Colgate Energy Overview Track Record of Consistent, Returns-Driven Execution & Value Creation Colgate Acreage Map COMPANY OVERVIEW § Midland-based private E&P co-founded by Will Hickey and James Walter in 2015 Northern Delaware (NM) ‒ Lead multi-disciplinary team of over 70 office employees and ~95
Slide 6: Creating a Differentiated E&P Platform Focused on Delivering Enhanced Equity Returns
Creating a Differentiated E&P Platform Focused on Delivering Enhanced Equity Returns COMBINING BEST PRACTICES OF TWO HIGH-PERFORMING TEAMS § Ability to combine leading edge operational practices § Continue momentum of commercial success BUILDING A PLATFORM WITH STRATEGIC DIFFERENTIATION § Scaled cas
Slide 7: Management Ownership Maximizes Alignment
Management Ownership Maximizes Alignment 1 % of Pro Forma Equity Owned by Management Team ~12% Pro Forma Company Management Ownership of ~12% Meaningfully Higher Than Peer Group Average of ~1% Peer Average:~1% S 1) ourcFeoot : Ce arp (s it)alIQ and public filings (1) Comparable companies excludes co
Slide 8: Combining Leading Returns-Driven Teams
Combining Leading Returns-Driven Teams Colgate Total Annualized Returns CDEV Total Annualized Shareholder Returns 1 2 (Since 2016 ) (Since April 2020 ) 55% 396% 13% 74% 10% 26% 1 2 3 1 2 3 S&P 500 E&P Index E&P Index S&P 500 Differentiated returns relative to both the E&P Significant outperformance
Slide 9: Strong Balance Sheet with Financial Flexibility
Strong Balance Sheet with Financial Flexibility OVERVIEW Pro Forma Leverage Profile 1.1x § Pro forma company to maintain a strong balance ~1.0x <1.0x sheet with significant financial flexibility ‒ Anticipate ~1.0x Net Debt / LTM EBITDAX at closing & maintaining longer-term leverage of <1.0x CDEV Pro
Slide 10: Applying Combined Best Practices to Drive Synergies
Applying Combined Best Practices to Drive Synergies Operational Efficiencies Corporate Efficiencies Margin Enhancement Average Spud-to-Spud (# Days) Q1’22 Cash G&A / Boe Q1’22 Unhedged EBITDAX Margin ($/Boe) $2.13 ~20 ~$50 ~$47 ~14 $0.99 ü Application of Centennial’s enhanced drilling and completion
Slide 11: Shared Commitment to ESG Program
Shared Commitment to ESG Program PRIORITIZING ESG SAFE WORKPLACE ESG excellence is a core focus of the pro forma business, Maintaining the safety and well-being of employees, with both companies having Board committees devoted to contractors and communities is of key importance to the ESG initiative
Slide 12: Preliminary Pro Forma Outlook
Preliminary Pro Forma Outlook KEY CORPORATE OBJECTIVES § Maximizing corporate-level returns§ Generating FCF and returning it to shareholders § Returns and payback driven capital allocation strategy§ Focus on maintaining low leverage throughout cycles § Relentless approach to achieving cost leadershi
Slide 13: Differentiated Return of Capital Profile
Differentiated Return of Capital Profile 2022E All-In Return of Capital Yield – Permian Peers Base Dividend Variable Dividend ~1% Share Repurchase <1% ~3% Share ~7% ~8% Repurchase ~4% ~5% Base Dividend ~2% ~2% <1% <1% ~1% 0% ~1% 0% Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 + SMid-Cap Peers La
Slide 14: Premier Permian Pure-Play Delivering on Key Investor Criteria
Premier Permian Pure-Play Delivering on Key Investor Criteria Eddy ü Premier asset quality and inventory depth Northern Delaware (NM) ~55,000 Net Lea ü Significant operational & financial scale Acres ü Disciplined, differentiated growth Southern Delaware Winkler Loving ü Sustainable free cash flow g
Slide 15: Appendix
Appendix 1) Footer(s)
Slide 16: Management Team Positioned for Success
Management Team Positioned for Success Executive Team Board of Directors Will Hickey James Walter Sean Smith Co-Chief Executive Officer Co-Chief Executive Officer Executive Chair • Current President, Co-CEO and Co- • Current President, Co-CEO and Co- • Centennial Chief Executive Officer and director
Slide 17: Centennial Hedge Position Overview
1 Centennial Hedge Position Overview FY 2022 FY 2023 FY 2024 Q3 Q4 Bal. 2022 Q1 Q2 Q3 Q4 2023 Q1 2024 WTI Fixed Price Swaps Total Volume (Bbl) 782,000 690,000 1,472,000 225,000 227,500 92,000 92,000 636,500 -- -- Daily Volume (Bbl/d) 8,500 7,500 8,000 2,500 2,500 1,000 1,000 1,744 -- -- Weighted Ave
Slide 18: Colgate Hedge Position Overview
1 Colgate Hedge Position Overview FY 2022 FY 2023 FY 2024 Q3 Q4 Bal. 2022 Q1 Q2 Q3 Q4 2023 Q1 Q2 Q3 Q4 2024 WTI Fixed Price Swaps Total Volume (Bbl) 1,840,000 1,840,000 3,680,000 1,350,000 1,365,000 1,380,000 1,380,000 5,475,000 637,000 637,000 644,000 644,000 2,562,000 Daily Volume (Bbl/d) 20,000 2
Slide 19: Q1 2022 Unhedged EBITDAX Margin Reconciliation
1 Q1 2022 Unhedged EBITDAX Margin Reconciliation CDEV Unhedged EBITDAX Margin Reconciliation Colgate Unhedged EBITDAX Margin Reconciliation FY 2022 FY 2022 ($ in thousands, unless specified) Q1 ($ in thousands, unless specified) Q1 Net income (loss) ($131,858) Net income $15,802 Interest expense 17,