Centennial Resource Development : Q2 2021 Centennial Resource Development Earnings Conference Call Presentation

Core Oil

Delaware Basin Pure-Play

Second Quarter 2021 Earnings Presentation

August 3, 2021

Important Information

Forward-Looking Statements

The information in 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 historical fact included in this presentation, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this presentation, the words "could," "believe," "anticipate," "intend," "estimate," "expect," "project," "goal," "plan," "target" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the development, production, gathering and sale of oil and natural gas. These risks include, but are not limited to, commodity price volatility, the COVID-19 pandemic and governmental responses thereto, inflation, lack of availability of drilling and production equipment and services, environmental and weather risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating oil and gas reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures and the other risks described in our filings with the Securities and Exchange Commission. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this presentation.

Use of Non-GAAP Financial Measures

This presentation includes non-GAAP financial measures, such as Adjusted EBITDAX, free cash flow (deficit), net debt and net debt to last twelve months ("LTM") EBITDAX. Please refer to slide 15 for a reconciliation of Adjusted EBITDAX to net income, the most comparable GAAP measure. We believe Adjusted EBITDAX is useful as it allows us to more effectively evaluate our operating performance and compare the results of our operations from period to period and against our peers without regard to financing methods or capital structure. We exclude the items listed on slide 15 from net income (loss) in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of our operating performance or liquidity. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic cost of depreciable assets, none of which are components of Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Our computations of Adjusted EBITDAX may not be comparable to other similarly titled measures of other companies.

Please refer to slide 16 for a reconciliation of free cash flow (deficit) to net cash provided by operating activities, the most comparable GAAP measure. We believe free cash flow (deficit) is a useful indicator of the Company's ability to internally fund its exploration and development activities and to service or incur additional debt, without regard to the timing of settlement of either operating assets and liabilities or accounts payable related to capital expenditures. The Company believes that this measure, as so adjusted, presents a meaningful indicator of the Company's actual sources and uses of capital associated with its operations conducted during the applicable period. Our computations of free cash flow (deficit) may not be comparable to other similarly titled measures of other companies. Free cash flow (deficit) should not be considered as an alternative to, or more meaningful than, cash provided by operating activities as determined in accordance with GAAP or as indicator of our operating performance or liquidity.

The Company defines net debt as the aggregate principal amount of the Company's long-term debt, minus cash and cash equivalents. The Company presents this metric to help evaluate its capital structure and financial leverage and believes that it is widely used by professional research analysts, including credit analysts, and others in the evaluation of total leverage.

The Company defines net debt to LTM EBITDAX as net debt (defined above) divided by Adjusted EBITDAX (reconciled on slide 15) for the prior twelve-month period. The Company presents this metric to show trends that investors may find useful in understanding the Company's ability to service its debt. This metric is widely used by professional research analysts, including credit analysts, in the valuation and comparison of companies in the oil and gas exploration and production industry.

2

Centennial Resource Development Overview

Core Acreage and Strong Execution Track Record

PLarge, contiguous	⎯	Acreage in core of the Northern & Southern Delaware	Asset Map
⎯	~81,700 net acres
	acreage position in the
	⎯	~97% operated and ~88% held by production
	Delaware Basin core		NM
		⎯	Minimal Federal exposure (~4%)		TX
P		⎯ Maintaining significant improvements to cost structure
	Proven operational	⎯	2021 drilling program driving increased capital efficiency and		Lea
	execution		carrying operational improvements forward
		⎯ Two-rig flat drilling program for 2021	Acreage
P	High-quality asset with	⎯	Proven development from 10 distinct zones across the	NM:
NM
		~23,900
	significant inventory		Northern and Southern Delaware	net acres
	depth	⎯	15+ years of economic inventory1
PFCF profile supports	⎯ Generated record FCF and reduced total debt outstanding in Q2
⎯	Expect net debt / LTM EBITDAX to be below 2.0x by YE'21
organic de-leveraging and	⎯	~$445mm of liquidity as of 6/30/21
	strong liquidity profile
		⎯ No senior note maturities until early 2026		Reeves
P
	⎯ Minimizing emissions through increased gas capture	Acreage
	Continued focus on	⎯	Improvements in sustainability through water recycling
		program, minimizing water trucking and utilization of dual-fuel
	ESG initiatives
		operations		TX:
		⎯	Published inaugural Corporate Sustainability Report	TX	~57,800
		net acres
(1) Assuming a two-rig flat program and $45/Bbl oil pricing
					3

Centennial Resource Development Q2'21 Highlights

1. • Generated record free cash flow of ~$34mm, representing fourth consecutive quarter of positive FCF
   • • Expect FY'21 FCF of ~$140 - 170mm1
   • Continued debt repayment and rapid organic de-leveraging
   • • Repaid $35mm of revolver borrowings2
     • Reduced net debt / LTM EBITDAX to 3.0x from 4.3x at 3/31/21
     • Reduced net debt / LQA EBITDAX to 2.1x from 2.7x at 3/31/21
   • Increased average daily oil production 13% QoQ
   • Delivered solid well results from both Northern and Southern Delaware Basins
   • Continued to drive strong operational efficiencies
   • • Reduced average spud to rig release days by 18% QoQ
   • Initiated solid base of oil hedges for FY'22 at an average price of >$64 / Bo WTI
2. Assuming current strip prices

(2) Assumes 3/31/21 borrowings of $290mm pro forma for the Senior Secured Second Lien note redemption that occurred on 4/14/21	4

Progress Report on Key 2021 Targets

Initial 2021 Targets1

• Generate $55-75mm of FCF
• Operate two-rig drilling program
• Target < 2.5x leverage by YE'21

Updated 2021 Targets2

• Expect to generate ~$140 - 170mm of FCF
  Remain committed to current two-rig
• program despite increase in prices
• Targeting < 2.0x leverage by YE'21

Centennial is outperforming original expectations

for free cash flow and organic de-leveraging

1. Targets discussed during earnings release in February 2021

(2) Assuming current strip prices	5