Economics : Break-Even

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Drilling Inventory Breakeven Analysis 2,657 Total Net Engineered Locations Average Estimated Breakeven Price 35/Bbl 600 48 Net Locations Breakeven Oil Price 500 40 WTI Breakeven Oil Price 10% IRR Net Engineered Drilling Locations 400 32 300 24 200 16 100 8 0 0 Comanche Maverick Catarina South Comanche Comanche Palmetto Comanche Catarina Catarina Area 5 Central Area 3 Area 4 Area 7 Western Western Stacked Note: Assumes Flat 3.50 Gas; NGL Pricing 30% of WTI Does not include Contingent or Prospective locations Engineered Locations includes SEC Proved locations + locations that are geologically un-risked but do not qualify as SEC PUDs due to factors such as assumed drill timing 30 2017 Sanchez Energy Corporation
Sanchez Energy Corp
September 2017

Deep Inventory of High Rate-of-Return Drilling Locations Inventory by Area Inventory by IRR ( 45/Bbl NYMEX) Area IRR Arnold Winfield 7% 75% 19% Brown Trust 7% 50%-75% 35% Gardendale 2% Irvin 11% 30%-50% 34% NE LaSalle 2% <30% 12% North LaSalle 16% Eagle Ford Core Eagle Ford Tier 1 Pena Jasik 6% Delaware Basin RPG 11% IRR Breakeven Mumme 2% Area 45 oil NPV Mumme East 1% Gardendale 75% 27.50 Pena Jasik 75% 30.75 Pierce 3% Brown Trust 75% 35.75 SE Cotulla Tier 1 3% RPG 75% 30.25 Arnold Winfield 50-70% 33.75 SE Cotulla Tier 2 2% Irvin 50-70% 32.75 E Delaware WCA 7% Western Wolfcamp A 50-70% 23.75 Eastern Wolfcamp A 50-70% 27.00 E Delaware WCB 15% N LaSalle 30-50% 31.50 W Delaware WCA 3% NE LaSalle 30-50% 36.00 Eastern Wolfcamp B 30-50% 32.00 Note: Locations reflect de-risked inventory assumptions only. IRRs assume 3/Mcf NYMEX gas price. 6 CRZO
Carrizo Oil & Gas Inc.
September 2017

Alluring Macroeconomic Fundamentals High quality rock drives compelling returns, robust rig activity Major U.S. Oil Plays Breakeven Prices (/BBL)1 Alta Mesa Type Well IRR3 33.36 34.66 34.76 32.14 169.3% 27.71 27.53 27.16 24.40 102.6% 89.7% 137.1% Reeves Wolfcamp A Over-Pressured Oil DJ Basin - Wattenberg Wolfcamp A&B N. Delaware Basin - Alta Mesa - Updip Oil SCOOP Woodford Eagle Ford - Karnes STACK Meramec - Core Midland - S. Delaware Basin - Condensate Wolfcamp XY 82.3% STACK 2 71.2% Core XRL Trough 4 5 NYMEX Strip Broker Consensus 70.00/bbl / 3.50/mcf Gen 2.0 Gen 2.5 KFM Acreage Dedications / Resource Allocations Breakdown6 KFM Gas Inlet Volumes by Producer (MMCF/D) (000 of gross acres) % Alta Mesa(7) 69% 52% 55% 175 541 639 366 393 193 86 118 239 50 22 128 Phase I + II Phase III / Western Phase I + II + III Additional Acreage 2017E 2018E 2019E Expansion Under Negotiation Alta Mesa Other Producers (Phase I & II) Other Producers (Phase III) Source: BakerHughes, Wall Street Research. 1 Based on 15% IRR hurdle. Assumes gas price deck of 2017: 3.10/mcf; 2018: 2.99/mcf; 2019: 2.83/mcf; 2020: 2.82/mcf; thereafter: 2.83/mcf. 2 AMR breakeven price company prepared. Based on AMR 651 MBOE mean type curve. 3 Osage type curves assume 17% royalty burden and 3.2mm D&C well cost. Adjusted for transportation costs paid to KFM. Excludes 1.25 / bbl oil transportation costs. 4 NYMEX strip pricing as of 8/3/2017 close until 2021 and held flat thereafter. 5 Assumes Broker Consensus Price Deck (2017: 51.16/bbl / 3.16/mcf; 2018: 54.90/bbl / 3.14/mcf; 2019: 58.00/bbl / 3.05/mcf and held flat thereafter). 6 Not inclusive of producer customers entire gross acreage position; additional gross acreage proximate to KFM available for gathering and processing services. Includes additional acreage to come and/or under negotiation. 13 7Percentage of Phase I & II shown.
Silver Run Acquisition Corp II
August 2017

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