Energy Corporation Resolute Energy is a regionally diversified growth oriented E&P company Investor presentation focused on long-lived (NYSE: REN) domestic oil producing assets May 2014
Resolute overview Company history Market capitalization1 607.8 million SEC PV102 1.05 billion 2004 Resolute formed Long term debt3 720.0 million Aneth Field: Assets acquired from Shares outstanding1 77.9 million 2005…
Our operating areas Proved reserves are 88% liquids Areas of operation Proved reserves by area1 Wyoming properties Aneth Field 2014 capital expenditures by area2 properties Permian properties 1. Per 2013 SEC…
Reserves and production overview Year-end 2013 SEC case: Proved reserves: 59.4 MMBoe PV10 1.05 billion R/P ratio of 13 years 1 1 2013 SEC reserve report 1. Includes sale of properties to NNOGC in both Q3 2012 and Q1 2013…
Company overview In the Permian Basin Resolute completed meaningful acquisitions at year- end 2012 and in March 2013 We assumed operating responsibilities on most of the acquired properties in the second quarter of 2013, began…
Financial transaction potential As discussed in earnings call on May 13, 2014 Evaluating a wide range of financing alternatives which would enable Resolute to: Reduce outstanding debt Gain access to the capital required to allow…
Horizontal drilling success Resolute-operated wells Demonstrated horizontal drilling success in three basins Significant additional horizontal drilling inventory 24 hour IP 30 day IP Lateral Frac Percent Producing Boe per Boe…
Resolute potential Net upside from identified projects Total net reserves Proved Net resource and resource Area reserves potential potential (MMBoe) 1 (MMBoe) (MMBoe) Aneth Field 35 39 74 Permian Basin 20 80 220 100 240 Powder…
Permian Basin
Permian Basin introduction In Q2 2011 Resolute acquired acreage and began drilling in Reeves County in the Delaware Basin (Reeves County) Resolute subsequently acquired a small producing asset in the Midland Basin (OTB) Resolute…
Permian Basin Year-end 2013 SEC case: Proved reserves: 19.8 MMBoe PV10 297 million Meaningful drilling opportunities 200 gross (95 net) potential horizontal locations, each with multiple potential pay zones 54% operated 2013…
Permian Basin Transformational asset base 43,000 gross (26,000 net) acres 1 Permian Basin map 66% oil (based on Q1 production) Denton Lynn Garza Kent Yoakum Terry Q1 net production 4,589 Boe per Northwest day Shelf Lea…
Gardendale stratigraphic column Horizontal zones Current horizontal target is the Wolfcamp B Lower Clearfork Positive offset results Positive reservoir characteristics 1st Spraberry Secondary targets/potential: Basal Spraberry,…
Gardendale overview Successful horizontal program Gardendale Midland Midkiff 1818H 4,700 gross (4,600 net) acres 1 Refining petrophysical models and integrating seismic to refine development scenario Pearl Jam 2417H Wolfcamp B…
Gardendale well activity Nearby industry results Gardendale Nearby Wolfcamp B activity1 24 hr IP rate 30 day IP rate (Boe per day) (Boe per day) Midkiff 1818H 1 Parks Bell 3304H (B. Spraberry) 539 N/A 2 Diamondback ST NW 2501H…
Gardendale horizontal wells Type curve and economics, 4,500 lateral1 Gardendale horizontal wells Gross capital 7.0 8.0 million per well 30 day IP 450 700 Boe per day EUR (gross) 350 500 MBoe Btu per Mcf 1,300 Rate of return 2…
Reeves County overview Horizontal development program Reeves County 26,900 gross (13,500 net) acres 1 Average WI 40% Resolute will operate 80% of net Appaloosa resource Transitioned from vertical program to horizontal in 2013…
Reeves stratigraphic column Horizontal and vertical potential 3rd Bone Spring 1,450 Wolfcamp reservoir interval Upper Wolfcamp Potential for multiple Wolfcamp target horizons LH Meeker C21 1501H completed in Wolfcamp A Wolfcamp…
Reeves County horizontal activity Resolute and industry horizontal wells Delaware Basin Horizontal well Resolute acreage Resolute James 2 1401H Resolute Harrison State C20 1401H 6 2 7 Resolute Wolfcamp A Renegade…
Nearby horizontal activity Offset results1 Well name Zone Reported production rates Lateral length EOG 1 Wolfcamp A One day IP: 2,056 Boe per day 4,500 Phillips State 56 301H Cimarex 2 Wolfcamp B IP 30: 1,816 Boe per day…
Delaware Basin horizontal wells Type curve and economics1 Delaware Basin horizontal wells Gross capital 8.0 9.0 million per well 30 day IP 750 1,250 Boe per day EUR (gross) 500 750 MBoe Btu per Mcf 1,300 Rate of return 2 20%…
OTB and Big Spring Area overview OTB and Big Spring 1 mile 4,300 gross (2,200 net) acres1 Howard Howard More than 90% HBP OTB OTB Vertical Wolfberry asset Martin Martin 44 gross (27.1 net) producing wells1 Big Spring…
OTB and Big Spring vertical Wolfberry Midland Basin Wolfberry development Targeting Mississippian at 10,500 feet through Wolfcamp at 8,500 feet Spraberry Typically a seven stage completion (not including Spraberry) Drill and…
Denton Field overview Acquired producing asset in 2013 Denton Field Siluro-Devonian carbonate field discovered in 1949 Highly faulted and fractured anticline Cumulative production through December 2013 120 MMBoe Some individual…
Permian Basin potential Significant growth from horizontal activity Total Net Area proved resource Net inventory (Average WI%) reserves potential (MMBoe)1 (MMBoe) Gardendale (93% WI) Vertical 10.1 40 locations Horizontal 2.9 28…
Wyoming
Powder River Basin Year-end 2013 SEC case: Proved reserves: 4.5 MMBoe PV10 65 million 1,795 Boe per day Q1 net production Organic growth potential from horizontal Turner drilling First Turner horizontal well is producing above…
Hilight Field Excellent cash flow and exploration upside Hilight Field 49,600 gross (45,400 net) acres1 RESOLUTE 100% HBP JASON UNIT 100% operated RESOLUTE GRADY UNIT Current production from the Muddy formation at 9,000 feet…
Nearby Turner well activity First horizontal well producing Turner prospect area Castle 3-21TH had a 24 hour peak production of 1,134 Boe per day1 Castle 3-21TH 60 day average of 763 Boe per day 1 90 day average of 723 Boe per…
Turner horizontal Type curve and economics Turner horizontal well Gross capital 6.5 7.5 million per well 30 day IP 580 885 Boe per day EUR (gross) 350 500 MBoe Rate of return1 55% 160% Locations2 48 gross (39 net) Gross resource…
Aneth Field
Aneth Field introduction Foundation asset Aneth Field Aneth Unit 1.5 billion barrels OOIP Phase 2 Pilot 43,200 gross acres Phase 1 40S 25E 725 wells1 Phase 3 Phase 4 391 producers 334 injectors McElmo Creek Produced 434…
Aneth Field overview Year-end 2013 SEC case: Proved reserves: 35 MMBoe PV10 689 million R/P ratio of 16 years Gross production since acquisition Oil production (Bbl/day)2 Percent Unit Acquisition Dec 2013 change Aneth 2,939…
Aneth Field cash flow Free cash flow from Aneth funds growth Aneth Field cash flow 1 Expected 2014 net production (Boe per day) 6,100 2013 net operating margin (/Boe) 51.16 Operating cash flow ( million) 114 Forecast CO2…
Aneth Field potential Net upside from identified projects Proved Net resource Project type/area reserves potential (MMBoe)1 (MMBoe) Aneth Unit 23 18 McElmo Creek Unit 7 10 Ratherford Unit 4 11 Total 35 39 1. 2013 SEC…
Financial overview
Financial data Leverage1: Debt to EBITDA 3.9x Debt to total capital 54.2% Substantial liquidity: Four year bank revolver 425 million reserve-based credit line 320 million drawn2 Downside commodity price protection Current oil…
Resolute potential Net upside from identified projects Total net reserves Net resource Proved reserves and resource Area potential (MMBoe) 1 potential (MMBoe) (MMBoe) Aneth Field 35 39 74 Permian Basin 20 80 220 100 240…
Key investment highlights Well-positioned to execute growth plan High quality base of long-lived oil producing properties Portfolio of significant organic development opportunities Exploration projects poised to provide…
Resolute investor contacts
Resolute investor contacts HB Juengling Vice President Investor Relations (hbjuenglingresoluteenergy.com) Theodore Gazulis Executive Vice President and Chief Financial Officer (tgazulisresoluteenergy.com) Corporate headquarters:…
Appendix
2014 production and cost guidance 2014 guidance Range Projected total production (MBoe) 4,525 4,890 Boe per day 12,400 13,400 Projected costs: LOE ( million) 98 113 G&A ( million) 25 30 Production taxes (% of prod. revenue) 12.0%…
Margins/cost structure 2012 2013 Pro forma 1 2014 ( in millions, except as noted) Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD YTD 2013 Q1 Sales volumes Total MBoe 762 858 862 927 3,409 1,047 1,193 1,058 1,169 4,467 4,640 1,134 2 2 2 2 Revenue…
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