Lonestar Resources, Ltd. Presentation to Investors February, 2015
Company Profile Lonestar is a rapidly growing E&P company Share Price History focused on the Eagle Ford Shale 0.60 14.0 Drilling and acquisition capital concentrated in 0.50 12.0 the crude oil window of the Eagle Ford Shale…
Lonestars Footprint 1 BAKKEN THREE FORKS 35,000 net acres Resource Assessment 3D Seismic Complete 80 Conventional Prospects identified Intense Fracturing in Unconventional Targets CONVENTIONAL OIL & GAS Mature Producing…
Lonestars Track Record of Rapid Growth Net Acreage Eagle Ford Shale Trend Reserves (MMBOE)1 35,000 50 30,000 40 25,000 30 20,000 Engineered 15,000 20 10,000 10 5,000 0 0 Dec11 Dec12 Dec13 Dec14 Dec11 Dec12 Dec13 Dec14…
Management Team Background and Track Record
High Caliber Management Team Executive Previous Experience Biography Over 28 years experience in oil and gas finance Frank D. Bracken, III Previously Managing Director at Jefferies LLC, where he led 5 billion in oil and gas Chief…
High Caliber Management Team (Contd) Executive Previous Experience Biography Scott E. Sabatka Over 34 years US / international exploration and development experience, including in the Texas Gulf Coast, Permian, Williston, Powder…
Eagle Ford Shale Growth and Development Plan
WellPositioned In Low Price Environment Focused On Eagle Ford Shale Crude Oil Window +30,000 Net Acres in the Crude Oil Window That Allow For Sustained Drilling Activity 100% Operated, Allowing for Control of Timing and Quality of…
Lonestar Focused on Low Cost Basins 140 120 Breakeven WTI (/Boe; 22.5:1 Oil / Gas Ratio) 100 80 60 40 20 0 Source: ITG Investment Research 11
Track Record of Growth Across All Metrics Quarterly Production Total Company Quarterly Production Total Company 6,000 6,000 5,500 5,500 5,000 5,000 4,500 4,500 Production (BOEPD) Production (BOEPD) 4,000 4,000 3,500 3,500…
2014 Cost Analysis Eagle Ford Shale Field Operating Expenses Per BOE Total Cash Costs Per BOE 18 6,000 45 6,000 16 Production Production 40 5,000 14 5,000 35 Production (BOEPD) Production (BOEPD) 12 4,000 30 4,000…
Crude Oil Hedge Position Fair Value of Crude Oil Hedges Counterparties (% of Fair Value) 60 ABN Amro 52 Held: 47% Credit Rating2: A/A2 50 47 Fair Value of Crude Oil Hedges (MM) 16 40 17 30 47% 53% 20 36 30 10…
Lonestars Leverage is Among Lowest of its Peers 12.0x 10.0x 8.0x Debt/NTM EBITDAX 6.0x Average 4.0x 2.0x 0.0x Peer 11 Peer 4 Peer 3 Peer 7 Peer 10 Peer 6 Peer 12 Peer 5 LNREF Peer 9 Peer 2 Peer 8 Peer 1…
Lonestars Hedges Are Among Highest of its Peers 90% Highly Hedged in 2016 80% 70% % of Oil Hedged 2015 60% Highly Hedged in 2015 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% % Of Oil Hedged 2016 Note:…
2015 Guidance Average Daily Production Results & Guidance 2015 Eagle Ford Drilling Budget 74 to 83 million 15 gross / 13.5 net wells 6,500 6,000 Negligible spending on Conventional Assets, similar to 2014 5,500 Goal to…
Eagle Ford Shale Asset Overview
Portfolio Focused on the Eagle Ford Total Eagle Ford Engineered Acreage Net Acres 31,358 NonEngineered Acreage Gross Engineered Locations 143 Additional Locations 43 Avg. W.I. 92% Eastern Net Acres 1 10,730 Gross Engineered…
Western Region Summary Overview Lonestars Properties & Offset Wells Gross Leasehold 10,038 Engineered Acreage Net Leasehold 9,136 % HBP 91% NonEngineered Acreage Top EPS 6,000' to 8,000' Lateral Lengths 4,000' to 8,000' Assumed…
Western Region Burns Ranch Area Overview Gross Leasehold 3,697 Net Leasehold 2,905 % HBP 70% Top EPS 7,300' to 8,000' Assumed Spacing 500' WI% 79% NRI % 59% Engineered Locations Category Length PDP 0 5,000' 1 PUD 6 6,000' 2 PROB 18…
Western Region Beall Ranch Overview Gross Leasehold 2,390 Net Leasehold 2,335 % HBP 100% Top EPS 7,000' to 7,300' Assumed Spacing 500' WI% 98% NRI % 73% Engineered Locations Category Length PDP 18 5,000' 11 PUD 17 6,000' 5 PROB 0…
Central Region Summary Overview Lonestars Properties & Offset Wells Gross Leasehold 11,978 Engineered Acreage Net Leasehold 11,492 % HBP 54% NonEngineered Acreage Top EPS 6,000' to 9,500' Southern Gonzales Lateral Lengths 5,000' to…
Central Region Southern Gonzales Overview Gross Leasehold 970 Net Leasehold 485 % HBP 100% Top EPS 8,700' to 9,500' Assumed Spacing 500'750' WI% 50% NRI % 38% Engineered Locations Category Length PDP 3 5,000' 0 PUD 3 6,000' 3 PROB…
Central Region Pirate Area Overview Gross Leasehold 7,528 Net Leasehold 7,528 % HBP 59% Top EPS 6,000' to 8,500' Assumed Spacing 750 WI% 100% NRI % 78% Engineered Locations Category Length PDP 8 5,000' 5 PUD 15 6,000' 19 PROB 21…
Eastern Region Summary Overview Lonestars Properties & Offset Wells Gross Leasehold 12,078 1 Engineered Acreage Net Leasehold 10,730 NonEngineered Acreage % HBP 33% Top EPS 6,500' to 12,000' Lateral Lengths 4,000' to 8,000' Aguila…
Eastern Region Central Brazos Area Overview Gross Leasehold 2,328 Net Leasehold 1,948 % HBP 35% Top EPS 9,800' to 10,500' Assumed Spacing 750 WI% 68% NRI % 51% Engineered Locations Category Length PDP 0 5,000' 0 PUD 0 6,000' 0 PROB…
Conventional Assets Stability & Free Cash Flow
Conventional Assets 3.5 MMBOE Proved Reserves 1 79% Crude Oil 11% of Lonestars Total Proved Reserves 727 BOEPD 4Q14Production North Texas 57% Crude Oil & NGLs 12% of Lonestars Total Production LongLived Reserves with Low Capital…
West Poplar Project Williston Basin West Poplar Resource Assessment Greater Williston Basin Lonestar (65% WI) assembled 57,500+ gross acres in a contrarian move, across the Brockton Froid fault Horizontal Objectives Bakken, Three…
Appendix
Glossary 1P reserves means proved reserves. 2P reserves means proved plus probable reserves. bbl means barrel. boe means barrels of oil equivalent, determined using a ratio of 6 Mcf of natural gas to 1 bbl of condensate or crude oil…
EBITDA Assumptions EBITDA estimates are based on the following assumptions: Production estimates as set out in this presentation. The total number of planned wells at each asset is consistent with assumptions contained in the…
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