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 June 2015
Resolute overview Company history Market capitalization1 89.0 million SEC PV10 2 973 million 2004 Resolute formed Long term debt 3 789.6 million Aneth Field: Assets acquired from Shares outstanding1 77.4 million 2005…
Our operating areas Proved reserves are 92% liquids Areas of operation Proved reserves by area1 Powder River Basin properties Aneth Field properties 2015 capital expenditures by area2 Permian Basin properties 1.…
Reserves and production overview Year-end 2014 SEC case: Proved reserves: 74.2 MMBoe 56% proved developed 86% oil, 92% liquids PV10 973 million R/P ratio of 16 years 13,500 Boe per day Q1 net production 7% year-over-year growth…
Long-lived properties Low declines, low maintenance capital requirements Aneth Field Boe per day Aneth Field discovered in 1956 Seven percent base annual decline 2014 production increased by two percent 2015 maintenance capital 16…
Bank borrowing base and second lien status Bank borrowing base 270 million borrowing base effective April 15, 2015 (pro forma Howard County asset sale) 240 million drawn as of March 31, 2015 Next redetermination October 2015…
Sale of Howard and Martin County assets Significant addition to liquidity Sold non-core Big Spring and OTB assets: Purchase price 42 million, closed May 1 Proceeds significantly higher than borrowing base value, added substantial…
Permian Basin horizontal well potential Based only on derisked zones in established areas Acreage Wells1 Percent Average EUR Resource potential Zones Gross Net Gross Net oil (MBoe) (MMBoe) Delaware Basin Mustang 14,000 7,500…
Operations update Resolute operated wells 30 day rate Lateral Percent Wells First production Formation (Boe per day) length oil Delaware Basin LH Meeker C21 1501H 01/22/14 1,074 4,514 49 WC A Harrison State C20-1401H 07/01/14 973…
Permian Basin
Permian Basin Permian Basin map 36,500 gross (25,000 net) acres 85% located in core horizontal Denton development areas Northwest 59% oil, based on Q1 net Shelf Midland Basin production of 5,380 Boe per day 43% proved…
Permian Basin Year-end 2014 SEC case: Proved reserves: 14 MMBoe PV10 181 million 17% year-over-year net production growth as of Q1 Current focus on horizontal Wolfcamp development in Reeves County 2014 proved reserve…
Reeves County overview Horizontal development program Resolute-operated horizontal wells 21,200 gross (13,200 net) acres 1 Vertical producing well Resolute acreage Mustang Appaloosa Q1 net production 2,200 Boe per day, up 328%…
Project economics Reeves County IRR sensitivity by well cost ( thousand) Area Mustang Appaloosa Lateral length 7,500 feet 4,500 feet 30 day IP (gross) 990 Boe per day 750 Boe per day EUR (gross) 910 MBoe 670 MBoe % oil 54% 59%…
Horizontal well potential Delaware Basin Based on derisked zones Acreage Wells Resource Percent Average EUR Zones potential Gross Net Gross Net oil (MBoe) (MMBoe) Delaware Basin Mustang 14,000 7,500 153 88 54% 3 910 58 Appaloosa…
Mustang area activity Relevant industry success Energen Winchester 57-10 1H Mustang BHP IP30: 2,186 Boepd State Hanging H Ranch 56-T3 8 1H IP30: 959 Boepd BHP Hansard Bettye 45-3 2H Cimarex IP30: 570 Boepd Eighteen Mile 56-18 1H…
Appaloosa area activity Relevant industry success Appaloosa Cimarex Cimarex Livingston 2-12 1H Ruby 1-39 1H IP30: 1,407 Boepd IP30: 1,816 Boepd Resolute Harrison State C20 1401H IP24: 1,352 Boepd Resolute James 2 1401H…
Gardendale overview Gardendale 4,700 gross (4,600 net) acres 1 Midland Midkiff 1818H Q1 net production 1,622 Boe per day Opportunity for Lower Spraberry and Wolfcamp B development Three successful Resolute Wolfcamp B horizontals…
Project economics Gardendale (Lower Spraberry) IRR sensitivity by well cost ( thousand) Zone Lower / Middle Spraberry Lateral length 4,500 feet 10,000 feet 30 day IP (gross) 750 Boe per day 1,235 Boe per day 1 EUR (gross) 580 MBoe…
Project economics Gardendale (Wolfcamp B) IRR sensitivity by well cost ( thousand) Zone Wolfcamp B Lateral length 4,500 feet 10,000 feet 30 day IP (gross) 600 Boe per day 980 Boe per day EUR (gross) 425 MBoe 700 MBoe % oil 74%…
Horizontal well potential Gardendale Based on derisked zones Acreage Wells Resource Average EUR Percent oil Zones potential Gross Net Gross Net (MBoe) (MMBoe) Midland Basin Lower / Middle Spraberry 1 Gardendale 4.5K 52 48 78% 2…
Stacked horizontal potential Offset results Resolute Midkiff 1818H Gardendale RSP Johnson Ranch 1018 WA IP30: 578 Boepd IP30: 1,059 Boepd Resolute Martin RSP Pearl Jam 2417H Cross Bar Ranch MS IP30: 542 Boepd Andrews IP30: 737…
Denton Field overview Acquired producing asset in 2013 Denton Field 2,900 gross (2,800 net) acres 1 Q1 net production 705 Boe per day, up 12% quarter-over-quarter Cumulative production through 2014 120 MMBoe Some individual wells…
Aneth Field
Aneth Field introduction Foundation asset Aneth Field 1.5 billion barrels OOIP Produced 438 MMBbl of oil through 2014 (29% recovery) Ongoing successful CO2 flood Aneth and McElmo Creek units predict an average recovery of 40% of…
Aneth Field overview Year-end 2014 SEC case: Proved reserves: 54.2 MMBoe 57% proved developed PV10 717 million 6,395 Boe per day net Q1 production (95% oil) 2014 proved reserve characteristics 2014 SEC reserve report 27
Aneth Field overview Foundation asset Fields like Aneth are rare Large CO2 recovery project, unlocks millions of recoverable barrels of oil Located 25 miles from the largest naturally occurring CO2 resource in the country Cash…
Powder River Basin
Hilight Field Currently being marketed by Petrie Partners Hilight Field (Muddy units) Resolute Grady Unit Resolute Jayson Unit Approximately 48,000 net acres1 operated by Resolute; 100% HBP Horizontal development in Turner and…
Financial overview
2015 production and cost guidance Projected 2015 Q1 2015 2014 range actual actual Total production (MBoe) 4,380 4,745 1,215 4,645 Boe per day 12,000 13,000 13,500 12,727 LOE ( million) 88 98 20 112 G&A ( million) 25 29 7 24…
Hedging strategy Provide protection against price downside Two to three year horizon Work the hedge book opportunistically Current Oil Derivative Positions Bbl/day % Hedged Utilizing Swap Collars Term Hedged Swaps Collars…
Key investment highlights High quality base of long-lived oil producing properties Exploration projects poised to provide incremental value Strong project returns and improving cost metrics Portfolio of significant organic…
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
Margins/cost structure 2013 Pro forma 1 2014 2015 ( in millions, except as noted) Q1 Q2 Q3 Q4 YTD YTD 2013 Q1 Q2 Q3 Q4 YTD Q1 Sales volumes Total MBoe 1,047 1,193 1,058 1,169 4,467 4,640 1,134 1,120 1,164 1,227 4,645 1,215…
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