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TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc.

Jones Energy Inc. · Jun 16, 2015 · 26 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 1
    TPH 11 th Annual Hotter N Hell Energy Conference June 17, 2015
  2. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 2
    Jones Energy Value Today, Long-Term Growth Story Judicious Steward of Capital 25.0 Average Daily Production (MBoe/d) History of value creation 20.0 15.0 Opportunity Rich 10.0 Organic opportunities, JDAs, M&A 5.0 0.0 Not your…
  3. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 3
    Jones Energy Goals for 2015 Solidify Financial Position Capital markets transactions have provided 500 million in liquidity Manage Capital Spending CAPEX of 210 million (60% reduction) focused on Cleveland development Drive Down…
  4. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 4
    First Quarter 2015 Highlights 1Q15 Production of 26.4 Mboe/d More than 3,000 Boe/d above 4Q14 Cleveland AFE now 2.6 MM Anadarko Basin Cleveland Margins support additional rigs Arkoma Basin Woodford 33 stage wells performing…
  5. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 5
    Cleveland is a World Class Resource Play Strong results across Jones Cleveland acreage TOP 10 JONE CLEVELAND WELLS1 Top wells on acreage from all four major acquisitions IP30 Well (Boe/d) Elmer Graves 615-1H 1,432 Peyton Ranch…
  6. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 6
    Focused on the Cleveland in 2015 Jones Cleveland Locations 4 rigs currently running Gross: 704 Net: 477 Fourth rig added end of May Fifth rig to be added soon 30% oil uplift achieved Frack optimization successful 2015…
  7. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 7
    2015 Capital Spend Tracking to Budget On track to spend 210 million in 2015, in -line with guidance Budget incorporates ramp from 3 to 5 rigs and reduction to current AFE of 2.6 million 2015 Capital Spending by Quarter 100 80…
  8. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 8
    Cost Reductions for 33 Stage Open Hole Wells Over 30% in negotiated cost reductions since 4Q 2014 4.0 3.8 Achieved Reductions: 1,200,000 3.0 Breakdown of Savings: Frack Services 487,000 AFE in millions Rig Rates 122,000…
  9. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 9
    How Jones Creates Unmatched Value in the Cleveland Geographic Focus Average Cleveland AFEs - Jones vs. Competitors Best in class Midcontinent horizontal driller Unconventional Experience Drilled over 600 horizontal wells in 9…
  10. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 10
    Extremely Competitive Return in the Cleveland Current IRRs reflect NYMEX strip pricing as of June 10th for all commodities Unhedged Cleveland Well Level IRRs 90% 2.6 MM AFE 80% 70% 60% 50% IRR 40% 30% 20% 10% - 3,400…
  11. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 11
    33 Frack Stages: Ideal Cleveland Density Strong correlation between frack stages and cumulative oil production 33 stages is appropriate frack density for Cleveland Cumulative Oil vs. Frack Stages (at 280 days) 50 60 Expected…
  12. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 12
    Optimization Drives Oil Uplift Oil Uplift Comparison 1,000 EUR 20 stage 33 stage Oil (Mbbls) 81 112 +38% increase Gas (MMcf) 541 545 NGL (Mbbls) 70 71 Oil Rate (bpd) Total (Mboe) 241 274 100 10 0 50 100 150 200 250 300…
  13. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 13
    Increased Oil with Greater Predictability Increased frack density means more oil and more predictable results Only 30 Cleveland wells required to achieve type curve Cleveland Oil IP90 16% 14% % of wells with given IP90 12%…
  14. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 14
    Oil Uplift Has Created Significant Value 230,000 investment translates to: 1,225,000 1,725,000 in incremental oil revenue per location 515,000 815,000 in incremental PV-10 value per location Value accelerates as oil price increases…
  15. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 15
    The Anadarko Basin Prolific History with Stacked Pay Potential Stacked pay zones provide significant development opportunities Current Target Formations Tonkawa Sandstone Lease Acreage: 122,000 Gross Locations: 324…
  16. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 16
    Hedges Through 2019 Significant hedges protect revenue stream and lock in returns % of PDP Hedged by Product 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% 2015 2016 2017 2018 1Q19 Oil Gas NGLs Note: Percentages based on…
  17. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 17
    Ready for Market Opportunities with Strong Balance Sheet 562.5 million borrowing base reaffirmed 500 million in liquidity 90% of debt outstanding matures in 7 years 2.8x net debt/EBITDAX for trailing twelve months2 Debt Maturities…
  18. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 18
    Jones Energy Prepared for Today and Focused on the Future Mid-Continent Focus Operational Excellence Solid Financial Position Focused on Value Creation Substantial Footprint with Running Room 18
  19. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 19
    APPENDIX
  20. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 20
    Strip Pricing as of June 10, 2015 All return calculations incorporate: Crude oil and natural gas strip pricing as of June 10, 2015 NGL basket projected using relationship to crude by component Incorporates forward indications of…
  21. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 21
    2015 Cleveland Type Curve Key statistics shown below for 2015 Cleveland type curve (274 Mboe EUR) Cleveland 3P EUR of 305 Mboe, but with a higher gas component Key Statistic: Oil Gas NGL Total IP Bbl/d Mcf/d Bbl/d Boe/d IP30 228…
  22. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 22
    2015 Full Year Guidance and 2Q Production Guidance 2015E 2Q15E Total Production (MMBoe) 7.9 8.7 2.05 2.15 Average Daily Production (MBoe/d) 21.7 23.7 22.5 23.5 Oil (MBbls/d) 6.6 7.1 6.7 7.0 Natural Gas (MMcf/d) 54.8 60.3 57.0…
  23. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 23
    Hedge Positions 2015 2016 2Q 3Q 4Q 1Q 2Q 3Q 4Q Crude Swaps (Mbbl) 613 595 572 492 465 457 411 Hedge Price / Bbl 82.93 84.60 84.05 83.53 83.67 83.64 83.35 Natural Gas Swaps (MMcf) 5,095 4,740 4,636 4,340 4,130 3,960 3,800 Hedge…
  24. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 24
    NGL Hedge Position Detail 2015 2016 2Q 3Q 4Q 1Q 2Q 3Q 4Q Mt. Belvieu NGLs (MBbl) Ethane 55 50 46 - - - - Propane 42 39 39 - - - - Iso Butane 3 3 3 3 3 3 - Butane 15 15 16 6 6 6 3 N. Gasoline 24 24 23 18 18 18 13 Sub-Total Mt. Belvieu…
  25. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 25
    NGL Barrel Component Detail Cleveland Conway Cleveland Natural Gasoline 12% (80% of forecasted 2015 NGL production) Iso Butane 5% Butane 12% Basket Ethane 37% Propane 34% Propane 34% Butane 12% Ethane 37% Iso Butane 5% Natural…
  26. TPH 11TH ANNUAL HOTTER N HELL ENERGY CONFERENCE – Jones Energy Inc. – slide 26
    Corporate Structure Updated for recent capital markets transactions Stock trading liquidity has improved significantly post-recent transactions Metalmark, Class A Common Stock Class B Common Stock Management 50.9% of voting power…

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