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CITI MLP CONFERENCE – LRR Energy LP

LRR Energy LP · Aug 10, 2012 · 22 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. CITI MLP CONFERENCE – LRR Energy LP – slide 1
  2. CITI MLP CONFERENCE – LRR Energy LP – slide 2
    Lime Rock Management Lime Rock Founded in 1998 Manages 3.9 billion of private capital Lime Rock Partners Lime Rock Resources LRR Energy, L.P. LRP LRR LRE 3.0 billion capital Formed in 2005 Mature producing oil and under…
  3. CITI MLP CONFERENCE – LRR Energy LP – slide 3
    Upstream MLP formed in November 2011 (NYSE: LRE) Operate, acquire, exploit and develop mature oil and gas properties Experienced team with proven acquisition, operational and exploitation track record, and strong industry…
  4. CITI MLP CONFERENCE – LRR Energy LP – slide 4
    2nd Quarter results and distribution Production of 6,462 Boe/d EBITDA of 17.7 million Quarterly distribution of 0.475 per unit Distribution coverage of 1.06x 67 million acquisition from Lime Rock Resources Closed purchase of…
  5. CITI MLP CONFERENCE – LRR Energy LP – slide 5
    67 million acquisition First dropdown from sponsor Mature asset Primarily oil Mostly operated Low Risk 92% PDP Lime Rock operated since 2008 Recent refrac program shortens R/P ratio early Note: Reserves based on…
  6. CITI MLP CONFERENCE – LRR Energy LP – slide 6
    Shallow production decline 86% proved developed reserves 13.0 R/P Focused operations and diversified geographically Three operating areas with scale Operate 93% of proved reserves Nearly all acreage is held by production…
  7. CITI MLP CONFERENCE – LRR Energy LP – slide 7
    Key fields: Red Lake, Pecos Slope, Corral Canyon Proved reserves: 16.8 MMBoe (55% of total) R/P Ratio: 12.8 years LRE operated: 93% of value 152 gross development projects & 174 gross drilling locations 703 gross (582 net)…
  8. CITI MLP CONFERENCE – LRR Energy LP – slide 8
    Key fields: Potato Hills Key fields: New Years Ridge, GW-Stratton Proved reserves: 10.0 MMBoe (33% Proved reserves: 3.8 MMBoe (12% of of total) total) Q2 2012 Net production: 1,890 Boe/d Q2 2012 Net production: 967 Boe/d (29%…
  9. CITI MLP CONFERENCE – LRR Energy LP – slide 9
    Drop-downs Joint Bids Acquisitions Acquisitions from with from from Third Lime Rock Lime Rock Lime Rock Parties Resources Resources Partners 29.8 MMBoe of proved Expands LRE 3.0 billion of Attractive market reserves1…
  10. CITI MLP CONFERENCE – LRR Energy LP – slide 10
    1 Annualized first six months of 2012. Excludes hedge gains and losses during the period. 2 Estimated annualized September 2012 revenue. Based on assumed NYMEX prices of 96.01 for oil and 2.72 for natural gas. Excludes hedge gains…
  11. CITI MLP CONFERENCE – LRR Energy LP – slide 11
    Capital required to maintain production Estimated 21 million per year Estimate based on internal development inventory Target debt/Adjusted EBITDA…
  12. CITI MLP CONFERENCE – LRR Energy LP – slide 12
    94% of current PDP is hedged through 2016 Assuming flat production1, total production is hedged 90% in 2012, 88% in 2013, 63% in 2014, 56% in 2015 and 51% in 2016 Average prices: 5.16 per MMBtu, 94.21 per oil barrel and…
  13. CITI MLP CONFERENCE – LRR Energy LP – slide 13
  14. CITI MLP CONFERENCE – LRR Energy LP – slide 14
    LRE's current yield is attractive compared to peers 1 Based on unit prices as of 8/20/2012 and most recently announced quarterly distribution.
  15. CITI MLP CONFERENCE – LRR Energy LP – slide 15
    Conservative Quality Growth Proven Financial Assets Potential Management Strategy Stable, low-risk Multiple avenues Experienced and Distributions and predictable for growth incentivized supported by: properties management…
  16. CITI MLP CONFERENCE – LRR Energy LP – slide 16
  17. CITI MLP CONFERENCE – LRR Energy LP – slide 17
    Note: LRE existing properties based on third party reserve reports as of 12/31/11 using 12/31/11 SEC pricing. Recently announced acquisition based on third party reserve reports as of 3/1/12 using 1/31/12 pricing. 1 Approximately…
  18. CITI MLP CONFERENCE – LRR Energy LP – slide 18
    Years of Name and Position Experience Select Prior Experience Eric Mullins 21 Lime Rock Resources; Goldman Sachs Co-CEO and Chairman Charles Adcock 35 Lime Rock Resources; Houston Exploration; Operational roles with Co-CEO and…
  19. CITI MLP CONFERENCE – LRR Energy LP – slide 19
    Lime Rock Management LP 100% Class A Member Interest LRE GP, LLC Lime Rock Resources (LRR) Incentive Distribution Rights Fund I Common Units Subordinated Units 0.1% GP Interest 52.4% LP Interest LRR Energy, L.P.…
  20. CITI MLP CONFERENCE – LRR Energy LP – slide 20
    1 Hedge prices based on weighted-average of swap prices, collar floor prices and put strike prices.
  21. CITI MLP CONFERENCE – LRR Energy LP – slide 21
    Adjusted EBITDA is used as a supplement financial measure by our management and by external users of our financial statements, such as investors, commercial banks and others, to assess: our operating performance as compared to…
  22. CITI MLP CONFERENCE – LRR Energy LP – slide 22
    The following table presents a reconciliation of Distributable Cash Flow and Distribution Coverage Ratio to Adjusted EBITDA. Adjusted EBITDA is reconciled to net income, our most directly comparable GAAP financial performance…

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