LRR Energy Team Co-CEOs: Eric Mullins, Charles Adcock Chief Operating Officer: Tim Miller Chief Financial Officer: Jaime Casas Chief Engineer: Chris Butta Speakers: Sid Ashworth Operations Manager Todd Hassen Director of…
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…
LRR Energy and Lime Rock Resources LRR Energy (LRE) Lime Rock Resources (LRR) Proved Reserves (MMBoe) (1) 30.6 29.9 Production (Boe/d)(2) 6,462 6,470 1 LRE existing properties based on third party reserve reports as of 12/31/11…
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…
Closed on June 1, 2012 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:…
May 2006 LRR I made its first acquisition in the Permian Red Lake I December 2007 LRR I acquired Pecos Slope assets April 2008 LRR I acquired Red Lake II Remaining 51% of SDX Resources WI (Red Lake) Took over operations August…
Key field areas: Red Lake, Pecos Slope, Corral Canyon Proved reserves: 16.8 MMBoe (55% of total) Production: 3,605 Boe/d R/P Ratio: 12.8 years LRE operated: 93% of value 703 gross (582 net) producing wells 152 gross…
LRR Energy (LRE) Capital Budget of 29.1 million Drill 16 (15 at Red Lake) wells in 2012 (16 drilled YTD) Recomplete 10 wells (6 completed YTD) Refrac 3 wells (3 completed YTD) Currently drilling SWD well Continue workover and…
Largest LRE field, predominantly oil Located in Eddy County, New Mexico Shelf edge of the Delaware Basin Primarily San Andres and Yeso formations Multiple pay intervals between 2,000 and 5,000 Sweet and sour oil with casing…
First Production San Andres early 1970s Yeso 2001 April 2006 Initial Red Lake Acquisition Lime Rock Resources acquired 49% WI from a private Midland-based seller Non-operator position 80 producing wells 52 drilling…
1960s-90s Shallow Primary and Secondary development in Grayburg and Upper San Andres as seen earlier in Midland Basin 2000s Deeper Pool Drilling finds more pay in Lower San Andres and Upper Yeso 2009+ Quest continued…
Improve reserve recovery through the following techniques: Identification of pay in low permeability formations Improved fracture stimulation techniques Identification of infill drilling opportunities Improved water handling…
Pecos Slope Located in Eddy, Chaves, Lea and Roosevelt Counties, New Mexico Primarily Abo formation at an average depth of approximately 3,500 feet The Abo is shallow stacked tight sandstone reservoir Other production from…
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…
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…
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…
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…
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%…
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…
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…
Capital required to maintain production Estimated 21 million per year Estimate based on internal development inventory Target debt/Adjusted EBITDA…
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: 5.11 per MMBtu, 94.21 per oil barrel and…
LRE's current yield is attractive compared to peers 1 Based on unit prices as of 9/6/2012 and most recently announced quarterly distribution.
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…
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