LRR Energy, L.P. Who is Lime Rock 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…
LRR Energy, L.P. LRR Energy, L.P. 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…
LRR Energy, L.P. Recent Events 3rd Quarter results and distribution Production of 6,663 Boe/d EBITDA of 19.5 million Increased quarterly distribution to 0.4775 per unit Distribution coverage of 1.14x Raised low-end of 2012…
LRR Energy, L.P. Quality Assets Shallow production decline Low Risk, Mature Assets 86% proved developed reserves 13.0 R/P Focused operations and diversified geographically Focused Portfolio Three operating areas with scale…
LRR Energy, L.P. Permian Basin Region1 Key fields: Red Lake, Pecos Slope, Corral Canyon Proved reserves: 16.8 MMBoe (55% of total) R/P Ratio: 12.0 years LRE operated: 93% of value 703 gross (582 net) producing wells 152 gross…
LRR Energy, L.P. 2012 Capital Budget 2012 capital budget of 31 million 85% production related, 15% other Over 95% of production related budget is focused on liquids projects Q4 2011 Production Q3 2012 Production 5,761 Boe/d…
LRR Energy, L.P. Significant Growth Potential Acquisition Sources 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…
LRR Energy, L.P. Lime Rock Resources Growing Inventory of Assets Annual Revenue 180 2 163.2 160 5% Gas 140 120 1 100 92.9 MM 80 21% Gas 60 40 79% Liquids 95% Liquids 20 0 LRE LRR 1 Annualized first six…
LRR Energy, L.P. Conservative Financial Strategy Capital required to maintain production Maintenance Estimated 21 million per year Capital Estimate based on internal development inventory Target debt/Adjusted EBITDA…
LRR Energy, L.P. Hedge Portfolio Natural Gas Hedges 10 85% of current PDP is hedged through 2017 8 90% Production (Bcf) Assuming flat production1, total 6 71% production is hedged 88% in 2012, 4 64% 59% 55% 87% in 2013,…
LRR Energy, L.P. 2012 Guidance and Capitalization 2012 Guidance Daily Production (Boe/d) 6,250 - 6,400 Lease Operating Expenses (/Boe) 10.50 - 11.00 Maintenance Capital ( MM) 21.0 Other Capital ( MM) 10.0 Total Capital ( MM)…
LRR Energy, L.P. Why LRE MLP Conservative Quality Growth Proven Financial Assets Potential Management Strategy Stable, low-risk Multiple avenues Experienced and Distributions and predictable for growth incentivized supported by:…
Appendix Appendix 17
Appendix Management Team & Board of Directors Executive Leadership 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…
Appendix Summary Organization 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…
Appendix Commodity Hedges Current Hedge Position (Swaps, Collars & Puts) 4Q 2012 2013 2014 2015 2016 2017 NYMEX HH GAS Swaps Gas (MMBtu) 1,067,511 7,267,590 5,876,099 5,326,561 4,878,990 4,605,396 Wt Avg Price 5.70 5.15 5.52…
Appendix Adjusted EBITDA Calculation 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…
Appendix Distributable Cash Flow and Distribution Coverage Calculation The following table presents a reconciliation of Distributable Cash Flow and Distribution Coverage Ratio to Adjusted EBITDA. Adjusted EBITDA is reconciled to net…
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