Quality Assets. Disciplined Management. Investor Presentation www.sanchezpp.com May 2015
SPP Investment Highlights Integrated through Services Agreements with Sanchez Oil & Gas Corp. (SOG) As of March 31, 2015 Successful Market Value 59.6 MM Conversion to MLP Committed to building a sustainable and Enterprise Value 180.8…
SPPs Corporate Transition 2015+ 2015 Identify/Pursue Acquisitions and Other Opportunities; Q1 2015 Identify/Pursue Raise Capital Acquisitions and Other Opportunities Q3 2014 Converted from LLC to GP/LP Q2 2014 Completed Closed…
Unique Sponsorship 5 2015 Sanchez Production Partners LP
SOGs Operational Platform Sanchez Oil & Gas Corporation (SOG) provides a robust, full service oil and gas operational platform Experienced Management: senior management team averages over Sanchez Oil & Gas 20 years of industry…
SPPs Growth Potential SOGs Operational Joint Bid Right-Sized Platform and Service Opportunities Transactions w/Other Relationships Identified By SOG Third Parties SOG provides services to SOG has managed five SPPs right-sized…
SPPs Acquisition Strategy SPPs acquisition strategy is focused on cash producing assets involved in hydrocarbon production, gathering and processing with low general and administrative expenses and minimal maintenance capital…
Eagle Ford Acquisition 9 2015 Sanchez Production Partners LP
Overview Seller Wholly-owned subsidiary of Sanchez Energy Corp (SN) Purchase Price 85.0 million (subject to normal and customary closing adjustments) Consideration Provided 83.0 million in cash and 2.0 million in equity, consisting…
Transaction Structure Transaction structured to offset natural production declines, minimize maintenance capital requirements, and maintain more stable cash flows over the life of the asset Escalating working interests levelize…
Transaction Benefits Initiates a business development relationship with SN, a company that has a substantial inventory of assets with characteristics favorable to the MLP model Promotes sustainable growth Non-operated, proved…
Looking Ahead 13 2015 Sanchez Production Partners LP
Portfolio Overview May 2015 Sanchez Production Partners LP SPP Legacy Assets SPP Eagle Ford Acquisition Cherokee Basin operated and non-operated Closed March 31, 2015 assets were acquired in three separate transactions in 2007…
Five Keys to Success Growth in our asset base is achievable primarily through acquisitions, which may source from: SOGs operational platform and service relationships Growth Joint bid opportunities identified by SOG Right-sized…
Optimizing SPPs Distributable Cash Flow Achieve growth through Acquisitions Mitigate business risks by Targeting cash flowing assets associated with production, gathering, and processing activities Aligning assets, interests and…
Appendix 17 2015 Sanchez Production Partners LP
Hedge Program (1) SPP intends to hedge a high percentage of PDP for up to five years SPPs hedge strategy primarily utilizes swaps and costless collars, as warranted by market conditions Hedges executed with SPPs lenders and subject…
SPP Financial Position As of March 31, ( in 000s unless noted) 2015 Cash & Cash Equivalents 2,235 Borrowing Capacity 4,000 = Borrowing Base 110,000 - Debt Outstanding 106,000 Total Liquidity 6,235 = Borrowing Capacity 4,000 +…
Recent Financial Results 15Q1 vs. 14Q4 15Q1 vs. 14Q1 ( in 000s unless noted) 15Q1 14Q4 15Q1 14Q1 Production (MBOE) 324 374 324 372 Oil & Gas Sales 12,656 14,499 12,656 16,738 Gain (Loss) from Mark-to-Market Activities (732) 17,547…
Non-GAAP Financial Measures Use of Non-GAAP Financial Measures: EBITDA and Adjusted EBITDA are non-GAAP financial measures that are reconciled to their most comparable GAAP financial measure under Reconciliation of Non-GAAP Financial…
Reconciliation Items Reconci l i a ti on of N et Incom e ( Los s ) to A dj us ted EBITDA ( i n 000s ) 15Q1 14Q4 14Q1 N et i ncom e ( l os s ) (89,986) 11,798 (2,939) Interes t ( i ncom e) expens e, net 646 507 525 DD&A (1 ) 86,238…
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