Barclays CEO Energy-Power Conference September 9-10, 2015
Reduced Capex, Unchanged Production Guidance Reduced activity from 5 rigs to 3 rigs 2015 Capex Guidance 260 Running 3 rigs as of September 3 240 No standby fees MM 220 Reducing 2015 capex guidance 200 Guidance reduced to…
Cash Flow Neutral in 2H15 3 rig program expected to result in cash flow neutral program in 2H15 2H15 capex expected to be 92 million, 30% reduction from 1H15 2015 full year spending projected to drop by nearly 60% from 2014 full year…
Second Quarter 2015 Highlights Drilling inside cash flow 2Q cash flow exceeded capex 2Q15 production of 25.3 Mboe/d Anadarko Basin Above guidance for all commodities Cleveland Arkoma Basin Achieving 2.6 MM AFE Woodford Over…
Returns Improve with Further Cost Reductions IRRs reflect NYMEX strip pricing for August 28, 2015 plus differentials for all commodities Solid IRRs achievable with additional cost savings or minimal strip uplift Cleveland Well Level…
Peer Leading Hedge Book More hedged than peers in 2016 and 2017 at better prices Most peers have no oil hedges in 2017 *Percentage hedged based on TPH forecasts. Data sourced from Tudor, Pickering, Holt & Co. research. Peers…
Hedges Through 2019 Over 100% of PDP hedged through 1H19 Note: Hedging percentages are based upon current 2015 full year guidance and modeled flat production in 2016 based upon 2015 fourth quarter production exit rates. 8
Jones Leading the Pack in Protecting Balance Sheet Leader among peers with positive EBITDAX less capex for both 2015 and 2016 2015 Consensus EBITDAX less Capex 2016 Consensus EBITDAX less Capex 50 40 20 0 0 -50 -20 -100 -40…
Operational Flexibility in 2016 Option to maintain cash flow neutral position through 2016 At 3 rigs, positive cash flow projected in 2016 Even at 5 rigs, annual outspend estimated at only 30 million Note: Cash Outspend is…
Focused on Execution and Delivering Results Decreased drilling times equal sustained cost savings and higher rig utilization Note: Wells included have average lateral length of approximately 4,300 feet. YTD 2015 value as of August…
Open-Hole Completions Save Time and Money Return to open-hole completions resulting in improved cycle times Spud to Sales (in days) 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 - 2014 YTD 2015 Note: YTD 2015 values…
Opportunities Abound for Jones Growth Opportunities Maximizing Out-of-Basin M&A New Plays in In-Basin M&A and Ownership in Play Expansion and Organic Existing Footprint Organic Growth Current Plays Growth Working interest…
Focused on the Cleveland in 2015 YE 14 Jones Cleveland Locations 3 rigs currently running Gross: 704 Net: 477 Working interest capture of 20-25% 115 miles wide Production is beating budgeted expectations Frack optimization…
33 Stage Wells Performing as Expected Oil Performance 1,000 35 Actual Expected Well Count 30 wells in sample 30 25 Gross Oil, Bbl/d Well Count 20 100 15 10 5 10 0 0 50 100 150 200 250 300 350 Gas Performance Days on…
Size of the Prize is Huge: Cleveland is Only 30% Developed Size of the prize is huge Horizontal Cleveland Locations 5,800 remaining Cleveland 2,200 locations Over 3,000 undrilled locations owned by 10 largest operators 5,800…
Expanding in the Core 5 million lease budget for 2H15 6,000 net acres acquired already with well over half of budget remaining Line of sight to leasing significant additional acreage by year end 50,000+ net acres available today…
Leasing Now Creates Tremendous Value Low cost path to add immediate value Some locations could be booked as PUDs this year Compelling value proposition 5 Million Leasing Program Potential 200 180 At 500 per acre, 5 million…
Joint Ventures Create Value with Little Upfront Cost It only takes one deal to make a difference ExxonMobil JV has created significant value for JONE 175 wells drilled through JV since 2000 in multiple zones ExxonMobil JV Acreage…
Cleveland Joint Venture Opportunity is Meaningful Over 3,000 undrilled locations owned by 10 largest operators Large potential JV opportunity as many operators not active 3 3 Over 3,000 undrilled locations 3 owned by 10 largest…
Jones Energy, a Proven Winner Keys to Success Control the field Leasing program underway Working interest gains locations Play solid defense No drilling contracts = flexibility Ample liquidity Execute for the entire game AFEs…
Excellence: Strived for in All That We Do 22
APPENDIX
Strip Pricing as of August 28, 2015 IRR calculations incorporate: Crude oil and natural gas strip pricing as of August 28, 2015 NGL basket projected using relationship to crude by component Incorporates forward indications of NGL…
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…
TOPS Texas/Oklahoma Pennsylvanian Sands Hugoton Current Target Lower Permian Wolfcampian Brown Dolomite Formations Chase / Council Grove Admire Tonkawa Upper Virgil Sandstone Virgilian Douglas Lease Acreage:…
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…
2015 Guidance and 3Q Production Guidance 2015E 3Q15E Total Production (MMBoe) 8.4 - 8.9 2.0 - 2.1 Average Daily Production (MBoe/d) 23.0 - 24.5 22.0 - 23.0 Oil (MBbls/d) 6.8 - 7.3 6.3 - 6.6 Natural Gas (MMcf/d) 58.5 - 62.5 56.5 -…
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 50.6% of voting power…
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