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Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp.

Memorial Resource Development Corp. · Sep 8, 2015 · 36 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. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 1
    Barclays Energy-Power Conference New York, New York John A. Weinzierl Andrew J. Cozby Chief Executive Officer SVP and CFO September 8-9, 2015
  2. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 2
    The Premier Horizontal Development E&P Company Consolidated core position in the Terryville Complex of North Louisiana Prolific Top tier returns highly economic single well IRRs projected at current commodity prices(1) Asset Base…
  3. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 3
    A Pure-Play Terryville Company Asset Overview Transitioned to Pure Play - Proved Reserves(3) MRD Key Statistics Gross Acres(1) 107,109 Outside 16% (1) Net Acres 92,314 Proved Reserves (Bcfe)(2) 1,378 At YE IPO 2014(3) % Gas…
  4. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 4
    High Production Rates Throughout Cotton Valley Trend MRD has the Top 20 Wells in the Cotton Valley Trend 21 Active Cotton Valley Horizontal Rigs across +250 miles Terryville Complex Dowling 19-30 HC-2 31.6 MMcfe/d Lloyd 5-6H 11.3…
  5. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 5
    Horizontal Development of Multiple Producing Benches Legacy Vertical Production Focused on Commingling Sections, Horizontal Development Focused on Specific Zones Legacy Vertical Development CV Stacked Horizontal Targets Competitor…
  6. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 6
    World Class Asset Productivity MRD Has Top Productive Wells Top 100 Gas Wells by Operator Peak 30-Day Mcfe Production MRD Since 2012, 61 wells of 17,200 horizontal gas wells in 25 the U.S. have peak monthly production over 21 MMcfe/d…
  7. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 7
    Best-in-Class Performance and Economics Exceptional Horizontal Well Results in Four Primary Zones(1) High IRRs at Current Prices(2) Average IP-30 172% Avg. 18.7 MMcfe/d per Quarter (MMcfe/d) 21.6 22.1 22.4 22.4 17.2 16.7…
  8. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 8
    Terryville Field Strong Horizontal Well Results (Unhedged)(1) MRDs drilling inventory projected to be highly economic across all commodity price environments 80 oil / 4.00 gas 70 oil / 3.50 gas 60 oil / 3.00 gas 50 oil / 2.50 gas NPV10…
  9. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 9
    Multi-Year Drilling Inventory Drives Upside Potential Terryville Locations Terryville Horizontal Locations by Pay-Zone(1) Zone Proved Prob. Poss. NSAI 3P Mgmt Total Upper Red 81 41 53 175 243 418 Lower Red 52 48 53 153 271 424 35+ year…
  10. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 10
    Results Outperform Type Curves Management Type Curves MRD Management PUD Assumptions Upper Red Lower Red Lower Deep Pink Updated management type curves based on Lateral Length (feet) 7,500 7,500 7,500 well performance, spacing and…
  11. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 11
    Significant and Growing Acreage Position MRD continues to pursue attractive bolt-on acreage in and around the Terryville Field where MRD believes it has the ability, local knowledge and resources to add to MRDs already significant…
  12. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 12
    Key Takeaways World-Class Multi-stacked pays Asset Over-pressurized reservoir Liquids-rich High Rates of High initial rates of production Return Shallower declines relative to typical shale plays Proximity to Henry Hub…
  13. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 13
    Recent Activity Strong Execution Drives Consistent Results Completed 5 gross horizontal wells YTD in the Terryville Field including: 1-well Drewett pad 27.7 MMcfe/d IP-30 Continued Solid 2-well Davison pad 44.8 MMcfe/d combined IP-30…
  14. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 14
    Secured Midstream Infrastructure Supports Development Plan Sufficient, Build Extensive Existing OutTakeaway Eliminates Potential Constraints Diverse Regional Takeaway Expect to have 1 Bcf/d of processing capacity by DCP Minden Plant…
  15. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 15
    Multi-Well Pads Greater Efficiencies Across All Stages of Development Drilling Completion of a Multi-Well Pad Site Reduced location cost Reduced mobilization time (no rig up and rig down) Batch drilling of hole sections Completion…
  16. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 16
    Continued Operational Performance Improvement Increasing Lateral Lengths Frac Cost / Stage (M) Feet (M) 8,000 50 160 150 7,088 45 7,000 43 40 5,870 6,000 120 35 5,000 4,428 4,468 30 31 81 78 4,000 25 80 65 20 3,000 15 19.7…
  17. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 17
    Financial Strategy and Capitalization Financial Update Capitalization MRD Segment (1) Preserve Financial Flexibility ( in MM) 6/30/15 Operate towards free cash flow positive asset base Keep leverage at conservative levels Cash and…
  18. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 18
    Fiscal Year 2015 Guidance Highlights Detailed Guidance FY15 total D&C capital 2015 FY Guidance expenditures of 500MM Low High Net Average Daily Production (MMcfe/d) 325 - 365 2015 daily production projected to Natural Gas (MMcf/d)…
  19. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 19
    MRD Peer Comparison MRD Historical LOE Expense (/Mcfe)(1) Q2 2015 Total Cash Cost (/Mcfe) (2) 4.00 Cash G&A Other Expenses Historical 1.20 LOE Expense (/Mcfe) 1.01 3.14 3.00 2.75 0.80 0.74 2.27 2.00 Average 1.80 2.30 0.50 1.63…
  20. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 20
    MRD Has an Attractive Hedge Portfolio On a relative basis, MRD has larger hedge volumes and a longer dated hedge book than its peers Percent of Total Production Hedged(1) 2015(2) 2016 % Hedged % Hedged 100% 94% 100% 88% 90% 90%…
  21. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 21
    MRD Hedging Overview: 3Q15 through 2018 MRDs commodity risk management policy provides for hedging estimated production from total proved reserves Proactive policy reduces MRDs exposure to movements in commodity prices and provides…
  22. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 22
    Investment Highlights Best-in-Class Assets with Top Tier Growth Premier Drilling Economics with Extensive Inventory Secured Infrastructure Supports Growth Plans Conservative Balance Sheet with a Focus on Funding Growth…
  23. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 23
    Organizational Chart & Ownership(1) NGP Funds Headquarters: Houston, TX Employees: 500 full-time Certain Former Management Members of MRD Holdco LLC Public WildHorse Resources 16% 39% 45% Memorial Resource Development…
  24. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 24
    Terryville Drilling Inventory 35+ Year Inventory in Four Primary Zones Terryville Future Horizontal Locations by Reserve Category (1) Distribution of Locations Lower Upper Upper Lower Deep Deep 4 Primary Other Total of Locations(2) Red…
  25. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 25
    NSAI Location Methodology is Conservative Volumetric Methodology Underestimates Reserves In Place NSAI original gas in place (OGIP) calculation for Upper NSAI YE14 PDP UPPER RED EUR DISTRIBUTION 100% Red in 1P acreage implies 43 Bcfe…
  26. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 26
    MRD Location Methodology MRD Methodology - Based on Well Performance, Spacing and Lateral Length TL McCrary / Wright Area Units NSAI Upper Red 11 WRIGHT 14-11H-1 12 PDP EURs T L MCCRARY 14-11 HC 5 WRIGHT 13-12HC 2 T L MCCRARY 14-11…
  27. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 27
    MRD Location Methodology MRD Methodology - Based on Well Performance, Spacing and Lateral Length Colvin Estate Unit ZEL_29-32_HC 2 29 BRAZZEL 29-32 HC 1 28 A SU 53-TV NSAI Upper Red PDP EURs LCV RB SU A-RUS Colvin Estate…
  28. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 28
    Producing Wells Are Greater Than NSAI PUD Type Curves TL McCrary / Wright Area Production (7 wells) vs NSAI PUD Type Curve Colvin Estate Area Production (2 wells) vs NSAI PUD Type Curve 35,000 35,000 Average Lateral Length = 4,900…
  29. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 29
    Expanded Activity Following the LMO Step-Out Well (1) MRDs Future Development Continuing South Based on Encouraging Results of the LMO LMO LMO initial production 1Q15 Verified over-pressured formations Confirmed target zones at 2nd…
  30. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 30
    Proven Track Record with Step-Out Wells(1) Follow-up Wells Consistently Outperforming Initial Step-Out Wells Northwest Step-Out Colquitt well completed in late 2012 IP-30: 17.5 MMcfe/d Spurred further development East Step-Out…
  31. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 31
    Robust Cash Margins in all Price Environments Low per unit costs and attractive hedge positions provide strong cash margins 5.00 Total Realized Price = 4.62 Total Realized Total Realized 4.50 Price = 4.42 Price = 4.32 Total…
  32. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 32
    Hedges Help Protect 2015 Revenue Significant hedge book allows MRD to have minimal revenue change even in draconian price environment Hedging Impact on 2015 Revenue 5.00 Total Realized Total Realized Total Realized Total Realized…
  33. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 33
    MRD NSAI Reserve Detail Oil Natural Gas NGLs Total % Gas PV-10 (MBbl) (MMcf) (MBbl) (MMcfe) (%) (M) PDP 3,290 358,795 18,211 487,800 74% 1,186,884 PDNP 615 33,386 1,713 47,351 71% 102,958 PUD 8,698 788,748 42,665 1,096,928 72%…
  34. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 34
    Adjusted EBITDA Reconciliation Adjusted EBITDA is a non-GAAP financial measure. We evaluate segment performance based on Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss), plus interest expense; debt extinguishment costs;…
  35. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 35
    Adjusted EBITDA Reconciliation Adjusted EBITDA is a non-GAAP financial measure. We evaluate segment performance based on Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss), plus interest expense; debt extinguishment costs;…
  36. Barclays Capital CEO Energy Power Conference – Memorial Resource Development Corp. – slide 36
    Adjusted Net Income Reconciliation MRD Segment Adjusted Net Income is a supplemental non-GAAP financial measure that is used by external users of MRDs financial statements. We define MRD Segment Adjusted Net Income as net income excluding…

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