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Johnson Rice Energy Conference – Memorial Resource Development Corp.

Memorial Resource Development Corp. · Sep 29, 2015 · 32 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. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 1
    Johnson Rice Energy Conference New Orleans, Louisiana William J. Scarff Andrew J. Cozby President SVP and CFO September 28-29, 2015
  2. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 2
    The Premier Horizontal Development E&P Company Consolidated core position in and around the Terryville Complex of North Louisiana Prolific Top tier returns highly economic single well IRRs projected at current commodity prices(1)…
  3. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 3
    MRD Continues to Execute on its Core Strategy Increasing production through efficient drilling and expanding its asset footprint via accretive acquisitions while maintaining a strong balance sheet and generating strong shareholder…
  4. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 4
    Transactions Overview Third-Party Acquisition Overview Map Acquired 45,121 net acres in Jackson and Lincoln Parishes, LA Highly contiguous acreage position adjacent to MRDs Terryville Field High working interest in a large portion…
  5. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 5
    Third-Party Acquisition Strategic Highlights Strategic-fit with MRDs existing asset base Majority of acreage located adjacent to Terryville Field Strategic Large, concentrated acreage position Bolt-On Allows for immediate…
  6. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 6
    Significant and Growing Acreage Position MRD has entered into separate transactions to add to its industry-leading position in North Louisiana through the following: A definitive purchase and sale agreement to acquire a third-partys…
  7. Johnson Rice Energy 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. 18.8 MMcfe/d per Quarter (MMcfe/d) 21.6 22.1 22.4 22.4 22.1 17.2 16.7…
  8. Johnson Rice Energy 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. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 9
    Multi-Year Drilling Inventory Drives Upside Potential Terryville Complex Locations Terryville Complex Horizontal Locations by Pay-Zone(1) Zone Proved Prob. Poss. NSAI 3P Mgmt Total Upper Red 81 41 53 175 602 777 50+ year drilling…
  10. Johnson Rice Energy 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 Management type curves based on well Lateral Length (feet) 7,500 7,500 7,500 performance, spacing and lateral…
  11. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 11
    Key Takeaways Over-pressurized reservoir with multi-stacked pays World-Class Highly concentrated and growing position in North Louisiana Asset 50+ year drilling inventory in four primary zones under current drilling program (1)…
  12. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 12
    Operations & Financial Summary 14
  13. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 13
    Operational Update Positive Recent Well Results(1) Completed 22 gross horizontal wells during 3Q15 to-date Completed 14 Upper Red wells with an average 19N 4W Lincoln 4 6 1 IP-30 rate of 25 MMcfe/d 19N 5W 19N 3W 79 horizontal wells…
  14. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 14
    World Class Asset Productivity MRD Has Top Productive Wells Top 100 Gas Wells by Operator Since 2012, 73 wells of 17,200 horizontal gas wells in the Peak 30-Day Mcfe Production U.S. have peak monthly production over 21 MMcfe/d MRD 36…
  15. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 15
    MRD Regional Advantage Proximity to Gulf Coast Provides High Gas Realizations and Access to Future Demand Growth Primary Demand Drivers(1) A A. Proximity to New LNG Exports Facilities Dominion - Five LNG exports facilities are FERC…
  16. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 16
    Superior Pricing Drives Shareholder Returns Peer Leading Realizations Across Products Natural Gas Realizations 107% 108% 103% 100% 101% 101% Uniquely positioned to benefit from 100% 96% attractive price realizations 80% 95%…
  17. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 17
    Financial Strategy and Capitalization Financial Update Capitalization MRD Segment(1) Preserve Financial Flexibility ( in millions) 6/30/15 Pro Forma Operate towards free cash flow positive asset base Adj. 6/30/2015 (5) Cash and Cash…
  18. Johnson Rice Energy 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. Johnson Rice Energy 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 LOE Expense (/Mcfe) 1.20 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. Johnson Rice Energy 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% 100% 88% 88% 89% 86%…
  21. Johnson Rice Energy 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. Johnson Rice Energy 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. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 23
    Organizational Chart & Ownership(1) Headquarters: Houston, TX Employees: 500 full-time NGP Funds Certain Former Management Members of MRD Holdco LLC Public WildHorse Resources 15% 36% 49% Memorial Resource Development…
  24. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 24
    High Production Rates Throughout Cotton Valley Trend MRD has the Top 33 Wells in the Cotton Valley Trend 28 Active Cotton Valley Horizontal Rigs across +250 miles Terryville Complex Bellevue Timber 16 9HC-1 36.6 MMcfe/d(1) Lloyd…
  25. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 25
    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…
  26. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 26
    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…
  27. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 27
    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…
  28. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 28
    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…
  29. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 29
    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%…
  30. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 30
    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;…
  31. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 31
    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…
  32. Johnson Rice Energy Conference – Memorial Resource Development Corp. – slide 32
    Reconciliation of PV-10 to Standardized Measure PV-10 is a non-GAAP financial measure and differs from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a…

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