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Wells Fargo Energy Symposium – Memorial Resource Development Corp.

Memorial Resource Development Corp. · Dec 9, 2015 · 31 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. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 1
    Wells Fargo Energy Symposium New York, New York William J. Scarff Andrew J. Cozby President SVP and CFO December 9, 2015
  2. Wells Fargo Energy Symposium – 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. Wells Fargo Energy Symposium – 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. Wells Fargo Energy Symposium – 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. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 5
    Third-Party Acquisition Strategic Highlights Strategic-fit with MRDs existing asset base Strategic Majority of acreage located adjacent to Terryville Field Bolt-On Large, concentrated acreage position Acquisition Allows for immediate…
  6. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 6
    Significant and Growing Acreage Position MRD executed separate transactions to add to its industry-leading position in North Louisiana through the following: Acquisition of a third-partys acreage in Jackson and Lincoln Parishes,…
  7. Wells Fargo Energy Symposium – 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 22.7 17.2 16.7…
  8. Wells Fargo Energy Symposium – 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. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 9
    Multi-Year Drilling Inventory Drives Upside Potential Terryville Complex Locations Terryville Complex Horizontal Locations by Pay-Zone(1) Gross Horizontal Drilling Locations Zone Proved Prob. Poss. NSAI 3P Mgmt Total 2,521 50+ year…
  10. Wells Fargo Energy Symposium – 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. Wells Fargo Energy Symposium – 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. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 12
    Operations & Financial Summary 14
  13. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 13
    Recent Activity Strong Execution Drives Consistent Results Completed 22 gross horizontal wells during Q315 in the Terryville Field including: 1-well Dowling pad 33.0 MMcfe/d IP-30 Continued Solid 2-well Bellevue Timber pad 60.9…
  14. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 14
    Operational Update Positive Recent Well Results Completed 22 gross horizontal wells during 3Q15 19N 4W Lincoln 4 6 1 Completed 17 Upper Red wells with an average 19N 5W 19N 3W IP-30 rate of 25 MMcfe/d Claiborne 8 2 Two-well…
  15. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 15
    World Class Asset Productivity MRD Has Top Productive Wells Top 100 Gas Wells by Operator Since 2012, 75 wells of 17,200 horizontal gas wells in the Peak 30-Day Mcfe Production MRD U.S. have peak monthly production over 21 MMcfe/d 39…
  16. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 16
    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…
  17. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 17
    Financial Strategy and Capitalization Financial Update Capitalization MRD Segment(1) Preserve Financial Flexibility ( in MM) 9/30/15 Operate towards free cash flow positive asset base Keep leverage at conservative levels Cash and Cash…
  18. Wells Fargo Energy Symposium – 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. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 19
    MRD Peer Comparison MRD Historical LOE Expense (/Mcfe)(1) Q3 2015 Total Cash Cost (/Mcfe) 4.00 Cash G&A Other Expenses (2) Historical LOE Expense (/Mcfe) 1.20 3.37 1.01 3.00 2.87 0.80 0.74 2.01 2.00 Average: 1.76 1.72 2.68 0.50…
  20. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 20
    MRD Hedging Overview: 4Q15 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…
  21. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 21
    Appendix
  22. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 22
    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…
  23. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 23
    High Production Rates Throughout Cotton Valley Trend MRD has the Top 36 Wells in the Cotton Valley Trend 23 Active Cotton Valley Horizontal Rigs across +250 miles Terryville Complex Bellevue Timber 16 9HC-1 36.1 MMcfe/d Lloyd 5-6H…
  24. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 24
    Horizontal Development of Multiple Producing Benches(1) Legacy Vertical Production Focused on Commingling Sections, Horizontal Development Focused on Specific Zones Legacy Vertical Development CV Stacked Horizontal Targets Competitor…
  25. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 25
    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…
  26. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 26
    Secured Midstream Infrastructure Supports Development Plan Sufficient, Build Extensive Existing OutTakeaway Eliminates Potential Constraints Diverse Regional Takeaway DCP Regency 3 current major gas processors Minden Plant Lisbon…
  27. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 27
    Terryville Drilling Inventory 50+ Year Inventory in Four Primary Zones Terryville Future Horizontal Locations by Reserve Category (1)(2)(3) Distribution of Locations Lower Upper of Locations(2) Upper Lower Deep Deep 4 Primary Other…
  28. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 28
    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%…
  29. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 29
    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;…
  30. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 30
    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…
  31. Wells Fargo Energy Symposium – Memorial Resource Development Corp. – slide 31
    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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