Energy Corporation Resolute Energy is a regionally diversified growth oriented E&P company Investor presentation focused on long-lived (NYSE: REN) domestic oil producing assets December 2015
Resolute overview Company history Market capitalization1 66.6 million SEC PV10 2 973 million 2004 Resolute formed Long term debt 3 738.6 million Aneth Field: Assets acquired from Shares outstanding1 77.5 million 2005…
Our operating areas Proved reserves are 92% liquids Areas of operation Aneth Field 54.2 MMBoe proved reserves1 6,191 Boe per day (95% oil) 2 44,400 gross (28,300 net) acres2 Permian Basin 14 MMBoe proved reserves1 Aneth…
The strategy is working Production is essentially flat despite 2015 net drilling and completion spending limited to approximately 10 million EBITDA is down only 13% year- over-year despite average product prices falling by…
The strategy is working LOE is down 27% year-over-year Aneth LOE per Boe lowest since acquisition more than a decade ago Permian Basin cost reduction program reflects the results of operational enhancements that began when we…
Gardendale sale On November 23, 2015, we announced the sale of our Gardendale property in the Midland Basin The transaction represents a continuation of our previously announced strategy to reduce debt and improve liquidity Our…
Reeves County drilling program First of four wells spudded on November 15, 2015 Resolute reinstated drilling program in Delaware Basin Four well (gross) program Mustang prospect area Two wells (1.1 net wells) 7,500 foot laterals…
Reserves and production overview Year end 2014 SEC case data, except as indicated Year-end 2014 SEC case: Proved reserves: 74.2 MMBoe 56% proved developed 86% oil, 92% liquids PV10 973 million R/P ratio of 16 years 1 12,439 Boe…
Long-lived properties Low declines, low maintenance capital requirements Aneth Field Boe per day Aneth Field discovered in 1956 7% base annual decline 2014 production increased by 2% 2015 maintenance capital 16 18 million Denton…
Permian Basin
Permian Basin Does not reflect impending Gardendale sale Permian Basin map 32,100 gross (22,100 net) acres1 85% located in core horizontal Denton development areas Northwest 52% oil, based on Q3 net Shelf Midland Basin…
Permian Basin Year-end 2014 SEC case: Proved reserves: 14 MMBoe PV10 181 million Flat year-over-year net production as of Q3, despite sale of Howard and Martin County properties Current focus on horizontal 1 Wolfcamp development…
Reeves County overview Horizontal development program Resolute-operated horizontal wells 22,100 gross (13,500 net) acres 1 Vertical producing well Resolute acreage Mustang Appaloosa Q3 net production 2,500 Boe per day, Horizontal…
Mustang and Appaloosa area activity Relevant industry success Resolute BHP Renegade 0302BH Reeves County State Hanging H Ranch 1H IP30: 1,050 Boepd IP30: 1,092 Boepd1 Resolute Cimarex Queen City 0301BH Ruby 1-39 1H IP30: 1,235…
Project economics Reeves County IRR sensitivity by well cost ( thousand) Area Mustang Appaloosa Lateral length 7,500 feet 10,000 feet 30 day IP (gross) 1,130 Boe per day 1,200 Boe per day EUR (gross)1 1,002 MBoe 1,206 MBoe % oil…
Horizontal well potential Delaware Basin Based on derisked zones Acreage Wells Resource Percent Average EUR Zones potential Gross Net Gross Net oil (MBoe) (MMBoe) Delaware Basin Mustang 13,200 7,200 130 81 48% 3 1,002 61…
Recent well results Operated wells 18
Denton Field overview Acquired producing asset in 2013 Denton Field 2,900 gross (2,800 net) acres 1 Q3 net production 537 Boe per day Cumulative production through Q3 2015 120 MMBoe Some individual wells have produced more than…
Aneth Field
Aneth Field introduction Foundation asset Aneth Field 1.5 billion barrels OOIP Produced 438 MMBbl of oil through 2014 (29% recovery) Ongoing successful CO2 flood Aneth and McElmo Creek units predict an average recovery of 40% of…
Aneth Field overview Year-end 2014 SEC case: Proved reserves: 54.2 MMBoe 57% proved developed PV10 717 million 6,191 Boe per day net Q3 production (95% oil) 2014 proved reserve characteristics 2014 SEC reserve report 22
Aneth Field overview Foundation asset Fields like Aneth are rare Large CO2 recovery project, unlocks millions of recoverable barrels of oil Located 28 miles from the largest naturally occurring CO2 resource in the country Cash…
Financial overview
2015 production and cost guidance Expect to meet or exceed full year guidance Projected 2015 Q3 2015 2014 guidance actual actual Total production (MBoe) 4,380 4,745 1,144 4,645 Boe per day 12,000 13,000 12,439 12,727 LOE (…
Bank borrowing base and second lien status Bank borrowing base September 30 borrowing base was 260 million, with 140 million drawn Sold Powder River Basin properties for 55 million in October 2015; proceeds used to reduce debt…
Hedging strategy Provide protection against price downside Two to three year horizon Work the hedge book opportunistically Current Oil Derivative Positons Bbl/day % Hedged Utilizing Swap Collars Options Term Hedged Swaps Collars…
Key investment highlights High quality base of long-lived oil producing properties Portfolio of development projects that are poised to provide incremental value Solid project returns and improving cost metrics Proven,…
Resolute investor contacts
Resolute investor contacts HB Juengling Vice President Investor Relations (hbjuenglingresoluteenergy.com) Theodore Gazulis Executive Vice President and Chief Financial Officer (tgazulisresoluteenergy.com) Corporate headquarters:…
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