Business Combination Presentation December 22, 2015 0
Investment Highlights Diversified Shale Play Exposure Presence in the most prolific, domestic oil-bearing shale with Growing Inventory playsEagle Ford, Midland Basin, and Bakken Growth through drill bit and significant acquisitions…
Strategic Objectives Asset Strategy Corporate Strategy Optimize Existing Properties Deliver superior returns to shareholders Implement operational improvements and Maintain financial flexibility and a strong balance efficiencies…
Earthstone A Platform for Steady Growth Over the last 12 months, Earthstone has quickly evolved from a micro cap, non-op Bakken company to a small cap, multi-basin operator with additional exposure to the Eagle Ford and Midland Basin…
Earthstone Acquires Lynden NYSE MKT: ESTE TSX Ventures: LVL.V / OTC Pink: LVLEF 18.8 MMBoe1 13.4 MMBoe2 81% Liquids / 47% PD 76% Liquids / 34% PD 79% Ownership in Combined Company 21% Ownership in Combined Company…
Lynden Acquisition Rationale Benefits to ESTE Stockholders Entry into Midland Basin, diversifying and expanding its existing exposure to the Eagle Ford and Bakken Additional production of 1,450 Boepd, SEC 6/30/15 proved reserves of…
Combined Core Asset Map1 Earthstone and Lynden Combined North Dakota Earthstone Total Companies Bakken/Three Forks Northern Region 6/30/15 SEC Reserves 6/30/15 SEC Reserves 1P Reserves (MMBoe) 32.2 1P Reserves (MMBoe) 2.8 % PD 42% %…
Core Asset Summary Company Earthstone Earthstone Lynden Project Area South Texas Williston Basin Midland Basin Objective Eagle Ford, Bakken, Spraberry, Austin Chalk Three Forks Wolfcamp Counties Karnes, Gonzales, McKenzie, Dunn…
Combined Asset Summary 6/30/15 SEC Pricing1 Proved Reserves by Category1 Proved Reserves by Commodity1 32.2 MMBoe 32.2 MMBoe PDNP 6% Gas 21% PDP PUD Oil 36% 58% 63% NGL 16% PV-10 by Category1,2 Current Production by…
Combined Asset Summary 6/30/15 SEC Pricing(1) (Contd) Total Proved Reserves (MMBoe)1 Proved Developed Reserves (MMBoe)1 40.0 20.0 32.2 30.0 15.0 13.4 18.8 8.8 20.0 10.0 10.0 5.0 0.0 0.0 ESTE Standalone ESTE Combined ESTE…
Earthstone Maintains an Industry Leading Leverage Profile Net Debt / EBITDAX 12.0x Debt / EBITDAX Net Debt / EBITDAX EBITDAX / Interest Expense Earthstone + Lynden 1.3x 0.0x 24.0x 10.0x Peer Average 4.0x 3.7x 6.2x ESTE Rank (of 62…
Combined Capital Structure and Liquidity Total liquidity of 120.9mm Liquidity (mm) Earthstone Lynden Cash of 49.3mm 9/30/2015 9/30/2015 Combined1 Cash and Equivalents 41.3 8.0 49.3 Reserve-based loan remaining availability of…
Combined Financials First Nine Months of 2015 First Nine Months of 2015 (000s) (Unaudited) ESTE LVL Combined Revenues From Production Oil 31,586 9,312 40,898 Natural Gas 5,483 1,301 6,784 Natural Gas Liquids 2,164 1,046 3,210…
Combined Equity Ownership Earthstone is Backed By Top-Tier Investors 17.535mm shares outstanding, of which 21% will be held by Lynden stockholders Investor Sponsor Ownership Earthstone Management 52.0% Friends and Family…
Oak Valley Resources, LLC will own 52.0% of the Combined Company. Oak Valleys investors include: Earthstone Management EnCap Investments L.P. Significant equity investors Leading provider of private equity to the independent E&P sector…
Midland Basin and Eagle Ford Position Overview Midland Basin 1 County Gross Acres Leasehold Interest (%) Net Acres Production (Boepd) Martin 1,757 43.75% 769 1,127 20.00% 225 Midland 640 43.75% 280 Glasscock 4,480 43.75% 1,960 Howard…
Midland Basin Acreage Position Overview Gross Lynden Net Lynden Net County Acres % Interest Acres 1,757 43.75 769 Martin 1,127 20.00 225 Midland 640 43.75 280 Glasscock 4,480 43.75 1,960 6,121 40.625 2,487 Howard 640 25.39…
Midland Basin Horizontal Potential in Multiple Horizons Several horizontal resource plays being delineated Horizontal development in the Midland Basin is exceeding original expectations Increasing industry activity de-risking…
Glasscock County Wind Farms Prospect Area 4,480 gross / 1,960 net acres prospective for Initial Horizontal Locations the Wolfcamp Leasehold interest of 44% Lyndens first two horizontal Wolfcamp wells in Glasscock County were drilled…
Howard County Tubb Prospect Area 6,761 gross / 2,640 net acres prospective for the Wolfcamp Leasehold interest of 25% to 41% First horizontal well planned for April 2016 Increasing vertical and horizontal well activity by other…
Eastern Shelf Mitchell Ranch Overview Unique opportunity in terms of size, contiguous nature, and significant geological potential Covers 165 square miles on Eastern Shelf 50% working interest in 104,000 gross and net acre lease…
Eagle Ford Summary Operated Fayette, Gonzales, and Karnes Counties 39,875 gross / 19,575 net leasehold acres Working interests range from 33% to 50% 64 gross producing wells (62 operated / 2 non- op) October 2015 average gross…
Eagle Ford and Austin Chalk Intervals Across the Acreage Stratigraphic Column S.W. Fayette & N.E. Gonzales Co.s, Texas Formation Frio Vicksburg Jackson Missing / Eroded Yegua-Cockfield Section Weches Queen City Reklaw Carrizo…
Recent Eagle Ford Acquisitions Karnes and Gonzales Counties Acquired 3,050 gross / 1,185 net acres in Karnes and Southern Gonzales Counties Operational control with 33% to 50% working interest Currently drilling four wells in Karnes…
Upper Austin Chalk Naturally Fractured Reservoir October 2015 average gross production of 625 Boepd (96% operated) 8 gross producing wells (7 operated / 1 non-op) 7,880 gross acres held by production Brought 4 gross wells on line in…
Williston Basin Bakken/Three Forks Play Summary Near-Term Strategy 5,700 net core acres predominantly in McKenzie Expand acreage and Dunn Counties of North Dakota that are prospective for the Bakken/Three Forks Acquire production…
2016 Hedging Summary Oil and Gas Production Hedged Swap Positions Avg. hedged oil price = 59.65/Bbl Oil / Gas Quantity Period Fixed Avg. hedged gas price = n/a Oil BBls/mo Price Gas MMBtu/mo 400,000 Oil 5,000 Jan 16 Mar 16 57.00…
Combined 2015 Capital Expenditure Budget Current Budget Capex by Project Area Gross Well Count 15% Drilling and Completion mm Drilled Completed Operated Eagle Ford 45.0 10 13 13% Non-Operated Permian 15.5 13 12 44% 8%…
Appendix A Adjusted EBITDAX Adjusted EBITDAX is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors, commercial banks and others, to assess our operating…
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