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DUG Permian Conference – Three Rivers Operating Co III LLC

Three Rivers Operating Co III LLC · Aug 25, 2016 · 38 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. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 1
    Looking Ahead DUG Permian Basin Conference May 2016
  2. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 2
    Single Basin Efficiency Permian Basin Focused Acquisition Machine Formed 3ROC I in 2010, 3ROC II in 2012 and 3ROC III in 2015 Equity backed by Riverstone Holdings LLC Closed 1 billion acquisitions, drilled approximately 150…
  3. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 3
    Shamelessly Stolen Strategy 3
  4. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 4
    Cracks in the Strategy 4
  5. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 5
    Stated Causes Historical commodity price drop Too much debt MLP 5
  6. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 6
    Stated Causes Real Cause Historical commodity Overpaying for price drop acquisitions Too much debt MLP 6
  7. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 7
    MLP Competition Original Plan Cash Flow Properties with low decline and little upside bought at a discount Hedge production significantly Low maintenance capital (i.e. no drilling) 7
  8. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 8
    MLP Competition Original Plan Actual Acquisitions Cash Flow Properties with Cash Flow Properties low decline and little upside bought at a premium bought at a discount Hedge strategy became Hedge production complex significantly…
  9. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 9
    Fierce Permian Competition 100+ Private Equity backed companies Acreage prices in excess of 20K are normal Common for data rooms to have in excess of 50 participants 9
  10. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 10
    Fierce Permian Competition 100+ Private Equity backed companies Are we the Acreage prices in excess next MLPs of 20K are normal Common for data rooms Are we to have in excess of 50 participants different 10
  11. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 11
    What is the goal Buy the best acreage for the highest price Buy the greatest value opportunities 11
  12. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 12
    A&D Value Opportunities DUG 2015 12
  13. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 13
    2015 3-Step Value Formula 1 2 3 Best Expiring IP 30s Rigs A&D Acreage Value 13
  14. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 14
    Horizontals with 24hr IPs 1,000 BOPD* *From October 2014 to April 2015 14
  15. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 15
    May 2015 149 Hz Rigs 15
  16. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 16
    Permian Expiring Acreage Q2 2015 Q2 2016 16
  17. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 17
    Permian Expiring Acreage Q2 2015 Q2 2016 17
  18. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 18
    Delaware Basin Deals 2015 2016 80 Marketed Packages 18
  19. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 19
    An Improved Approach for 2016 3-Step Value Formula 1 2 3 Best Expiring 2015 IP 30s Rigs A&D Acreage Value 2016 19
  20. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 20
    An Improved Approach for 2016 3-Step Value Formula 1 2 3 Best Expiring 2015 IP 30s Rigs A&D Acreage Value 2016 EURs 20
  21. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 21
    An Improved Approach for 2016 3-Step Value Formula 1 2 3 Best Expiring 2015 IP 30s Rigs A&D Acreage Value 2016 EURs NPV 21
  22. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 22
    An Improved Approach for 2016 3-Step Value Formula 1 2 3 Best Expiring 2015 IP 30s Rigs A&D Acreage Value Best Available 2016 EURs NPV Transactions A&D Value
  23. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 23
    Top Horizontal EURs 8 2 5 20 16 1 17 18 13 4 7 14 9 196 10 11 15 12 3 *Represents wells spud since 1/1/2014 23
  24. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 24
    Price Step Change Midland Basin Company County /Acre Diamondback Howard 35K Midland/ RSP 30K Martin Parsley Reagan 25K Blue Whale Howard 35K Delaware Basin Company County /Acre Concho Ward 22K Parsley Reeves 10K PE…
  25. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 25
    Permian Basin Horizontal Drilling Time 2013 2014 25
  26. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 26
    Permian Basin Horizontal Drilling Time 2013 2014 26
  27. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 27
    Permian Basin Horizontal Drilling Time 2015 2016 27
  28. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 28
    100 Oil NPV (Greater than 20% IRR) 28
  29. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 29
    80 Oil NPV (Greater than 20% IRR) 29
  30. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 30
    50 Oil NPV (Greater than 20% IRR) 30
  31. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 31
    Permian Basin Horizontal Lateral Length 31
  32. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 32
    50 Oil NPV (Greater than 20% IRR) 32
  33. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 33
    45 Oil NPV vs. Normalized NPV / 7,500 Lateral (Greater than 20% IRR) 33
  34. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 34
    Is Anything Available 34
  35. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 35
    Private Companies in the Southern Delaware Basin Silver Hill Panther Limestone PE Firm/ Jagged Energen Arris Peak 3ROC III Endurance ExL Silverback Arris Luxe Jagged Peak Patriot Centennial J Cleo Brigham…
  36. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 36
    Too Much Supply 36
  37. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 37
    Midland Basin Delaware Basin 2013 2014 2016 2017 CENTENNIAL FANG ATHLON THREE RIVERS BRIGHAM RSP PARSLEY JAGGED PEAK SILVER HILL 37
  38. DUG Permian Conference – Three Rivers Operating Co III LLC – slide 38
    In Summary Competition is fierce Must Focus on value Southern Delaware Basin is the place to be 38

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