Barclays CEO Energy-Power Conference September 6, 2016
RSP Permian Overview (NYSE: RSPP) Large, contiguous acreage blocks in the core of the Concentrated Acreage Position in the Core of the Midland Basin Midland Basin 63,000 net surface acres and 262,000 net effective horizontal…
Second Half of 2016 Operating Plan Expected full-year production range increased to 26.5 - 28.5 MBoe/d Increased Higher forecast due primarily to increased well productivity 2016 Guidance Development capital expenditure budget…
2016 Horizontal Well Performance Exceeding Type Curves The average of all operated horizontal wells brought online in 2016 YTD is outperforming the weighted average internal type curve by 20% This group of wells includes, among others,…
Strong Historical Growth with Significant Organic Growth Potential Historical Production Growth Illustrative Rig Scenarios 30.0 Oil Price Operated Debt / Annualized 28.5 Hz Rigs EBITDAX Production Growth 25.0 26.5 55+…
Updated 2016 Guidance Increased production guidance range to 26.5 - 28.5 1H 2016 Actuals and Full Year Guidance MBoe/d, or 10% above original midpoint Original Revised Capex range revised to 285MM - 315MM 1H 2016 Full Year 2016 (1)…
2H16 Operational Activity Update In 2H16, RSP expects to complete 30-34 operated wells 2H16 Operated Completions by Zone 50%+ focused in the Lower Spraberry zone WB 2H16 drilling and completion activity noted below 20%…
RSP is in a Strong Financial Position Capitalization Table Selective use of capital markets to fund ( in millions) Q2 2016 acquisitions & maintain a strong balance sheet Cash 33 Earliest debt maturity is undrawn Revolving…
Hedging Program Summary RSP opportunistically layers on hedges to protect returns and support planned capital expenditures Recently executed additional deferred premium puts that more than doubled existing downside oil price…
Low Cost Structure and Strong Margins Operating margins remain strong despite drop in realized oil prices due to cost controls and prolific wells Historical Cash Margins and Costs (per Boe) 30.00 90% 78% 75% 72% 71% 71% 25.00 69%…
Superior Recycle Ratio Premier assets and operational 2Q16 Cash Margin / Boe 2015 PDP F&D Cost (1) / Boe expertise leading to one of highest 25.00 22.48 20.00 18.31 recycle ratios in the E&P industry Leading cash flow margin/Boe…
Efficient Operator Coupled with Strong Growth Strong production and reserve growth with low 2015 CAPEX per Average Headcount (MM) (2) corporate overhead 5.00 4.00 Contiguous assets and lean operating structure 4.26 allow for…
Well Costs Continue to Decline Drilling, completion & equipping costs have declined for six straight quarters on an actual and per lateral foot basis As a result of continued increase in frac density, latest vintage completion designs…
Evolution of Stimulation Design Ongoing RSP is using a variety of tools to optimize stimulation Illustrative Fracture Evolution efficiency with a goal of increasing productivity near B 2013-14 Mid 2014 to YE15 Q1 2016 wellbore,…
Spanish Trail Long Laterals Exceeding 1MMBoe Peer Type Curve Spanish Trail Long Laterals Update RSPs longest laterals to date drilled in 150 Spanish Trail Section 47 8 wells have been completed to date, all MBoe 100 with TDs in…
Western Glasscock Generating Strongest Economics Across Leasehold Calverley Area Update Two initial Calverley wells continue to outperform MIDLAND CO GLASSCOCK CO peer 1MMBOE type curve Two test wells in Western Glasscock, 3H LS and…
Johnson Ranch Lower Spraberry Increased Density Pilot Johnson Ranch LS Density Pilot Update 80 RSP has completed the first 4 wells on the Johnson Ranch LS spacing test with 60 encouraging results; 4 additional wells currently…
RSP Permian Delivering Value High Quality Assets Focused on Returns and Execution Strong Financial Position Experienced Management 19
Appendix 20
2Q16 Update Average daily production of 26.4 MBoe/d (73% oil, 15% NGLs, 12% Natural Gas), up 7% from 1Q16 and 33% over 2Q15 Financial Results Adjusted EBITDAX of 58.5MM (up 64% from 1Q16), on 57.6MM of 2Q16 development Capex Net…
2Q16 Activity Summary In 2Q16 RSP completed 11 operated Hz wells (10 2Q16 DUC Locator LS, 1 WA) and 1 Vt well Ended 2Q16 with 19 operated Hz DUCs (24 non- 1 operated DUCs) distributed across core acreage 4 position 2 Production…
Executing Accretive Acquisitions in Core Areas YTD 2016 (through July), RSP has acquired 55 Locator Map of 2016 YTD Acquisitions million of oil and gas properties: 2,180 net acres located in core Midland, Martin, and Glasscock…
Significant Upside to Focus Area Inventory from Further Downspacing RSP believes spacing tests may show significant Spacing Assumptions (Wells per 1-Mile Section) upside to current spacing assumptions Current Spacing Increased Density…
Extensive Multi-Year Drilling Inventory with Strong Rates of Return Gross Focus Area Horizontal Inventory Net Focus Area Horizontal Inventory 4,371 Net Locations…
Wolfcamp A & B Overview Performance of Wolfcamp A wells to date is as strong as any zone in RSPs inventory RSP now has 17 core Wolfcamp A wells with production history RSPs plan is to simultaneously develop the Wolfcamp A and…
Wolfcamp A and Wolfcamp B Type Curves Wolfcamp A/B Type Curves and Operated Wells in Core Counties since Mid-2014 (Normalized to 7,500) 200 17 Wolfcamp A wells 150 Cumulative MBoe 100 18 Wolfcamp B wells 50 EURs: 75%…
Lower & Middle Spraberry Overview Lower Spraberry remains the top performing zone in RSPs inventory, but Middle Spraberry economics also reflect robust potential The majority of RSPs activity continues to target the Lower Spraberry…
Lower Spraberry and Middle Spraberry Type Curves Spraberry Type Curve and Operated Wells in Core Counties since Mid-2014 (Normalized to 7,500) 200 32 Lower Spraberry wells 150 Cumulative MBoe 100 7 Middle Spraberry wells…
Adjusted EBITDAX and Adjusted Net Income Reconciliation Reconciliation of Adjusted EBITDAX to Net Income (in thousands) Three Months Ended Three Months Ended June 30, March 31, 2016 2015 2016 Net income (loss) (9,801) (5,453)…
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