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Johnson Rice Energy Conference – Jones Energy Inc.

Jones Energy Inc. · Sep 21, 2016 · 30 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. Johnson Rice Energy Conference – Jones Energy Inc. – slide 1
    Johnson Rice Energy Conference September 20-21, 2016
  2. Johnson Rice Energy Conference – Jones Energy Inc. – slide 2
    Jones Energy Overview NYSE Ticker: JONE Share Price: 2.91 Common Stock: 253 million Preferred Stock: 92 million Total Equity Market Cap: 345 million Enterprise Value: 1 billion Common Stock: Class A: 56.9 million Class B:…
  3. Johnson Rice Energy Conference – Jones Energy Inc. – slide 3
    Proven Mid-Con Operator 700 Brown Dolomite 72 wells 600 Cleveland 525 wells Cumulative Horizontal Wells Drilled 500 Drilled 700 horizontal wells in 400 Mid-Con over Granite Wash 28 wells company history 300 Arkoma…
  4. Johnson Rice Energy Conference – Jones Energy Inc. – slide 4
    Executing on 2016 Goals Reduced debt outstanding by 106 MM through bond buybacks Improve the Balance Sheet High PV STACK/SCOOP wells delever company over time Liquidity of 290 million and net debt/LTM EBITDAX of 3.0x Outstanding…
  5. Johnson Rice Energy Conference – Jones Energy Inc. – slide 5
    Transformative STACK/SCOOP Acquisition Expands Mid-Con footprint to STACK/SCOOP Acquisition 18,000 net acres primarily in Canadian & Grady Counties, OK for 136.5 MM [1] Western Anadarko Basin Cleveland Implied acreage value of…
  6. Johnson Rice Energy Conference – Jones Energy Inc. – slide 6
    Acquisition Highlights Significant Transformative Best-in-Class Upside Transaction Returns Potential Provides scalable Well-level returns among Multiple benches provide footprint in coveted the best in lower 48 true stacked…
  7. Johnson Rice Energy Conference – Jones Energy Inc. – slide 7
    Industry View of STACK/SCOOP Play Play boundaries driven by geography, not geology Stratigraphic Column Oswego Pennsylvanian STACK Cherokee JONE Acreage in CANA Morrow Merge Area Springer OKC Chester Mississipian…
  8. Johnson Rice Energy Conference – Jones Energy Inc. – slide 8
    Jones View of STACK/SCOOP Play Woodford productive fairway is continuous from north to south Jones acreage is in the heart of productive fairway Stratigraphic Column Oswego Pennsylvanian Cherokee Meramec/Sycamore Fairway…
  9. Johnson Rice Energy Conference – Jones Energy Inc. – slide 9
    Stacked Pay Potential with Three Primary Targets Acquisition Acreage North STACK SCOOP South Key Acreage Attributes Stacked pay potential CHESTER SHALE Top Seal High-quality Woodford shale MERAMEC Primary initial target…
  10. Johnson Rice Energy Conference – Jones Energy Inc. – slide 10
    Early View: Woodford Thickness Matters Legacy industry activity targeted areas Woodford Productive Fairway with highest Woodford thickness DEWEY Thickness Map KINGFISHER LOGAN BLAINE However, reservoir thickness is not the…
  11. Johnson Rice Energy Conference – Jones Energy Inc. – slide 11
    Jones View: Quality over Quantity Woodford Productive Fairway Reservoir Quality Index based on STACK Reservoir Quality Index (RQI) Map proprietary petrophysical analysis Identified key reservoir attributes that predict well…
  12. Johnson Rice Energy Conference – Jones Energy Inc. – slide 12
    Compelling Recent Well Results Most recent results highlighted in yellow Devon Newfield Wildcard 2215-1H OKLAHOMA Peters 1H 15X Spud Sept 2014 CANADIAN Spud Aug 2014 Meramec Woodford IP30: 757 BOE/D (75% oil) IP30: 918 BOE/D (80%…
  13. Johnson Rice Energy Conference – Jones Energy Inc. – slide 13
    Optimization Driving Step Change in Well Results Recent well results materially Well Results on Acquisition Footprint better than legacy wells 200,000 Cumulative 2-stream BOE Industry optimization has lead to 150,000 improved…
  14. Johnson Rice Energy Conference – Jones Energy Inc. – slide 14
    Attractive Resource with Upside Potential Majority of acreage in oil window JONE Acreage 10 rigs running on acquisition footprint Phase Boundary NFX, MRO, CLR, XEC, CHK, LINN, and Citizen Active Industry Rigs Energy currently…
  15. Johnson Rice Energy Conference – Jones Energy Inc. – slide 15
    Recently Completed Bolt-on Cleveland Acquisition 26.3 million for 25,000 net acres in Anadarko Basin Net production of 850 Boe/d as of August 2016 Direct overlay with existing footprint Expected to add 92 gross/68 net Cleveland…
  16. Johnson Rice Energy Conference – Jones Energy Inc. – slide 16
    Drilling Faster than Ever in the Cleveland 50% decrease in Cleveland AFE since year-end 2014 Vendor cost reductions and efficiency gains have resulted in savings Have broken all previous drilling records since resuming Cleveland…
  17. Johnson Rice Energy Conference – Jones Energy Inc. – slide 17
    Best-in-Class Operating Costs 2Q16 LOE decreased 36% from 2Q15 Significant savings realized due to operational efficiencies and bid reductions Significant YoY LOE Decline 2Q16 LOE per Boe 14 10 9 12 8 JONE: 4.46 36% decrease…
  18. Johnson Rice Energy Conference – Jones Energy Inc. – slide 18
    Portfolio of Outstanding Returns Significant PV-10 uplift for STACK/SCOOP well relative to Cleveland well Single well IRRs of 75-100% at current strip and PV-10 of 6-11 million Outstanding Returns at Current Strip 12 100% 10 80%…
  19. Johnson Rice Energy Conference – Jones Energy Inc. – slide 19
    Catalyst for Production Growth and Improved Credit Metrics Ability to deliver meaningful 2017 production growth while staying within cash flow Company expects to remain compliant with all debt covenants through 2017 and beyond 2017…
  20. Johnson Rice Energy Conference – Jones Energy Inc. – slide 20
    Jones Energy: Premier Mid-Con Pure Play Decades of Mid-Con Operating Expertise Premier Asset Balance Sheet & Base with Liquidity to Multi-Year Facilitate Growth Inventory 20
  21. Johnson Rice Energy Conference – Jones Energy Inc. – slide 21
    APPENDIX
  22. Johnson Rice Energy Conference – Jones Energy Inc. – slide 22
    2016 Guidance and 3Q Production Guidance 2016E 3Q16E Total Production (MMBoe) 6.6 7.1 1.6 1.7 Average Daily Production (MBoe/d) 17.9 19.4 17.5 18.5 Crude Oil (MBbl/d) 4.5 4.9 4.4 4.6 Natural Gas (MMcf/d) 48.0 51.9 47.2 49.7 NGLs…
  23. Johnson Rice Energy Conference – Jones Energy Inc. – slide 23
    Woodford Oil Window Type Curve 5,000 Lateral Oil Gas NGLs Total IP Bbl/d Mcf/d Bbl/d Boe/d 30 Day IP 420 1,140 170 780 90 Day IP 375 1,041 157 706 Production Profile Cum. Production MBbl MMcf MBbl MBoe 1 year 97 282 42 186 1,000 1,000 3…
  24. Johnson Rice Energy Conference – Jones Energy Inc. – slide 24
    Increased Cleveland Type Curve Key statistics shown below for 3P Cleveland type curve for higher density wells Type curve verified as part of audited 2015 reserve report Oil consistent with 2015 type curve but gas and NGLs higher…
  25. Johnson Rice Energy Conference – Jones Energy Inc. – slide 25
    Western Anadarko Basin Inventory Current Target Hugoton Formations Lower Permian Wolfcampian Brown Dolomite Chase / Council Grove Tonkawa Cleveland play is Admire Sandstone 2 million acres Upper Virgil Lease Acreage:…
  26. Johnson Rice Energy Conference – Jones Energy Inc. – slide 26
    Current Net Hedge Position 2016 2017 2018 2019 3Q 4Q 1Q 2Q 3Q 4Q FY FY Crude Swaps (Mbbl) 399 463 428 440 390 345 1,014 Hedge Price / Bbl 92.11 80.89 68.44 66.93 65.09 66.76 75.52 Natural Gas Swaps (MMcf) 4,360 4,220 4,240 4,320…
  27. Johnson Rice Energy Conference – Jones Energy Inc. – slide 27
    NGL Hedge Position Detail 2016 2017 3Q 4Q 1Q 2Q 3Q 4Q Mt. Belvieu NGLs (MBbl) Ethane - - - - - - Propane 35 33 30 30 30 30 Iso Butane 3 - 3 3 1 - Butane 15 12 12 12 12 12 N. Gasoline 18 13 12 12 12 12 Sub-Total Mt. Belvieu 71 58…
  28. Johnson Rice Energy Conference – Jones Energy Inc. – slide 28
    2018/2019 Hedges with Offset Transactions Total crystallized gain of 47 million in 2018/19 2018 2019 Oil Swaps Sold (Mbbl) 803 339 Hedge Price / Bbl 77.47 64.65 Oil Swaps Purchased (Mbbl) (803) (339) Hedge Price / Bbl 46.83…
  29. Johnson Rice Energy Conference – Jones Energy Inc. – slide 29
    NGL Barrel Component Detail Cleveland Conway Cleveland Natural Gasoline 12% (85% of forecasted 2016 NGL production) Iso Butane 5% Butane 13% Basket Ethane 33% Propane 37% Propane 37% Butane 13% Ethane 33% Iso Butane 5% Natural…
  30. Johnson Rice Energy Conference – Jones Energy Inc. – slide 30
    Corporate Structure Metalmark, Class B Common Stock Class A Common Stock Management 29.9 million shares 56.9 million shares Public & Other 34% of voting power in 66% of voting power in Jones Energy, Inc. Jones Energy, Inc.…

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