Barclays CEO Energy-Power Conference September 2016
Jones Energy Overview NYSE Ticker: JONE Share Price: 2.77 Common Stock: 232 million Preferred Stock: 92 million Total Equity Market Cap: 324 million Enterprise Value: 1 billion Common Stock: Class A: 53.8 million Class B:…
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…
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 280 million and net debt/LTM EBITDAX of 3.0x Outstanding…
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…
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…
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…
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…
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…
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…
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…
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%…
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…
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…
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…
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…
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…
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%…
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…
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
APPENDIX
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…
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…
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…
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:…
Corporate Structure Metalmark, Class B Common Stock Class A Common Stock Management 29.9 million shares 53.8 million shares Public & Other 36% of voting power in 64% of voting power in Jones Energy, Inc. Jones Energy, Inc.…
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