Quality Assets. Disciplined Management. Company Overview www.sanchezpp.com October 2016
Topics Topics Sanchez Relationship Well-Sponsored Partnership Capital Optimization Focus Catarina Growth Drives Midstream Asset Growth Midstream Overview SNs Development of the Catarina Asset Stacked Pay in the Catarina Asset SNs…
Sanchez Relationship 2016 Sanchez Production Partners LP
Well-Sponsored Partnership Sanchez Oil & Gas Corporation (SOG) 1972 Operations and Technical Support Private operating platform with 200 employees Experienced management Technical and operational expertise Active business…
Capital Optimization Focus 4 Growth at SPP 1 SN invests capital in generates currency development drilling Capital for SNs future growth Perpetuates Deployed and acquisitions Growth Produces growth in Platform Initial production,…
Midstream Overview Catarina Volumes Underpin Both Current Midstream Assets and Future Growth Liquids 9 2016 Sanchez Production Partners LP
SNs Development of the Catarina Asset Catarina Development Total Drilling EUR Average Breakeven Price Locations (Per Well) At…
Stacked Pay in the Catarina Asset Upper Eagle Ford 150+ Potential Locations 7 wells in stacked pilots drilled to date High oil yields of 250 Bbl/MMcf Middle Eagle Ford 500+ potential Locations Large Stacked Pay Application…
SNs Economics Favor Continued Development SNs Catarina drilling results and expected returns favor continued development of the area, even in a low commodity price environment SN-operated Western Catarina results are 40% stronger than…
SNs Catarina Development Drives SPPs Growth Catarinas growth has lead to numerous midstream expansion opportunities within the entire ranch Production has more than doubled since the time of the acquisition with a 625% increase in…
SNs Catarina Development Drives Volumes SNs development focus remains on Catarina In August 2016, SN announced a 50 million increase in its 2016 capital spending plan Planned spending of 150 - 160 million in 2016 at Catarina (56% of…
Assets, Expansion and Opportunities 2016 Sanchez Production Partners LP
Midstream Overview Build Out Catarina Volumes Underpin Both Current Midstream Assets and Growth Opportunities 3 Raptor Gas Processing Facility Carnero Gathering Line 2 Processes Dedicated Catarina Wet Gas into Liquids and Dry Gas…
Existing Midstream Assets 1 Western Catarina Midstream 2 Carnero Gathering Line Gathering and processing assets constructed by Shell as part of 50% interest acquired from SN in July 2016 the original infrastructure of the Catarina Field…
Current Midstream Expansion 3 Raptor Gas Processing Facility 4 Raptor Seco Pipeline Phase 1 5 Costa Azul Terminal Costa Azul Terminal Acquisition of SNs 50% interest in the Raptor Pipeline off the tail of the Raptor gas JV for…
Future Midstream Development Opportunities 6 Raptor Seco Pipeline Phase 2 7 VelociFrac Fractionator 8 VelociFrac Ethane Pipeline 50 mile expansion of Phase 1 of the Raptor Two tower fractionator to remove and sell 77 mile ethane…
Appendix A Additional Project Details 2016 Sanchez Production Partners LP
Identified Acquisition: Raptor Gas Processing Facility Project Summary & Context Acquisition of SNs 50% equity interest in the LLC which owns the Raptor Gas Processing Facility Strategic asset allows SPP to capture more of the…
Identified Capital Projects: Raptor Seco Pipeline Phase 1 & 2 Project Summary & Context Strategic Geographic Positioning Phase 1 pipeline would transport processed dry gas to provide SN access to multiple markets Phase 2 pipeline…
Identified Acquisition: Costa Azul Terminal Project Summary & Context Strategic Geographic Positioning JV with partner for a marine crude storage terminal located in Point Comfort, TX (Costa Azul Port) Estimated completion in April…
Future Opportunity: VelociFrac Fractionator Project Summary & Context Strategic Geographic Positioning Two tower fractionator to remove propane and Mt. Belvieu ethane from Raptor NGLs DCP Y-Grade Line C2/C4+ Fractionator would allow…
Future Opportunity: VelociFrac Ethane Pipeline Project Summary & Context 77 mile ethane pipeline to deliver product directly from the VelociFrac fractionator into the Corpus Christi market Pipeline would reduce costs to SN and provide…
Appendix B Additional Partnership Details 2016 Sanchez Production Partners LP
SPP Management Team Antonio R. Sanchez, III is Chairman of our general partners board of directors. Mr. Sanchez, III has served as the President and Chief Executive Officer of Sanchez Energy Corporation (NYSE: SN), a publicly traded…
SPP Structure Organizational Structure(1) SOG Operating Platform Sanchez Family, SP Holdings, LLC Directors and Insiders Public Unitholders (DE) (LP Interests) (LP Interests) 16.2% 83.8% Sanchez Production Partners GP LLC…
Appendix C Catarina Development 2016 Sanchez Production Partners LP
Western Catarina Development SPP dedicated acreage located in Western Catarina development area Mix of LEF & MEF infill locations depending upon prior well penetration Stacking in LEF and MEF for step outs Increase in type curve…
South Central Catarina South-Central Catarina development area offers additional midstream project opportunity for SPP Excellent rates and projected EURs Unvalued at acquisition Stacking in LEF to MEF Southern rim transition from…
Appendix D Existing Asset Overview 2016 Sanchez Production Partners LP
Western Catarina Midstream Asset Asset Overview Asset Details Gathering and processing assets originally constructed by Royal Dutch Shell as part of the infrastructure for the development of Dedicated the Catarina Field 35,000 acres…
Carnero Gathering Asset Overview Asset Overview Carnero Gas Gathering Asset Strategic Location 50% interest acquired from SN in July 2016 50% owned and operated by Targa Developed to own and operate a 45 mile natural gas pipeline for…
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