RSP Permian Bank of America Merrill Lynch 2016 Global Energy Conference November 17, 2016
RSP Permian Overview (NYSE: RSPP) Large, contiguous acreage blocks in the core of the Contiguous Acreage Position in Core of Permian Basin Midland and Delaware Basins(1) Midland: 60,700 net surface acres and 270,000 net effective…
Financial and Operating Highlights Average daily production of 29.8 MBoe/d (73% oil), up 13% from 2Q16 Completed 17 operated Hz wells, 1 operated Vt well and 13 non-op Hz wells 3Q Results Adjusted EBITDAX of 65.7MM with 73.2MM of…
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 25% This group of wells includes, among others,…
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% 72% 71% 71% 73% 25.00 69%…
Superior Recycle Ratio Premier assets and operational 3Q16 Cash Margin / Boe 2015 PDP F&D Cost (1) / Boe expertise leading to one of highest 23.64 25.00 20.00 18.07 recycle ratios in the E&P industry Leading cash flow margin/Boe…
Updated 2016 Guidance and Preliminary 2017 Outlook YTD 2016 Actuals and Revised Full Year Guidance Guidance Update Aug. Revised Oct. Revised Production guidance increased by 5% at the midpoint YTD 2016 2016 2016 based on well results…
RSP is in a Strong Financial Position Capitalization Table With strong liquidity, no near-term maturities, an improved hedge position and attractive returns on ( in millions) Q3 2016 our drilling, RSP is well positioned to…
Hedging Program Summary RSP opportunistically layers on hedges to protect returns and support planned capital expenditures Recently executed additional hedging arrangements to protect remaining 2016 and 2017 volumes Deferred premium…
Midland Basin Operational Update 11
Well Cost Update After declining for six straight quarters, drilling, completion & equipping costs have increased modestly Increase was in line with expectations based on significant increase in frac density employed vs. beginning of…
Density Pilots Spanning Acreage Position In multiple spacing pilots across our core acreage position, RSP has successfully completed wells at or above our type curve using 3 different landing targets RSP believes vertical separation…
Strong and Consistent Wolfcamp A Performance Across Position RSP has tested the Wolfcamp A zone across its core Selected Top Wolfcamp A Wells Across Position acreage position with excellent results to date (20 4 20 total operated Hz…
Spanish Trail Long Laterals Exceeding Expectations Spanish Trail Section 47 Update RSPs longest LS laterals to date completed in Spanish Trail Section 47 (10,500+) On average, wells have produced over 100MBoe in first 90 days Full…
Cross Bar Ranch Lower Spraberry Increased Density Pilot Cross Bar Ranch Section 17 Update RSPs 500 spacing test at Cross Bar Ranch has performed above expectations despite relatively less oil in place vs. other RSP core acreage…
Western Glasscock Generating Strongest Economics Across Leasehold Calverley Area Update RSPs two initial Calverley wells continue to MIDLAND CO GLASSCOCK CO outperform peer 1MMBOE type curve Calverley Wells Two test wells, 3H LS and…
Acquisition Overview 18
Silver Hill Acquisition Overview Silver Hill Acquisition Highlights Wolfcamp Structure Map (Subsea Depths) Highly contiguous operated position in the core of the Delaware Basin 68,000 gross / 41,000 net acres 80% operated with over…
RSP is a Selective Acquirer: Why Silver Hill RSP has taken a measured approach to acquisitions successfully growing asset base without sacrificing quality Silver Hill Meets All Key Acquisition Criteria Rock Quality: Silver Hill…
Superior Delineation Drives Acreage Value Selected Delaware Basin Operator Development Targets Enduranc Silver hill Cimarex MTDR CXO EOG Shell Brigham FANG PDCE WPX e Delaware Group Lamar Bell Canyon Guadalupe Cherry…
Economics of Delaware Basin Provide Compelling Opportunity Delaware Basin Technical Highlights Delaware / Midland Geologic Comparison Thick, oil saturated section within the over-pressured Wolfcamp and Bone Spring Silver Hill Type…
Silver Hill Properties Stack Up Well with Our Current Inventory Silver Hill short lateral well performance competes with and in some cases exceeds Midland basin long lateral well performance Potential for uplift in upfront…
Multi-Zone Potential Across Silver Hill Assets White Falcon 16 1H Rudd Draw 3H John James 1H Brunson 47 1H Brunson 38 1H Brunson A 803H 1 Endurance 26 Silver Hill 25 Concho 24 EOG 23 EOG 22 Silver Hill IP30: 1,813 Boepd IP30: 1,084…
2016 Drilling & Completion Activity Update In 4Q16, RSP expects to complete 13-17 operated wells in YTD Operated Completions by Zone the Midland Basin MS WB 2% 40-50% focused in the Lower Spraberry zone 13% 4Q16 drilling and…
Executing Accretive Bolt-on Acquisitions in Core Midland Areas YTD 2016 (through September), RSP has acquired Locator Map of 2016 YTD Acquisitions 62 million of bolt-on oil and gas properties: 2,500 net acres located in core Midland,…
Adjusted EBITDAX and Adjusted Net Income Reconciliation Reconciliation of Net Income (Loss) to Adjusted EBITDAX (in thousands) Three Months Ended Three Months Ended September 30, June 30, 2016 2015 2016 Net Income (Loss) 985…
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