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Capital One Securities Annual Energy Conference – Jones Energy Inc.

Jones Energy Inc. · Dec 7, 2016 · 29 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. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 1
    Capital One Securities 11 th Annual Energy Conference December 7, 2016
  2. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 2
    Jones Energy Overview NYSE Ticker JONE Common Share Price 4.60 Preferred Share Price [1] 79.60 Equity Market Cap (mm) Common Stock 399 Preferred Stock [1] 146 Total Equity Market Cap 546 Enterprise Value (mm) 1,224 Common…
  3. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 3
    Proven MidCon Operator 700 Brown Dolomite 72 wells 600 Cleveland 525 wells Cumulative Horizontal Wells Drilled 500 Drilled 700 horizontal wells in 400 MidCon over Granite Wash 28 wells company history 300 Arkoma…
  4. Capital One Securities Annual 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 300 million and net debt/LTM EBITDAX of 3.2x Outstanding…
  5. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 5
    Transformative STACK/SCOOP Acquisition Expands MidCon footprint to STACK/SCOOP Acquisition 18,000 net acres primarily in Canadian & Grady Counties, OK Western Anadarko Basin for 136.5mm Cleveland Implied acreage value of…
  6. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 6
    Acquisition Highlights Significant Transformative BestinClass Upside Transaction Returns Potential Provides scalable Welllevel returns among Multiple benches provide footprint in coveted the best in lower 48 true stacked…
  7. Capital One Securities Annual 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. Capital One Securities Annual 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. Capital One Securities Annual 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 Highquality Woodford shale MERAMEC Primary initial target…
  10. Capital One Securities Annual 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. Capital One Securities Annual 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. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 12
    Compelling Recent Well Results Newfield Newfield FSB 1H 26X OKLAHOMA Redhead 1H 9XX Spud June 2015 CANADIAN Spud May 2015 Meramec Woodford IP30: 1360 BOE/D (66% oil) IP30: 1120 BOE/D (76% oil) Cimarex Marathon Gary 1H36X Meyer 1106…
  13. Capital One Securities Annual 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 2stream BOE Industry optimization has lead to 150,000 improved…
  14. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 14
    Attractive Resource with Upside Potential Majority of acreage in oil window JONE Acreage 8 rigs running on acquisition footprint Phase Boundary Active Industry Rigs NFX, MRO, CLR, XEC, CHK, LINN, and CANADIAN Citizen Energy…
  15. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 15
    Recently Completed Bolton 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. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 16
    Drilling Faster than Ever in the Cleveland 50% decrease in Cleveland AFE since yearend 2014 Vendor cost reductions and efficiency gains have resulted in savings Have broken all previous drilling records since resuming Cleveland…
  17. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 17
    BestinClass 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. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 18
    Portfolio of Outstanding Returns Significant PV10 uplift for STACK/SCOOP well relative to Cleveland well Single well IRRs of 75100% at current strip and PV10 of 611 million Outstanding Returns at Current Strip 12 100% 10 80%…
  19. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 19
    Jones Energy: Premier MidCon Pure Play Decades of MidCon Operating Expertise Premier Asset Balance Sheet & Base with Liquidity to MultiYear Facilitate Growth Inventory 19
  20. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 20
    APPENDIX
  21. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 21
    2016 Guidance and 4Q Production Guidance 2016E 4Q16E Total Production (MMBoe) 6.9 7.1 1.6 1.8 Average Daily Production (MBoe/d) 18.6 19.4 18.2 19.2 Crude Oil (MBbl/d) 4.4 4.8 4.4 4.7 Natural Gas (MMcf/d) 50.0 52.0 50.0 52.0 NGLs…
  22. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 22
    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…
  23. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 23
    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…
  24. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 24
    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:…
  25. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 25
    Current Net Hedge Position 4Q16 1Q17 2Q17 3Q17 4Q17 2017 2018 2019 Oil Hedges Swaps (MBbl) 463 428 440 390 345 1,603 1,014 Price (/Bbl) 80.89 68.44 66.93 65.09 66.76 66.85 75.52 Collars (MBbl) 810 Floor (/Bbl) 48.52 Ceiling (/Bbl)…
  26. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 26
    NGL Hedge Position Detail 4Q16 1Q17 2Q17 3Q17 4Q17 2017 Mont Belvieu NGL Swaps (MBbl) Propane 33 30 30 30 30 120 Iso Butane 3 3 1 7 Butane 12 12 12 12 12 48 Natural Gasoline 13 12 12 12 12 48 MB NGLs 58 57 57 55 54 223 Mont Belvieu NGL…
  27. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 27
    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…
  28. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 28
    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%…
  29. Capital One Securities Annual Energy Conference – Jones Energy Inc. – slide 29
    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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