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February 2017 Investor Presentation – Extraction Oil and Gas

Extraction Oil and Gas · Feb 15, 2017 · 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. February 2017 Investor Presentation – Extraction Oil and Gas – slide 1
    Investor Presentation February 2017
  2. February 2017 Investor Presentation – Extraction Oil and Gas – slide 2
    Key Investment Highlights DJ Basin Net Acreage(1) Wattenberg-Focused Position of Scale CO 237,000 net acres with 117,000 in core DJ Basin Laramie Kimball Contiguous acreage blocks allow for longer laterals Limited vertical well…
  3. February 2017 Investor Presentation – Extraction Oil and Gas – slide 3
    Capital Markets Summary Market Summary Trading Price (February 13, 2017) 18.10 Ticker Symbol (Nasdaq) XOG Common Shares Outstanding 171.8 million Convertible Preferred Shares Outstanding (as converted basis) 11.5 million Average…
  4. February 2017 Investor Presentation – Extraction Oil and Gas – slide 4
    Proven Track Record of Production Growth 100,000 89,250 90,000 80,000 70,000 48,000 - 60,000 54,000 51,000 Boed 50,000 38,161 40,000 +75% 27,609 28,946 29,891 30,000 24,247 24,766 19,209 20,027 19,408 +71% 20,000…
  5. February 2017 Investor Presentation – Extraction Oil and Gas – slide 5
    XOG Outperformed Guidance for Q4 2016 2016 Guidance Estimated Midpoints Q4-16 Results % Outperformance Oil Full Year Oil Sales (Bbl/d) 14,210 Nine months ended 9/30/16 13,899 Implied 4Q-16 Oil Sales (Bbl/d) 15,136 16,076 6% Liquids…
  6. February 2017 Investor Presentation – Extraction Oil and Gas – slide 6
    2017 Strategy and Guidance Strategy Guidance Summary Focused on execution 2017 2018 Net Sales (MBoed) 48 54 75+% Y/Y Grow production by 66-86% year-over-year, or Exit Rate (MBoed) 65-70 - over 100% based on exit rates 2017…
  7. February 2017 Investor Presentation – Extraction Oil and Gas – slide 7
    Ample Liquidity to Execute Growth Plan Liquidity as of 12/31/16 Enhanced liquidity profile through issuance of senior unsecured notes and IPO ( in millions) Top tier balance sheet provides several Cash on Balance Sheet 589…
  8. February 2017 Investor Presentation – Extraction Oil and Gas – slide 8
    Near-term Growth Supported by DUC Inventory Wells in Process at Year-end 2016 Estimated Lateral Gross Net Gross 1-mile Net 1-mile Estimated Pad Name WI (%) Length (mi) Wells Wells Equivalents Equivalents Bring Online Pad 1 92% 2.0 11.0…
  9. February 2017 Investor Presentation – Extraction Oil and Gas – slide 9
    Substantial Inventory of Low Breakeven Locations Excludes Northern Extension, Recent Acquisitions and Enhanced Completion Uplift 10% IRR Breakeven WTI 80% of locations(1) economic at 45/Bbl 530 77 3,929 (1) 230 1,617 405…
  10. February 2017 Investor Presentation – Extraction Oil and Gas – slide 10
    Current Focus on Niobrara and Codell Formations Other Horizons Provide Additional Upside Extraction has producing wells in the Niobrara A, B, C and Codell benches Wattenberg Prospective Horizons Wattenberg Formations Other Major…
  11. February 2017 Investor Presentation – Extraction Oil and Gas – slide 11
    Growing Our High-Quality Inventory XOGs Leasehold Area(1) 1 Potential to add 1,500 incremental gross 1-mile equivalent locations into economic inventory through completion enhancements from Larimer Northern Extension area 2…
  12. February 2017 Investor Presentation – Extraction Oil and Gas – slide 12
    Rationale for Shift to Enhanced Completion Higher 2nd half 2017 and 2018 production and significant growth in NPV per location in exchange for impact to 1st half 2017 production After IPO, company performed operational review with…
  13. February 2017 Investor Presentation – Extraction Oil and Gas – slide 13
    Initial Enhanced Completion Results Increased proppant concentration and modified pump schedule Enhanced Completion Outperformance Low GOR Proppant Variation Results 22,000 21,000 20,000 19,000 18,000 17,000 16,000 Initial…
  14. February 2017 Investor Presentation – Extraction Oil and Gas – slide 14
    Niobrara 1.5-mile Average Type Curve and Economics Standard Completions Oil Type Curve and Operated Well Production(1) As of November 7, 2016 125 operated Niobrara wells with 30 days of production history; average lateral MBbl length…
  15. February 2017 Investor Presentation – Extraction Oil and Gas – slide 15
    Codell 1.5-mile Average Type Curve and Economics Standard Completions Oil Type Curve and Operated Well Production(1) As of November 7, 2016 79 operated Codell wells with 30 days of production history; average lateral length of MBbl…
  16. February 2017 Investor Presentation – Extraction Oil and Gas – slide 16
    Recent Southern Pads Outperforming Type Curve Southern Pad Locations and Offset Completions(1) Recent Extraction Southern Pad Results(2) MBbl CO 80 4 pads 34 wells Larimer 60 Peer 8 Weld 30-day IP Oil: 311Bbl/d Lateral…
  17. February 2017 Investor Presentation – Extraction Oil and Gas – slide 17
    Northern Extension Acreage Overview Highlights Northern Extension Acreage and Offset Permit Activity Position consists of 120,000 net acres concentrated in Northern EOG area of activity EOG Wells Codell Niobrara Weld County Gross EUR…
  18. February 2017 Investor Presentation – Extraction Oil and Gas – slide 18
    Efficiency Gains = Sustainable Costs Completion Efficiency per Fleet Unique culture encourages innovation 6.0 2013 2014 2015 2016 5.0 Proven track record of reducing cycle times per well 4.0 Sand Placed per Day (MM lbs)…
  19. February 2017 Investor Presentation – Extraction Oil and Gas – slide 19
    Highly Efficient Operating Cost Structure PUD Development Costs / Boe(1) (/boe) Median: 9.27 11.46 9.65 7.97 8.88 XOG XOG 12/31/15 DJ Basin Peers Permian Peers Recycle Ratio(2) 1.7x 1.7x Median 1.5x 0.9x XOG…
  20. February 2017 Investor Presentation – Extraction Oil and Gas – slide 20
    Cash Flow Protection Through Hedges Strong hedge portfolio protects cash flow Maintain a multi-year rolling hedge program 2017 positions: 1,500 MBbls of oil hedged with swaps that have an average swap price of 43.84/Bbl 6,000 MBbls…
  21. February 2017 Investor Presentation – Extraction Oil and Gas – slide 21
    Appendix 21
  22. February 2017 Investor Presentation – Extraction Oil and Gas – slide 22
    XOG Outperformed Guidance on all Three Streams Annual Evaluation 2016 Guidance Estimated 2016 Midpoints Full Year Results % Outperformance Net Equivalent Sales (Boe/d) 29,000 % Oil 49% Net Oil Sales (Bbl/d) 14,210 14,446 2% Net…
  23. February 2017 Investor Presentation – Extraction Oil and Gas – slide 23
    High Caliber Management Team Management Team Name Position Prior Experience Years in Industry Mark Erickson CEO, Chairman and Co-Founder 30+ Matt Owens President, Director and Co-Founder 9 Rusty Kelley Chief Financial…
  24. February 2017 Investor Presentation – Extraction Oil and Gas – slide 24
    Longer Laterals Lead to Increased Economics Currently 75% of gross 1-mile equivalent identified locations are 1.5 mile or longer laterals Niobrara (Standard Completions) Codell Lateral D&C Cost F&D Cost EUR(2) Identified 1-mile %…
  25. February 2017 Investor Presentation – Extraction Oil and Gas – slide 25
    Enhanced Completion Type Curve Modeling Enhanced Completion Type Curve Base Type Curve Enhanced Completion Type Curve +10-15% Initial Production BOPD Flatter Decline After 60-90 days +20-50% EUR Days 25
  26. February 2017 Investor Presentation – Extraction Oil and Gas – slide 26
    Preliminary 2017 Outlook XOG Guidance Preliminary 2017 outlook reflects a 3+ rig & 3 frac fleets operated program as well as Production additional capital for land, midstream and non- 2016 2017 2018 operated wells Net Sales (MBoed)…
  27. February 2017 Investor Presentation – Extraction Oil and Gas – slide 27
    Board of Directors Name Position Background Mr. Erickson serves as Chairman, CEO and co-founder of Extraction. Prior to this, he served as Mark Erickson Chairman, CEO, Co-founder Chairman and CEO of PRE Resources, LLC from 2010 to 2014…
  28. February 2017 Investor Presentation – Extraction Oil and Gas – slide 28
    Non-GAAP Measures The following table presents a reconciliation of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged to the GAAP financial measure of Net income (loss) for each of the periods indicated: For the Three Months Ended For…
  29. February 2017 Investor Presentation – Extraction Oil and Gas – slide 29
    Corporate Contact Information Extraction Oil & Gas, Inc. Auditor 370 17th Street PricewaterhouseCoopers LLP Suite 5300 Denver, Colorado Denver, Colorado 80202 7205578301 Independent Petroleum Engineer Ryder Scott Denver,…

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