Oil Sands Mining Divestiture and Permian Basin Entry March 9, 2017 1
Transformative Portfolio Shift Exiting Canadian Oil Sands, entering the Permian basin A&D Since 2016 3.8B Substantially shifts portfolio to lower cost, Divestitures higher margin U.S. resource plays 2.5B Oil Sands Mining divestiture…
Acquisition Summary 70,000 acres in Permian establishes foundation for new basin entry at 13,900 / acre Competes at top of MROs organic portfolio Quality Outstanding recent well performance from offset operators Primary oil targets…
Compelling Rate of Change in Northern Delaware Industry well performance rapidly improving via enhanced completions Average Hz Well Performance (Lea & Eddy Co. NM) Northern Delaware industry well 150,000 performance consistently…
Northern Delaware Basin Recent Well Results Greater than 75% operated, 55% avg WI on company operated CHAVES COUNTY MTDR: Airstrip State Com 201H Upper Wolfcamp IP24: 926 BOED (97% oil) 4,100 LL LEA COUNTY MTDR: Mallon 27 Fed…
Acquisition Basis and Upside Potential Stacked pay provides multiple high quality drilling targets Northern Delaware Basin Stratigraphic Column Illustrative Well Density 5,000 of stacked pay with up to 10 target benches Brushy…
Key Takeaways Oil Sands Mining Divestiture 2.5B Proceeds available for resource capture, organic investment & debt reduction 15x 2016 OSM operating cash flow 25% Reduction in Company expenses (production and other operating)…