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March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas

Extraction Oil and Gas · Apr 17, 2017 · 31 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. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 1
    Scotia Howard Weil 45th Annual Energy Conference March 2017
  2. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 2
    Capital Structure and Market Summary Capital Structure Market Capitalization (March 23, 2017) 2,890 million Series A Preferred 185 million Net Debt(2) (39 million) Enterprise Value 3,036 million Net Debt / EBITDA 0.0x Market…
  3. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 3
    Key Investment Highlights DJ Basin Net Acreage Wattenberg-Focused Position of Scale CO 230,000 net acres with 116,000 in core DJ Basin(1) Laramie Kimball Contiguous acreage blocks allow for longer laterals Limited vertical well…
  4. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 4
    Upcoming Value Drivers Execution on current completion program on track and underway Drives 70%+ production growth Results from enhanced completions A pathway to Broomfield development established Allows development of 10,000…
  5. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 5
    Proven Track Record of Production Growth 100 90 80 70 60 48-54 MBoed +75% 50 40 38.2 +71% 31-33 30 28.9 29.9 27.6 24.2 24.8 +54% 19.2 20.0 19.4 20 14.0 10 0 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16…
  6. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 6
    2017 Strategy and Guidance: Focused on Execution Strategy Guidance Summary Focused on execution 1Q17 2017 2018 Net Sales (MBoed) 31- 33 48 54 75+% Y/Y Grow production by 61-81% year-over-year Oil (MBbld) 12 - 14 23 - 25 - Running…
  7. March 2017 45th Annual Scotia Howard Weil Energy Conference – 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, IPO and Dec. 2016 ( in millions) equity offering Cash on Balance Sheet 589 Top tier balance sheet…
  8. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 8
    Near-term Growth Supported by Wells in Process Estimated Lateral Gross Net Gross 1-mile Net 1-mile Estimated WI (%) Length (mi) Wells Wells Equivalents Equivalents Bring Online Progress Pad 1 92% 2.0 11 10.1 22 20.2 Late Q1-17…
  9. March 2017 45th Annual Scotia Howard Weil Energy Conference – 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 WTI 530 77 3,929 (1) 230 1,617…
  10. March 2017 45th Annual Scotia Howard Weil Energy Conference – 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. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 11
    Growing Our High Quality Inventory XOGs Leasehold Area Potential to add 1,500 incremental gross 1-mile equivalent locations into economic inventory through completion enhancements from Northern Extension area Larimer Potential to…
  12. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 12
    Enhanced Completions Increase NPV and Rate of Return Enhanced completions improve capital efficiency despite longer cycle times Increases NPV per well up to 2.1x Standard v. Enhanced Completion Niobrara Well D&C(1) Demonstrated by…
  13. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 13
    Niobrara 1.5-mile Average Type Curve and Economics Standard Completions Oil Type Curve and Operated Well Production(1) As of December 31, 2016 125 operated Niobrara wells with 30 days of production history; average lateral MBbl length…
  14. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 14
    Codell 1.5-mile Average Type Curve and Economics Standard Completions Oil Type Curve and Operated Well Production(1) As of December 31, 2016 79 operated Codell wells with 30 days of production history; average lateral length of MBbl…
  15. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 15
    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 (standard completions) Larimer 60 Peer 8 Cumulative oil…
  16. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 16
    Northern Extension Acreage Overview Highlights Northern Extension Acreage and Offset Permit Activity 120,000 net acres concentrated in Northern Weld County EOG area of activity EOG Wells Codell Niobrara Represents considerable future…
  17. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 17
    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)…
  18. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 18
    Highly Efficient Operating Cost Structure PUD Development Costs / Boe(1) (/boe) Median: 8.77 8.24 8.77 9.13 XOG Permian Peers DJ Basin Peers Recycle Ratio(2) 2.4x 1.8x Median 1.8x 1.1x Permian Peers XOG DJ…
  19. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 19
    Cash Flow Protection Through Hedges Strong hedge portfolio protects cash flow: 80% of expected 2017 oil and gas production hedged Maintain a multi-year rolling hedge program 2017 positions: 1,500 MBbls of oil hedged with swaps that…
  20. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 20
    Well-Positioned for 2017 and Beyond Ample liquidity and strong balance sheet Existing high quality and extensive drilling inventory Upcoming Value Drivers: 1. Execution on current completion program is on track and underway 2.…
  21. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 21
    Appendix 22
  22. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 22
    2017 Outlook XOG Guidance 2017 outlook reflects a 3+ rig & 3 frac fleets operated program as well as additional capital Production for land, midstream and non-operated wells 1Q17 2017 2018 Approximately 130 gross wells in process at…
  23. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 23
    Enhanced Completion Type Curve Illustration 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 24
  24. March 2017 45th Annual Scotia Howard Weil Energy Conference – 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. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 25
    Hedge Details 2017 2018 First Second Third Fourth First Second Third Fourth Oil: Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter WTI Oil(1) Swaps Volume (Bbl) 1,050,000 450,000 - - 450,000 450,000 - - Wtd. avg. swap…
  26. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 26
    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…
  27. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 27
    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…
  28. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 28
    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…
  29. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 29
    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…
  30. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 30
    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 Thre e Months Ende d For…
  31. March 2017 45th Annual Scotia Howard Weil Energy Conference – Extraction Oil and Gas – slide 31
    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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