Energy Corporation Investor May 31 June 1, presentation 2017
Page 3 Company overview Delaware Basin focus Premier Delaware Basin operator with peer leading production growth rates 184 percent 2015-2017 estimated Delaware Basin growth1 Superior operating metrics Long lateral IRR of more than…
Page 4 Company overview Delaware Basin focus 26,800 gross (21,000 net) acres1 30 horizontal Wolfcamp A/B wells producing as of May 2017 Brought eight wells online YTD 463 gross (405 net) operated Wolfcamp A/B locations More than…
Page 5 Recent Company developments Increased drilling and completion activity Two rigs running; dedicated frac spread Expect to drill 22 gross wells in Appaloosa and Mustang Started completion activity on six DUCs in Bronco Strong…
Page 6 Recent well results and production contribution Peak 24 hour IP Boe per day Reeves County production1 Renegade L02H 2,440 Renegade U03H 3,006 Harpoon L05H 2,571 Mustang North Mitre L07H 2,870 South Elephant U04H 2,716…
Page 7 Reeves County drilling program 2017 activity 2017 program Currently running one rig in Mustang, one in Appaloosa Dedicated frac spread will move through all three areas Spud to TD has improved from 24.3 days in 1H16 to…
Page 8 Appaloosa and Mustang operations timeline Apr May Jun Jul Aug Sep Iron City L05H Drilling N. Elephant U06H Completing Steamworks U07H Producing N. Goat B101SL Breckenridge L06H Ranger L07H Ranger B106H Uinta L04H Ace L06H…
Page 9 Bronco operations timeline Apr May Jun Jul Aug Sep DS Fuente 201HL DS Fuente 204HU DS Fuente 207HL DS Fuente 209HL DS Fuente 212HU DS Fuente 214HU Drilling Completing B. Fuente 4401HU Producing B. Fuente 4402HU Current…
Page 10 Inventory and downspacing Three pairs producing Wolfcamp Wells per zone Gross well Development location Downspaced location zone Base Upside inventory1 Uinta/Boucher pair2 X - 4 44 Renegade pair2 Y - 4 44 Pipeworks pair2…
Page 11 Oil and gas gathering system Multiple options in place Gas gathering and Reeves County gathering infrastructure compression systems in Plains place Caprock Midstream ETC constructing crude oil network and gas transmission…
Page 12 Nearby horizontal activity Wolfcamp B, C and X/Y Operator Well Label Spud IP30 Successful nearby tests Date Boepd 1 Apache BLUE JAY UNIT 103H 2/1/2016 3,200 Resolute acreage 2 Apache CONDOR P208HR 8/5/2015 1,043 X/Y 3…
Page 13 Average WCA cumulative production v. type curve Long lateral v. type curve WCA type well economics Development type well Long Mid-length Peak 30-day (gross Boe) 2,605 1,499 Capex ( million) 9.0 8.0 Payout (months)1 10 17…
Page 14 Operating costs Dramatic year-over-year improvement Permian Basin Total Company Selling Aneth Field should reduce total Company LOE per Boe by more than 40 percent Significant G&A savings also expected from disposition
Page 15 Opportunity to stand up third rig Considering a third rig in second half of 2017 Assuming a third rig starts August 1, would expect to spud six gross additional wells and put four wells online by year-end Decision will be…
Page 16 Multi-year production growth 2018 development considerations Expanding rig count, three vs. four; timing of rig adds Pad drilling, number of wells per pad Trade off between drilling efficiency and production lags Target…
Page 17 Aneth Field overview Large, stable, cash-flowing asset Engaged Petrie Partners and Aneth Field Barclays to market Aneth Field Received expressions of interest from numerous parties Virtual data room open to qualified…
Appendix
Page 19 Delaware Basin type curve economics Long lateral IRR1 Mid-length lateral IRR1 Development type well Wolfcamp A Development type well Wolfcamp A Peak 30-day (gross Boe) 2,605 Peak 30-day (gross Boe) 1,499 EUR (gross…
Page 20 Acquisition overview Bronco project area Bronco Legend/well list 1 2 5 6 1 mile 102 Upper Wolfcamp A Producing 101 1 2 3 4 Upper Wolfcamp A DUC 31 Upper Wolfcamp A Completing 3 4 32 Wolfcamp B Producing 7 8 5 33…
Page 21 Current hedge positions Current oil derivative positons Bbl/day Percent Hedged utilizing Swap Collars Options hedged Swaps Collars Options strike Sold put Floor Cap sold call 2017 7,022 43% 57% 0% 53.69 40.00 48.46 59.66 -…
Page 22 Quarterly prices and volume 2016 2017 Prices and volume Q1 Q2 Q3 Q4 FY Q1 Average prices: Oil ( per Bbl) 26.63 39.75 39.55 44.15 38.83 47.52 NGL ( per Bbl) 4.30 7.64 8.61 12.61 9.80 10.89 Gas ( per Mcf) 1.64 1.38 2.49…
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