POSITIONED FOR PROFITABLE GROWTH DUG East 2017 Greg D. Muse President & COO June 22, 2017
PENNENERGY RESOURCES - Overview of Position & Operations Located in the Core of the Best Gas Resource Play in the World and Positioned for Sustainable, Profitable Growth GEOLOGY & RESERVOIR - Tier 1 Acreage in Core of Marcellus & Upper…
GEOLOGY & RESERVOIR - Producing from Stacked Pay Reservoirs in the SW PA Core Delineated & Developed Using an Integrated Approach GEOLOGY RESERVOIR CHARACTERIZATION PRODUCTION PERFORMANCE ECONOMIC RETURNS INTEGRATED…
GEOLOGY & RESERVOIR - Marcellus Southwest PA Core Play PER Acreage in High Net Pay, GIP, & Right Structural/Depth Setting Cross-section highlighting high porosity net pay Marcellus across PER acreage High TOCs & Porosity (hot colors)…
GEOLOGY & RESERVOIR - Upper Devonian Southwest PA Core Play PER Acreage in High Net Pay, GIP, & Right Structural/Depth Setting Cross-section highlighting high porosity net pay Upper Devonian across PER acreage High TOCs & Porosity (hot…
GEOLOGY & RESERVOIR - Industry Well Results: EUR Bcfe/1000 Average per Pad PER Production & Reserves On-Par with Best of SWPA Southwest PA Core Bcfe/1,000 EVALUATION COMMENTARY Derived from Decline Curve Analysis of over 2,400…
GEOLOGY & RESERVOIR Southwest PA Production Decline/EUR Analysis PER Among Top Performers in Southwest PA Core Dry Gas Area Recent Activity BCFE/1,000 3.00 250 2.50 2.76 200 Operator Avg. Bcfe/1,000 2.53 2.52 2.30…
GEOLOGY & RESERVOIR Southwest PA Production Decline/EUR Analysis PER Among Top Performers in Southwest PA Core Wet Gas Area Recent Activity BCFE/1,000 3.00 250 Operator Avg. Bcfe/1,000 2.50 2.71 200 2.45 2.35 2.00…
GEOLOGY & RESERVOIR PER Production Results Wet & Dry Gas Areas Examples of PER Well Performance; Steady, Consistent Rate with Shallow Decline BEAVER WET GAS AREA BUTLER/ARMSTRONG DRY GAS AREA PER TYPICAL WELL B01-2H 5,197 Lateral 3.7…
GEOLOGY & RESERVOIR Cumulative Production Comparison PERs wells match or outperform production in both North & South of Pittsburgh Wet Gas Cumulative Mcfe/1,000 Dry Gas Cumulative Mcf/1,000 3000 SOUTH NORTH PennEnergy 3500 SOUTH NORTH…
GEOLOGY & RESERVOIR Proven Reserves & Resource Potential Sustainable Annual Reserve Growth Proved Net Reserves PDP Net PV 10 Year End 2016 Proved Proved Developed Proved Undeveloped 500 1,500 Reserves by Wright & 1,053 400 447…
GEOLOGY & RESERVOIR Very Strong Economics Attractive Returns in All Asset Areas Economic Assumptions IRR % 7000 lateral 6 Wells/pad All-In Capital 891/lat. ft. Wet Gas 933/lat. ft. Dry Gas Fixed Gas Assumes WTI 55.00/bbl NGL…
LAND 83,000 Acres of Core Consolidated Leasehold & Growing PER Acreage Positioned for Rapid, Economic Development PER Acreage Status by Prospect Area PER Core Prospect Areas %HBP Avg. Term Avg Gross Net EOY Remaining County Prospect…
LAND 83,000 Acres of Core Consolidated Leasehold & Growing Contiguous Acreage Provides Opportunity to Develop with Very Long Laterals Schematic of 10k x 5k Unit Boundaries PER Acreage Depicted with Units Capable of Drilling 10,000…
EXECUTION Continuing to Ramp Development Pace through 2019 Planning & Permitting In Place for Accelerated Development for more than 570 laterals PER acreage will be 80% HPD by Beaver Prospect Area Butler/Armstrong Prospect Areas…
EXECUTION Continuing to Ramp Development Pace through 2019 Historic Drilling & Completion Performance PER D&C Performance Drilling & Completion Performance Continues to Improve Average Measured Depths and lateral lengths are getting…
EXECUTION Continuing to Ramp Development Pace through 2019 Its Not Just About Getting Results, but How We Get Results 100% Compliance is an Expectation, not a Goal. We will comply with all rules and regulations governing our industry . .…
MIDSTREAM & MARKET Market Optionality PER has Created Significant Market Optionality for Both Natural Gas and NGLs PER Market Optionality Good & Getting Better PER Position and Market Take-Away Infrastructure Mix of core wet gas and dry…
RESULTS PER is Optimistic about the Future, Strong Financial Performance in Both E&P and Midstream Business PennEnergy Resources, LLC Pine Run Midstream, LLC * Excludes Initial Purchase Price DUG East 2017 20 Net Production…
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