J.P. MORGAN 2017 ENERGY EQUITY CONFERENCE June 28, 2017
RSP PERMIAN INVESTMENT HIGHLIGHTS Focused asset base with balanced exposure to the core of the Midland and Delaware Prime Permian Basins. Blocky, contiguous acreage footprint enabling peer leading efficiencies and long Position…
RSP PERMIAN OVERVIEW RSP OVERVIEW CONTIGUOUS ACREAGE POSITION IN CORE OF PERMIAN BASIN(1) 146,000 gross / 95,000 net acres across highly contiguous acreage blocks in the core of the Midland and Delaware Basins 5,900 gross (3,700…
STRONG TRACK RECORD OF GROWTH ANNUAL PRODUCTION GROWTH (MBOE/D) ANNUAL RESERVE GROWTH (MMBOE) 57 (1) SHEP II 283 (1) SHEP I 53 Midland Basin 237 202 159 29 21 106 12 54 7 (1) 2013 2014 2015 2016 2017E…
DURABLE MARGINS THROUGHOUT THE COMMODITY PRICE CYCLE Experienced Permian operations team Highly contiguous acreage footprint Crude price realization ranks amongst highest in basin HISTORICAL CASH MARGINS AND COSTS (PER BOE) 30.00…
WELL PERFORMANCE LEADING THE PACK Premier acreage position yielding consistent, strong results Focused R&D effort to determine optimal drilling and completion techniques by area and reservoir Significant year-over-year improvement…
DRILLING & COMPLETION EFFICIENCY IMPROVEMENTS RSP drilling HZ wells in less than half the time as HZ wells drilled in 2013 RSP is completing over 7 stages per day (sand pounds/day increased 15% over 2015) Opportunities for additional…
SUPERIOR CAPITAL EFFICIENCY DRILLBIT F&D (EXCL. PRICE REVISIONS)(1) TOP DRILLING TARGETS SINGLE WELL IRR Lateral Reservoir IRR 55 Length 10.13 Glasscock Upper Wolfcamp 7,500+ 8.25 Wolfcamp A 7,500+ 70% Lower Wolfcamp A 4,500+…
STRONG FINANCIAL POSITION WITH AMPLE LIQUIDITY 900MM elected commitment under the amended and restated CAPITALIZATION TABLE credit facility with 1.1B borrowing base and 2.5B maximum lender commitments ( in millions) 3/31/2017 Key…
INCREASING HEDGE PROFILE RSP opportunistically layers on hedges to protect returns and support planned capital expenditures HEDGE CONTRACT DETAIL Crude Oil (Bbl, /Bbl) 2Q17 3Q17 4Q17 2Q17 4Q17 2018 Three-Way Collars (1) 3,160,000…
FULL YEAR 2017 GUIDANCE FULL YEAR 2017 GUIDANCE SUMMARY COMMENTARY 1Q17 7 operated rigs currently (4 Midland, 3 Delaware) 2017 Guidance Range Actuals Production 3rd Delaware rig arrived in May Avg. Daily Production (Boe/d) 45,189…
RSP STRATEGY: RATE-OF-RETURN DRIVEN GROWTH Emphasis on high rate of return, rather than growth for growths sake During 2015 2016 oil price downturn RSP slowed drilling and opportunistically made acquisitions Operated rigs dropped from…
CAPITALIZING ON OUR STRENGTHS TO DELIVER VALUE Expect to grow production 90% in 2017 and have visibility to 30% plus PRIME PERMIAN production growth & cash flow neutrality in 2018+, at 55 oil price ASSETS Over 30 years of highly…
MIDLAND BASIN UPDATE
MIDLAND BASIN ACTIVITY UPDATE Strong well results confirming enhanced completion design and asset quality WELL RESULT UPDATE MIDLAND BASIN ACTIVITY LS WA WB Lateral Compl. Length IP30 Well Name Date Formation (Feet) (BOED) %…
SIGNIFICANT REDUCTION IN TIME TO WELL PAYOUT At 55/bbl flat, and using conservative capex and well performance assumptions, 155MBo approximates well payout To date, over 55% of wells completed in 2015 have reached payout in less than…
MIDLAND BASIN INVENTORY Numerous spacing pilots ongoing CURRENT SPACING ASSUMPTIONS Base Spacing Upside Spacing Base Spacing assumptions updated Formation Avg. Wells/Section Wells/Section Optimal well placement will evolve with more…
DELAWARE BASIN UPDATE
DELAWARE BASIN ACTIVITY UDPATE Substantial stacked resource potential with 7 currently producing zones and strong recent results across 4 highlighted below ROBUST RESULTS DESPITE SHORT LATERALS & RESTRICTIVE CHOKES DELAWARE BASIN…
APPENDIX
1Q17 ACTIVITY OVERVIEW During 1Q17, RSP drilled 21 and completed 14 operated HZ wells (excludes 2 Delaware Wolfcamp A wells completed prior to SHEP II close on 3/1/17) 1Q17 Midland Basin activity Operated drilled / completed: 6 / 2 in…
1Q17 FINANCIAL RESULTS Production growth of 80% and EBITDAX growth of 250% over prior year first quarter D&C capex 25% above prior quarter and 70% above prior year first quarter 1Q17 1Q16 4Q16 1Q17 1Q16 4Q16 Avg. Daily Production…
1Q17 BOLT-ON ACQUISITIONS & TRADES Acquired 770 net acres for 17 million in 1Q17 Entered into acreage trades for 2,130 net acres, enhancing working interest and/or creating long-lateral drilling opportunities LOCATOR MAP OF 1Q17…
MIDLAND BASIN WELL PERFORMANCE Substantial year over year well productivity MIDLAND BASIN WELL PERFORMANCE BY VINTAGE improvement since commencing horizontal drilling in 2012 300 2016 performance 13% above 2014 & 2015 avg. despite…
MIDLAND BASIN TYPE CURVE INCREASES RSP increased average type curve for aggregate Midland Basin position Adjusted IP and initial decline / slope of RSP type curves to match early time outperformance Type curves prepared by RSP third…
EARLY PRODUCTION HAS GREATEST INFLUENCE ON WELL VALUE ILLUSTRATION: TERMINAL DECLINE IMPACT ON EUR / NPV ILLUSTRATION: B-FACTOR IMPACT ON EUR 700 8 800 85% 15% 600 6 700 VALUE VALUE 35% Net Present Value (MM) 4 600 diff…
DELAWARE BASIN WELL PERFORMANCE Substantial year over year well productivity improvement DELAWARE BASIN WELL PERFORMANCE BY VINTAGE on the Silver Hill properties Improvements in drilling and completion techniques 300 Switch in primary…
DELAWARE BASIN WORKOVER CASE STUDY RSP recently directed workovers of several wells with excellent results Wells have been online 170 200 days total and current rates are substantially above IPs Installed ESP in Brunson 1111H 8,000…
DELAWARE CRUDE OIL GATHERING AND TRANSPORTATION OVERVIEW Crude oil gathering provided by DELAWARE CRUDE OIL INFRASTRUCTURE Outrigger (Targa) Targa (NYSE: TRGP), one of the largest midstream providers in North America, acquiring…
DELAWARE GAS GATHERING AND TRANSPORTATION OVERVIEW Gas gathering provided by Outrigger DELAWARE GAS GATHERING SYSTEM (Targa) Processing provided by Outrigger (Targa) and Energy Transfer Gathering system 70 MMcf/d cryogenic processing…
DELAWARE WATER INFRASTRUCTURE OVERVIEW Recently acquired water gathering and DELAWARE WATER DISPOSAL SYSTEM disposal infrastructure assets that serviced Silver Hill Post acquisition RSP controls: Gathering system 4 operated SWD wells…
ADJUSTED EBITDAX AND ADJUSTED NET INCOME RECONCILIATION Reconciliation of Net Income (Loss) to Adjusted EBITDAX (in thousands) Three Months Ended March 31, 2017 2016 Net income (loss) 38,934 (17,416) Interest expense 19,224…
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