Skip to main content Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II | Shale Experts
Loading...
Pm

Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II

Silver Run Acquisition Corp II · Aug 17, 2017 · 41 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. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 1
    Alta Mesa Resources Pure-Play STACK Enterprise August 2017 1
  2. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 2
    Table of Contents I. Introduction II. Company Overview III. Our Upstream Assets IV. Our Midstream Assets V. Financial Summary VI. Valuation and Timeline Appendix 3
  3. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 3
    Introduction
  4. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 4
    Silver Run II Delivering on Investment Criteria Upstream Midstream Assets economic well below current oil price Competitively-positioned assets that benefit from strong supply/demand fundamentals High margin core basin…
  5. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 5
    Pure Play STACK Company Premier liquids upstream growth with value-enhancing midstream World class asset with attractive geology Highly contiguous 120,000 acres with substantial infrastructure in core of STACK Oil-weighted resource…
  6. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 6
    Transaction Overview Jim Hackett and Riverstone raised 1 billion through Silver Run Acquisition Corporation II (Silver Run II) IPO to invest in a market leading company which could generate significant potential return Silver Run II…
  7. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 7
    Transaction Summary Sources & Uses ( MM) Implied Firm Value Post-Transaction Ownership3 Sources ( millions) KFM Legacy Owners' Rollover Equity 1,993 Owners 14% Silver Run II Cash Investment 999 1 Shares Outstanding 388.6 Legacy…
  8. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 8
    Company Overview
  9. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 9
    Alta Mesa Overview Focused on development and acquisition in the STACK Upstream Metrics Contiguous Core Position in STACK Oil Window Net STACK Surface Acres 120,000 Current Production (BOE/D) 20,000 % Liquids 69% Proved…
  10. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 10
    High Caliber STACK Operating Team Cohesive, tenured, scalable team producing world class results Name Position Years at AMR Years Experience Hal Chappelle President and CEO 13 30+ Mike Ellis Founder and Chief Operating Officer 30…
  11. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 11
    Optimization, Delineation and Expansion Systematic horizontal development and growth of contiguous acreage 1992 - 2013 2014 - 2015 2016 & 2017 Plan Legend 40,000+ Net Acres 73,000+ Net Acres 120,000+ Net Acres 1987 2013 2016…
  12. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 12
    Alluring Macroeconomic Fundamentals High quality rock drives compelling returns, robust rig activity Major U.S. Oil Plays Breakeven Prices (/BBL)1 Alta Mesa Type Well IRR3 33.36 34.66 34.76 32.14 169.3% 27.71…
  13. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 13
    Asset Value of AMRs STACK Position 7B PV-10 Value from Identified Gross Locations before downspacing Alta Mesas 4,196 Identified Gross Drilling Locations are the Implied P/NAV: primary focus of the near-term development plan 38%…
  14. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 14
    Our Upstream Assets
  15. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 15
    Significant Activity in Alta Mesa Neighborhood Prominent operators active in Updip Oil Window adjoining Alta Mesa Permits 180 Days SD SD SD CHK CHK CHK MRO CHK DVN NFX CHK AMR DVN AMR MRO AMR DVN MRO DVN CLR…
  16. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 16
    Alta Mesa Vision Rigorous development and balance sheet to consolidate regional assets Alta Mesa Position in Expanding STACK/MERGE/SCOOP Area Existing Asset Value Early phase of systematic Meramec/Osage, and Oswego development…
  17. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 17
    Progressive Increase in Completion Intensity Alta Mesa leadership in operational advancements Completion Summary By Generation Current Type Curve Gen 2.0 Alta Mesa has proactively advanced completion designs with each 100 generation…
  18. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 18
    Average Well Results Results as of YE 2016 with early-stage Gen 2.5 forecasts Average EUR by Generation1 Optimizing Stimulated Reservoir Volume MBO MBOE Financial goal: maximize discounted cash flow Well design goal: optimize…
  19. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 19
    Cost-Advantaged Asset Base Infrastructure and basic well design mitigate cost inflation Advantage Why It Matters Gross D&C1 (MM) 1 Lat. Length: 4.8k 4.8k 4.8k 5.0k 4.8k 5.0k 9.6k 9.8k 9.6k 10.0k Allows for the elimination of additional…
  20. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 20
    Alta Mesa: Low Cost Operator Peer leader in operating cost and capital efficiency SEC Future Development Cost Per Proved Undeveloped BOE ( / BOE)1 24.21 13.78 9.37 10.02 8.53 8.77 8.89 7.96 5.62 2 2 AMR XEC CLR PE…
  21. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 21
    Solid Results Affirm De-Risked Acreage Position Representative wells across 11 townships Notable 2017 Alta Mesa Wells Lateral EUR EUR/'000 IP90 IP90 IP90/'000 Well Target IP30 (BOE/D) Well Name1 Length (MBOE)2 Lateral ft2 (BOE/D) % Oil…
  22. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 22
    Alta Mesa STACK Development Moving into development mode on de-risked Kingfisher acreage Base Case Development Plan For AMR 2017 Development Plan Oswego/ Big Lime 150 ft 1,500 1,500 1,500 450 ft Meramec 750 750…
  23. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 23
    STACK: A Significant Petroleum System Additional development potential in multiple stacked pay zones Alta Mesa Existing Development Potential 55 Wells per Section Existing spacing tests at 660 show full Type Log Down- Additional…
  24. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 24
    Deep Drilling Inventory 4,196 Identified Gross Locations represent 14+ years of inventory Alta Mesas 4,196 Identified Gross Drilling Locations are the primary focus of the near-term 753 development plan 1,996 174 484 488…
  25. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 25
    Progressive Execution Track record of growth in production, reserves, acreage position Net STACK Acreage Alta Mesa Footprint 102,466 73,512 Recent addition 40,587 44,506 YE 2013 YE 2014 YE 2015 YE 2016 Total Net…
  26. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 26
    Near Term Consolidation Opportunity Play is expanding and significant acreage could change hands Source: Investor Presentations, 1Derrick. 27
  27. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 27
    Our Midstream Assets
  28. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 28
    KFM is Value Accretive to Alta Mesa Vertical integration yields substantial strategic and financial benefits Rapidly Expanding G&P Complex KFM is positioned to capture volume growth from the STACK in the Heart of the STACK Acreage…
  29. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 29
    Market Multiples for Midstream Higher than Upstream Alta Mesa owners to capture GP / IDR cash flow / multiple arbitrage Valuation Arbitrage Likely valuation uplift (multiple arbitrage vs. traditional peer group) 30.0x 26.8x 23.8x…
  30. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 30
    Kingfisher Midstream Summary Existing Infrastructure Cushing 60 mi. Natural Gas Current processing capacity of 60 MMCF/D Processing Second 200 MMCF/D plant under construction 80 MMCF/D offtake processing expected 3Q 2017 1,200…
  31. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 31
    KFM Midstream Takeaway Overview Pipeline Description Current Takeaway Capacity Expansion Projects Commentary Natural Gas Connected to PEPL owned and 100,000/day FT on PEPL KFM in discussion Gas takeaway is functionally full creating a…
  32. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 32
    KFM Phase III Expansion Overview Recent Major county acquisition adds scale through 20,000 acre dedication Offset operator activity in the Western STACK reflects compelling economics driving producer interest and investment…
  33. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 33
    Financial Summary
  34. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 34
    Financial Strategy and Pro Forma Financial Impacts Demonstrated trajectory to positive free cash Capitalization at Announcement flow with near-term development funded with transaction proceeds Current ( in millions, unless…
  35. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 35
    2017 Capital Budget and Hedge Position Commentary 2017E Capital Budget by Quarter (MM) Excl. Acquisitions1 Alta Mesa Upstream Alta Mesas 2017 net capital budget is estimated to be 349MM, 11% higher than 14% capital expenditures of…
  36. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 36
    Valuation and Timeline
  37. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 37
    Summary Financial Projections ( in millions unless otherwise noted) 1 Average Net Daily Production (BOE/D) EBITDA(X) Capital Expenditures (excl. DrillCo Funds) 68,900 1,019 837 63 761 2,003 89 62 255 601 137 147 38,510 74…
  38. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 38
    Valuation Benchmarking ( in millions unless otherwise noted) Firm Value / 2018E EBITDA Firm Value / 2019E EBITDA 7.9x 7.9x 7.7x 7.7x 7.6x 7.3x 6.5x 6.6x 6.4x 6.1x 6.1x 6.1x 5.9x 6.0x 5.3x 4.7x 4.3x 3.1x MTDR DVN LPI XEC…
  39. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 39
    Benchmarking KFM Against High Growth G&P Peers ( in millions unless otherwise noted) Firm Value / 2018E EBITDA Firm Value / 2019E EBITDA 13.8x 13.8x 13.6x 12.3x 11.4x 11.2x 10.1x 8.7x 7.3x 4.2x 1 1 EQM AM HESM NBLX KFM…
  40. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 40
    Anticipated Transaction Timeline Date Event Weeks of September 4th September 29th Transaction marketing File preliminary proxy statement / marketing Mid-September 2017 materials with the SEC Mid/Late-November 2017 Anticipated…
  41. Acquisition of Alta Mesa Presentation – Silver Run Acquisition Corp II – slide 41
    Pure Play STACK Company Premier liquids upstream growth with value-enhancing midstream World class asset with attractive geology Top-tier operator with substantial in-basin expertise Industry-leading growth potential; 2-year…

From the store

Browse maps, data & reports in the Shale Experts store