SECOND QUARTER 2017 Financial and Operational Review August 2, 2017
Second Quarter Highlights Outstanding operational results drive 7% sequential oil growth Production Key Well Results Total Company production (ex. Hansens STACK six new infill Libya) of 349 MBOED, up 6% wells avg. 30-day IP of 915…
Increasing Production Guidance While Lowering Capex Exceeding expectations on efficiency, base performance & new well productivity Total E&P Available for Sale Volumes Guidance Raising original 2017 production 400 329* E&P: 345 - 360…
Total Company Cash Flow 1H 2017 Cash increased to 2.6B; liquidity at 5.9B Avg. WTI 50 for 1H 2017 4,000 3,500 3,000 984 (958) 2,500 35 (85) 122 MM 2,000 (1,828) 1,856 1,500 2,488 2,614 1,000 500 0 12/31/16…
Strengthened Financial Flexibility Recent transactions improve maturity profile and enhance liquidity Successful senior notes offering: Extend next debt maturity to 2020* Reduce gross debt by 750MM Reduce annual interest expense by…
U.S. E&P Production Above Top End of 2Q Guidance Resumed quarterly resource play growth Available for Sale Volumes U.S. E&P Guidance: 230 - 240 250 222 208 203* 20 200 17 14* MBOED 150 100 191 202 189 50 0…
Oklahoma Grows 11% Sequentially Continued strategic focus on delineation, leasehold and infill spacing pilots Production Volumes and Wells to Sales Production averaged 49 net MBOED; up 60 30 11% from 1Q 2017 Co-Op Wells to…
Strong Well Results Across Phase Windows Transitioning from delineation to development drilling in 2018 STACK Volatile Oil XL Wells Cum Production Hansens 6-well Infill Pilot Blaine Calf Rope 1-1-12MXH Kingfisher IP30 Avg: 915 BOED…
Eagle Ford Continues to Deliver High Capital Efficiency Sequential production increase with fewer wells to sales Production Volumes and Wells to Sales Production averaged 100 net MBOED; up 120 90 from 1Q 2017 Co-Op Wells to Sales…
Eagle Ford 2Q Activity Overview Top 10 wells averaged 2,340 BOED, 69% oil Davilla Graham Wilson 6 well pad Karnes City NW Avg: 1,401 BOED (55% oil) 5 well pad Avg: 2,230 BOED (74% oil) Bailey Retzloff Karnes 5 well pad Avg:…
Bakken Resumed Production Growth in 2Q Extended Myrmidon production history outperforming expectations Production Volumes and Wells to Sales Production averaged 49 net MBOED, up 60 15 2% from 1Q 2017 Co-Op Wells to Sales 40 10…
Strong Early Well Performance From Hector Hondo Pad Enhanced slickwater completions yielding encouraging results Hector: Hondo Pad Mittelstadt 34-12H Hondo 34-12TFH 2,933 BOED 2,084 BOED Elk Creek 8 MMLBS proppant, Plug n Perf, 45…
Positive Initial Results in Northern Delaware Increased activity to 3 rigs mid-year as planned Black River Production Production averaged 4 net MBOED; partial 2000 quarter due to BC & BM close dates BOED (2-stream) 1600 2 gross…
Play Extension of Northern Delaware Continues Current quarter wells and notable upcoming well activity CHAVES COUNTY Cypress Spacing Pilot 2H spud 4 Wolfcamp, 3 Bone Spring Cypress 1H Wolfcamp X-Y Battle 34 Federal 4H IP30: 1,500…
International E&P Highlights EG continues to deliver substantial free cash flow Intl E&P Production Volumes (Excl. Libya) International E&P production 127 net 150 Intl E&P MBOED, near top of guidance Guidance: 115 - 125 125…
Key Takeaways Raising 2017 Production Guidance With Reduced Capital Program 7% 23 - 27% 10% Total E&P growth Resource plays exit Reduced 2017 at midpoint* rate growth* capital budget Oklahoma Resource Basins Continued Strong…
Appendix
Volumes, Exploration Expenses & Effective Tax Rate 2017 (excluding Libya) 1Q 2Q 3Q 4Q Year United States E&P Net Sales Volumes: - Liquid Hydrocarbons (MBD) 158 165 - Natural Gas (MMCFD) 304 341 - North America E&P Total (MBOED) 208…
2017 Estimates Volumes Available for Sale Available for Sale Comments 3QE Year Estimate North America E&P Total (MBOED) 230 240 - Liquid Hydrocarbons (MBD) 175 183 - Natural Gas (MMCFD) 330 344 International E&P Total (MBOED)*…
2017 Estimates Exploration expenses & annual production operating costs per BOE 3QE Year Estimate Exploration Expenses (Pre-tax): United States E&P ( millions) 25 35 International E&P ( millions) 24 United States E&P Cost Data…
E&P Production Performance Increased 2Q volumes due to outstanding operational performance U.S. E&P Divestiture-Adj. Sales Volumes Intl E&P Production & Sales Volumes 300 150 11 11 125 8 12 200 100 MBOED MBOED 75 120…
2017 2Q Production Mix Eagle Ford Oklahoma Resource Bakken Northern Delaware Basins 8% 21% 29% 12% 28% 47% 20% 59% 80% 56% 16% 24% Total U.S. Resource Plays 24% 57% 19% Crude Oil/Condensate NGLs Natural Gas 23
United States E&P Crude Oil Derivatives As of June 30, 2017 Crude Oil (Benchmark to NYMEX WTI) 3Q 2017 4Q 2017 1Q 2018 2Q 2018 Three-Way Collars(a) Volume (Bbls/day) 50,000 50,000 20,000 20,000 Weighted Avg Price per Bbl:…
United States E&P Natural Gas Derivatives As of June 30, 2017 Natural Gas (Benchmark to NYMEX HH) 3Q 2017 4Q 2017 1Q 2018 2Q 2018 3Q 2018 4Q 2018 Three-Way Collars Volume (MMBtu/day) 120,000 120,000 200,000 160,000 160,000 160,000…
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