2nd Quarter 2017 Earnings Call Presentation August 10, 2017
Company Highlights Large, contiguous position in the thick, oil-saturated, favorably over-pressured core of the Delaware Basin Premier Position in Acreage increased during 2Q17 to 70,400 net acres Core of the Continuing to evaluate…
Production Ramp Firmly on Target 2Q17 vs. 1Q17 production growth of 50% FY 2017 Operated Completions Cadence Year-over-year production growth of 166% 18 Growth of 127% vs. 4Q16 Actuals Guidance 15 14 July net production of 17,800…
Positioned in the Core Oil Window of the Southern Delaware Jagged Peaks Acreage Delivers Consistently High Oil Cuts Over Time High oil cuts of greater than 80% Historical production data demonstrates steady GOR over time Average…
Continuing to Execute 3rd Bone Spring - Wolfcamp B Gross Isopach Operational Highlights From Second Quarter Coriander 2524-C3 1H IP24 229 Boe/d per 1,000 Eiland 0812A-GG Houston 1H IP30 226 Boe/d per 1,000 UTL 38-17 2H in Cochise…
Big Tex Showing Strong Results 3rd Bone Spring - Wolfcamp B Gross Isopach Big Tex Continues To Perform Average per well production for Big Tex wells of 472 Boe/d (86% oil) over first 175 days of production 15% above same day type…
Proving Up New Target 2nd Bone Spring Showing Promising Results Bone Spring Prospectivity Horizontal Target Operational Highlights CL 17A-C2 1H Pilot Successful appraisal of 2nd Bone Spring Shale Prospective for Bone Spring…
Actively De-Risking Across the Acreage and Column Planned Future Delineation Efforts Areal Delineation Stratigraphic Delineation Commentary / Delineation Plans Avalon & Offset conventional vertical production Brushy 1…
Full Year 2017 Guidance Development Program Highlights Full Year 2017 Guidance Summary 2017 capital focused on increasing production 2017 Guidance Range As of 1Q17 Updated and maintaining leasehold acreage Production No significant…
Oil Hedging Overview Maintain a multi-year rolling hedge program to protect cash flow and support capital program Current Midland / Cushing Basis Swaps outstanding: 6,000 Bbl/d at (1.19) / Bbl for FY 2018 5,000 Bbl/d at (1.16) / Bbl…
Strong Financial Position Focus on financial flexibility Maintain conservative capital structure and liquidity Capitalization Table Fund growth with IPO proceeds, cash flow and revolver Quarter End Target debt /…
Resilient Single Well Economics High upside with limited downside High EUR, high oil cut and low operating costs drive attractive single-well returns Extended lateral wells in Cochise and Whiskey River generate 10% returns at a WTI…
Delivering as Promised Consistent Peer Leading and Top Quartile Results Industry leading oil content YTD 2017 Oil Content YTD 2017 Oil & Gas Revenue (1) drives superior revenue & EBITDAX per Boe (% oil) ( / Boe) 42.40 82% 41.49…
Appendix 15
Consistent Results Across Leasehold Highly consistent results across Wolfcamp A & B 2016 and YTD 2017 vintage Continuing to improve Operated wells demonstrate completions have produced productivity through average EUR of 1.2 MMBoe…
Manageable Lease Obligations Leasehold Map HBP / Lease Obligation Summary Cochise 12,930 net acres Wells Required to Hold Acreage % HBP % CDO Cochise Rem. 2017 2018 2019+ 32% 4% 2 3 30 Whiskey River 35,300 net acres Wells…
Deep Drilling Inventory With Long Laterals 1,412 Current Target Drilling Locations in Well Delineated Formations Identified Locations by Formation 200+ 314 1,412 400+ 318 353 427 Lower Upper Wolfcamp B 3rd Bone…
Non-GAAP Reconciliation Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 (in thousands) (in thousands) Adjusted Net Income (Loss) Net Income (Loss) 16,403 (5,749) (449,478) (13,199) Adjustments to…
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