Energy Corporation Investor August 15, presentation 2017
Page 3 2Q17 company highlights 24,355 Boe per day for the second quarter Reeves County, Texas 2Q17 daily production Boe Oil (Bbl) Permian Basin 18,383 9,663 Total Company 24,355 15,385 Fourteen new wells on line since April 1…
Page 4 Company overview Delaware Basin focus Premier Delaware Basin operator 2Q17 Permian Basin production increased 227 percent year over year 27,200 gross (21,000 net) acres1 Increased drilling and completion activity Two rigs…
Page 5 Premier Delaware Basin operator 2017 estimated ROCE1 Recycle ratio2 REN REN Top Reeves County operators3 Capital efficiency1 54 wells REN 34 wells 67 wells 66 wells 38 wells 155 wells 57 wells 143 wells 102…
Page 6 Appaloosa and Mustang operations timeline Jul Aug Sep Oct Nov Dec DS Fuente 212HU/214HU Appaloosa B. Fuente 4401HU/4402HL Mustang N. Goat B101SL Bronco Breckenridge L06H Ext. program Drilling Ranger L07H/B106H…
Page 7 Bronco update Results are on par with legacy wells Bronco Lat length Peak rates (Boe per day) 1 2 5 6 Wolfcamp A Well name Zone (perf - perf) 24 hour 30 day 60 day Wolfcamp B 1 DSF 201HL WCB 4,507 1,642 1,543 1,413 2 DSF…
Page 8 Average Wolfcamp A total production v. type curve On a cumulative basis both long and mid-length laterals are tracking type curve Expect to update type curves in September Long lateral v. type curve Mid-length lateral v. type…
Page 9 Well interference schematic Drill and complete parent Drill and complete child Inefficient recovery Parent well Frac hits from a In limited instances surrounded by a new adjacent well child wells have pressure depletion…
Page 10 Pad drilling Reduces pressure depletion effects Drill wells continuously Complete successively Produce simultaneously 3 2 3 1 3 2 2 1 1 Pad drilling a group Contemporaneous Results in reduced of wells saves…
Page 11 Pad drilling hypothetical plan One rig Section 1 2 Section 1 Section 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Page 12 Pair well performance Supports pad drilling Well pairs v. type curve 1 Well pair results outperforming type curve Boucher/Uinta, Renegade and Pipeworks pairs are more than 40% above type curve on a cumulative…
Page 13 Completion design More proppant, tighter clusters Increase proppant, fluid levels and number of clusters, tighten spacing between clusters Results in shorter frac reach, better near-wellbore effectiveness, less chance of…
Page 14 2017 production and capital guidance 2017 original guidance Production (Boe per day) 24,000 28,000 Capital expenditures ( million) 210 240 2017 forecast - legacy assets 2017 forecast - Bronco Production (Boe per day) 24,000…
Page 15 Financial trends and position As of June 30, 2017 Permian Basin operating margins Pro forma adjusted EBITDA1 100% 50% 0% Debt maturity and availability 8.5% Senior notes Continued improvement in Permian…
Appendix
Page 17 Inventory and downspacing Three pairs producing Wolfcamp Wells Gross well zone per zone inventory1 Development locations X 4 42 Upside Y 4 41 Development Upper A 8 137 Lower A 8 137 1 mile Upper B 8 145 575 700…
Page 18 Drilling activity Since April 1, 2017 Lateral length Spud to Well name Area Zone Status TD date (heel - toe) TD (days) Iron City State L05H M LWCA 7,717 Producing 4/25/2017 21 Steamworks 0304H M UWCA 7,489 Producing…
Page 19 Completion activity Since April 1, 2017 Proppant Lateral length First Well name Area Zone Frac stages per foot (perf - perf) production (lbs) Pipeworks B05H M WCB 7,377 5/7/2017 29 1,818 Pipeworks L06H M LWCA 7,382…
Page 20 Production activity As of April 1, 2017 Lateral length Peak rates (Boe per day) Well name Area Zone (perf - perf) 24 hour 30 day 60 day South Elephant U04H A UWCA 8,902 2,716 2,351 2,198 Pipeworks B05H M WCB 7,377 2,727…
Page 21 Oil and gas gathering system Multiple options in place Gas gathering and Reeves County gathering infrastructure compression systems in Plains place Caprock Midstream ETC constructing crude oil network and gas transmission…
Page 22 Current hedge positions As of August 7, 2017 Current oil derivative positons Bbl/day Percent Hedged utilizing Swap Collars Options hedged Swaps Collars Options strike Sold put Floor Cap sold call 2017 7,000 43% 57% 0% 53.93…
Page 23 Quarterly prices and volume
Page 24 Margin and cost structure Note: See appendix for EBITDA reconciliation 2. Net of Copas reimbursements. Excludes non-cash charges 1. Includes workover and excludes non-cash charges 3. Excludes non-cash accruals; represents…
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