CORPORATE OVERVIEW Enercom The Oil and Gas Conference August 2017 CONFIDENTIAL
Agenda I. Company Background II. Asset Overview III. Financials IV. Summary CONFIDENTIAL 3
Overview of Caerus A N SC H U T Z IN V E S T M E N T C O M PA N Y About Caerus Oil and Gas LLC Principals and Management Website: www.caerusoilandgas.com David H. Keyte Chairman and C.E.O. About the name: Greek god of opportunity…
Piceance Activity Since 2014, Caerus has drilled and completed 170 Williams Fork wells New technology including high volume proppantless fracs focused on exploiting high anisotrophy evident in the Western side of the basin In…
D&C Costs Over Time Drill and Completion Costs 3,000 Modern Advancements: Closed-loop drilling systems Advanced PDC Bits 2,500 High speed, high torque mud motors Increased completion horsepower and injection rates 2,054 High…
Historical DOE per Unit DOE per MCFE 3.00 DOE MCFE / MCFE 2011 8,521 4,569 1.86 2012 10,532 5,398 1.95 2013 17,521 13,437 1.30 2.50 2014 22,030 22,068 1.00 1.86 1.95 2015 30,402 28,035 1.08 2016 20,708 29,483 0.70 2017 17,743…
Inception to Date Track Record Proved Reserves (bcfe) Production (mmcfe/d) EBITDA (mm) Levered Cash Costs (/mcfe) 1.71 86% CAGR on production 2010 to 2017 with steady, dramatic reductions in levered cash costs CONFIDENTIAL…
High Occupancy Pad Development 51 well pad CONFIDENTIAL 9
Company Activity Summary Caerus has successfully drilled 170 wells and completed 135, with a current inventory of 35 DUCs as of 8/8/17 Caerus has been a pioneer in implementing high-volume propantless fracs on high occupancy pads,…
Caerus Metrics Highlights Natural gas production with low-risk Williams Fork development potential Reserves (net): PDP: 1.1 TCFE Basin-Leading PUD: 1.9 TCFE PBUD: 10.6 TCFE Asset Total: 13.6 TCFE 573,000 net Piceance Basin acres…
Land Position Piceance Basin Summary Gross Acres(1) 799 M Net Acres(1) 573 M Initial HBP (%) 71% development area Net Mineral Acres 46 M (+100,000 net acres) Net Surface Acres 57 M WI (average) 73% NRI (average) 65% 8/8th NRI…
Midstream Gas and Water Infrastructure Existing infrastructure 2 Mi N can support the initial Gas Water Williams Fork development program with minimal C.I. incremental capital 100 investment The water storage and gathering…
Infrastructure 850 Mmcfp/d gas gathering capacity 650 Mmcfp/d processing capacity 95,000 HP of installed compression from 29 compressors 240 miles of gas gathering infrastructure 170 miles of water gathering pipelines Gas…
Favorable Midstream Markets Piceance Exports vs. Capacity 10.00 12.00 9.00 Exports and Capacity (Bcf/d) 10.00 8.00 Gas Prices (/MMBtu) 7.00 8.00 6.00 5.00 6.00 4.00 4.00 3.00 2.00 There is approximately 9 BCF/d of…
Benchmarking to Gas Weighted Public Cos LOE and Differential (/mcfe) (1) G&A (/mcfe) (2) Interest Expense (/mcfe) Levered Cash Costs (/mcfe) Leadership in cash costs is a manifestation of Caerus commitment to reducing expenses…
Expected Single Well Economics With Mineral Ownership H04 Pad (2.9bcf) IRR Gas Strip Flex ( / Mmbtu NYMEX) 64% -15% -10% -5% 0% 5% 10% 15% 20% 1,850 58% 65% 73% 81% 90% 100% 109% 120% 1,900 54% 61% 69% 76% 85% 94% 103% 113% 1,950…
5 Year Forecast Proved Reserves (bcfe) Production (mmcfe/d) EBITDA (mm) Liquidity (mm) Caerus is poised for +30% EBITDA CAGR while reducing its leverage ratio CONFIDENTIAL 18
Conclusions +3.0 TCFE of proved reserves and +7,200 drilling locations Development plan that is repeatable and based on actual historical results Significant gathering infrastructure in-place to support full development Growth…
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