The New Chaparral Transforming into a premier pure-play STACK company Approximately 110,000 net acres Strong pipeline of economic opportunities Solid operating margins and returns, even in a volatile commodity price…
Recent Achievements Emerged from restructuring with a strong balance sheet Equitized 1.2 billion in debt and reduced annual interest expense by 110 million Enterprise Value of approximately 1.2 billion Post Emergence Debt/Adjusted…
Year End 2016 SEC Proved Reserves 131.3 MMBoe of Reserves(1) 74% Oil, 83% Liquids Reserves by Area 9% 22% 23% 75.2, 54.9, 17% 57% 42% 74% 55% 1.1, Of which, 60.5 MMBoe are 1% NBU PUDs PDP PDNP PUD OIL GAS NGL STACK EOR…
Transformed Debt Structure Total Debt and Annual Interest Expense Estimated to Be Lowered by Approximately 80% MM 1,800 1,207 1,678 Debt Reconciliation (millions) 1,600 YE 2016 March 21, 2017 1,400 Senior Notes 1,207 0 1,200 RBL…
2017 Strategy STACK position provides significant growth potential Transition Chaparral to a Pursue strategic alternatives to monetize Enhanced Oil Recovery Pure-Play STACK (EOR) assets Company Retained CIBC Griffis & Small to…
EOR Assets Strategic Plan Monetize EOR assets as part of transition to pure-play STACK operator Currently evaluating bids Ensure capital allocation to highest-return opportunities Provide ability to ramp up STACK program,…
2017 Oil & Gas Capital Budget Summary CAPEX(1) Oil-weighted capital budget of 170 - 190 million Other,(2) Approximately 130 million allocated to STACK 5% Approximately 50% allocated to Kingfisher County and the Merge Approximately…
Production Growth STACK 9.5 Guidance High 10,000 Boe/d 9,136 9.1 Guidance Low 8,166 Total production raised due to Op and Non-Op activity 8,000 7,693 7,514 7,289 Expect STACK production to grow 25% from 2016 to 2017 6,000 2017…
Asset Overview
Asset Overview STACK Premier basin with industry-leading returns Large contiguous acreage position with exposure to all current economic reservoir targets Multi-year drilling inventory supporting significant future growth Early…
STACK Overview Asset Overview WOODS ALFAFA GARFIELD Approximately 110,000 acres 9.1 MBoe/d in Q2 2017 MAJOR WOODWARD 65 operated producing wells as of Q2 2017 DEWEY STACK Attributes/Characteristics KINGFISHER Chaparral…
One Petroleum System STACK Attributes N REGIONAL STACK CROSS SECTION 60 MILES S Stacked reservoirs proximal to the world- STACK MERGE class Woodford source rock GARFIELD COUNTY KINGFISHER COUNTY CANADIAN COUNTY GRADY COUNTY Efficient…
Recent STACK Transactions Significant A&D activity demonstrates value of Chaparrals acreage position Staghorn & Payrock transactions were primarily in the black oil, normal pressure window of the play 1 1 2 3 4 2 Sales…
Currently Identified Drilling Inventory by Play Extensive operated drilling inventory STACK Operated Drilling Inventory by Type 174-rig years 4,000 Kingfisher County Osage, Meramec and Oswego 1.5 rigs 3 rigs 4 rigs 5 rigs 6 rigs…
Chaparral Well Performance in STACK Enhanced Completion Tests in the STACK Demonstrated Performance Over Last 12 Months Initiated enhanced completion program in Q2 Increased proppant loading continues to support 2016 to test…
Operational Excellence Drilling and Completions Strong, Effective Focus on Cost Reduction/Control Demonstrated D&C cost improvements Average D&C cost of 3.5 million from Q1 2016 to Q2 2017 2017 average Meramec D&C cost of 3.7…
Non-Core Legacy Asset Overview Mature, lower decline legacy fields Low maintenance capital Provides free cash flow to fuel STACK growth Potential strategic alternatives Net Production(1) Gross Margin(1) Net Proved Reserves…
Financial Overview
Financial Strategy Maintain strong balance sheet Converted all long-term debt to equity As of June 30, 2017, approximately 103 million liquidity, which includes approximately 86 million available on revolver Maintain capital…
Credit Facility Overview Common Equity Approximately 45 million shares issued and outstanding at emergence 150 million outstanding at emergence Matures March 2021 ABR Loans: ABR +6.75% Term Loan LIBOR Loans: LIBOR +7.75% (1%…
Strong Financial Position and Liquidity Chaparral Capitalization and Liquidity Strong financial position to support accelerated STACK drilling program ( in Millions) As Reported 6/30/2017 No near-term debt maturities until 2021…
Hedging Hedging Strategy Ensures Revenue to Execute Capital Plan Oil Positions Natural Gas Positions 12,000 30,000 24,957 9,600 10,000 25,000 Volumes (bbls/d) Volumes (Mcf/d) 8,000 50.00 - 60.50 20,000 6,298 16,058 6,000…
Why Chaparral Why Chaparral Peer Leading Balance Sheet Strong Management Execution-focused Team with Excellent STACK Player Track Record Deep Inventory of High-return Drilling Prospects 29
Appendix
STACK Meramec Single Well Economics Type Curve Parameters EUR: 578 MBoe Oil %IP-30: 59% D&C Cost(1): 3.5 million Oil EUR: 233 MBbls Oil %EUR: 40% IP (30-day): 442 Bo/d Initial Decline: 85% b Factor: 1.2 Well Head Gas EUR:…
STACK Osage Kingfisher Single Well Economics Type Curve Parameters EUR: 540 MBoe Oil % IP-30 : 67% D&C Cost(1): 3.3 million Oil EUR: 235 MBbls Oil %EUR: 44% IP (30-day): 403 Bo/d Initial Decline: 80.7% b Factor: 1.1 Well…
STACK Osage Garfield Single Well Economics Type Curve Parameters EUR : 599 MBoe Oil % IP-30 : 46% D&C Cost(1): 3.3 million Oil EUR: 174 MBbls Oil %EUR: 29% IP (30-day): 259 Bo/d Initial Decline: 83.6% b Factor: 1.4 Well Head…
STACK Woodford Black Oil Single Well Economics Type Curve Parameters EUR: 575 MBoe Oil % IP-30 : 55% D&C Cost(1): 4 million Oil EUR:233 MBbls Oil %EUR: 41% IP (30-day):298 Bo/d Initial Decline:73% b Factor: 1.1 Well Head…
STACK Oswego Single Well Economics Type Curve Parameters EUR: 290 MBoe Oil % IP-30 : 81% D&C Cost(1): 2.7 million Oil EUR: 231 MBbls Oil %EUR: 80% IP (30-day): 483 Bo/d Initial Decline: 85% b Factor: 1.1 Well Head Gas EUR:…
2017 Guidance 2017 Guidance Company production: 8.3 - 8.7 MMBoe Capital expenditures: 185 - 200 million Lease operating expense(LOE): 10.50 - 11.00 per Boe General and administrative(G&A)(1): 3.40 - 4.20 per Boe Chaparral…
Contact Information Contact Information Investors Joe Evans Chief Financial Officer joe.evanschaparralenergy.com 405-426-4590 Media Brandi Wessel Manager Communications brandi.wesselchaparralenergy.com 405-426-6657…
Executive Team K. Earl Reynolds, Chief Executive Officer and Director Mr. Reynolds joined Chaparral in 2011 as an executive vice president and chief operating officer before being named president in 2014 and chief executive officer in…
Board of Directors Robert F. Heinemann, Chairman Mr. Heinemann was named to the board in 2017. During his career, Mr. Heinemann worked for Berry Petroleum Company, as a director and as its president and chief executive officer, as…
Board of Directors Samuel Langford, Director Mr. Langford was named to Chaparrals board in 2017. He continues to serve as the principal for Langford Upstream Advisory, L.L.C., a position he has held since 2013. Prior to that time, he…
Reconciliations (in thousands) 2016 2015 2014 Reconciliations Net (loss) income (415,720) (1,333,844) 209,293 Interest expense 64,242 112,400 104,241 Income tax (benefit) expense (102) (177,219) 124,443 Depreciation, depletion and…
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