Energy Corporation Investor September 5, presentation 2017
Page 3 2Q17 company highlights 24,355 Boe per day for the second quarter Permian Basin total production up Reeves County, Texas 227% year over year 2Q17 daily production Boe Oil (Bbl) Permian Basin 18,383 9,663 Total Company…
Page 4 Company overview Delaware Basin focus Premier Delaware Basin position 27,200 gross (21,000 net) acres1, 90% in derisked core of Basin Consistently delivering top tier well results Infrastructure fully built out in development…
Page 5 Hurricane Harvey impact No impact on drilling and completion operations All Permian Basin oil moving normally, do not expect oil curtailments High in-field gas line pressure resulting from downstream NGL takeaway…
Page 6 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 7 Appaloosa and Mustang operations timeline Aug Sep Oct Nov Dec Jan N. Goat B101SL Appaloosa Breckenridge L06H Mustang Ranger pair Ext. program Uinta L04HR Drilling Completion Ace L06H Production S. Elephant pair…
Page 8 Bronco update Results are on par with legacy wells Bronco Well name Area Zone Lat length Peak rates (Boe per day) (perf - perf) 24 hour 30 day 60 day 1 2 5 6 Wolfcamp A 1 DSF 201HL B UWCB 4,507 1,642 1,543 1,413 Wolfcamp B 2…
Page 9 Wolfcamp C, Lower B delineation Ten tests Planned Lower Wolfcamp B and C wells Plan to spud seven wells in 2017 Lower Wolfcamp B Wolfcamp C Elephant WCC pair and WCB on production 4Q17 Ranger on production 1Q18 Elephant…
Page 10 Inventory and downspacing Three pairs producing Wolfcamp Wells Gross well Development locations zone per zone inventory1 Development spacing Testing 160 acre Development Upper A/Y 8 141 Testing 80 acre Lower A 8 137…
Page 11 Updated type curve economics Wolfcamp A Long lateral type curve IRR1 Mid-length lateral type curve IRR1 Development type well Long Development type well Mid-length Peak 30-day (gross Boe) 2,642 Peak 30-day (gross Boe)…
Page 12 Type curve economics Wolfcamp B Mid-length lateral type curve IRR1 Development type well Mid-length Peak 30-day (gross Boe) 1,580 EUR (gross MBoe)2 1,904 First year cum. production 442 Capex ( million) 9.0 Payout…
Page 14 Average WCA total production updated type curves On a cumulative basis both long and mid-length laterals are tracking updated type curves Long lateral type curves Mid-length lateral type curves Long lateral Mid-length…
Page 15 Well interference schematic Prior development Pad development 3 2 1 Frac hits from a new Pad development expected to adjacent well can cause result in reduced temporary loss of communication between production…
Page 16 Pad drilling hypothetical plan One rig Pad 1 2 Pad 1 Pad 2 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 0.5 mile 0.5 mile Jan
Page 17 Pair well performance Supports pad drilling Well pair results v. updated type curve 1 Well pair results outperforming updated type curve Boucher/Uinta, Renegade and Pipeworks pairs are more than 34% above updated type…
Page 18 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 19 2018 development Three rig v. two rig program Illustrative three rig program Production (Boe per day) 32,000 34,000 Permian growth (midpoint of 2017) 60% 70% Spuds completions 45 35 Capital expenditures ( million)1 375…
Page 20 Financial trends and position Permian Basin operating margins Pro forma adjusted EBITDA1 100% 50% 0% Debt maturity and availability2 Hedge positions as of Sept. 1, 2017 8.5% Senior notes 2017 hedging 7,000…
Appendix
Page 22 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 23 Drilling activity Since April 1, 2017 Lateral length Spud to TD Well name Area Zone Status TD date (heel - toe) (days) Iron City State L05H M LWCA 7,717 Producing 4/25/2017 21 Steamworks 0304H M UWCA 7,489 Producing…
Page 24 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 UWCB 7,377 5/7/2017 29 1,818 Pipeworks L06H M LWCA 7,382…
Page 25 Production activity As of August 30, 2017 Lateral length Peak rates (Boe per day) Well name Area Zone (perf - perf) 24 hour 30 day 60 day Harpoon L05H M LWCA 7,629 2,571 2,114 1,899 South Elephant U04H A UWCA 8,902 2,716…
Page 26 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 27 Current hedge positions As of September 1, 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%…
Page 28 Quarterly prices and volume
Page 29 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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