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Johnson Rice 2017 Energy Conference – Resolute Energy Corp

Resolute Energy Corp · Sep 26, 2017 · 32 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 1
    Energy Corporation Investor September 26, presentation 2017
  2. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 2
    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…
  3. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 3
    Page 4 Company overview Delaware Basin pure play Premier Delaware Basin position 27,200 gross (21,000 net) acres1, 90% in derisked core of Basin Commenced three well pad development program Strong execution Consistently delivering…
  4. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 4
    Page 5 Aneth Field divestiture Expected to close on or about October 27, 2017 Effective date October 1, 2017 Purchase price up to 195 million 160 million cash at closing Up to 35 million of contingent consideration dependent on…
  5. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 5
    Page 6 Aneth Field divestiture Strengthen balance sheet and significantly improve liquidity1 Proceeds will repay outstanding revolving credit and leave net cash on books Year-end leverage ratio expected to be approximately 3.25x2…
  6. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 6
    Page 7 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…
  7. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 7
    Page 8 Delaware Basin operations timeline Sep Oct Nov Dec Jan Feb N. Goat B101SL Appaloosa Ranger pair Mustang Ace L06H Ext. program Drilling S. Elephant pair Completion L. Yuengling pair Production Thunder Canyon/Uinta pair…
  8. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 8
    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…
  9. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 9
    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…
  10. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 10
    Page 11 Updated type curve economics Wolfcamp A Long lateral IRR1 Long lateral PV10 Development type well Long Capital costs 2017 Peak 30-day (gross Boe) 2,642 ( million) average4 EUR (gross MBoe)2 2,329 Drilling 2.7 Oil EUR…
  11. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 11
    Page 12 Updated type curve economics Wolfcamp A Mid-length IRR1 Mid-length PV10 Development type well Mid Capital costs 2017 Peak 30-day (gross Boe) 1,502 ( million) average4 EUR (gross MBoe)2 1,827 Drilling 2.4 Oil EUR (gross…
  12. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 12
    Page 13 Type curve economics Wolfcamp B Mid-length IRR1 Mid-length PV10 Development type well Mid Capital costs 2017 Peak 30-day (gross Boe) 1,580 ( million) estimate EUR (gross MBoe)2 1,904 Drilling 2.3 Oil EUR (gross MBbl)…
  13. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 13
    Page 14 Average Wolfcamp A cumulative production 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 lateral…
  14. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 14
    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…
  15. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 15
    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
  16. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 16
    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…
  17. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 17
    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…
  18. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 18
    Page 19 Permian Basin 2018 development Three and two rig development programs1 2018 average production (MBoe per day) 32 34 28 30 Growth v. 2017 Permian Basin midpoint 60% 70% 40% 50% 2018 exit rate (MBoe per day) 40 42 31 33…
  19. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 19
    Page 20 2018 gross well count Illustrative 2018 development program1 DUCs at YE17 5 5 Plus wells drilling over YE17 2 2 Plus new spuds in 2018 45 31 Less wells drilling over YE18 (3) (2) Total available to be completed in 2018…
  20. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 20
    Page 21 Production and leverage ratio outlook1 2016 and estimated year-end 2017 2018 3 rig program 50 per Bbl, 3 per MMBtu 2017E2 2018E Number of rigs 2 3 Production (MBoe per day)2 24 28 32 34 Capex ( million) 270 285…
  21. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 21
    Page 22 Financial trends and position Permian Basin operating margins Pro forma adjusted EBITDA1 100% 50% 0% Debt maturity and availability2 Hedge positions as of Sept. 26, 2017 8.5% Senior notes 2017 hedging 7,000…
  22. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 22
    Appendix
  23. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 23
    Page 24 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…
  24. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 24
    Page 25 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…
  25. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 25
    Page 26 Completion activity Since April 1, 2017 Lateral length First Proppant per Well name Area Zone Frac stages (perf - perf) production foot (lbs) Pipeworks B05H M UWCB 7,377 5/7/2017 29 1,818 Pipeworks L06H M LWCA 7,382 5/7/2017…
  26. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 26
    Page 27 Production activity As of September 26, 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…
  27. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 27
    Page 28 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…
  28. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 28
    Page 29 Current hedge positions As of September 26, 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%…
  29. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 29
    Page 30 Quarterly prices and volume
  30. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 30
    Page 31 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…
  31. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 31
    Page 32 Margin and cost structure per Boe Margins 2016 2017 ( per Boe) Q1 Q2 Q3 Q4 FY Q1 Q2 YTD Revenue 23.16 32.78 32.04 34.78 31.74 36.78 32.05 34.15 Realized derivative gains (losses) 33.82 19.03 14.43 10.19 16.99 (0.14) 0.75…
  32. Johnson Rice 2017 Energy Conference – Resolute Energy Corp – slide 32
    Page 33 Non-GAAP reconciliations Adjusted EBITDA 2016 2017 ( in millions) Q1 Q2 Q3 Q4 FY Q1 Q2 YTD Net income (loss) (85.3) (36.9) (18.9) (20.6) (161.7) 1.5 13.2 14.7 Adjustments: Interest 13.1 13.0 13.3 11.3 50.7 17.7 8.8 26.5 Taxes…

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