Energy Corporation Investor November 6, presentation 2017
Page 3 3Q17 Company highlights Continued YOY strong production growth Produced 28,566 Boe per day up 78% Reeves County, Texas Permian production of 22,629 Boe per day up 130% Permian oil production up 93% Active 3Q drilling…
Page 4 Company overview Delaware Basin pure play Premier Delaware Basin position 27,100 gross (21,100 net) acres1, 90% in derisked core of Basin 90% held by production by YE17 Commenced three well pad development program Strong…
Page 5 Premier Delaware Basin operator Upper tier production growth Production growth 2017E v 2016A1 REN While delivering class leading capital efficiency and F&D costs 2017E ROCE1 2016A F&D costs2 Exploration and development…
Page 6 Permian Basin type curves Resolute production performance vs. peers Best-in-class EURs; among the highest oil EURs with the added benefit of associated rich gas volumes Source: Petrie Partners from company investor…
Page 7 Illustrative 1st year well payback1 Appaloosa 10K WCA Mustang 7.5K WCA 2 2 Mustang 7.5K WCB Efficiently converting resource into cash flow Capital recovered in first year Appaloosa 10K WCA: 133% Mustang 7.5K WCA:…
Page 8 Financial trends and position Permian Basin operating margins Pro forma adjusted EBITDA1 100% 50% 0% Debt maturity and availability2 Significantly hedged in 2018 7,000 Bbl per day of oil Approximately 50% of…
Page 9 Aneth sale significantly improves cost structure 3Q17 YTD LOE per Boe () Stronger margins in Permian Basin as compared to Aneth assets Higher oil price realizations Lower operating costs Lower production tax rates 3Q17…
Page 10 Reeves County drilling program 2017 producing wells Consistently strong results throughout 2017 program (Boe per day) Bronco average 24 hour: 2,348 (6 wells) 30 day: 1,993 (6 wells) Mustang average 24 hour: 2,766 (8…
Page 11 Inventory and downspacing 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 Upper B 8 148…
Page 12 Wolfcamp C, Lower B delineation Ten tests Planned Lower Wolfcamp B and C wells Six wells in 2017 Lower Wolfcamp B First Lower WCB and WCC Wolfcamp C currently flowing back Four additional WCB and WCC wells on production…
Page 13 Updated type curve economics Wolfcamp A Long lateral IRR1 Long lateral PV10 Development type well Long Capital costs 2018 Peak 30-day (gross Boe) 2,642 ( million) estimate4 EUR (gross MBoe)2 2,329 Drilling 2.8 Oil EUR…
Page 14 Updated type curve economics Wolfcamp A Mid-length IRR1 Mid-length PV10 Development type well Mid Capital costs 2018 Peak 30-day (gross Boe) 1,502 ( million) estimate4 EUR (gross MBoe)2 1,827 Drilling 2.3 Oil EUR (gross…
Page 15 Type curve economics Wolfcamp B Mid-length IRR1 Mid-length PV10 Development type well Mid Capital costs 2018 Peak 30-day (gross Boe) 1,580 ( million) estimate4 EUR (gross MBoe)2 1,904 Drilling 2.3 Oil EUR (gross MBbl)…
Page 16 2017 extended program Increased rig efficiency leads to Extended program extended 2017 capital program Completed original 22 well 23 2017 drilling program in 24 October Extended program Adds five well spuds and one…
Page 17 Updated guidance Prior Current updated Guidance statistics Range Range Midpoint Midpoint ( million, except where noted) Low High Low High Production (Boe per day) 26,000 24,000 28,000 25,000 24,500 25,500 Lease operating…
Page 18 2018 development plan Shifting from resource capture to development mode 90% HBP 28 of 36 spacing units drilled to date At YE17 approximately 90% of Reeves County acreage HBP 45 horizontal wells derisk entire acreage…
Page 19 Permian Basin 2018 development Illustrative three rig development program1 2018 average production (MBoe per day) 32 34 Growth v. 2017 Permian Basin midpoint 60% 70% 2018 exit rate (MBoe per day) 40 42 Spuds Completions…
Page 20 2018 gross well count Illustrative three rig development program1 DUCs at YE17 8 Plus wells drilling over YE17 2 Plus new spuds in 2018 45 Less wells drilling over YE18 (3) Total available to be completed in 2018 52…
Page 21 Production and leverage ratio outlook1 Permian 2016A to 2018E 3 rig program 55 per Bbl, 3 per MMBtu 2017E2 2018E Number of rigs 2 3 Total production (MBoe per day)2 24.5 25.5 32 34 Capex ( million) 270 285 375…
Appendix
Page 23 Drilling activity Since July 1, 2017 Drilling activity Lateral length Spud to TD Well name Area Zone Status TD date (heel - toe) (days) Ranger L07H A LWCA 9,681 Producing 7/2/2017 19 Uinta L04HR M LWCA 7,620 Producing…
Page 24 Completion activity Since July 1, 2017 Completions activity Lateral length First Proppant per Well name Area Zone Frac stages (perf - perf) production foot (lbs) Breckenridge L06H M LWCA 7,720 7/8/2017 29 1,803 Durham Smith…
Page 25 Production activity As of November 3, 2017 Production activity Lateral length Peak rates (Boe per day) Well name Area Zone (perf - perf) 24 hour 30 day 60 day Breckenridge L06H M LWCA 7,720 3,047 2,894 2,667 Durham Smith…
Page 26 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 27 Completion design Improve cluster efficiency 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 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…
Page 29 Hedge positions As of November 6, 2017 7,000 Bbl per day hedged in 2018 represents approximately 50% of anticipated 2017 exit rate Current oil derivative positons Bbl/day Percent Hedged utilizing Swap Collars Options hedged…
Page 30 Quarterly prices and volume 2016 2017 Prices and volume Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 YTD Average prices: Oil ( per Bbl) 26.63 39.75 39.55 44.15 38.83 47.52 43.36 43.53 44.64 NGL ( per Bbl) 4.30 7.64 8.61 12.61 9.80 10.89 9.25…
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