3Q 2017 FINANCIAL & OPERATING RESULTS November 6, 2017
RSP PERMIAN OVERVIEW RSP OVERVIEW CONTIGUOUS ACREAGE POSITION IN CORE OF PERMIAN BASIN(1) 92,000 net acres across highly contiguous acreage blocks in the core of the Midland and Delaware Basins 6,000 net royalty acres in the…
3Q CORPORATE UPDATE
HIGHLIGHTS On track to meet Company 2017 guidance objectives 3Q17 vs. 2Q17 Production Cash G&A/BOE Adj. Net Income Adj. EBITDAX 8% 11% 7% 8% Positive adj. net income with average realized oil price less than 50 per barrel…
RSP BUILDING SHAREHOLDER VALUE THROUGH THE CYCLES IPO HORIZONTAL INVENTORY EXPANSION SINCE IPO Current (1) (GROSS LOCATIONS) (Jan 2014) 7,000 Production 8.2 58.9 6,000 (MBoe/d) 5,000 Silver Hill Acquisition Quarterly 4,000…
RSP STRATEGY: RATE-OF-RETURN DRIVEN GROWTH Emphasis on high rate of return, rather than growth for growths sake During 2015 2016 oil price downturn RSP slowed drilling and opportunistically made acquisitions Operated rigs dropped from…
TRACK RECORD OF DELIVERING SUPERIOR DEBT-ADJUSTED GROWTH Rank 2 amongst oil-weighted peer group ( 2 B market cap) for production growth per DAS from 2Q16 to 2Q17 2Q16 2Q17 PRODUCTION GROWTH PER DEBT-ADJUSTED SHARE 50% 40% 30%…
RSP OWNERSHIP UPDATE RSP MANAGEMENT AND BOARD ARE KAYNE ANDERSON AND OTHER SILVER HILL SHAREHOLDERS STRONGLY ALIGNED WITH SHAREHOLDERS OWNERSHIP IN RSP HAS BEEN DRAMATICALLY REDUCED Management and Board hold 14% of outstanding Upon…
PEER-LEADING PROFITABILITY High quality assets + low cost operations = excellent corporate returns & profitability Durability in periods of commodity price lows as well as significant leverage to commodity price upside 2Q17…
CAPITALIZATION AND LIQUIDITY SUMMARY Recently increased borrowing base to 1.5 B from 1.1 B, CAPITALIZATION TABLE reiterating 900 MM Company-elected commitment under the amended and restated credit facility (2.5 B maximum lender ( in…
FULL YEAR 2017 GUIDANCE FULL YEAR 2017 GUIDANCE SUMMARY COMMENTARY 3Q17 YTD Reiterated full year 2017 guidance ranges for production, unit 2017 Guidance Range Actuals costs and capex Production Revised completion guidance to…
DRILLING & COMPLETIONS UPDATE 2017 OPERATED DRILLING & COMPLETION ACTIVITY During 3Q17, RSP drilled 26 and completed 22 operated HZ wells 18 Midland, 4 Delaware completions 38 Expect to drill 26-28 and complete 16-20 in 4Q17 69…
MIDLAND BASIN WELL PERFORMANCE IMPROVEMENT 2017 wells drilled to date outperforming 2014 / 2015 / 2016 vintage wells MIDLAND BASIN WELL PERFORMANCE BY VINTAGE 210 180 Avg. LL: 8,300 Avg. LL: 7,100 150 Avg. LL: 7,400 Cuml.…
MIDLAND BASIN UPDATE With addition of 2nd Halliburton frac crew in 3Q17, able to MIDLAND BASIN LOCATOR MAP simultaneously frac 2, 2-well pads Reduced downtime for offset producers Increased complexity/efficiency of stimulations…
MIDLAND BASIN 2018 PLANS Run 4 rigs on average, drilling almost entirely in full MIDLAND BASIN LOCATOR MAP development mode Focus on highest return leases Initiate development of Glass Ranch leases where RSP has higher net revenue…
DELAWARE BASIN WELL PERFORMANCE IMPROVEMENT 2017 wells drilled to date outperforming 2015 / 2016 vintage wells DELAWARE BASIN WELL PERFORMANCE BY VINTAGE 300 270 Avg. LL: 6,100 240 210 Avg. LL: 5,100 Cuml. MBoe 180 Avg.…
DELAWARE BASIN UPDATE First 3BS well, Rudd Draw 29 03 01H, completed on southern DELAWARE BASIN LOCATOR MAP end of acreage with excellent early results 7-day IP: 1,428 Boe/d (79% oil) Ludeman A 603 WB (LL: 4,830) Current rate:…
DELAWARE BASIN 2018 PLANS Run 3 rigs minimum, with likelihood of 4th DELAWARE BASIN LOCATOR MAP Move majority of drilling to multi-well pads, reducing well costs Previously 40%, going forward 85% Focus will remain in Wolfcamp A,…
DELAWARE BASIN CROSS-SECTION (LOVING & WINKLER COUNTIES) West-to-east seismic cross-section across RSPs acreage position based on newly acquired 3D data Confirms Central Basin Platform is well East of RSPs Winkler County position…
OUTLOOK FOR 4Q17 AND BEYOND Continued focus on corporate-level returns and capital efficiency, not growth for growths sake Strong execution YTD, on track to meet 2017 guidance objectives Ability to achieve 30%+ production…
JOHNSON RANCH LS SPACING PILOT UPDATE Drilled 5 wells across eastern half of section, 7 wells across JOHNSON RANCH SECTION 10 western half of section (equivalent of 14 wells per full section) Last 4 wells of pattern completed during…
ADJUSTED EBITDAX AND ADJUSTED NET INCOME RECONCILIATION Reconciliation of Net Income to Adjusted EBITDAX (in thousands) Three Months Ended September 30, Three Months Ended June 30, 2017 2016 2017 Net income 21,326 985 31,090…
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