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3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc

Energy XXI Gulf Coast, Inc · Nov 14, 2017 · 29 slides

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Slides

  1. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 1
    Third Quarter 2017 Earnings Conference Call November 14, 2017 www.energyxxi.com
  2. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 2
    EGC Overview Pure Play Gulf of Mexico Shelf Company NSAI prepared reserves at March 31, 2017 109.4 MMBOE Proved Reserves 80% Oil, 2% NGL, 18% Gas 71% Proved Developed 90% Operated 155 Blocks with 57 Producing Fields 616 Gross…
  3. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 3
    Steps in the Right Direction Extensive safety culture assessment completed & improvement plan underway Safety and Operational Develop oil-weighted assets with strong economics at current strip pricing Excellence Leadership Engagement:…
  4. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 4
    Third Quarter and Recent Results Produced 32,600 BOE per day, of which 77% was oil; tropical weather reduced production 1,200 BOE per day during the third quarter Completed the West Delta 30 High Tide well and initiated production in…
  5. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 5
    Focused on Operational Excellence HSE steering committee formed to identify actions to improve HSE performance and be a top quartile Company by YE 2018 Completed 3rd party safety cultural assessment Execute improvements in employee…
  6. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 6
    Production History 45,000 3Q 17 vs. 2Q 17 declined due to: 40,983 40,000 Disruptions due to: shut ins 35,950 from tropical weather, Guidance 35,000 32,600 production equipment (1) maintenance, incremental 30,000 28,000 pipeline…
  7. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 7
    Direct LOE, Insurance and Workovers Guidance 6% 90.0 85.4 (1) Q3 2017 total LOE 9% 9% 80.5 77.8 below Q2 2017 80.0 75.2 70.0 Go forward cost savings initiatives: 60.0 Sole sourcing items MM 50.0 such as labor and…
  8. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 8
    Pipeline Facility Fee and Gathering & Transportation 25.0 25.0 Pipeline Facility Fee flat Guidance 21.7 21.7 10.5 MM quarterly 20.0 20.0 18.5(2) 18.5 (2) Gathering and 15.0 15.0 13.2 (1) (1) Transportation 13.2 (1)…
  9. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 9
    G&A Expenses (2) Q3 2017 costs 27% below Q2 30.0 2017 25.0 Total headcount reduced 18% 21.6 in 2Q 2017 20.7 20.0 27% EGC expects 8 to 8.5 MM Guidance (1) of annualized G&A and LOE 15.0 savings from reduced staffing…
  10. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 10
    Margin Analysis 50.00 40.00 7.31 9.91 1.09 5.12 15.03 1.23 13.54 1.03 5.45 30.00 4.00 5.61 4.09 2.83 5.79 1.97 2.71 /BOE 3.10 20.00 1.33 3.00 23.57 26.05 25.79 10.00 19.65 17.58 - (4.97) (10.00) (1) (1) (1) Q4…
  11. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 11
    Liquidity Profile September 30, 2017 MM Total Cash & Cash Equivalents(1) 173 Exit Credit Agreement 290 Less: Amount Drawn ( 74) Less: Letter of Credit Utilization(2) (203) Total Available Credit Facility(3) 13 Total Liquidity…
  12. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 12
    Crude Hedge Profile (As of 11/14/17) Currently Hedged - 10,000 bpd of Bal17 52.30-57.43 LLS Costless Collars - 1,500 bpd of Oct17 51.68 WTI Swaps - 3,500 bpd of Nov-Dec17 51.81 WTI Swaps - 8,000 bpd of Cal18 50.68 WTI Swaps - 2,000…
  13. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 13
    2017 Capital Budget Update Estimated Capital: 115 - 130 million Includes abandonment costs of 50 - 65 million Development Drilling Program Successfully drilled first well: WD30 L-14 ST2 High Tide 100% working interest 50 identified…
  14. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 14
    High Tide Development Update Locator Map- High Tide and Kingstream High Tide (L-14 ST2) L Targeted three horizons All three targets were found at their expected locations and two of the three sands were thicker than expected 102…
  15. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 15
    2017 Q4 Guidance (As of 11/14/17) Q4 2017 Full Year 2017 Production(1) 26,000 30,000 Boepd(2) 33,000 35,000 Boepd Direct LOE 60 70 MM 245 255 MM Workover/Maintenance 8 - 12 MM 38 - 42 MM Insurance 5 6 MM 23 24 MM Gathering &…
  16. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 16
    Overview of Strategic Alternative Process Initiated process with Morgan Stanley in late March Merger or consolidation discussion Stand-Alone Plan Capital infusion Forecasts, portfolio evaluation/optimization Reasonable interest in…
  17. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 17
    Overview of Strategic Alternative Process Challenges of consolidation Counterparty balance sheets Offshore recovery lags onshore recovery Challenging public and capital market environment for offshore given current oil price levels…
  18. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 18
    Stand-Alone Path Forward Multiple development plans considered Base Development Plan (subject to capital constraints, see slide 23) Focus on protecting liquidity, covenants and balance sheet Continued G&A and operating cost…
  19. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 19
    EGC Scenario Assumptions Strip pricing of approximately 50 WTI for all scenarios (1) Every 1 improvement in oil price increases annual cash flow 7-9 MM Costs Recent operational focus has identified and is delivering sustainable…
  20. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 20
    EGC Scenario Assumptions Drilling and Completion Capital Projects have minimum return thresholds of 20% IRR and up to 50%+ IRR Preliminary Base Development Plan includes: 5-8 wells in 2018 (60 - 90 MM) 6-12 wells in 2019 (60 - 130…
  21. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 21
    Base Development Scenario Outcomes Avg. Annual Production Production mix 35,000 75-85% Oil 28,000 33,000 26,000 33,000 32,500 2018 exit rate range 28,000 32,000 boepd 30,000 26,000 30,000 Minimize production decline with…
  22. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 22
    Accelerated Development Scenario Outcomes Avg. Annual Production Production mix 35,000 28,000 34,000 75-85% Oil 29,000 33,000 32,500 2018 exit rate range 30,000 34,000 boepd 30,000 26,000 30,000 Arrests production decline in 2018…
  23. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 23
    APPENDIX 25
  24. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 24
    Leading Operator in GOM Shelf EGC Core Properties(1) Cum. Prod. Field Operator W/I (MMBOE) West Delta 73 Energy XXI 100% 389 South Timbalier 54 Energy XXI 100% 152 South Pass 49 Energy XXI 100% 111 Main Pass 61 Energy XXI 100% 65…
  25. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 25
    BOEM and BSEE Update Excellent working relationship with BOEM and BSEE Continue to operate under the terms and proposals of our plan with the BOEM EGC has bonded its sole properties and further focused bonding efforts on expired…
  26. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 26
    SEC Proved Reserves March 31, 2017(1) Category 1P PV-10 SEC Pricing2 Mix Total 109 MMBOE Total 108 MM 80% Oil Gas PDP 18% NGL PUD 305 2% 32 PDP P&A 62 (501) PDN Oil PDN 101 80% 16 PUD 204 Reserves Category Net Oil Net NGL…
  27. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 27
    Strip Proved Reserves March 31, 2017(1) Category 1P PV-10 Strip Pricing2 Mix Total 114 MMBOE Total 399 MM 80% Oil Gas P&A PDP 18% NGL PUD (471) 2% 457 33 PDP 64 Oil PDN PDN 80% 16 PUD 134 278 Reserves Category Net Oil…
  28. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 28
    Adjusted EBITDA Reconciliation Adjusted EBITDA is a supplemental non-GAAP financial. Adjusted EBITDA is not a measure of net income or cash flows as determined by United States generally accepted accounting principles, or US GAAP. EGC…
  29. 3Q 2017 Earnings Conference Call – Energy XXI Gulf Coast, Inc – slide 29
    Al Petrie Investor + Media Relations Coordinator apetrieenergyxxi.com 713-351-0617 www.energyxxi.com

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