Cowen 7th Annual Energy & Natural Resources Conference Douglas Brooks Chief Executive Officer and President December 4, 2017 www.energyxxi.com
Elements for Success in Place 4
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…
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:…
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…
Production History 45,000 40,983 3Q 17 vs. 2Q 17 declined due to: 40,000 35,950 Disruptions due to: shut ins 35,000 32,600 from tropical weather, (2) production equipment (1) 30,000 30,000 28,000 maintenance, incremental pipeline…
Direct LOE, Insurance and Workovers 90.0 85.4 Q3 2017 total LOE 9% 80.5(1) 75.2 77.8 below Q2 2017 80.0 (2) 70 - 75 70.0 Go forward cost savings initiatives: 60.0 Sole sourcing items MM 50.0 such as labor and chemicals…
Pipeline Facility Fee and Gathering & Transportation 25.0 Pipeline Facility Fee flat 21.7 10.5 MM quarterly (3) 20.0 18.5 (2) 19.0 Gathering and (1) 15.0 13.2 Transportation fluctuations due to MM (1) 8.1 ONRR refunds…
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 EGC expects 8 to 8.5 MM (1) of annualized G&A and LOE 15.0 (3) savings from reduced staffing MM 15.0…
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…
Crude Hedge Profile (As of 12/01/17) 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…
2017 Capital Budget Update Estimated Capital: 115 - 130 million Includes abandonment costs of 55 - 65 million Development Drilling Program Successfully drilled first well: WD30 L-14 ST2 High Tide 100% working interest 50 identified…
Stand-Alone Path Forward Multiple development plans considered Base Development Plan (subject to capital constraints, see slide 16) Focus on protecting liquidity, covenants and balance sheet Continued G&A and operating cost…
Base Development Scenario Outcomes Avg. Annual Production Production mix 35,000 75-85% Oil 28,000 32,000 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…
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…
Significant Leverage to Rising Prices Hypothetical EBITDA Range 2018 Hypothetical EBITDA Range 2019 250 250 200 200 150 150 MM MM 100 100 50 50 - - Base Accelerated Base Accelerated Base Accelerated Base Accelerated…
Factors Impacting Future Valuation Well Positioned for Future GOM Consolidation Premium Realizations vs. Large Legacy WTI Fields with Upside Highly Leveraged Potential to Increasing Oil Prices Experienced and Focused…
APPENDIX 20
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…
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…
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…
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 &…
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…
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…
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…
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…
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…
Al Petrie Investor + Media Relations Coordinator apetrieenergyxxi.com 713-351-0617 www.energyxxi.com
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