GOLDMAN SACHS GLOBAL ENERGY CONFERENCE 2018 January 9, 2018
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…
CORPORATE UPDATE
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…
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 3Q17…
TRACK RECORD OF DELIVERING SUPERIOR DEBT-ADJUSTED GROWTH Rank 2 amongst Permian-focused peer group for production growth per DAS from 2Q14 (PE IPO) to 3Q17 PRODUCTION GROWTH PER DEBT-ADJUSTED SHARE 250% 238% 207% 200%…
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…
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…
SERVICES, SAND & WATER NEEDS SECURED THROUGH 2018+ 2018 pricing agreement in place with Halliburton for 2 dedicated frac crews Entered into contract for 3rd full-time frac crew, to arrive mid-2Q18 Services Crews are flexible to move…
ACTIVELY BUILDING HEDGE POSITION INTO 2018 AND 2019 RSP continuing to protect 45 floor into 2018 & 2019 HEDGE CONTRACT DETAIL Crude Oil (Bbl, /Bbl) 1Q18 2Q18 3Q18 4Q18 2018 1Q19 2Q19 3Q19 4Q19 2019 Three-Way Collars (1) 2,219,000…
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…
OPERATIONS UPDATE
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 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 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…
FUTURE OUTLOOK Continued focus on corporate-level returns and capital efficiency, not growth for growths sake Ability to achieve 30%+ production growth in 2018 in 50+ oil price environment, reaching cash flow neutrality by end…
APPENDIX
MIDLAND BASIN INVENTORY 60% of drilling in 2018 targeting platinum inventory with CURRENT SPACING ASSUMPTIONS expected IRR 50% at 50 oil Base Spacing Mid - Upside Spacing 50% estimated weighted average return for 2018 drilling…
DELAWARE BASIN INVENTORY 65% of drilling in 2018 targeting platinum inventory with CURRENT SPACING ASSUMPTIONS expected IRR 50% at 50 oil Base Spacing (Avg. Wells/Section) 65% estimated weighted average return for 2018 drilling…
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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