Cowen Energy & Natural Resources Conference December, 2017
General Overview
The New Chaparral Transforming into a premier pure-play STACK company Approximately 110,000 net acres Strong pipeline of economic opportunities Solid operating margins and returns, even in a volatile commodity price…
Recent Achievements Emerged from restructuring with a strong balance sheet Equitized 1.2 billion in debt and reduced annual interest expense by 110 million Enterprise Value of approximately 1.2 billion Post Emergence Debt/Adjusted…
Year End 2016 SEC Proved Reserves 131.3 MMBoe of Reserves(1) 74% Oil, 83% Liquids Reserves by Area 9% 22% 23% 75.2, 54.9, 17% 57% 42% 74% 55% 1.1, Of which, 60.5 MMBoe are 1% NBU PUDs PDP PDNP PUD OIL GAS NGL STACK EOR…
2018 Strategy Transition Chaparral to a STACK position provides significant growth potential Pure-Play STACK Monetize non-core assets to focus exclusively on STACK Company Capital and Financial Focus on oil-weighted, high-return…
2017 Oil & Gas Capital Budget Summary (1) CAPEX Oil-weighted capital budget of 170 - 190 million (2) Other, Approximately 130 million allocated to STACK 5% Approximately 50% allocated to Kingfisher County and the Merge…
Production Growth STACK 9.5 Guidance High 10,000 Boe/d 9,136 9.1 Guidance Low 8,166 Total production raised due to Op and Non-Op activity 8,000 7,693 7,514 7,289 Expect STACK production to grow 25% from 2016 to 2017 6,000 2017…
Asset Overview
Asset Overview STACK Premier basin with industry-leading returns Large contiguous acreage position with exposure to all current economic reservoir targets Multi-year drilling inventory supporting significant future growth Early…
One Petroleum System STACK Attributes N REGIONAL STACK CROSS SECTION 60 MILES S Stacked reservoirs proximal to the world- STACK MERGE class Woodford source rock GARFIELD COUNTY KINGFISHER COUNTY CANADIAN COUNTY GRADY COUNTY Efficient…
STACK Drilling Joint Venture Joint Venture between Chaparral Energy, L.L.C. and Bayou City Energy (BCE) WOODS ALFAFA Fund further development of Chaparrals 110,000 acre GARFIELD STACK position MAJOR WOODWARD Bayou City Energy…
STACK Canadian County Overview Lease Operator Spud Date Peak IP30 Oil % Lateral Length 1 CUTBOW 1307 1UMH26 Chaparral 3/29/17 1,114 55% 4,672 2 KILIMANJARO 1106 1UMH2 Chaparral 7/28/17 930 73% 4,776 3 BIG TIMBER 1408 1UMH2 Chaparral…
STACK Garfield County Overview Lease Operator Spud Date Peak IP30 Oil % Lateral Length 1 WHITE OAK 2206 1UMH36 Chaparral 5/7/17 868 12% 4,743 2 LEE 1MH1 E/2 W/2 Chaparral 12/31/13 774 29% 4,242 3 REDWOOD 2105 1MH3 W/2 W/2…
Recent STACK Transactions Significant A&D activity demonstrates value of Chaparrals acreage position Staghorn, Payrock & Alta Mesa transactions were primarily in the black oil, normal pressure window of the play 1 1 2 3 4…
Currently Identified Drilling Inventory by Play Extensive operated drilling inventory STACK Operated Drilling Inventory by Type 174-rig years 4,000 Kingfisher County Osage, Meramec and Oswego 1.5 rigs 3 rigs 4 rigs 5 rigs 6 rigs…
Chaparral Well Performance in STACK Enhanced Completion Tests in the STACK Demonstrated Performance Over Last 12 Months Initiated enhanced completion program in Q2 Increased proppant loading continues to support 2016 to test…
Operational Excellence Drilling and Completions Strong, Effective Focus on Cost Reduction/Control Demonstrated D&C cost improvements Average D&C cost of 3.5 million from Q1 2016 to Q2 2017 2017 average Meramec D&C cost of 3.7…
Non-Core Legacy Asset Overview Mature, lower decline legacy fields Low maintenance capital Provides free cash flow to fuel STACK growth Potential strategic alternatives Net Production(1) Gross Margin(1) Net Proved Reserves…
Financial Overview
Financial Strategy Maintain strong balance sheet Converted all long-term debt to equity As of September 30, 2017, approximately 93 million liquidity, which includes approximately 71 million available on revolver Maintain capital…
Financial Position and Liquidity Post EOR Sale EOR divestiture proceeds of Chaparral Pro Forma Liquidity 170 million(1) ( in Millions) as of Adjustments Pro Forma 9/30/2017 9/30/2017 Proceeds used to pay off term loan and portion…
Hedging Hedging Strategy Ensures Revenue to Execute Capital Plan Oil Positions Natural Gas Positions 12,000 30,000 9,600 25,000 24,457 10,000 Volumes (Mcf/d) Volumes (bbls/d) 8,000 20,000 50.00 60.50 6,298…
Why Chaparral Why Chaparral Peer Leading Balance Sheet Strong Management Execution-focused Team with Excellent STACK Player Track Record Deep Inventory of High-return Drilling Prospects 26
Appendix
STACK Meramec Single Well Economics Type Curve Parameters EUR: 578 MBoe Oil %IP-30: 59% D&C Cost(1): 3.5 million Oil EUR: 233 MBbls Oil %EUR: 40% IP (30-day): 442 Bo/d Initial Decline: 85% b Factor: 1.2 Well Head Gas EUR:…
STACK Osage Kingfisher Single Well Economics Type Curve Parameters EUR: 540 MBoe Oil % IP-30 : 67% D&C Cost(1): 3.3 million Oil EUR: 235 MBbls Oil %EUR: 44% IP (30-day): 403 Bo/d Initial Decline: 80.7% b Factor: 1.1 Well…
STACK Osage Garfield Single Well Economics Type Curve Parameters EUR : 599 MBoe Oil % IP-30 : 46% D&C Cost(1): 3.3 million Oil EUR: 174 MBbls Oil %EUR: 29% IP (30-day): 259 Bo/d Initial Decline: 83.6% b Factor: 1.4 Well Head…
STACK Woodford Black Oil Single Well Economics Type Curve Parameters EUR: 575 MBoe Oil % IP-30 : 55% D&C Cost(1): 4 million Oil EUR:233 MBbls Oil %EUR: 41% IP (30-day):298 Bo/d Initial Decline:73% b Factor: 1.1 Well Head…
STACK Oswego Single Well Economics Type Curve Parameters EUR: 290 MBoe Oil % IP-30 : 81% D&C Cost(1): 2.7 million Oil EUR: 231 MBbls Oil %EUR: 80% IP (30-day): 483 Bo/d Initial Decline: 85% b Factor: 1.1 Well Head Gas EUR:…
2017 Guidance 2017 Guidance Company production: 8.3 - 8.7 MMBoe Capital expenditures: 185 - 200 million Lease operating expense(LOE): 10.50 - 11.00 per Boe General and administrative(G&A)(1): 3.40 - 4.20 per Boe Chaparral…
Contact Information Contact Information Investors Joe Evans Chief Financial Officer joe.evanschaparralenergy.com 405-426-4590 Media Brandi Wessel Manager Communications brandi.wesselchaparralenergy.com 405-426-6657…
Executive Team K. Earl Reynolds, Chief Executive Officer and Director Mr. Reynolds joined Chaparral in 2011 as an executive vice president and chief operating officer before being named president in 2014 and chief executive officer in…
Board of Directors Robert F. Heinemann, Chairman Mr. Heinemann was named to the board in 2017. During his career, Mr. Heinemann worked for Berry Petroleum Company, as a director and as its president and chief executive officer, as…
Board of Directors Samuel Langford, Director Mr. Langford was named to Chaparrals board in 2017. He continues to serve as the principal for Langford Upstream Advisory, L.L.C., a position he has held since 2013. Prior to that time, he…
Reconciliations (in thousands) 2016 2015 2014 Reconciliations Net (loss) income (415,720) (1,333,844) 209,293 Interest expense 64,242 112,400 104,241 Income tax (benefit) expense (102) (177,219) 124,443 Depreciation, depletion and…
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