Alta Mesa Resources, Inc. Goldman Sachs Global Energy Conference 2018 January 2018
Creation of a Pure-Play STACK Enterprise Silver Run II has agreed to merge with Alta Mesa and Kingfisher Midstream (collectively renamed Alta Mesa Resources, Inc.), creating a world class energy company with a high-quality,…
Alta Mesa Resources Focused on development and consolidation in the STACK Upstream Metrics Net STACK Surface Acres 130,000 Current Net Production (BOE/D) 24,000 % Liquids 69% KFM System Resource Potential (MMBOE)1 1,000 NW…
Sustainable STACK Development Combined midstream & upstream with fully funded growth and low leverage Disciplined Growth with 10+ year Horizon in STACK Oil Window, 10-12 rig cadence Highly contiguous 130,000 net acres; infrastructure…
Fully-Financed Growth Material liquidity, clear path to positive free cash flow Our Top-Tier EBITDA Growth is Fully-Financed, Growth Plan is Fully-Financed with Line of Sight to De-Risked, and Highly Visible1 Positive FCF Generation…
Compelling Value Proposition Peer multiples expanded 25% since announcement Debt-Adjusted Firm Value / 2019E EBITDA Material Material Midstream Asset Midstream Asset Exposure Exposure 8.7x 8.3x 7.7x 7.3x 7.3x 5.7x 6.0x 5.5x 5.7x…
Top-Tier Balance Sheet to Support Growth Balance sheet strength to be preserved as we grow Relative Value Peers 2017E Net Debt / 2017E EBITDA1 Other Top-Tier Balance Sheet Peers 3.0x 2.5x 2.3x 2.1x 2.1x 2.0x 1.4x 1.3x 1.0x…
Production Growth in De-Risked Acreage Consistent growth in STACK oil window Gross Operated Horizontal Production, BOE/Day Wells in STACK Oil Window 40,000 35,000 30,000 25,000 BOE/D 20,000 15,000 10,000…
Well-Delineated Meramec/Osage in Oil Window Hundreds of horizontal and vertical wells define high-confidence picture STACK Oil Window is primarily the Sooner Trend Oil Field Stretches across eastern Kingfisher County through…
Top-Tier Results in STACK Oil Window Horizontal Meramec/Osage wells, Kingfisher County Public data illustrate Alta Mesa has significant portion of top quartile producers Cumulative BO 6 Months Cumulative BO 12 Months Cumulative BO 24…
Recent North Area Meramec / Osage Operated Wells Production data Days from 1st Peak Day Peak 30 Day Well Name Landing oil to Peak Rate BOD Avg. BOD 1 2 3 1 Maly 30-M4H Osage 103 531 272 4 11 12 2 Bugabago 2006 1-31MH Osage 163…
Recent South Area Meramec/Osage Operated Wells Production data Days from Peak Day Best 30 Day Well Name Landing 1st oil to Rate BOD Avg. BOD Peak 1 McLovin 1605 1-6MH Osage 13 578 449 2 Aces High 1606 4-11MH Osage 10 647 501 3…
Peer Leading Operating Metrics Major U.S. Oil Plays Breakeven Prices (/BBL)1 SEC Future Development Cost Per Proved Undeveloped BOE ( / BOE)3 34.66 34.76 33.36 24.21 32.14 27.71 27.53 27.16 24.40 13.78 9.37…
Recent Results Demonstrate Geographic Breadth Recent north & south wells averaging above type curve in Meramec and Osage North Area South Area 70,000 70,000 Cumulative Oil Production, Bbls 24 Osage 13 Meramec/19 Osage…
2018+ Focus: Multi-Well Pattern Development Spacing test pilots have established basis for development Ash-Foster Early Flowback Themer Early Flowback 2 parent, 8 infill wells 1 parent, 7 infill wells 35,000 35,000 Themer 4 IP30…
Kingfisher Midstream Operations Continued execution establishes basis for 2018+ performance Kingfisher Midstream Execution Q3 2017 Adjusted EBITDA 10.5MM, 200% from Q2 2017 Operations continue to expand since August SRUN…
Kingfisher Midstream System System expansion remains on timeline and budget Natural Gas Processing Current processing capacity of 150 Mmcf/d, inclusive of offtake agreements Incremental 200 Mmcf/d Cryo plant operational in…
Midstream Highly Accretive to Alta Mesa Vertical integration yields substantial strategic and financial benefits KFM is positioned to capture volume growth from the STACK Rapidly Expanding G&P Complex Acreage dedications / resource…
Summary Continued execution facilitates disciplined growth SRUN/AMR/KFM combines leading upstream and midstream operations for sustained, disciplined growth over 10+ year horizon Fully-funded, low leverage growth in…
Appendix
Progressive Execution through Cycles Track record of growth in production, reserves, leasehold Net STACK Acreage 130,000 Alta Mesa Footprint 102,466 73,512 40,587 44,506 YE13 YE14 YE15 YE16 Current Total Net Production…
Optimization, Delineation and Expansion Systematic horizontal development and growth of contiguous acreage 1992 - 2013 2014 - 2015 2016 & 2017 40,000+ Net Acres 73,000+ Net Acres 130,000+ Net Acres 1987 2013 2016 Founded by Mike…
STACK Development Early stages of development on de-risked Kingfisher acreage Base Case Development Concept 2017 Development Plan Oswego/ Big Lime 150 ft 1,500 1,500 1,500 450 ft Meramec 750 750 Osage 750 750…
STACK: A Significant Petroleum System Additional development potential in multiple stacked pay zones Alta Mesa Existing Development 55 Well Locations per Section Over 800 days of strong well performance Type Log Proved Down-…
Oswego Development in STACK Oil Window Accelerating activity in high-productivity wells and patterns Oswego Development in Alta Mesa Footprint Oswego Operated & Non-Operated Wells 90,000 Key vertical pay in Sooner Trend Field, high…
Kingfisher Midstream Overview Acreage Dedications System Profile Cushing 60 mi. Scalable processing capacity to support customer production growth First mover advantage on residue capacity into interstate markets, enhancing customer…
Top-Tier Results in STACK Oil Window Kingfisher County public production data Cumulative Production 6 Months Process 3 11 Public production data was pulled from Drilling Info 19 for all wells meeting the following criteria: 27…
Gross Oil Cumulative Production Data Horizontal Meramec/Osage wells, Kingfisher County Highlighted Alta Mesa wells compose significant portion of top quartile producing wells 6 Months 12 Months 24 Months 6 2 9 13 5 18 8 27 20…
Gross BOE (6:1) Cumulative Production Data Horizontal Meramec/Osage wells, Kingfisher County Highlighted Alta Mesa wells compose significant portion of top quartile producing wells 6 Months 12 Months 24 Months 1 2 10 7 5 19 14…
Gross BOE (29:1) Cumulative Production Data Horizontal Meramec/Osage wells, Kingfisher County Highlighted Alta Mesa wells compose significant portion of top quartile producing wells 6 Months 12 Months 24 Months 1 2 10 6 5 19 13…
Alta Mesa Share of Top Oil Window Wells Horizontal Meramec/Osage wells, Kingfisher County BOE (6:1) BOE (29:1) OIL 6 mo 12 mo 24 mo 6 mo 12 mo 24 mo 6 mo 12 mo 24 mo Total Wells 316 238 107 316 238 107 315 237 107 Peer Wells 223…
Alta Mesa Summary STACK Pro Forma Financials Nine Months Ended Years Ended December 31, ( in millions, unless specified) September 30, 2017 2016 2015 2014 Production Oil (MBBLS) 2,783.0 3,057.2 2,006.1 1,071.6 Natural Gas (MMCF)…
Reconciliation of Adjusted EBITDAX to Net Income Nine Months Ended Years Ended December 31, ( in millions, unless specified) September 30, 2017 2016 2015 2014 Net Income (Loss) 22.3 (107.3) 100.4 23.9 Adjustments: State income…
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