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Year End 2017 an 2018 Outlook – RSP Permian Inc.

RSP Permian Inc. · Feb 28, 2018 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 1
    YEAR-END 2017 UPDATE AND 2018 OUTLOOK February 27, 2018
  2. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 2
    RSP PERMIAN INVESTMENT OPPORTUNITY UNMATCHED CORE LOW CORPORATE COST ACREAGE POSITION IN STRUCTURE AND DEPTH BOTH THE MIDLAND AND OF OPERATIONAL DELAWARE BASINS EXPERIENCE 3
  3. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 3
    RSP PERMIAN OVERVIEW RSP OVERVIEW CONTIGUOUS ACREAGE POSITION IN CORE OF PERMIAN BASIN 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 Delaware…
  4. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 4
    CORPORATE UPDATE
  5. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 5
    2017 HIGHLIGHTS Incorporated Silver Hill Delaware Basin Acquisition Approximately doubled RSP acreage position and activity levels Eliminated infrastructure overhang: facilities, water handling and gas gathering & processing capacity…
  6. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 6
    2017 MAINTAINED FOCUS ON SHAREHOLDER RETURNS AND STRENGTHENING OUR BALANCE SHEET DURING A PERIOD OF TRANSFORMATIONAL GROWTH 2016 2017 SUPERIOR DEBT-ADJUSTED PRODUCTION GROWTH (4) Production 29.2 89% 55.3 (MBoe/d) 250% 238% Proved…
  7. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 7
    2017 WELL PRODUCTIVITY UNDERSCORES ASSET QUALITY 120 Excellent results with 6-Month Oil IPs per 1k Foot (Bo/d) 100 continued improvement across breadth of position 80 Notably, results include 60 Step-out success into…
  8. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 8
    2017 TOP WELLS 2017 - TOP 10 MIDLAND WELLS 2017 - TOP 10 DELAWARE WELLS 9 9 1 76 8 1 8 10 52 34 7 10 45 23 6 Lateral IP30 / Lateral IP30 / Frac Length 1,000 Frac Length 1,000 Well Name Month Zone (Feet) (Boe/d) %…
  9. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 9
    THE 200 CLUB RSP WELLS WITH IP30 200 BOE/D PER 1,000 FT 450 Over 50 RSP wells with IP30 200 Boe/d per 1,000 400 Distribution 50% Midland / 50% Delaware, across 9 different reservoirs 350 IP30 / 1,000 (Boe/d) 300 250…
  10. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 10
    2018 FOCUSED CAPITAL PROGRAM 2018E CAPEX SUMMARY 2018 PLANNED DRILLING LOCATIONS BY ZONE Other BS D&C: 725 - 785 MM WB Delaware 4% Infra & Other: 90 - 110 MM Midland Total Development: 815 - 895 MM XY WA 39% 60% Delaware D&C…
  11. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 11
    2018 DUC BACKLOG SPRING-LOADS PRODUCTION TRAJECTORY 36 drilled but uncompleted wells (DUCs) carried over from 2017 to 2018 Ability to capture lower expected average completion cost in 2018 Results in YoY improvement in capital…
  12. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 12
    CORPORATE GOALS: 2018 & BEYOND 2019- 2018 2021+ 2020 35% production growth 30%+ production growth Continue measured at midpoint acceleration…
  13. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 13
    FINANCIAL UPDATE
  14. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 14
    4Q17 AND FY17 FINANCIAL RESULTS 4Q17 4Q16 FY 17 FY 16 4Q17 4Q16 FY 17 FY 16 Avg. Daily Production Cash Op. Exp. (/Boe) Oil (MBbl/d) 44.3 25.4 39.6 21.3 LOE 5.25 4.41 5.13 4.93 Gas (MMcf/d) 45.8 24.8 41.4 19.6 G&T 0.89 0.57 0.96…
  15. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 15
    STRONG FINANCIAL POSITION WITH AMPLE LIQUIDITY During Fall 2017 redetermination, increased borrowing base to CAPITALIZATION TABLE 1.5 B from 1.1 B, reiterated 900 MM Company-elected commitment under the amended and restated credit…
  16. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 16
    ACTIVELY BUILDING HEDGE POSITION INTO 2018 AND 2019 60% of 2018 estimated oil volumes hedged, based on midpoint of guidance Protecting 48 floor in 2018 and 54 floor in 2019, on average HEDGE CONTRACT DETAIL Crude Oil (Bbl, /Bbl)…
  17. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 17
    FULL YEAR 2018 GUIDANCE FULL YEAR 2018 GUIDANCE SUMMARY COMMENTARY 2018 Guidance Range 7 operated rigs currently (3 Midland, 4 Delaware) Production Avg. Daily Production (Boe/d) 72,000 - 78,000 8th rig expected to arrive in April…
  18. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 18
    MIDLAND BASIN UPDATE
  19. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 19
    MIDLAND BASIN POSITION 46,700 CONTIGUOUS FOOTPRINT + STACKED RESOURCE net acres 1,600 net drilling locations(1) 1.0 BBoe Total Resource Potential(1) 3,400 (1) Based on base case well spacing. 20
  20. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 20
    MIDLAND BASIN INVENTORY CURRENT BASE SPACING ASSUMPTIONS Numerous spacing pilots ongoing Ector Mid./Mar./Andr. Glasscock Formation Avg. Avg. Avg. Increased proportion of longer lateral wells in Wells/Section Wells/Section…
  21. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 21
    MIDLAND BASIN WELLS CONTINUE TO EXCEL MIDLAND BASIN WELL PERFORMANCE BY VINTAGE (ALL OPERATED WELLS) 250 Avg. LL: 8,600' 200 Avg. LL: 7,100' 150 Cuml. MBoe Avg. LL: 7,400' AVG. WELL SPACING (FEET) FIRST…
  22. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 22
    MIDLAND BASIN: MAXIMIZING ASSET VALUE IN WOLCAMP A RSPP began drilling Wolfcamp A target in 2014 when other operators were focused on Wolfcamp B Wolfcamp A development has now increased to 8 wells per section in some areas with…
  23. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 23
    MIDLAND BASIN: STACKED DEVELOPMENT EXCEEDING EXPECTATIONS SPANISH TRAIL SECTION 47 (MIDLAND COUNTY) CALVERLEY SECTION 9 (GLASSCOCK COUNTY) 350 300 300 250 250 200 Cuml. MBoe Cuml. MBoe 200 150 150 100 100 Weighted…
  24. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 24
    MIDLAND BASIN: MIDDLE SPRABERRY UPDATE MIDDLE SPRABERRY ACTIVITY MIDDLE SPRABERRY PRODUCTION (CUML MBOE) 180 First MS well completed with LL: 7,000' 160 modern frac design 140 120 Cuml. MBoe 100 80 60 40…
  25. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 25
    DELAWARE BASIN UPDATE
  26. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 26
    DELAWARE BASIN POSITION 45,200 CONTIGUOUS FOOTPRINT + STACKED RESOURCE net leasehold acres 6,000 net royalty acres(1) 2,380 net drilling locations(2) 1.8 BBoe Total 5,700 Resource Potential(2) (1) Net royalty acre defined…
  27. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 27
    DELAWARE BASIN INVENTORY CURRENT SPACING ASSUMPTIONS Early stage in determining optimal spacing patterns Base Spacing (Avg. Wells/Section) Significant upside to inventory pending results from: Formation West / Central East Avalon 8 6…
  28. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 28
    DELAWARE BASIN CORE A/XY UPDATE RSP Delaware Basin A / XY wells completed with modern frac design (8+ clusters / stage, 1,800 lbs / ft) outperforming 1.5 MMBoe benchmark curve (200 MBoe/ft) DELAWARE BASIN CORE A/XY PERFORMANCE…
  29. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 29
    DELAWARE BASIN BRUNSON D 3-WELL PAD UPDATE BRUNSON D LOCATOR MAP BRUNSON D 3-WELL PAD PRODUCTION (BOE/D) 10,000 1,000 Wells shut Boe/d in 2/9/18 Lateral IP24 / 100 Length IP24 1,000 Well Name Zone (Feet) (Boe/d) (Boe/d)…
  30. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 30
    DELAWARE BASIN: THIRD BONE SPRING ACTIVITY 3RD BONE SPRING PRODUCTION (CUML MBOE) 180 160 140 120 Cuml. MBoe 100 80 60 40 20 0 0 30 60 90 120 150 RSP Completions Days Earlier Vintage 3rd Bone Spring Wells…
  31. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 31
    DELAWARE BASIN: WOLFCAMP XY SAND ACTIVITY RSP Completions 32
  32. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 32
    DELAWARE BASIN: WOLFCAMP A ACTIVITY RSP Completions 33
  33. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 33
    DELAWARE BASIN: WOLFCAMP B ACTIVITY RSP Completions 34
  34. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 34
    APPENDIX
  35. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 35
    IN MEMORY OF TED COLLINS, JR. Ted Collins, Jr., a legend in the oil patch, friend, and member of the RSP family passed away on January 28, 2018. Ted played an integral role in the formation of RSP, and has been a valued advisor…
  36. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 36
    ADJUSTED EBITDAX AND ADJUSTED NET INCOME RECONCILIATION Reconciliation of Net Income (Loss) to Adjusted EBITDAX Three Months Ended Twelve Months Ended (in thousands) December 31, 2017 September 30, 2017 December 31, 2016 December 31,…
  37. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 37
    MIDLAND BASIN BASE CASE WELL SPACING ILLUSTRATION MIDLAND MARTIN / ANDREWS 560 Middle Middle Spraberry 560 Spraberry 75 Jo Mill 75 Jo Mill 410 Lower Lower Spraberry 330 Spraberry 180 Dean 175 Dean 235 Wolfcamp Wolfcamp A…
  38. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 38
    DELAWARE BASIN BASE CASE WELL SPACING ILLUSTRATION WEST & CENTRAL(1) 1000 Avalon 600 1st Bone 1000 2nd Bone 300 3rd Bone XY 500 Wolfcamp A Wolfcamp 400 B 1 mile EAST 1000 Avalon 600 1st Bone…
  39. Year End 2017 an 2018 Outlook – RSP Permian Inc. – slide 39
    ADDITIONAL DISCLOSURES Supplemental Non-GAAP Financial Measures The Company defines Adjusted EBITDAX as oil and gas revenues including net cash receipts (payments) on settled derivative instruments and premiums paid on put options that…

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