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March 2018 Investor Presentation – Eclipse Resources Corp.

Eclipse Resources Corp. · Mar 1, 2018 · 40 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. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 1
    I NVESTOR P RESENTATION NYSE: ECR March 2018
  2. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 2
    March 2018 Eclipse Profile & Business Highlights Premier Utica and Marcellus Assets 16 years of core drilling 155,725 net effective acres1 in the 1.5 Tcfe in proved reserves2 inventory with expected well returns 50% 3 core of…
  3. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 3
    March 2018 Premier Utica and Marcellus Assets1 Eclipse has 375 risked, extended-reach, future lateral locations with internal rates of returns of at least 50% based on type curve assumptions2 Returns by 2018 Type Curve Acreage by…
  4. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 4
    March 2018 2017 Accomplishments Grew production 36% year over year to 310.7 MMcfe/d: 77% natural gas, 14% NGLs, 9% oil Established Eclipse as the industry leader in drilling Super Lateral wells Operational Drilled twelve Super…
  5. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 5
    March 2018 2017 Reserves and 3-Year Average F&D Costs Eclipse continues to lower its 3-year average F&D costs and increase reserves through the drill-bit, generating substantial year over year increases in proved reserves PV-10…
  6. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 6
    March 2018 What were up to in 2018 Eclipse remains focused on increasing returns through innovation by the application of cutting-edge technologies in a new operating area Eclipse has found a low cost of entry asset where it can…
  7. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 7
    March 2018 2018 Development Plan1 Eclipses capital plan of 300-320 million supports 8-14% year over year production growth on an Mcfe basis, with over 40% condensate growth Operational Highlights 2018 Capital Budget 2018 capital…
  8. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 8
    March 2018 2018 Revenue: More Liquids Focused1 With a recently turned to sales Utica Condensate pad and another 13 gross condensate wells turning to sales in 2018, Eclipses shift in commodity mix supports an increase in revenue per…
  9. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 9
    March 2018 Multi-Year Strategy1 Following a successful 2017 with 85% EBITDAX2 growth and 36% production growth, Eclipse remains committed to a multi-year development plan that will support an EBITDAX CAGR over the next 3 years of…
  10. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 10
    March 2018 Managements Focus on Full Cycle Returns Eclipse management interests are aligned with shareholders with compensation tied to achieving full-cycle corporate returns in excess of the Companys WACC Corporate Compensation…
  11. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 11
    March 2018 Enhancing Long-Term Shareholder Value Eclipses increasing economies of scale, coupled with Super Lateral development and innovative completion techniques, will continue to enhance full-cycle corporate returns, generating…
  12. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 12
    March 2018 Incremental Economic Impact of Super Laterals Extending well length from 13,000 to 20,000 creates 975 1,520 PV10 per foot with an incremental IRR of 130% 215% Well Level Capital Cost per Lateral Length Condensate Area…
  13. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 13
    March 2018 Acreage Value Enhanced by Super Laterals1 Eclipses Super Lateral development creates significant value where other Appalachian peers are not; extending the average developed lateral from 10,000 to 16,000 increases…
  14. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 14
    5,513 9,827 8,376 9,333 19,212 10,000 19,613 8,329 13,595 9,843 10,151 14,443 15,720 11,137 15,620 9,330 15,349 19,626 14,029 19,769 2017 : 13,600 Average 13,752 21,182 15,278 19,588 Super Lateral…
  15. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 15
    March 2018 2018 Utica Dry Gas Type Curve Accelerates Returns Detailed engineering analysis supports moving to a more accelerated dry gas production profile, increasing type curve returns while maintaining EUR New Production Profile…
  16. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 16
    March 2018 Marcellus Wells Commence Production Two Marcellus wells are in early flow-back stages, currently monitoring initial results Recent Activity Marcellus Initial Development Two Marcellus wells in Ohio Averaged 12 drilling…
  17. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 17
    March 2018 Eclipse Advantage in Flat Castle Eclipses Super Lateral technologies generate outsized returns in a depressed natural gas market Untapped Potential in Flat Castle Super Lateral Length Progression 44,500 highly…
  18. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 18
    March 2018 Flat Castle Gas In Place and Recovery Factors Large gas-in-place volumes in Flat Castle Project Area support the potential for reserve growth per well and further IRR gains Gas in Place Characteristics Strong Regional…
  19. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 19
    March 2018 Delineation of Flat Castle Project Area by Key Industry Wells Eclipse has initially laid out 100 gross (81 net) wells with an average lateral length of 18,000 centered on the highest gas in place in the sub-basin which has…
  20. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 20
    March 2018 Eclipse Flat Castle Project Area Type Curves Eclipse has developed two type curves for the Flat Castle Project Area (i) a base case and (ii) an upside case that is increased by 12% to reflect higher gas in place on…
  21. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 21
    March 2018 Attractive Flat Castle Project Area Type Curves1 Well costs and returns assume higher completion costs of a modern completion without an assumed increase in EUR as compared to offset wells Base Case Upside Case IRR…
  22. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 22
    March 2018 Development Strategy Eclipse has a fully planned development program covering the Flat Castle Project Area Development Metrics 100 gross (87 net) locations with 1,200 inter-lateral well spacing to allow for higher…
  23. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 23
    March 2018 Marketing Strategy Diversified Diversified marketing marketing strategy strategy provides provides flexibility flexibility and and enhanced enhanced pricing dynamics pricing dynamics Flow Assurance…
  24. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 24
    March 2018 Substantial Market Availability in Central PA Eclipse has developed a gas marketing plan for Flat Castle Project Area that provides reliable sales outlets and favorable market access Favorable Market Access Flat Castle…
  25. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 25
    March 2018 Demand Drivers Northeast Takeaway Appalachian basis differentials narrow as projects come online and transportation capacity exceeds production and projects come online Northeast Production vs Pipeline Takeaway1 45.0…
  26. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 26
    March 2018 Eclipse Firm Transportation Update Diverse firm gas transportation portfolio provides optionality to various markets, with right-sized positions to maximize revenue 1,200,000 As Rover enters service, Gross…
  27. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 27
    March 2018 Corporate Strategy Efficient Capital Deployment Investor Aligned Compensation Structure Capital expenditures to Culture of Innovation focus on highest Executive returning areas compensation Path Forward while…
  28. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 28
    A PPENDIX
  29. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 29
    March 2018 Utica Shale Drilling Joint Venture Transaction Summary1 Utica Shale Drilling Joint Venture with Sequel Energy increases Eclipses return on capital at an attractive implied per acre valuation and improves well economics…
  30. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 30
    March 2018 Q1 and 2018 Guidance Q1 2018E FY 2018E Low High Low High Avg. Daily Production (MMcfe/d) 304 311 335 355 % Natural Gas 74% 76% 73% 77% % NGL 13% 15% 12% 16% % Oil 10% 12% 10% 12% Forecasted Realizations Natural Gas…
  31. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 31
    March 2018 Premier Utica and Marcellus Assets Eclipse has 375 risked future extended reach lateral locations, equating to 16 years of drilling inventory based on 3-year development plan outlook Condensate Rich Gas Dry Gas…
  32. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 32
    March 2018 Utica Dry Gas Type Curve1 Accelerated dry gas production profile increases initial production by up to 40% while maintaining the same EUR, increasing well IRR from 72% to 84% 2018 Type Curve Utica Dry Gas Type Curve…
  33. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 33
    March 2018 Utica Condensate Type Curve1 Recent condensate wells are exceeding type curve expectations on oil production and yield, providing for better economics 2018 Type Curve Utica Condensate Type Curve BTIRRs 160 stage…
  34. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 34
    March 2018 Marcellus Condensate Type Curve1 Two Marcellus wells are in early flow-back stages, currently monitoring initial results 2018 Type Curve Marcellus Condensate Type Curve BTIRRs 150 stage spacing Completions 100%…
  35. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 35
    March 2018 Utica Rich Gas Type Curve1 While Gen 3 wells have not yet been drilled, Gen 2 results are consistent with the Utica Rich Gas type curve 2018 Type Curve 160 stage spacing Utica Rich Gas 2017 Type Curve BTIRRs…
  36. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 36
    March 2018 2018 Ohio Type Curves and Flat Castle Type Curves Marcellus Flat Castle Base Flat Castle Upside Type curves do not represent proved reserves Utica Condensate Utica Rich Gas Utica Dry Gas Condensate Case Case Type Curve…
  37. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 37
    March 2018 2018 Type Curve Summary Utica Condensate Utica Rich Gas Utica Dry Gas Marcellus Condensate Flat Castle Base Case Flat Castle Upside Case Gas IP Rate (Mcf/d) 7,200 30,600 44,350 9,900 40,712 45,598 Initial Cond. Yield…
  38. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 38
    March 2018 Hedging Update Eclipse is 65% hedged in 2018 for natural gas and 75% hedged for condensate production in 2018 Summary of Current Hedges Natural Gas (MMBtu/d) 2018 Commodity Hedges s indicate Avg. Floor Price 400,000…
  39. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 39
    March 2018 Hedging Summary1 Volume Weighted Average Natural Gas Hedges Production Period (MMBtu/d) Price (/MMBtu) Natural Gas Swaps 30,000 Ja nua ry 2018 - Ma rch 2018 3.46 30,000 Apri l 2018 - Ma rch 2019 2.90 Natural Gas…
  40. March 2018 Investor Presentation – Eclipse Resources Corp. – slide 40
    March 2018 Non-GAAP Reconciliations Adjusted EBITDAX Three Months Ended Year Ended December 31, December 31, thousands 2017 2016 2017 2016 Net income (loss) (13,122) (62,089) 8,525 (206,735) Depreciation, depletion and…

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