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Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp

TPG Pace Energy Holding Corp · Mar 20, 2018 · 30 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. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 1
    Magnolia Investor Presentation TPG PACE ENERGY HOLDINGS HIGHLY CONFIDENTIAL NOT FOR DISTRIBUTION
  2. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 2
    Transaction Summary Steve Chazen and TPG raised 650 million through the IPO of a special purpose acquisition company (SPAC) in May 2017, called TPG Pace Energy Holdings Corp. (Pace Energy or TPGE) Pace Energy was established to build…
  3. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 3
    Introduction to Magnolia Oil & Gas Steve Chazen and TPG formed entity to be Leading private oil & gas company a consolidation platform with a disciplined 5 geographic operating divisions with over corporate return philosophy 36,000…
  4. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 4
    Acquisition Delivers on The Steve Chazen Playbook Steve Chazen Playbook Magnolia Build a large scale, Core Karnes County acreage with some of the best economics in the U.S. focused business with sustainable competitive…
  5. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 5
    Top Tier Eagle Ford and Austin Chalk Asset Position Entry into South Texas at an Attractive Price with 359,000 Net Acres Position Targeting Two of the Top Significant Running Room Oil Plays in the U.S. High-quality, low-risk pure-play…
  6. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 6
    Value Creation Plan: Multiple Drivers of Share Price Accretion Overriding goal is to maximize shareholder returns Compelling Value Proposition We believe this can be achieved through a combination of: 1 Steady production growth 2…
  7. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 7
    Industry Leading Fundamentals at a Discounted Purchase Multiple 12.0x 11.0x CXO 10.0x FANG COG 9.0x PXD EOG 2018E EV / EBITDA 8.0x 7.0x OXY 6.0x 5.0x Magnolia 4.0x 3.0x 2.0x…
  8. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 8
    Magnolia Comparable Companies Magnolia will be in a class of its own from a cash flow generation perspective... Legend 2018E Free Cash Flow Yield(1) 10.2% 4.7% 3.4% Magnolia 0.8% 0.3% 0.1% (11.2%) (14.0%) (25.1%) (26.6%) In-Basin…
  9. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 9
    Karnes County Core Eagle Ford and World Class Austin Chalk Key Asset Highlights Premier Position in the Core of the Eagle Ford World-class acreage footprint located in the core of the Eagle Ford, substantially de-risked 14,070 net…
  10. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 10
    Karnes County has some of the Top Economics in North America Results in Karnes County are some the best in North America Karnes Eagle Ford and Austin Chalk type curves produce 216,000 and 330,000 barrels of oil, respectively, in their…
  11. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 11
    Giddings Field Austin Chalk Redeveloping as an Emerging Play Giddings Asset Overview Lease Map Emerging, high-growth asset with extensive inventory potential and significant development flexibility 345,000+ net acres, 99%+ HBP and 87%…
  12. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 12
    Giddings Early Results Indicate Large Development Potential Recent Giddings Results Magnolia Giddings Footprint 90 75 Cum. Oil Production (Mbo) 60 45 30 BROUSSARD - LIEBSCHER COOP 1 LILI MARLENE 2 15 MCMAHAN 2 NEVA 2…
  13. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 13
    Magnolia Asset Summary Free Cash Flow Positive Assets High quality assets allow for two self sustaining Karnes 2018E Asset Cash Flow Profile(1) operating areas ( in millions) 492 (221) Karnes County World class asset that…
  14. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 14
    Magnolia to Partner with EnerVest to Operate Assets Karnes County Eagle Ford 30-Day IP(1) (Bopd) of Wells: 35 29 154 54 43 76 340 103 48 1,165 employees 1,400 Total 5 operating divisions Max Monthly IP 30 (Bopd) 1,200…
  15. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 15
    Production with Free Cash Flow Generation in 2018+ Conservative Rig Program Significant Production Online (Rigs) (Mboe/d) Magnolia Recent Acq.(1) 4.0 49.4 45.6 2.1 3.6 2.7 13% Organic Base Growth 47.3 41.9 2018E 2019E…
  16. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 16
    Focus on Maintaining High Full-Cycle Operating Margins Illustrative Full Cycle Margin 100% 22% Operations focused on producing best-in-class full-cycle operating margins (inclusive of development costs) Realized price benefits from…
  17. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 17
    Illustrative Full Cycle Margins at Various Prices Benchmark Prices WTI (/bbl) 58.00 45.00 55.00 65.00 Henry Hub (/mcf) 2.75 2.75 2.75 2.75 Differentials Oil (/bbl) (1.33) (1.33) (1.33) (1.33) Gas (/mcf) (0.28) (0.28) (0.28) (0.28)…
  18. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 18
    Effective Use of Cash to Maximize Shareholder Returns Robust Cumulative Free Cash Flow Potential Uses of Free Cash Flow ( in millions) Accretive Debt Reduction Acquisitions 426 241 Share Repurchases 2018E 2019E…
  19. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 19
    Benefits of Focusing on South Texas Less competition Proven plays with significant remaining oil in place Favorable differentials and access to Gulf Coast markets Attractive cost of doing business in an…
  20. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 20
    South Texas Primed for Consolidation Large opportunity set of potential consolidation targets: An increasing number of public companies view South Texas assets as non-core and are not actively allocating capital to the region Several…
  21. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 21
    Magnolia Summary Investment Highlights 359,000 net acres across Karnes County and the Giddings Field of South Texas with multi-bench Premier Platform development and stacked pay Positioned for Coveted position in Karnes Country core…
  22. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 22
    Financial Appendix TPG PACE ENERGY HOLDINGS HIGHLY CONFIDENTIAL NOT FOR DISTRIBUTION
  23. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 23
    Sources, Uses and Pro Forma Valuation Sources & Uses (Estimated) Post Transaction Ownership (Estimated)(1,2) Sources Ann. Adj. Close (3) % At Announcement Adj. At Close (3) Ownership MM Equity to Seller 1,326 (131) 1,194 45% Public…
  24. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 24
    Financial Projections 2018 & 2019 Forecast Assumptions Magnolia Financial Projections ( in millions unless otherwise noted) 2017A 4Q'17 Ann. 2018E 2019E Commodity Prices: Net Production Oil (MMbbl) 7.6 8.6 10.1 10.6 58/bbl WTI Gas…
  25. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 25
    Anticipated Transaction Timeline Date Event Transaction Agreements Executed March 20 Transaction Announced April / May 2018 Preliminary Proxy Materials Filed with the SEC June 2018 Set Record Date for Shareholder Vote June…
  26. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 26
    Appendix TPG PACE ENERGY HOLDINGS HIGHLY CONFIDENTIAL NOT FOR DISTRIBUTION
  27. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 27
    Pro Forma Management Organization Responsibilities / Corporate Functions Corporate Strategy Chief Executive Officer Capital Allocation Chief Financial Officer / Corp. Finance Staff Drilling Plan Investor Relations Financial…
  28. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 28
    Magnolia Plans to Execute with the Same Approach as Steve Did at OXY Steve Chazens Management Highlights(1) OXY Oil & Gas Production (Mboe/day) OXY CRC Built the largest upstream operating 812 position in the Permian Basin prior to…
  29. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 29
    Karnes County Core Eagle Ford and Austin Chalk Karnes Overview Eagle Ford Play Heat Map 14,070 net acres (28,886 gross acres) 65% operated (86% WI in operated sections); 88% HBP 100% of the acreage is prospective for both Eagle…
  30. Acquisition of EnerVest Eagle Ford – TPG Pace Energy Holding Corp – slide 30
    Illustrative Fully Diluted Share Count Illustrative Share Price Share Counts in Millions 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 TPGE - Public IPO Shares 65.0 65.0 65.0 65.0 65.0 65.0 65.0 65.0 65.0 TPGE - Public PIPE…

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