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Scotia Howard Weil 2018 Energy Conference – HighPoint Resources

HighPoint Resources · Mar 26, 2018 · 34 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. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 1
    Scotia Howard Weil Energy Conference Scot Woodall - President & CEO March 26-27, 2018 HPRES.COM
  2. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 2
    Welcome to HighPoint Resources HighPoint Resources, formed through the combination of Bill Barrett Corporation and Fifth Creek Energy, is a Denver-based exploration and production company focused on the development of oil and natural…
  3. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 3
    Company Overview
  4. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 4
    A Leading Pure-Play DJ Basin Operator We have a Clear Path to the Top NYSE Symbol: HPR Market Cap1: 1,100 mm Enterprise Value1: 1,460 Share count: 211 mm 1Q18 PF Production2: 2.2 MMBoe 1 Based on the closing stock price as…
  5. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 5
    Positioned For Long-Term Value Creation SCALABLE, PROFITABLE & REPEATABLE Large, Contiguous, Strong Technical Rural Oil Position Expertise and Superior Execution Returns Focused, Balance Sheet Disciplined Capital Strength…
  6. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 6
    The Dominant Position in Oil-Weighted Rural Core of DJ Basin 151,100 net acres largely held-by-production 2,865 undeveloped drilling locations (95% XRL) Greater than 60% oil-weighted production leading to strong economics and…
  7. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 7
    Top-Tier Margin Generation DJ Basin Operating Margin and Oil Weighting Peer Leading 35 60% Operating Margins 30 29.14/boe HighPoint generates 27% greater 25 Peer Average 22.98/boe unhedged operating margins % Oil…
  8. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 8
    Shareholder Value Creation Strategy 2018 2019 Transformational growth profile primarily Maximize returns through capital efficient internally-funded through cash on hand development and continued cost control and cash flow from…
  9. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 9
    Guidance Outlines Value Proposition 20.0 2018 Guidance Production Volumes DJ Basin (MMBoe) 18.0 Focused development program in NE Wattenberg and Hereford Fields Disciplined capital investment to high-margin, high-return…
  10. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 10
    Delivering Transformational Growth Profile 70,000 Growth Complementary asset portfolio 60,000 2018 80% underpins robust corporate growth 2019 70% trajectory in coming years Forecasted Production Contribution by Asset 50,000…
  11. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 11
    Operational Overview
  12. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 12
    Portfolio Provides Substantial Value Creation Opportunity Decades of high-return oil-weighted locations within two core assets 151,100 net acres that is held by production; 2,865 undeveloped locations (95% oil) Close proximity of…
  13. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 13
    HighPoint is the Only Exclusively Rural Public DJ Basin Operator Controllable and Efficient Development Rural Positioning Combined acreage position is rural in nature with no urban exposure or associated development complexities No…
  14. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 14
    NE Wattenberg Focus Area Core acreage provides cash flow base to support Hereford development opportunity 60% Oil Avg. 64,400 net acres favorable for XRL development Strong performance from 2017 optimized completion program…
  15. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 15
    Improving Results from Optimized Completions and Flowback 100,000 Benefits of program being validated 80,000 by XRL well performance +47% Higher sand concentration, 60,000 optimized flowback, and tighter frac Cumulative Oil…
  16. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 16
    Cycle Time Improvement Drives D&C Costs Lower NE Wattenberg XRL D&C Cost (mm) Reduced Costs and Increased Cycle Times 8.25 6.25 Efficiencies offset inflationary increases and cost 4.75 4.65 of enhanced completions Efficiencies…
  17. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 17
    Hereford Field Overview Largely undeveloped position provides decades of highly economic XRL drilling locations across multiple horizons 86,700 net acres in rural oil setting that is held by production with 1,200 gross drilling…
  18. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 18
    Hereford Located in Strong Oil Producing Fairway Key geologic criteria indicates strong oil producing fairway and Key Geologic Criteria hydro carbon charge that compares favorably to Greater Hereford Hereford Wattenberg Position…
  19. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 19
    Core and Petrophysical Analysis Confirms Resource Niobrara Codell Stacked B1 and B2 zone creates the Codell thickness ranges from 17-23; highest net chalk pay for a single thicker than most areas of Greater Niobrara target in the…
  20. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 20
    Strong Results Validate Hereford Field Initial 7 XRL wells completed in 2017 9,500 laterals and modern completion Laramie 5 Codell; 2 Niobrara B Average IP30 of 1,052 Boe/d (84% oil) 3 XRL wells completed in December 2017 9,500…
  21. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 21
    Existing Infrastructure Supports Growth Multiple crude outlets provide 650 MBbls/d of take-away capacity Multiple Gas Processing Outlets Provides Flexibility Local refineries and rail provide additional outlets No long-term firm…
  22. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 22
    Finance Overview
  23. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 23
    Strengthened Financial Position Debt Maturities (mm) 400 No near term debt maturities 300 Visible leverage metric improvement 200 Anticipate net debt to EBITDAX…
  24. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 24
    Hedging Program Protects Cash Flow Manage hedge portfolio to support capital program, Crude Oil Hedges(1) protect future cash flow and reduce commodity 15,000 price risk 54.31 54.31 12,000 52.98 Strategy is to hedge 50-70% of…
  25. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 25
    Strong Value Proposition DJ Basin pure-play with high-quality, oily, rural acreage Text Returns-focused capital allocation with portfolio flexibility Demonstrated technical execution with strong results from optimized completion…
  26. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 26
    Appendix
  27. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 27
    2017 Achievements Announced strategic business combination with Fifth Creek Energy Production sales volumes of 7 MMBoe, represents 20% growth over 2016, pro forma for asset sales DJ Basin 4Q17 production increased 42% over 4Q16…
  28. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 28
    XRL Well Economics Sensitivity IRR 120% Hereford 100% NE Wattenberg 80% 60% 40% 20% 0% 45.00 55.00 65.00 WTI Oil Price (/Bbl) Note: Calculated for an XRL well with a 550 MBoe EUR, 9,500 lateral, 82-stage…
  29. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 29
    Hereford Field Activity 1 20 Jubilee 1541034H (Aug2014) Critter Creek 2781527H (Sep2017) Legend IP30: 1,032 Boe/d 90% Oil IP30: 1,249 Boe/d 73% Oil Target: Niobrara LL: 9,838 Fifth Creek Acreage Target: Niobrara LL: 9,797…
  30. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 30
    Legacy 2017 Year End Proved Reserves Proved Reserves Volumes 56% Growth in 2017 Proved reserves increased 56% (MMBoe) over YE 2016 to 86 MMBoe 85.8 All-sources reserve replacement of 541% with finding and development Maintained…
  31. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 31
    4Q17 and Full Year 2017 Financial Results Three Months Ended Twelve Months Ended December 31, December 31, 2017 2016 2017 2016 Net cash provided by operating activities ( millions) 26.6 5.5 122.0 121.7 Discretionary cash flow (…
  32. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 32
    Non-GAAP Reconciliation (Unaudited) These measures should not be considered in isolation or as a substitute for net income, income from operations, net cash provided by operating activities or other income, profitability, cash flow…
  33. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 33
    Non-GAAP Reconciliation (Unaudited) Discretionary Cash Flow Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2017 2016 2017 2016 (in thousands) Net Cash Provided by (Used in) Operating Activities…
  34. Scotia Howard Weil 2018 Energy Conference – HighPoint Resources – slide 34
    1099 Eighteenth Street, Suite 2300 Denver, CO 80202 303.293.9100 Website: www.hpres.com Investor Relations Contact: Larry C. Busnardo (303) 312-8514 lbusnardohpres.com HPRES.COM 36

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