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Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp

Resolute Energy Corp · Mar 29, 2018 · 29 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 – Resolute Energy Corp – slide 1
    Energy Corporation March 12 Investor Presentation 2018
  2. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 2
    Page 3 Company overview Delaware Basin pure play Premier Delaware Basin position1 27,100 gross (21,100 net) acres, 90% in Reeves County, Texas derisked core of Basin 90% of core acreage held by production Strong execution…
  3. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 3
    Page 4 2017 highlights Positioned for significant value creation Spud 28 wells and placed 27 wells on production, exceeding original 22 well plan through drilling efficiencies Permian Basin production grew by 151% year-over-year.…
  4. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 4
    Page 5 2017 operational achievements 25 wells drilled with three drilling over year-end Company drilling records of 14 days in Mustang and Drilling 17 days in Appaloosa Successful testing of the lower Wolfcamp B and Wolfcamp C 27…
  5. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 5
    Page 6 Consistent production growth, improving cost structure Permian production growth (MBoe per day) Grew production 8.5x Cash costs per Boe 60% reduction in costs
  6. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 6
    Page 7 Strong financial profile Permian Basin operating margins Adjusted EBITDA1 100% 50% 0% Debt maturity and availability2 Active hedging program 7,000 Bbl of oil per day Approximately 70% of anticipated 1H18…
  7. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 7
    Page 8 Continued strong results from Upper Wolfcamp 2017 average rates (Boe per day) Zone WCA UWCB Appaloosa Wells 19 6 24 hr. 2,845 2,408 Bronco 30 day 2,515 2,113 60 day 2,270 1,882 Mustang Wolfcamp A Wolfcamp B
  8. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 8
    Page 9 2016 WCA wells tracking type curve Appaloosa Five wells, all of which have at least 360 days of production 1 Average exceeds type curve when adjusted for frac hits and downtime Type curve 2016 2016 adjusted for frac…
  9. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 9
    Page 10 Positive results in Lower Wolfcamp Peak rates (Boe per day) N. Elephant B301SL Well 24 hr. 30 day 60 day S. Elephant B307SL S. Elephant B307SL 2,254 2,099 1,968 S. Elephant C207SL LWCB N. Elephant B301SL Drilling S.…
  10. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 10
    Page 11 Ten year development inventory with extensive upside Wells Gross well Inventory spacing schematic Wolfcamp zone per zone inventory Development Upper A/Y 8 142 Testing: 160 acre Development Upside: 80 acre Lower A 8…
  11. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 11
    Page 12 Premier Delaware Basin operator Top tier production growth 2017E v 2016A1 Class leading capital efficiency Growth in cash flow per share 2017 ROCE2 27% increase year-over-year 1. Companies included are AXAS, DNR,…
  12. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 12
    Page 13 Expanding development program in 2018 2018 approach Focus on drilling and contemporaneously completing groups of up to nine wells Benefits from this strategy include: Reduced frac hits Improved infill well performance Cost…
  13. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 13
    Page 14 Optimizing well performance through pad drilling Results in: Nine-well pad expected Second set of 9 wells completed to initially track TC some level of interference expected Full section development 1 2 3 4 5 6 7 8 1…
  14. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 14
    Page 15 Maximizing program performance Ranger/Mitre 10K WCA Ranger/Mitre 10K WCB 29% of 2018 program 16% of 2018 program Program average IRR more than 100% Program average IRR more than 35% Sandlot 6.5K WCA Sandlot 6.5K WCB…
  15. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 15
    Page 16 2018 program expected to deliver strong returns Ranger/Mitre 10K WCA1 Ranger/Mitre 10K WCB1 102% capital 62% capital recovered recovered 2 2 Sandlot 6.5K WCA1 Sandlot 6.5K WCB1 57% capital 53% capital recovered…
  16. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 16
    Page 17 2018 operations timeline1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec N. Elephant WCB Uinta C101H Appaloosa Appaloosa triple Mustang 9 well group Appaloosa triple Drilling Appaloosa triple Mustang triple…
  17. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 17
    Page 18 +50% year-over-year Permian production growth Permian Basin average expected full year production of 30 33 MBoe per day in 2018 Production accelerates significantly through the year resulting in more than 90% increase in…
  18. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 18
    Page 19 2018 development driving strong financial performance Expect Permian Basin full year production growth of Production more than 50% compared to 2017 Approximately 56% of capital expenditures will be Capital funded from…
  19. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 19
    Page 20 Positioned for significant value creation Core of core acreage position, employing efficient full field development technology Significant production growth year-over-year Costs Dramatically improved cost structure…
  20. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 20
    Appendix
  21. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 21
    Page 22 2018 guidance Range 2018 guidance Low High Projected 2018 production Annual MBoe 10,950 12,045 Annual average Boe per day 30,000 33,000 4Q average Boe per day 42,000 44,000 On a volume-weighted basis: Oil 52% Oil and NGL…
  22. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 22
    Page 23 2018 capital guidance detail Range 2018 capital guidance ( million) Low High Projected 2018 net capital expenditures Drilling, completion and well facilities 350 375 Field facilities and other 23 27 Other corporate capital…
  23. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 23
    Page 24 Drilling activity Since October 1, 2017 Drilling activity Lateral length Spud to TD Well name Area Zone Status TD date (heel - toe) (days) Thunder Canyon C107SL M WCC 8,071 Completing 10/10/2017 16 Ranger C205SL A WCC…
  24. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 24
    Page 25 Completion activity Since October 1, 2017 Completions activity Lateral length First Proppant per Well name Area Zone Frac stages (perf - perf) production foot (lbs) Ace L06H M LWCA 7,699 10/3/2017 31 1,804 South Elephant…
  25. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 25
    Page 26 Production activity As of March 8, 2018 Production activity Lateral length Peak rates (Boe per day) Well name Area Zone (perf - perf) 24 hour 30 day 60 day 90 day North Goat B101SL A UWCB 10,062 2,362 2,284 2,176 2,013 Ace…
  26. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 26
    Page 27 Quarterly prices and volume 2016 2017 Prices and volume Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD Average prices: Oil ( per Bbl) 26.63 39.75 39.55 44.15 38.83 47.52 43.36 43.53 51.51 46.30 NGL ( per Bbl) 4.30 7.64 8.61 12.61 9.80 10.77…
  27. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 27
    Page 28 Margin and cost structure Summary 2016 2017 ( in millions, except as noted) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD Sales volume Total MBoe 820 1,080 1,480 1,802 5,182 1,773 2,216 2,628 2,539 9,156 Revenue 19.0 35.4 47.4 62.6…
  28. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 28
    Page 29 Margin and cost structure per Boe Margins 2016 2017 ( per Boe) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD Revenue 23.16 32.78 32.04 34.78 31.74 36.43 31.70 30.20 35.16 33.14 Realized derivative gains (losses) 33.82 19.03 14.43 10.19 16.99…
  29. Scotia Howard Weil 2018 Energy Conference – Resolute Energy Corp – slide 29
    Page 30 Non-GAAP reconciliations Adjusted EBITDA 2016 2017 ( in millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 YTD Net income (loss) (85.3) (36.9) (18.9) (20.6) (161.7) 1.5 13.2 (14.6) (1.3) (1.2) Adjustments: Interest 13.1 13.0 13.3 11.3 50.7…

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