IPAA Oil & Gas Investment Symposium April 10, 2018
General Overview
Chaparral Story Building the premier pure-play upstream oil company in the STACK High-growth STACK pure-play upstream oil company Effectively completed transition to pure-play with sale of EOR Q1 2018E STACK production of 12…
Recent Accomplishments / Highlights 2016 to 2017 STACK production growth 27% Q4 16 to Q4 17 39% Initiated 100mm, 30-well drilling joint venture to accelerate STACK development Secured new 400mm credit facility with a borrowing base…
2018 Strategy Building the premier pure-play upstream oil company in the STACK Transition is effectively complete following divestitures in 2017 Remaining non-core legacy producing assets will be monetized in Pure-Play STACK the…
Year End 2017 SEC Proved Reserves 76.3 MMBoe of Reserves(1) 39% Oil, 63% Liquids Reserves by Area 24% 25.6 26.9 39% 1.0 49.7 49.4 37% PDP PDNP PUD OIL GAS NGL STACK OTHER STACK YE 2017 reserves increased 58% Replaced…
2018 Oil & Gas Capital Budget Expectations Guidance Range, mm Total Capital 250 275 Operated STACK D&C 100 110 OBO STACK D&C 35 45 Lease Acquisition(1) / 3-D Seismic 85 90 Other 30 (1) Hennessey Acquisition accounts for 55mm of…
Asset Overview
Asset Overview STACK Premier basin with industry-leading returns Large contiguous acreage position with exposure to all current economic reservoir targets Multi-year drilling inventory supporting significant future growth Early…
STACK Development Timeline Chaparral has been active in the play since 2013 Capital for horizontal resource play development was constrained between 2013 and 2016 Balance sheet constraints Chapter 11 filing in 2016 Prior to 2016,…
STACK Drilling Joint Venture Joint Venture between Chaparral Energy, L.L.C. and Bayou City Energy (BCE) Accelerate development of Chaparrals 117,000 acre STACK position Bayou City Energy funds 100% of the D&C cost Approximately…
Recent Meramec & Osage Operated Well Performance Update Continued strong Kingfisher County Meramec and Osage well performance Average 932 Boe/d IP-30 (3-phase), with 83% liquids Excellent results in Canadian County Merge…
STACK Meramec and Merge Miss Overview Spud Peak IP-30(1) Liquids(1) Lateral Lease Operator Date Boe/d % Length 1 SLIMER 1707 1UMH-23 CHAPARRAL 9/5/2017 719 85% 4,839 2 HIGH VALLEY 1807 1UMH-36 CHAPARRAL 8/19/2017 652 77% 4,588 3 BIG…
Solid Well Performance Lower Osage Actual Cumulative Oil vs. CHPE Type Curve Well performance outperforming 100,000 90,000 type curves 80,000 70,000 Outperforming internal type curves Cumulative BO 60,000 (new updated…
Operational Excellence Drilling and Completions Strong, Effective Focus on Cost Reduction/Control 2017 average STACK Meramec Average D&C Cost by Operator D&C cost of 4 million, despite STACK Meramec One-Mile Laterals service cost…
Operational Excellence Stimulation Design Stimulation design improvements deliver material well performance improvements Since 2014, Chaparral has driven material well performance improvement by significantly increasing Frac Stages…
Recent Transactions Support CHPE Acreage Valuation Significant A&D activity demonstrates value of Chaparrals acreage position Staghorn, Payrock, Alta Mesa & Longfellow transactions were primarily in the black oil, normal pressure…
Non-Core Legacy Asset Overview Mature legacy fields Low maintenance capital Provides free cash flow to fuel STACK growth Potential strategic alternatives Net Production(1) Gross Margin(1) Net Proved Reserves Area Boe/d %…
Financial Overview
Financial Strategy Maintain strong balance sheet Converted all long-term debt to equity As of December 31, 2017, approximately 185 million of liquidity, which includes approximately 157 million available on the revolver and 28…
Financial Position and Liquidity Closed on a new 5 year, Chaparral Liquidity 400 million credit ( in Millions) facility on December YE 2017 21st, 2017 Cash and Cash Equivalents 28 Initial borrowing base of Revolving Credit…
Hedging Hedging Strategy Ensures Revenue to Execute Capital Plan Oil Positions Natural Gas Positions 35,000 7,000 6,259 30,000 29,047 6,000 50.00 - 60.50 5,000 25,000 Volumes (Mcf/d) Volumes (bbls/d) 4,227 20,908…
Why Chaparral Why Chaparral Strong Balance Sheet Strong Management Execution-focused Team with Excellent STACK Player Track Record Deep Inventory of High-return Drilling Prospects 26
ENERGIZING Americas Heartland
Appendix
Contact Information Contact Information Investors Joe Evans Chief Financial Officer joe.evanschaparralenergy.com 405-426-4590 Jeff Smail VP, Corp. Finance & Investor Relations jeff.smailchaparralenergy.com 405-426-4359 Media…
Year End 2017 Proved Reserves 76.3 MMBoe of Reserves(1) 39% Oil, 63% Liquids Reserves by Area 24% 25.6 26.9 39% 1.0 49.7 49.4 37% PDP PDNP PUD OIL GAS NGL STACK OTHER YE 17 Total Proved Reserves YE 17 Proved Reserves PV-10…
2018 Guidance 2017 Guidance Company production: 17 - 18 Mboe/d STACK production: 11.5 12.5 Mboe/d Chaparral Operated Gross Wells Planned Capital expenditures: 250 - 275 million STACK D&C Capital : 135 - 155 (1) Garfield Canadian…
Core STACK & Merge Type Curve Overview STACK Osage, Meramec & Merge Miss North South Lower Upper Meramec Merge Miss Woodford Woodford Osage Osage Lateral Length (ft) 4,800 4,800 4,800 4,800 4,800 4,800 Well Cost (mm) 4.0 4.5 4.4…
STACK Type Curve Assumptions STACK Meramec Lower Osage Upper Osage North Woodford South Woodford Merge Miss Well Cost Assumptions Well Costs (mm) 4.0 3.9 4.1 4.4 4.4 4.5 Well Costs (/ft) 833 813 854 917 917 938 Type Curve…
Reconciliations Successor Predecessor Period from Period from Year ended Year ended Reconciliations March 22, January 1, December December 2017 2017 31, 2016 31, 2015 through through December March 21, (in thousands) 31, 2017 2017…
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