Energy Corporation June Investor Presentation 2018
Page 3 Company overview Delaware Basin pure play Premier Delaware Basin position 1 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…
Page 4 Key credit highlights Pure play operator in the heart of the Delaware Basin after completing asset sales Transitioning to development mode, expected to drive strong production growth Costs Compelling project economics and…
Page 5 Premier position in heart of Southern Delaware Basin Blocky, contiguous Core acreage offset by high-quality operators acreage position of 21,100 net acres Bronco Offset by high- quality operators 90% in derisked core of…
Page 6 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…
Page 7 Consistent production growth, improving cost structure Permian production growth (MBoe per day) Company cash costs per Boe 60% reduction in costs 1 1. Net of Copas reimbursements. Excludes non-cash charges and…
Page 8 Significant growth in production through 2018 Actual and estimated production (MBoe per day) 73% 73% 75% 76% 75% 46% 47% 54% 55% 52% % liquids % Low High Average 2018 % oil % 49 horizontal wells online at…
Page 9 Premier Delaware Basin operator Top tier production growth CAGR 2017A to 2019E1 Class leading capital efficiency Strong cash flow per share 2018E ROCE2 2018E 56% increase year-over-year1 1. Companies included are…
Page 10 Strong financial profile Permian Basin operating margins Adjusted EBITDA1 100% 50% 0% Debt maturity and availability2 Average hedges and prices Oil volumes Gas volumes Pro forma Basis Basis undrawn at March…
Recent Developments and 2018 Operating Plan
Page 12 1Q18 highlights Positioned for significant value creation Drilling on Ranger nine pack finished in mid-March; first three pads completed, full pack on line Drilling on Sandlot nine pack finished in May; completions in June,…
Page 13 First quarter 2018 operational achievements Ranger nine pack drilled on time and on budget Third rig added in February in Sandlot to drill nine pack Drilling Utilizing spudder rig to preset intermediate casing at 4,800 feet;…
Page 14 2018 development program 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 savings…
Page 15 Optimizing well performance through pad drilling Results in: Nine pack expected to Second set of nine wells completed initially track TC some level of interference expected Full section development 1 2 3 4 5 6 7 8 1 2…
Page 16 Ranger batch completion
Page 17 Schematic of Ranger pads Zone Pad 3 Pad 2 Pad 1 Parent Pad U02 U04 U06 UWCA L01 L03 L05 L07 LWCA B102 B104 B106H UWCB C205 Microseismic Microseismic WCC array array Newly drilled wellbore Existing…
Page 18 Ranger batch drilling and completion update Past Future Plan Current Drilling Completion Production Drilling Completion Production Ranger pad Jan Feb Mar Apr May Jun Pad 1 Pad 2 Pad 3 Per well averages Ranger pad…
Page 19 Ranger Pads 1 and 2 Stage cadence Ranger Pads 1 and 2 Both of the first two Ranger pads finished completion operations ahead of schedule Average stages per day: Pad 1 3.2 Pad 2 4.5
Page 20 Substantial integrated data collection program Microseismic Better knowledge of frac dimensions and complexity Understand role of structural elements in well productivity 3D seismic Improves geosteering Rock property…
Page 21 Sandlot drilling
Page 22 Sandlot pad drilling update Past Future Drilling Plan Current Sandlot rig Jan Feb Mar Apr May Patterson rig 759 Patterson rig 757 Patterson rig 756 Utilizing three rigs simultaneously to drill three-well pads…
Page 23 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 Completing S.…
Page 24 Positive results in Lower Wolfcamp Lower Wolfcamp B and Wolfcamp C wells have shown strong initial rates Two wells had peak 24-hour rates in excess of 800 barrels of oil per Upper day with 1,100 Bbl per day of Wolfcamp NGL…
Page 25 Ten year development inventory with extensive upside Wells Gross well Inventory spacing schematic Wolfcamp zone per zone inventory Development Upper A/Y 8 139 Testing: 160 acre Development Upside: 80 acre Lower A 8…
Page 26 Oil and gas gathering system Multiple options in place Reeves County gathering infrastructure ETC Plains Caprock Resolute acreage Caprock oil/gas gathering system Gas pipeline Oil pipeline Oil terminal Pecos…
Page 27 Extensive midstream infrastructure Mustang and Appaloosa oil production gathered via Caprock system and shipped via Plains pipelines Plains Marketing buys oil at the battery under five-year contract at index minus 1.75 per…
Page 28 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…
Page 29 Positioned for significant value creation Top-tier acreage position, employing efficient full field development to drive significant production growth Lower Wolfcamp testing has potential to expand inventory by 40% in near…
Appendix
Page 31 2018 plan 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…
Page 32 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…
Page 33 Drilling, completions and production activity Since January 1, 2018 Drilling activity Lateral length Rig days over Well name / Pad Area Zone Status (heel - toe)1 hole1 North Elephant B301SL A LWCB 9,099 WOC 59 Ranger Pad…
Page 34 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…
Page 35 Current hedge positions Oil Gas 2018 hedge positions 2Q 3Q 4Q 2Q 3Q 4Q Benchmark Swap Bbl / MMBtu per day 4,500 3,000 3,000 20,000 20,000 6,739 Weighted average floor 51.48 50.56 50.56 2.77 2.77 2.77 Collar Bbl / MMBtu…
Page 36 Quarterly prices and volume 2017 2018 Prices and volume Q1 Q2 Q3 Q4 FY Q1 Average prices: Oil ( per Bbl) 47.52 43.36 43.53 51.51 46.30 61.06 NGL ( per Bbl) 10.77 9.19 9.50 22.34 14.20 15.50 Gas ( per Mcf) 2.26 2.24 2.01…
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