Bernstein 2018 Strategic Decisions Conference May 30, 2018 TPG PACE ENERGY HOLDINGS has executed a definitive agreement to purchase EnerVest s South Texas division and will be renamed Magnolia Oil & Gas Corporation at closing. TPGE…
Introduction to Magnolia Oil & Gas Corporation 1 650 million IPO in May 2017 2 2.7 billion Asset Identified IPO at 10/unit; NYSE ticker of TPGE Steve Chazen and TPG partnered to form a On March 20, 2018, TPGE entered into publicly…
Focused on Traditional Value Creation Metrics A differentiated Independent E&P Company with the objective to generate stock market value over the long term, through: 1 Consistent organic production growth 2 High EBIT operating…
Top Tier Eagle Ford & Austin Chalk Asset Position Entry into South Texas at an Attractive Price with 358,000 Net Acres Position Targeting Two of the Top Significant Running Room Oil Plays in the U.S. High-quality, low-risk pure-play…
Located in an Attractive Neighborhood Core position in Karnes County Oil Window adjacent to EOG and Marathon with 28 to 32/barrel breakevens(1) and less than 1-year new well paybacks (1) Source: RSEG. TPG PACE ENERGY HOLDINGS 6
Great Fit with Managements Value Creation Strategy Value Creation Strategy Magnolia Oil & Gas Build a large scale Core Karnes County acreage with some of the best economics focused business in the U.S(1) Generate cash flow well…
Post-Announcement Update Recent Highlights Oil weighted average production of 45.7 Mboe/d(1) 62% Oil, 78% Liquids 84% and 92% of revenue associated with oil and liquids, respectively Q1 EBITDA of 152.2 million and Free Cash Flow of…
Focus on Maintaining High Full-Cycle Operating & EBIT Margins Benchmark Prices WTI (/bbl) 45.00 58.00 65.00 Henry Hub (/mcf) 2.75 2.75 2.75 Differentials Base case of 58 WTI oil Oil (/bbl) at time of announcement (1.33) (1.33)…
Cash Flow Priorities to Maximize Shareholder Returns Accretive Bolt-On Acquisitions Debt Share Reduction Repurchases Return- focused Value Creation With a targeted goal of always being free cash flow positive, Magnolia…
Summary Investment Highlights Why Own Magnolia Oil & Gas Premier Platform Positioned for Success Coveted position in core of Karnes County with industry leading breakevens between 28 - 32 per barrel(1) Emerging position in the…
Appendix TPG PACE ENERGY HOLDINGS
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…
Attractive Compared to In-Basin and Business Model Comps Magnolia will be in a class of its own from a cash flow generation perspective... Legend 2018E Free Cash Flow Yield(1) 13.5% 10.2% 4.4% 4.6% 2.1% 1.3% 0.2% Magnolia (0.1%)…
Better Than Expected 1Q18 Results Magnolia Q1 2018 Results(1) 2018E Projections 2018E Q1 2018 Karnes Giddings Total (3) (4) Base Case Sensitivity Cases Actual(1) Average Daily Production Index Oil Price ( / Bbl) 58.00 45.00 65.00…
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