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…
Company Overview
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…
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…
Top-Tier Margin Generation DJ Basin Operating Margin and Oil Weighting Peer Leading 40 60% Operating Margins 35 36.05/boe Peer Average 29.12/boe 30 HighPoint generates greater 25 unhedged operating margins % Oil…
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…
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…
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…
Operational Overview
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% XRL) Close proximity of…
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…
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…
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…
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…
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…
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…
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…
Hereford Field Drilling and Completion Activity 1 Section 11-63-14 (10 XRL wells) Currently drilling Laramie 2 Section 11-63-24 North (DUC 3 XRL wells) Currently drilling out frac plugs Initial flowback expected in June 2018 3…
Existing Infrastructure Supports 2018/2019 Growth Plans 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…
Finance Overview
Strengthened Financial Position Debt Maturities (mm) 400 No near term debt maturities 300 Visible leverage metric improvement 200 Anticipate net debt to EBITDAX…
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 57.22 54.62 54.63 Strategy is to hedge 50-70% of production…
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…
Appendix
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…
Hereford Field Targets Consistent Across Acreage Consistent geology from Colorado Hereford Field to Wyoming Fairway Field W Continuity and consistency of primary targets across acreage position BBC Talmadge Core Well Niobrara B…
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…
Financial Results Summary Three Months Ended Twelve Months Ended March 31, December 31, 2018 2017 2017 2016 Net cash provided by operating activities ( millions) 54.3 38.1 122.0 121.7 Discretionary cash flow ( millions)1 34.9…
Non-GAAP Reconciliation (Unaudited) EBITDAX Reconciliation Three Months Ended Twelve Months Ended March 31, December 31, 2018 2017 2017 2016 (in thousands) Net Income (Loss) (24,937) (13,115) (138,225) (170,378) Adjustments to…
Non-GAAP Reconciliation (Unaudited) Discretionary Cash Flow Reconciliation Three Months Ended Twelve Months Ended March 31, December 31, 2018 2017 2017 2016 (in thousands) Net Cash Provided by (Used in) Operating Activities 54,317…
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