Energy Corporation August 6, Investor Presentation 2018
Page 3 Company overview Delaware Basin pure play Premier Delaware Basin position1 Core acreage offset by high- 27,100 gross (21,100 net) acres, quality operators 90% in derisked core of Basin Strong execution Successful transition…
Page 4 2Q18 operational highlights Second quarter production of 24,036 Boe per day with an exit rate of more than 35,000 Boe per day Ranger nine-pack on line in early June with per well average peak rate of 2,300 Boe per day,…
Page 5 2Q18 operational achievements 2Q18 exit rate production jumped to more than 35,000 Boe per day, up nearly 70% from 1Q18 exit rate Production Second nine-pack, located in the Sandlot unit, came online in mid-July and is…
Page 6 Schematic of Ranger pads Zone Pad 3 Pad 2 Pad 1 Parent Pad U02 U04 U06 UWCA L01 L03 L05 L07 LWCA B102 B104 B106 UWCB C205SL Microseismic Microseismic WCC array array Newly drilled wellbore Newly…
Page 7 Schematic of Sandlot pads Zone PAD 3 PAD 2 PAD 1 U05 U03 U01 Newly drilled UWCA wellbore L06 L04 L02 LWCA B105 B103 B101 UWCB Microseismic array Early time rate in excess of 13,000 Boe per day1 (44%…
Page 8 Schematic of South Mitre pads Zone Existing PAD PAD 3 PAD 2 PAD 1 Ranger Development U04 U06 U08 U02 UWCA Newly drilled wellbore South Mitre 2102H L05 L07 L01 Existing wellbore LWCA Adjacent wellbore Refrac B104…
Page 9 Financial highlights Expect capital expenditures, LOE and cash-based G&A1 to be within previously announced guidance range Preliminary cost estimates for Ranger and Sandlot nine-packs indicate aggregate drilling, completion…
Page 10 Consistent production growth, improving cost structure Permian production growth (MBoe per day) Company cash costs per Boe 1 1 1 2 1. Excludes stockholder activism expenses 2. Based on midpoint of guidance.…
Page 11 Premier Delaware Basin operator Top tier production growth 2018E to 2019E Permian pureplay production growth1 Strong cash flow per share CAGR 2017A to 2019E growth in cash flow per share2 1. Market data per FactSet…
Page 12 Takeaway and realized prices No material production curtailed Gathering infrastructure Plains has provided assurances of reliable Plains oil takeaway ETC ETC and Caprock provide multiple options for transporting residue…
Page 13 Current derivative position September through December 2018: NYMEX hedges in place for approximately 63% of estimated oil production1 Basis swaps covering approximately 46% of estimated oil production1 Oil volume Gas…
Page 14 Significantly expanding development inventory Lower Wolfcamp wells in Mustang have shown strong initial rates Two wells had peak 24-hour rates in excess of 3,000 Boe per day, 800 Bbl oil, 1,100 Bbl NGL Added 150…
Page 15 Positive results in Lower Wolfcamp All wells on line Peak rates (Boe per day) N. Elephant B301SL Well 24 hr. 30 day Cum % oil1 S. Elephant B307SL S. Elephant B307SL 2,254 2,099 47% S. Elephant C207SL LWCB N. Elephant…
Page 16 Mustang Wolfcamp C Uinta and Thunder Canyon WCC Oil Boe Uinta C101H Thunder Canyon C107SL WCC type curve WCA type curve Thunder Canyon / Uinta forecasted economics1 Gross EUR 2,076 MBoe % oil 32% PV10 8.7 million IRR…
Page 17 Expanding development inventory with extensive upside Wells per Gross well Inventory spacing schematic Wolfcamp zone zone inventory Development Testing: 160 acre Upper A/Y 8 133 Upside: 80 acre Lower A 8 129 Mustang…
Page 18 2018 production targets Actual and estimated production (MBoe per day) 73% 71% 76% 77% 75% 46% 45% 50% 52% 49-50% % liquids Low High Average 2018 % % oil % Oil component of 2Q18 production below long term…
Page 19 Positioned for significant value creation Top-tier acreage position, employing efficient full field development to drive significant production growth Successful Lower Wolfcamp tests in Mustang has added 150 development…
Appendix
Page 21 Company reserves SEC methodology MMBoe YE171 MMBoe MY182 PV10 ( million) YE171 PV10 ( million) MY182 1. Oil price of 51.34 per Bbl; gas price of 2.98 per MMBtu 2. Oil price of 57.67 per Bbl; gas price of 2.92 per MMBtu…
Page 22 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 23 2018 guidance Updated oil percentage 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…
Page 24 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 25 Drilling and completions activity Drilling activity Lateral length Rig days over Well name / Pad Area Wolfcamp zone Status TD date (heel - toe)1 hole1 Ranger - 6 parent wells A UA/LA/UB 9,781 Producing 3/13/2018 25 Ranger…
Page 26 Production activity Production activity Lateral length Peak rates (Boe per day) Well name / Pad Area Wolfcamp zone (perf - perf)1 24 hour 30 day 60 day North Elephant B301H A LB 7,283 1,683 1,389 1,241 Ranger - 6 parent…
Page 27 Quarterly prices and volume 2017 2018 Prices and volume Q1 Q2 Q3 Q4 FY Q1 Q2 YTD Average prices: Oil ( per Bbl) 47.52 43.36 43.53 51.51 46.30 61.06 59.96 60.51 NGL ( per Bbl) 10.77 9.19 9.50 22.34 14.20 15.50 15.92 15.71 Gas…
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