DIVERSIFIED GAS & OIL P L C I N V E S T O R P R E S E N TAT I O N JANUARY 2018 CONFIDENTIAL
January 2018 Investor Presentation MARKETING PURPOSE Acquire Two Transformative Packages for 180M* in Cash Target: Alliance Petroleum Corporation - 95M Target: Mountaineer** - 85M 180M Equity Capital Raise Progresses…
INTRODUCTION TO DGOC Our Current Business 3
January 2018 Investor Presentation CORPORATE OVERVIEW: DIVERSIFIED GAS & OIL PLC APPALACHIAN BASIN GAS AND OIL PRODUCER Corporate Profile Today Exchange Listing Details AIM DGOC DGOC Focus Area Net Daily Production MBoe per Day…
January 2018 Investor Presentation COMPANY HISTORY MARKED BY GROWTH Gross Boe/ 18,000 day 80% Gross 17 Production CAGR from 2012 to Jun17 Feb: Floated on AIM raising Gross 50m largest UK O&G Boe/ IPO since April 2014…
January 2018 Investor Presentation A UNIQUE OPPORTUNITY; ACHIEVING SCALE THROUGH ACQUISITIONS Established, Profitable & Growing Founded in 2001 by the CEO with 80% CAGR of production since 2012 Over 10,300 net barrels of oil…
January 2018 Investor Presentation OUR BUSINESS MODEL Value Balanced 6% 2018E Dividend Yield(a) 6.0% Disciplined pursuit of cash producing Finance acquisitions with a proper 36% Equity Return assets available at low multiples…
January 2018 Investor Presentation TRACK RECORD OF DELIVERING STATED OBJECTIVES Successful AIM IPO Largest AIM E&P IPO since 2014 One of only three UK Listed E&P (of 90) to pay a regular dividend(a) 160m of capital raised in…
January 2018 Investor Presentation STRATEGY: ACQUIRE, PRODUCE, DRILL I Price acquisitions as a multiple of cash flows from existing production; Pay N nothing for undeveloped resource O R Source: Large energy players looking to…
January 2018 Investor Presentation OUR ASSETS: LOW RISK, LOW COST, LONG LIFE DGOC operates a large portfolio of producing wells driving stable cash flows Low risk (political & operational; US Onshore) producing gas and oil assets…
PENDING TRANSACTIONS Further Transforming DGOC 11
January January 2018 2018 Investor Investor Presentation Presentation ESTABLISHED, LARGE, INDEPENDENT APPALACHIA PRODUCER Addition of two strategic and accretive acquisitions achieves significant scale and economies in the…
January 2018 Investor Presentation CONCENTRATED FOOTPRINT IN THE BASIN DGOC Today Alliance Mountaineer DGOC Combined Pennsylvania Ohio Strategic acquisitions within a tight focus area allow for 90% of DGOC wells in OH,…
January 2018 Investor Presentation TRANSACTION RATIONALE: ALLIANCE (STRUCTURE: STOCK PURCHASE) Geographically Aligned with Existing Assets; Significantly accretive on evaluated metrics: Acquisition Criteria / Valuation Metrics (95M…
January 2018 Investor Presentation TRANSACTION RATIONALE: MOUNTAINEER (STRUCTURE: ASSET PURCHASE) Geographically Aligned with Existing Assets; Significantly accretive on evaluated metrics: Acquisition Criteria / Valuation Metrics…
January 2018 Investor Presentation INORGANIC GROWTH - CASH FLOW & EBITDA ACCRETIVE 20,000 Daily Production (Net Boe/d) 5.0x Multiple Paid of Op Cash Flow 17,833 18,000 Transformative Acquisition (includes acquired G&A expenses)…
January 2018 Investor Presentation NET PRODUCTION & RESERVE GROWTH Stable production base with low (3% annual) declines and long life (50+ years remaining life) 30.0 +87% +173% 25.0 9.0 28 ------------------ +86% Net Boe per…
January 2018 Investor Presentation ACQUISITIONS SUBSTANTIALLY INCREASE SCALE & ECONOMIES PDP Reserves(a) Net Daily Production (26-30 MBoe/d)(a) 200.0 700 30.0 180.0 +217% 600 160.0 25.0 PV10 (Millions USD) 572 MBoe…
January 2018 Investor Presentation LINE OF SIGHT TO LOWER COSTS LOE per Boe (6.25-6.75 per BOE)(a) G&A per Boe (0.85-1.15)(a) 7.60 2.50 7.40 7.20 7.46 2.00 7.00 1.99 LOE / Boe G&A / Boe 6.80 1.50 6.60 6.40 1.00 6.20…
January 2018 Investor Presentation SIGNIFICANT ORGANIC OPPORTUNITY SET Infill Drilling Opportunities Single Gas & Oil Well IRRs Substantial 4.0 million+ acre leasehold, estimated 80% 50% 45% undeveloped based on 20 acre…
January 2018 Investor Presentation ACQUISITION STRUCTURE & FINANCING OVERVIEW Highlights Low Net Leverage; Organically De-Leveraging 4.x Covenant Limit = 3.5x Continued commitment to balanced 3.5x use of debt and equity capital to…
January 2018 Investor Presentation COMMITMENT TO A STRONG BALANCE SHEET Pro Forma Capitalization (M)(a) Pro Forma Liquidity (M) Cash & Cash Equivalents 15 60 Credit Availability Cash Borrowings 73 50 Million 50 Total…
January 2018 Investor Presentation EXPECTED TIMETABLE 2018 31 Jan Roadshow Complete 31 Jan ABB Announcement 31 Jan Book Closed Placing Announcement & Circular Posted 1 Feb 2017 Final Dividend declared 19 Feb…
January 2018 Investor Presentation RECENT TAX REFORM WILL ENHANCE CASH FLOW US Corporate tax rate significantly reduced Reduced Cash Taxes from Lower Corporate Rate from 35% to 21% 40% 35% Reduction in corporate tax rate will…
January 2018 Investor Presentation ROBUST, EXPANDING DISTRIBUTION NETWORK Conventional Production Benefits Recent Pipeline Approvals: Low pressure gathering and transmission systems that Atlantic Sunrise: 200 miles of pipe; 1.7…
January 2018 Investor Presentation MANAGEMENT TEAM Years of Name Position Profile Experience Founded DGO in 2001 Robert Rusty 4th generation oil and gas CEO 13 years in finance and accounting in the banking industry, CPA 28…
January 2018 Investor Presentation THE BOARD: ALIGNED WITH SHAREHOLDERS (SIGNIFICANT INSIDE OWNERSHIP 30%) Name Position Profile Shares Held Joined DGO in 2005 as 50% owner with Rusty Huston Robert Post Non-Executive Chairman…
Contact Information Company Brokers Diversified Mirabaud Stifel PO BOX 381087 MIRABAUD SECURITIES LIMITED STIFEL NICOLAUS EUROPE LTD BIRMINGHAM, ALABAMA 10 BRESSENDEN PLACE 150 CHEAPSIDE 35238-1087 (USA) LONDON SW1E 5DH LONDON EC2V…
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