Second Quarter 2018 Earnings Presentation Investor Presentation August 8, 2018 Nasdaq Ticker: PVAC November 2016
Company Overview Pure Play Eagle Ford Shale Operator 84,060(1) net acres in Gonzales, Lavaca and Dewitt Counties; 99% Operated; 92% HBP Financial & Operational Profile NASDAQ: Substantial Lower Eagle Ford Exchange: Ticker PVAC…
Strong Operational and Financial Performance Recent Highlights Continued Operational Excellence in 2Q18 33% increase in oil, 39% increase in total production from Q118 2.02 MMBOE (74% oil), or 22,200 BOEPD, exceeding midpoint of…
Recent Activity Area 2 Drilling and Enhanced Oil Recovery Evolving Enhanced Oil Recovery (EOR) Pilots Offsetting PVAC Acreage Provide Upside Potential Lott Pad 3 wells Fayette County 24-hr IP of 4,287 BOEPD 30-day IP of 2,958…
Area 2 North Type Curve Drawdown Management Arresting Early Life Declines Resulting in Area 2 North Wells Exceeding Expectations 13 Area 2 North Wells To-Date With More Than 30-Days of Production Encouraged By Early Area 2…
Large Inventory of Locations With Attractive Returns Eagle Ford Economics by Area Capital Efficiency of XRLs Provides Superior ROR + + [67]% (1) (1) UPdate Note: Based on managements internal estimates as of June 30,…
Selling into LLS Market LLS Commanding Significant Premium Over WTI and Midland Prices Q218 Production: 87% Liquids; 74% Oil Receives LLS Pricing, Premium Over WTI and Midland Realized 67.89 per barrel in 2Q18 Blended Oil Yields…
Achieving 2018 Goals and Setting Foundation for 2019 Year-to-Date Penn Virginia Highlights First half of 2018 production growth of more than 78%(1); on track to grow production an additional 30% in second half of 2018(2) Expect to…
Revised 2018 Capital Plan 2018 Revised Capital Plan (MM) (1) Average Treatable Lateral 400 Length 12 3 % 7,500 4 16 6,500 32 5,250 372 (1) 340 Previous Capital Additional Area 2 Cost Inflation Well Design Revised…
Production Growth Targeting 120+% (1) Year-Over-Year Production Growth (pro forma for Oklahoma sale) Lower Adjusted Increasing Direct Operating Increasing Realized Lowers Production Cash Operating Margin Leverage Metric Expenses per…
Declining Adjusted Direct Operating Expenses per BOE Lower Adjusted Increasing Direct Operating Increasing Realized Lowers Production Cash Operating Expenses per Leverage Metric 120+% Y-O-Y BOE Margin per BOE LOE per BOE declined…
Strong Realized Cash Operating Margin(1) per BOE Increasing Lower Adjusted Direct Operating Increasing Realized Production Cash Operating Margin Lowers 120+% Y-O-Y Expenses per Leverage Metric BOE per BOE LLS Pricing and Low Cost…
Balance Sheet Improvement LTM Net Debt to Adjusted EBITDAX Increasing Lower Adjusted Lowers Direct Operating Increasing Realized Cash Leverage Production Operating Margin per BOE 120+% Y-O-Y Expenses per Metric BOE 2.6x(1)…
Guidance The table below sets forth the Companys current guidance for 2018: Current guidance is pro forma for Oklahoma assets sale ) % (1 0+ 12 10,353 BOEPD 2017A 2018E PVAC Expects to Grow Production by 30% in…
PVAC vs. Eagle Ford Peers 2019 Production Growth Rate 129% 50% 41% 29% 25% 19% 9% Peer 1 PVAC Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Projected to Have One of the Highest Production Growth Rates in PVACs Peer Group(1)…
PVAC vs. Eagle Ford Peers - 2019 EBITDAX / BOE 40.98 39.91 36.08 34.41 31.83 30.15 17.99 Peer 1 PVAC Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Projected to Have One the Highest EBITDAX/BOE in PVACs Peer Group (1)…
TEV / 2019E EBITDAX Eagle Ford Provides Attractive Valuation(2)(3) Penn Virginia Provides Attractive Valuation(1)(2) 5.2 x 5.8x 5.5x 5.5x 4.4x 4.3 x 4.3x 4.3x 3.5 x 3.5x 2.0 x Permian Bakken SCOOP/STACK Eagle Ford Peer…
Why Penn Virginia Pure play Eagle Ford company Contiguous Eagle Ford acreage position of 84,060 net acres(1) Pure Play Acreage 99% operated; 92% HBP Low cost operator Situated in volatile oil window Heavily weighted oil…
Appendix
Updated Hedge Portfolio(1) Mitigating Commodity Price Volatility Through Proactive Hedging Program 12,000 Oil Barrels Per Day 57.05 10,000 8,000 54.48 65.27 54.09 6,000 59.17 4,000 2,000 0- Q3-Q4 2018 2019 2020…
Non-GAAP Reconciliation Adjusted EBITDAX - Unaudited Reconciliation of GAAP Net income (loss) to Non-GAAP Adjusted EBITDAX Adjusted EBITDAX represents net income (loss) before interest expense, income tax expense, depreciation,…
Non-GAAP Reconciliation Adjusted Cash G&A - Unaudited Reconciliation of GAAP General administrative expenses to Non-GAAP Adjusted cash general and administrative expenses Adjusted cash general and administrative expense (Adjusted cash…
Non-GAAP Reconciliation Adjusted Direct Operating Expenses - Unaudited Reconciliation of GAAP Operating expenses to Non-GAAP Adjusted direct operating expenses Adjusted direct operating expenses and adjusted direct operating expenses…
Non-GAAP Reconciliation Realized Cash Operating Margin Unaudited Reconciliation of GAAP Income (loss) before income taxes to Non-GAAP Realized cash operating margin Realized cash operating margin and realized cash operating margin per…
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