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April 2018 Investor Presentation – Diversified Gas & Oil

Diversified Gas & Oil · Apr 30, 2018 · 29 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. April 2018 Investor Presentation – Diversified Gas & Oil – slide 1
    Rusty Hutson Chief Executive Officer Brad Gray Chief Operating Officer 2 0 1 7 F u l l Ye a r R e s u l t s Eric Williams A year of transformation Chief Financial Officer 30 April 2018
  2. April 2018 Investor Presentation – Diversified Gas & Oil – slide 2
    DIVERSIFIED GAS & OIL YE17 Highlights Accretive acquisitions DGOC Focus Area EnerVest (2MM) Titan (84MM) NGO (3MM) Balance sheet strengthened by equity proceeds and low leverage 2H17 LOE down 27% vs 2016 average(e) Strong EBITDA…
  3. April 2018 Investor Presentation – Diversified Gas & Oil – slide 3
    BUSINESS MODEL: ACQUIRE, PRODUCE, DRILL Acquire and manage producing natural gas and oil properties to generate cash flows, providing stability and growth for our stakeholders Inorganic Ongoing Organic Result Maximise Execute…
  4. April 2018 Investor Presentation – Diversified Gas & Oil – slide 4
    DELIVERING STATED IPO OBJECTIVES 286MM of acquisitions 8x increase in net daily 5x increase in 1P reserves completed in first 13 months production from 3,000 in (PDP only; No PUDs) (b) post-IPO at per-share 2016 to 28,000 BOEPD in…
  5. April 2018 Investor Presentation – Diversified Gas & Oil – slide 5
    TRANSFORMING DIVERSIFIED Growing Production & Reserves Expanding HBP Acreage Base Adding Management Talent PDP Reserves 4.5 Position Name Exit Rate Net Daily Production 4.0 4.0 CFO Eric Williams 30.0 28.1 210 Average Net Daily Prod…
  6. April 2018 Investor Presentation – Diversified Gas & Oil – slide 6
    TRANSFORMING CAPITAL STRUCTURE W/ SYNDICATED CREDIT FACILITY Large borrowing base available to fund additional, significant acquisitions without the need for Borrowing Costs Significantly Reduced additional equity dilution, while…
  7. April 2018 Investor Presentation – Diversified Gas & Oil – slide 7
    January January 2018 2018 Investor Investor Presentation Presentation RECENT ACQUISITIONS MAKE DGO LARGEST PRODUCER ON AIM Closed APC & CNX Acquisitions in March 2018; Integration underway Pennsylvania 175% production…
  8. April 2018 Investor Presentation – Diversified Gas & Oil – slide 8
    Financial and Operations review
  9. April 2018 Investor Presentation – Diversified Gas & Oil – slide 9
    YEAR-OVER-YEAR KEY METRICS 2016 2017 Change (%) Dividend Payout (a) US cents per shr 1.99 5.44 173% PDP Reserves MMBOE 28 55 96% PV-10 Reserves US MM 125 259 107% Average net daily production (b) MBOEPD 3.0 10.4 248% Total…
  10. April 2018 Investor Presentation – Diversified Gas & Oil – slide 10
    RESERVES 100% Proved Developed Producing Reserves Large Portfolio Eliminates Concentration Wells PV10 619MM +217% Top 100 180 700 12% (a) 78% 101-500 2017 Reserve Replacement 11% All Others 160 18.5x FY2017 Production 600 w/…
  11. April 2018 Investor Presentation – Diversified Gas & Oil – slide 11
    PRODUCTION Net Production Highlights w/ Titan and PF for APC & CNX Acquisitions 1/1/18 w/ Titan Acquisition 3000 Legacy DGO 30 28.1 2500 Net Production Net Daily Production 25 +125% +860% +125% 2000 2016FY 20 2016 FY…
  12. April 2018 Investor Presentation – Diversified Gas & Oil – slide 12
    REVENUE & EXPENSE HIGHLIGHTS Revenue (MM) Strong Margins Revenue Realized Price per McF (Unhedged) LOE Gathering and Transportation Production Taxes G&A Revenue (Hedged) 45 3 25 FY16: FY17: 40 1Q18: +147% 2.5 19% Margin 40% Margin…
  13. April 2018 Investor Presentation – Diversified Gas & Oil – slide 13
    EARNINGS HIGHLIGHTS Adj EBITDA / Share (b) Adj EBITDA (b) 0.16 +50% w/ Titan and PF for APC & CNX Acquisitions 1/1/18 2016FY 2017FY w/ Titan Acquisition 0.14 0.10 0.15 0.12 Legacy DGO 20 43% 0.45 0.1 +308% 41% 40% 0.08 2016FY…
  14. April 2018 Investor Presentation – Diversified Gas & Oil – slide 14
    BALANCE SHEET HIGHLIGHTS Gas and Oil Properties, net Cash and Liquidity 500 150.0 450 467 Cash Credit Availability 400 350 100.0 MM MM 300 250 112 200 190 50.0 150 39 100 50 77 0.2 15.2 13.6 - - YE16 YE17 1Q18E…
  15. April 2018 Investor Presentation – Diversified Gas & Oil – slide 15
    STRONG BALANCE SHEET POSITIONS DGO FOR GROWTH Capitalization (MM) Highlights 31 Dec 31 Mar Committed to maintaining low leverage 2017 2018PF Positioned to complete acquisitions generating 100MM EBITDA Cash 15 16 paying 4x cash flow…
  16. April 2018 Investor Presentation – Diversified Gas & Oil – slide 16
    HEDGED TO PROTECT CASH FLOW & DIVIDEND Natural Gas Financial Hedges Hedge Mix(a) 25,000 4.00 2.88 2.88 2.88 2.83 2.83 2.83 2.83 2.81 2.91 20,000 3.00 15,000 2.00 10,000 5,000 1.00 55% 45% - 0.00 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19…
  17. April 2018 Investor Presentation – Diversified Gas & Oil – slide 17
    ROBUST LONG-TERM GROWTH OUTLOOK 2014 2017 Mar-2018 Ohio Pennsylvania West Virginia Strong Start to 2018 Balance Sheets leverage in place to deliver transformational growth Dec-2018 Conventional production consolidation…
  18. April 2018 Investor Presentation – Diversified Gas & Oil – slide 18
    DIVIDEND SCHEDULE Mature, low-decline and well-hedged producing assets generate stable cash flow Recently announced decision to shift to quarterly payouts vs. semi-annual Commitment to pre-share accretive growth opportunities…
  19. April 2018 Investor Presentation – Diversified Gas & Oil – slide 19
    Conclusion
  20. April 2018 Investor Presentation – Diversified Gas & Oil – slide 20
    A UNIQUE INVESTMENT OPPORTUNITY Track record of Capitalising on consistent growth unique regional and returns, reducing acquisition window to costs through build platform for increasing scale long-term growth Proven Model…
  21. April 2018 Investor Presentation – Diversified Gas & Oil – slide 21
    APPENDIX
  22. April 2018 Investor Presentation – Diversified Gas & Oil – slide 22
    NATURAL GAS HEDGE DETAIL Financial Contracts Natural Gas (MMBtu, /MMBtu) 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 NYMEX NG Swaps 1,770,000 1,770,000 1,680,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000…
  23. April 2018 Investor Presentation – Diversified Gas & Oil – slide 23
    OIL HEDGES Price Protection of 47/Bbl for 36 months Hedge Contract Structure Crude Oil Hedges 700 50.78 47.84 47.84 46.50 47.23 47.20 47.20 46.66 44.53 50.00 600 22% 500 40.00 BBL per Day 400 30.00 300 20.00 78% 200…
  24. April 2018 Investor Presentation – Diversified Gas & Oil – slide 24
    NON-IFRS & OTHER RECONCILIATIONS YE16 1Q17 2Q17 1H17 3Q17 4Q17 2H17 YE17 Hedged Revenue Reconciliation Natural gas 10,671 4,045 3,635 7,680 10,474 12,309 22,783 30,463 Oil 4,207 1,221 1,267 2,488 2,696 2,863 5,559 8,047 NGL - - 26 26…
  25. April 2018 Investor Presentation – Diversified Gas & Oil – slide 25
    NON-IFRS & OTHER RECONCILIATIONS YE16 1Q17 2Q17 1H17 3Q17 4Q17 2H17 YE17 LOE Reconciliation Controllable LOE 10,470 2,286 2,205 4,491 5,109 5,991 11,100 15,591 Production taxes 833 437 519 956 1,030 1,406 2,436 3,392 Gathering and…
  26. April 2018 Investor Presentation – Diversified Gas & Oil – slide 26
    NON-IFRS & OTHER RECONCILIATIONS YE16 1Q17 2Q17 1H17 3Q17 4Q17 2H17 YE17 Adjusted EBITDA Reconciliation Operating profit 22,450 1,205 8,533 9,738 3,346 3,110 6,456 16,194 Adjustments Depreciation and depletion 4,039 1,066 1,160…
  27. April 2018 Investor Presentation – Diversified Gas & Oil – slide 27
    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 Bcf/day do not take Marcellus and Utica…
  28. April 2018 Investor Presentation – Diversified Gas & Oil – slide 28
    COMPANY HISTORY MARKED BY GROWTH Gross Boe/ 41,000 day 103% Gross 18 Production CAGR from 2012 to Mar2018 Gross Boe/ Jan: 18,000 day Raised 180 net equity proceeds to fully fund two, transformative 17 acquisitions in March…
  29. April 2018 Investor Presentation – Diversified Gas & Oil – slide 29
    Company Diversified PO BOX 381087 BIRMINGHAM, ALABAMA 35238-1087 (USA) ERIC W ILLIAMS, CFO EWILLIAMSDGASOIL.COM +1-205-379-8321 Brokers Mirabaud MIRABAUD SECURITIES LIMITED 10 BRESSENDEN PLACE LONDON SW1E 5DH PETER KRENS…

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