Vanguard Natural Resources, Inc. Investor Presentation2Q 2018
Vanguard Highlights 1 Company restructured from an MLP to a C-Corp No longer burdened by cash distributions New Company, New, focused strategymoving from 12 basins to 6 basins New Management Three core areas underpinned by…
New Company, New Vanguard Management Team 1 New Management Name Position Prior Experience Years in Industry Scott Sloan President & CEO 27+ Ryan Midgett Chief Financial Officer 11+ Reveille Fina Oil & Chemical Keith Frobel…
New Company, New Vanguard Natural Resources 1 New Management Post-Emergence Vanguard has the Capability to Capture Substantial Upside in Core Growth Assets Key Highlights Asset Map & Highlights Williston Basin Increasingly focused…
New Company, Vanguard Recent History 1 New Management 2017 2018 Today In August, closed 28 million of divestments related to Potato Hills In July, revised and other properties in borrowing base of Texas and Louisiana RCF to…
New Company, Company Strategy 1 New Management Streamline Assets to Lower Debt and Focus Growth Streamlining Portfolio Strengthening Balance Sustainable, Focused Via Divestitures Sheet Growth Sold assets for 90 million YTD Use…
Strong, Predictable Sustainable, Strong Operating Cash Margin 2 Asset Base Low 10-year average PD base decline of 9% offers a stable, predictable production profile Operating 51% Margin(1) Strong operating margins provide for…
Strong, Predictable Divestment Accomplishments 2 Asset Base Sales proceeds continue to grow Future Planned Transactions Key Highlights Project Data Room Expected Close Recently added new Business Development manager and land…
Strong Base of Low Cost and Stable 2 Strong, Predictable Asset Base Proved Reserves Key Highlights Operating Expenses per Mcfe(1)(2) Vanguards focus on efficiency 3.64 has resulted in a consistently low cost structure inline with…
Strong, Predictable Strong Base of Proved Reserves 2 Asset Base Key Highlights Proved Reserves PV-10 of 1,195 million(1) As of Oil Gas NGLs Total PV-10(1) In addition to Vanguards current 31-Dec-17 (mmbbl) (bcf) (mmbbl) (bcfe)…
Strong, Predictable Growth Assets 2 Asset Base I Arkoma-Woodford Pinedale Core of the Arkoma Basin, offset to strong well results from BP, Newfield, and others Hughes Piceance Oklahoma Net Acres 60,000 Arkoma-Woodford…
Substantial Opportunity for Low-Risk Upside in 2 Strong, Predictable Asset Base Growth Assets I Arkoma-Woodford II Piceance Step-Change in Performance Due to Larger Completions Material Upside through Utilization of Optimal…
Strong, Predictable Arkoma-Woodford Asset Overview 2 Asset Base Key Highlights Hughes Pittsburg 60,000 net acres in Hughes, Pittsburg, Coal, and Atoka Counties 2Q18 net production of 31 mmcfe/d from 700 producing wells 1…
Strong, Predictable Piceance Asset Overview 2 Asset Base Key Highlights Vanguard Ursa Resources 15,000 net acres Caerus Oil & Gas 90% WI on 80% of the acreage position Terra Energy Nearly 100% HBP and operated by Vanguard…
Strong, Predictable Pinedale Asset Overview 2 Asset Base Key Highlights 14,000 net acres in the Pinedale and Jonah fields with 15% WI Sublette Pinedale Field 70% operated by Ultra Petroleum and 30% operated by Pinedale Energy…
Strong, Predictable Other Stable Asset Area Overview 2 Asset Base Other Stable Asset Area Map Big Horn Key Highlights Big Major fields in the Big Horn include the Elk Basin Field (Madison water Horn flood and Tensleep flue gas…
Significantly Credit Highlights 3 Improved Credit 10-year average PD decline rate of 9% reduces capital required to maintain production Predictable, High Quality, Low-risk conventional inventory offers proven returns Low-Risk…
Significantly Hedge Summary 3 Improved Credit Go-Forward Hedging Strategy Hedge a minimum of 70% of PDP production for 2-3 year period utilizing a combination of swaps and collars Systematically add new hedges for the Companys…
Current Vanguard Capital Structure Provides 4 Very Strong Asset Coverage Ample Flexibility Vanguard Current Capitalization (mm) Management 2018 Guidance (mm) Low High 30-Jun-18 Total Liquids Production (mboe/d) 16.5 - 17.5 Cash and…
Vanguard Highlights 1 New Company and New Management with Focused Basin Strategy 2 Strong, Predictable and Shallow-Decline Asset Base 3 Significantly Improved Credit Allows for Ability to Enhance Growth and Liquidity 4…
Appendix 22
New Vanguard Board of Directors R. Scott Sloan is our President, Chief Executive Officer and Director. Mr. Sloan brings significant financial, strategic, and commercial industry experience to the Vanguard board. Most recently, Mr.…
New Vanguard Board of Directors (contd) Mr. Dunlevy is one of the Founding Partners of Kosmos Energy Ltd. Kosmos Energy is an international oil and gas exploration and production company with a primary focus in the deep waters of…
Vanguard Natural Resources History In December, closed 329 million acquisition of assets from Bill Barrett Corp. In August, completed 28 million of divestments In October, completed related to Potato Hills and In December, 200…
Reconciliation of Net Loss to Adjusted EBITDA 1 month 2 months ended 4Q17 1Q18 2Q18 LTM ended 9/30/17 07/31/17 Net Income, before non-controlling interests and preferred distributions 963,090 (37,236) (74,042) (32,591) (57,677)…
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