Investor Presentation August 2018 NYSE: CHAP NYSE:CHAP
Company Overview NYSE: CHAP
Chaparral Story High-growth, pure-play STACK oil company 13.2 MBoe/d Q2 2018 STACK production 35 - 45% projected 2018 STACK production growth Premier, contiguous acreage position 119,000 acres in world-class STACK resource play…
2018 Strategy Transitioned to pure-play STACK operator with 2017 asset sale PURE-PLAY STACK Delineation and de-risking of Canadian (Merge) and Garfield acreage COMPANY Continue to rationalize non-core legacy assets RETURNS…
Recent Chaparral Highlights Recorded STACK production growth of: 7% Q1 2018 to Q2 2018 44% Q2 2017 to Q2 2018 Grew STACK reserves by 58% from year-end 2016 to year-end 2017 Replaced 604% of 2017 STACK production at 7.26/Boe F&D…
Operational Overview NYSE: CHAP
STACK/Merge Attributes World-class Woodford source rock Favorable Geology +700 feet of saturated hydrocarbon column Multiple reservoirs development opportunities Robust service sector support Extensive Infrastructure Numerous…
STACK Geology Osage Heat Map1 Meramec Heat Map2 Chaparral Chaparral Scale Scale Core Tier 1 Tier 2 Core Tier 1 Tier 2 1 Heat map integrates major factors affecting well performance in the Osage: 1.Osage hydrocarbon pore…
Osage Well Performance Strong recent operated well performance for Upper and Lower Osage type curve areas Actual oil results are in-line or exceeding current type curve expectations Type curve rates-of-return 53% - 90%1 Upper…
Meramec Well Performance Excellent recent operated well performance for Merge Miss and STACK Meramec type curve areas Actual oil results are in-line or exceeding current type curve expectations Type curve rates-of-return 77% -…
Operational Excellence Drilling and Completions Strong, Effective Focus on Cost Control Chaparral Osage and Meramec D&C represents best-in-class in normal pressure STACK Low well cost and consistent production results produce…
STACK Drilling Joint Venture Joint venture between Chaparral and Bayou City Energy (BCE) Accelerate development of 119,000 STACK acres 20 wells drilled, 17 producing as of Q2 2018 BCE funds 100% of D&C cost STACK 100 million…
2018 Capital Budget Expectations Capital Program Objectives Delineate Garfield and Canadian (Merge) County position Drill at least five wells on Kingfisher County acquisition acreage Increase 3-D seismic and lease acquisitions Begin…
2018 Updated Guidance Updated Guidance Highlights 2018 Guidance Range Production (MBoe/d) Increased full year STACK production guidance 13% Total Company 19.0 - 20.0 Q3 STACK guidance: 13.5 -14.5 MBoe/d STACK 13.0 - 14.0 Capital…
Financial Overview NYSE: CHAP
Financial Strategy Maintain balance sheet strength Target net debt to adjusted EBITDA ratio of approximately 2.5x or less Supplement cash flow with proceeds from non-core asset sales Development plan funding available due to ample…
Financial Position and Liquidity Highlights Chaparral Liquidity Closed on a 300 million senior ( in Millions) Q2 2018 Actual Actual unsecured notes offering on June 29, 2018 Cash and Cash Equivalents 68 Revolving Credit Facility…
Crude Oil Marketing Crude Oil Acreage in close proximity to Cushing and in-state refineries Premium price due to gravity and quality of barrel Substantial capacity to market via truck or existing pipeline Evaluating pipeline…
Natural Gas & NGL Marketing Natural Gas and NGL Midstream super system, with multiple plants and residue outlets Two Bcf of incremental capacity to North Texas, eastern and southeastern U.S. and Gulf Coast markets (mid-year 2018 and…
Commodity Realizations Crude Oil Differentials Oil & NGL Realizations as % of WTI Proximity to numerous markets provides better CHAP 97% 95% 93% 96% 98% 100 100% net back as compared to other basins WTI Average Daily Settle 90…
Why Chaparral Strong Balance Sheet Experienced Execution-focused, Management with Pure-play STACK Excellent Track Operations Record Deep Inventory of High-return Drilling Prospects NYSE: CHAP 25
Year-End 2017 Proved Reserves Grew STACK year-end 2017 reserves by 58% Replaced 604% of 2017 STACK production at 7.26/Boe F&D cost 76.3 MMBoe of Reserves1 39% Oil, 63% Liquids Reserves by Area 24% 25.6 39% 26.9 49.4 1.1 49.7…
Non-Core Legacy Asset Overview Mature legacy fields Low-maintenance capital Provides free cash flow to fuel STACK growth Potential strategic alternatives Net Production1 Gross Margin1 Net Proved Reserves Area Boe/d % Oil…
Recent Transactions Support CHAP Acreage Valuation Significant A&D activity demonstrates value of Chaparrals acreage position Staghorn, PayRock, Alta Mesa and Longfellow transactions were primarily in the black oil, normal…
STACK Type Curve Assumptions STACK Meramec Lower Osage Upper Osage North Woodford South Woodford Merge Miss Well Cost Assumptions Well Costs (mm) 4.0 3.9 4.1 4.4 4.4 4.5 Well Costs (/ft) 833 813 854 917 917 938 Type Curve…
STACK Meramec and Merge Miss Overview Spud Peak IP-301 Liquids1 Lateral Lease Operator Date Boe/d % Length 1 SLIMER 1707 1UMH-23 CHAPARRAL 9/5/2017 713 85% 4,839 2 HIGH VALLEY 1807 1UMH-36 CHAPARRAL 8/19/2017 682 77% 4,588 3 BIG…
Reconciliations Successor Three Months Three Months Ended Ended (in thousands) June 30, 2018 June 30, 2017 Net (loss) income (21,993) 21,365 Interest expense 1,739 5,051 Income tax expense 37 Depreciation, depletion, and…
Reconciliations STACK F&D and Reserve Replacement 2017 Metrics Calculation STACK Production (MBoe) 3,464 (A) Proved Reserves (MBoe) STACK Extensions and Discoveries 20,927 (B) STACK Revisions 597 (C) (excluding price revisions)…
Contact Information Chaparral Energy, Inc. 701 Cedar Lake Boulevard Oklahoma City, OK 73114 Investors Media Joe Evans Brandi Wessel Chief Financial Officer Manager Communications joe.evanschaparralenergy.com…
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