The Oil & Gas Conference Scot Woodall Chief Executive Officer HPRES.COM
Welcome to HighPoint Resources HighPoint Resources, formed through the combination of Bill Barrett Corporation and Fifth Creek Energy, is a Denver-based exploration and production company focused on the development of oil and natural…
Company Overview
Positioned For Long-Term Value Creation Large, Contiguous, Strong Technical Rural Oil Position Expertise and Superior Execution Returns Focused, Balance Sheet Disciplined Capital Strength and Allocation and Top- Liquidity…
The Dominant Position in Oil and Rural Areas of the DJ Basin 151,100 net acres largely held-by- production 2,865 undeveloped drilling locations (95% XRL)1 Hereford Field Greater than 60% oil-weighted production 86,700 net…
2Q 2018 Highlights Completion of the Fifth Creek merger and integration into HighPoint Resources Hereford field drilling and completion operations commenced within three weeks of closing Placed nine DUCs on flowback Drilled first…
Top-Tier Margin Generation DJ Basin Operating Margin and Oil Weighting Peer Leading 50 70% Operating Margins 38.12/boe 40 Peer Average - 31.53/boe HighPoint generates greater 60% % Oil Production Margin (/boe) 30…
Shareholder Value Creation Strategy 2018 2019 Transformational growth profile Deliver step-change in production, primarily internally-funded through cash flow and EBITDAX cash on hand and cash flow from Accelerated Maximize…
Guidance Outlines Value Proposition 2018 Guidance Production Volumes DJ Basin (MMBoe) 20.0 Focused development program in Hereford and NE Wattenberg 18.0 Disciplined capital investment to high-margin, high- return opportunities…
Delivering Transformational Growth Profile Complementary asset portfolio underpins Growth robust corporate growth trajectory in 60,000 2018 70% coming years 2019 75% NE Wattenberg delivers 40% growth in 50,000 Estimated…
Operational Overview
Portfolio Provides Substantial Value Creation Opportunity Decades of high-return oil-weighted locations within two core assets 151,100 net acres that is held by production; 2,865 undeveloped locations (95% XRL)1 Hereford Field…
HighPoint is the Only Exclusively Rural Public DJ Basin Operator Controllable and Efficient Development Rural Positioning Combined acreage position is rural in nature with no urban exposure or associated development complexities No…
Hereford Field Overview Largely undeveloped position provides decades of highly economic XRL drilling locations across 80% multiple horizons Oil Avg. 86,700 net acres in rural oil setting that is held by production 1,200 gross…
Hereford Field Drilling and Completion Activity 1 Section 11-63-24 South (DUC 3 XRL wells) Laramie Initial flowback began in May 2018 2 Section 11-63-24 North (DUC 3 XRL wells) Initial flowback began in June 2018 3 Section…
Hereford Cost and Cycle Time Improvement Full DSU development maximizes Hereford XRL Average Cost per Foot drilling and completion efficiencies 106.40 Best in class well 61.44/ft 89.41 Completion costs for DUCs were 29% 70.71…
NE Wattenberg Focus Area Core acreage provides cash flow base to support Hereford development opportunity 60% Oil Avg. 64,400 net acres favorable for XRL development Attractive XRL well economics with 56% average…
Improving Results from Optimized Completions and Flowback 120,000 Current generation XRL performers continue to 100,000 outperform previous generations +48% Refinement of completions and Cumulative Oil (Bbls) 80,000…
Cycle Time Improvement Drives D&C Costs Lower NE Wattenberg XRL D&C Cost (mm) Reduced Costs and Increased Cycle Times 8.25 Efficiencies offset inflationary 6.25 increases and cost of enhanced 4.75 4.65 completions 1H 2018…
DJ Basin Crude and Gas Processing Multiple crude outlets provide 650 MBbls/d of take- away capacity with current Basin production of 400 MBbls/d SUMMIT Local refineries and rail provide additional outlets No long-term firm oil…
Finance Overview
Strengthened Financial Position Debt Maturities (mm) No near term debt maturities 400 Visible leverage metric improvement 300 Credit facility amend and extend in process 200 expect to close mid-September 2018 100 Anticipate…
Hedging Program Protects Cash Flow Manage hedge portfolio to support capital program, protect future cash flow and reduce commodity price risk Strategy is to hedge 50-70% of production on a forward 12-month to 18-month basis 2H18…
Strong Value Proposition as Leading DJ Basin Operator DJ Basin pure-play with high-quality, oily, rural acreage largely held by production Returns-focused capital allocation with portfolio Text flexibility Demonstrated technical…
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