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August 2018 Investor Presentation – Riviera Resources

Riviera Resources · Aug 23, 2018 · 59 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. August 2018 Investor Presentation – Riviera Resources – slide 1
    Riviera Investor Presentation August 23, 2018
  2. August 2018 Investor Presentation – Riviera Resources – slide 2
    Table of Contents Slides Riviera Resources, Inc. Overview Company Overview 5-8 Upstream Asset Overview 9 Proved Reserves 10 Upstream Benchmarking 11-14 Blue Mountain Midstream Overview 15-16 Balance Sheet and Buybacks 17-18 Riviera…
  3. August 2018 Investor Presentation – Riviera Resources – slide 3
    Riviera Resources Recent Developments Riviera Resources (Riviera or RVRA) recently spun-out from Linn Energy, Inc (LNGG) to unlock the sum of the parts Net Asset Value Riviera is a newly formed independent company focused on…
  4. August 2018 Investor Presentation – Riviera Resources – slide 4
    Riviera Resources - Overview Riviera Upstream has 1.6 Tcfe of long life proved developed reserves with a Mid-Year adjusted PV-10 value of 963 million(1) 312 mmcfe/d second quarter 2018 average production 11% base production…
  5. August 2018 Investor Presentation – Riviera Resources – slide 5
    Riviera Resources Sum of the Parts 1 2 3 Balance Sheet Current Additional Cash Upstream BMM Mature / Cash- Future Growth Assets Acreage Business Credit Credit Flowing Assets Basins Dedication Lines Facility Facility…
  6. August 2018 Investor Presentation – Riviera Resources – slide 6
    Riviera Resources Value Proposition Income Generating Growth Oriented Assets Assets Requiring Funded by Strong Minimal Capital Balance Sheet Northwest STACK Hugoton Arkoma Michigan/IL East TX Uinta North LA Blue Mountain…
  7. August 2018 Investor Presentation – Riviera Resources – slide 7
    1 Riviera Upstream Asset Detail Proved Developed(2) Proved Developed Net Production(1) R/P(3) Reserves PV-10(2) Upstream Assets Net Acres (MMcfe/d) (in Years) (Bcfe) ( in millions) Hugoton 1,100,000 136 842 19 529 East…
  8. August 2018 Investor Presentation – Riviera Resources – slide 8
    1 Riviera Upstream - Proved Reserves(1) Total Proved 76% Natural Gas 1.6 Tcfe of Proved Reserves PV-10 of 1.021 Billion 6% 4% 4% 6% 22% 2% 90% 90% 76% Natural Gas Oil NGL PDP PDNP PUD PDP PDNP PUD Proved Reserves as of…
  9. August 2018 Investor Presentation – Riviera Resources – slide 9
    1 Riviera Upstream - Benchmarking Reserve Life Proved Developed Reserves / Production (in years) 15 11 10 10 9 8 7 6 6 4 RVRA Company D Company I Company B Company A Company C Company H Company E Company F Company…
  10. August 2018 Investor Presentation – Riviera Resources – slide 10
    1 Riviera Upstream - Benchmarking PDP Reserve Value vs. Adjusted EBITDAX 7.0x PDP Reserve Value / Adjusted EBITDAX (multiple) 4.8x 3.6x 3.5x 3.5x 3.1x 1.9x N/A N/A N/A RVRA Company I Company C Company A Company B…
  11. August 2018 Investor Presentation – Riviera Resources – slide 11
    1 Riviera Upstream - Benchmarking Enterprise Value Vs. PDP Reserve Value Enterprise Value / PDP Reserve Value (multiple) 2.3x 2.1x Avg. = 1.7x 1.7x 1.5x 1.4x 1.0x N/A N/A N/A Company G Company A Company I Company B…
  12. August 2018 Investor Presentation – Riviera Resources – slide 12
    1 Riviera Upstream - Benchmarking G&A Vs. Production G&A / Production ( / mcfe) 0.59 0.52 0.38 0.34 0.27 0.21 0.21 0.22 0.18 0.13 Company G Company A Company C Company I Company F RVRA Company B Company H…
  13. August 2018 Investor Presentation – Riviera Resources – slide 13
    2 Blue Mountain Midstream Overview Blue Mountain Midstream, LLC (Blue Mountain), a wholly owned subsidiary of Riviera, is a growth-oriented midstream business located in the heart of the Merge/SCOOP/STACK play in central Oklahoma…
  14. August 2018 Investor Presentation – Riviera Resources – slide 14
    Blue Mountain Midstream Key Statistics Estimated Operating Margin(1) (in millions) Capital Forecast(2) (in millions) 200 200 22 175 32 170 150 140 18 125 125 75 MMcf/d 100 53 75 62 61 50 6 53 25 43 1 3 33…
  15. August 2018 Investor Presentation – Riviera Resources – slide 15
    3 Riviera Resources Pro-Forma Cash 9/30/18 ( in millions) 17 (13) 301 301 304 (50) 254 (40) 214 Approximately 76.2 million shares (115) outstanding 85-100 100 (15) 15 85 85 LNGG Cash LNGG / RVRA LNGG / RVRA…
  16. August 2018 Investor Presentation – Riviera Resources – slide 16
    3 Riviera Resources Share Buybacks Through August 7, 2018 LNGG returned approximately 800 million to shareholders ( in millions) 2018 Open Market Share Repurchases 2017 Open Market Retirement of Profits and Employee Liquidity…
  17. August 2018 Investor Presentation – Riviera Resources – slide 17
    Riviera Upstream Asset Overview
  18. August 2018 Investor Presentation – Riviera Resources – slide 18
    Focus on Existing Basins Riviera Upstream Asset Map Growth Mid-Continent 312 MMcfe/d 1.6 Tcfe 11%(1) Net Production of 49 MMcfe/d Second Quarter 2018 Proved Developed Reserves Approximate NW STACK Net Production 76% Natural Gas…
  19. August 2018 Investor Presentation – Riviera Resources – slide 19
    Growth Assets NW STACK Arkoma East Texas North Louisiana
  20. August 2018 Investor Presentation – Riviera Resources – slide 20
    NW STACK - Overview NW STACK Position Approximately 60,000 core net acres within Rivieras focus area of Major, Blaine, and Garfield counties Acreage is 100% HBP and 75% operated(1) Acreage located in black oil window Shallow…
  21. August 2018 Investor Presentation – Riviera Resources – slide 21
    NW Stack Regional Geology Plays & Targets N GR DPHI S N MISS LIME Osage NW STACK STACK Woodford MERGE S Miss Lime NW STACK NW STACK STACK MERGE Platform Merge to NW STACK is continuous petroleum system Massive…
  22. August 2018 Investor Presentation – Riviera Resources – slide 22
    NW Stack Osage Meramec Rig Activity Permit Analogs Offset Activity Hedrick 3-1H (Comanche) Elwell 29-1H (Comanche) Childress 1-26H (Fairway) Newton 1-31H (Fairway) Regier 7-2H (Fairway) IP30/1000ft:124 Boe/d IP30/1000ft: 229…
  23. August 2018 Investor Presentation – Riviera Resources – slide 23
    NW STACK - Current Inventory Type Log NW STACK Inventory Formations Base case: 4 wells per section in Meramec and Lower Osage Gross locations: 1,950 Net locations: 825 Meramec Upside case: 7 wells per section in Meramec, Upper…
  24. August 2018 Investor Presentation – Riviera Resources – slide 24
    Arkoma - Overview Arkoma Position Approximately 37,000 net acres mainly in Hughes and Coal counties, OK Acreage is 100% HBP and 46% operated Position is fully de-risked in the Woodford shale with 420 horizontal wells drilled on…
  25. August 2018 Investor Presentation – Riviera Resources – slide 25
    Rig Activity Analogs Arkoma Offset Activity Permit Sherry Pad (BP) Pauline Pad (Trinity Operating) Emma Pad (Trinity Operating) Stewart Pad (BP) 3 Wells drilled in 2015 4 Wells drilled in 2017 2 Wells drilled in 2017 4 Wells…
  26. August 2018 Investor Presentation – Riviera Resources – slide 26
    Arkoma - Current Inventory Type Log Arkoma Inventory Base case: 5 wells per section in Woodford Gross locations: 230 Net locations: 90 Cromwell Upside: 5 wells per section in Mayes & Caney Additional Potential: Cromwell emerging…
  27. August 2018 Investor Presentation – Riviera Resources – slide 27
    East Texas Overview East Texas Position Approximately 110,000 net acres mainly in Limestone, Freestone, and Personville Smith counties, TX Acreage is 98% HBP and 86% operated Significant upside horizontal development of the…
  28. August 2018 Investor Presentation – Riviera Resources – slide 28
    East Texas Personville Field Bossier target of incised valley fill sandstones Personville Type Log 3D seismic tied to well control using waveform modeling combined with amplitude mapping provide high probability in prediction of IVF…
  29. August 2018 Investor Presentation – Riviera Resources – slide 29
    East Texas Overton Field Type Log Overton Field is currently a vertical producing Cotton Valley field There have been 72 offset horizontal wells drilled in the Cotton Valley Taylor Sands Taylor L1 Cotton Valley Sands…
  30. August 2018 Investor Presentation – Riviera Resources – slide 30
    Rig Activity Analogs Overton Offset Activity Permit CV Taylor Sand Gross Isopach Map McElroy-Swann Moore 1H (Tanos) Completion Date: 7/3/2017 Peak IP-30: 5.7 MMCFD LL: 6,737 Burns 3HR (Valence) Completion Date: 6/9/2018…
  31. August 2018 Investor Presentation – Riviera Resources – slide 31
    North Louisiana - Overview North Louisiana Position Approximately 100,000 net acres across northern Louisiana Ruston Field Acreage is 99% HBP and 63% operated Ruston field is direct offset to prolific Terryville field…
  32. August 2018 Investor Presentation – Riviera Resources – slide 32
    North Louisiana - Ruston Field Growth faults isolate the sands on downthrown block of faults providing a three way trap High maturity of Bossier source rocks provides overpressure reservoir Recent development has been horizontal…
  33. August 2018 Investor Presentation – Riviera Resources – slide 33
    North Louisiana Rig Activity Analogs Permit Ruston Offset Activity Lewis 21-16-9 HC 2 Alt (Range) Autry 25-36 HC 3 Alt (Range) Completion Date: 1/19/2017 Completion Date: 2/7/2017 Peak IP-30: 19 MMCFD Terryville/Ruston Wells…
  34. August 2018 Investor Presentation – Riviera Resources – slide 34
    Long-Life, Low-Decline Assets Hugoton Jayhawk Plant Michigan / Illinois Uinta
  35. August 2018 Investor Presentation – Riviera Resources – slide 35
    Hugoton Overview Net Production of 136 MMcfe/d(1) (66% Natural Gas, 34% NGL) Hugoton Position 1.1 million net acres that are 99%+ held by production(2) Very mature, low decline, highly delineated natural gas field Focus on Chase and…
  36. August 2018 Investor Presentation – Riviera Resources – slide 36
    Hugoton - Jayhawk Plant Overview Commissioned April 1998 100% Riviera owned Cryogenic Plant with high NGL recoveries and ethane rejection capability Capacity of 450 MMcf/day; current throughput approximately 256 MMcf/day Electric…
  37. August 2018 Investor Presentation – Riviera Resources – slide 37
    Michigan / Illinois Overview Michigan/IL Position Net Production of 27 MMcfe/d(1) (97% Natural Gas, 3% Oil) 200,000 net acres Base decline of approximately 4% Michigan is a low decline, biogenic natural gas asset Illinois is a…
  38. August 2018 Investor Presentation – Riviera Resources – slide 38
    Uinta Overview Asset Highlights Uinta Position 22 MMcfe/day net production(1) 50,000 net acres, majority HBP Base decline of 11% Non-operated position acquired through Devon acquisition in 2014 Extensive salt water disposal…
  39. August 2018 Investor Presentation – Riviera Resources – slide 39
    Blue Mountain Midstream Overview
  40. August 2018 Investor Presentation – Riviera Resources – slide 40
    Blue Mountain History Key Highlights February 2016 Executed GPA with Linn Energy Holdings, LLC (LEH) and approved capital for construction of first refrigeration facility with 30 mmcf/d of processing capacity October 2016 Capital…
  41. August 2018 Investor Presentation – Riviera Resources – slide 41
    Blue Mountain Company Overview Growth-oriented midstream company focused on Merge/SCOOP/STACK plays in Oklahoma System located in core of prolific Merge play, currently a leading operating area in U.S. More than 80,000 net acres…
  42. August 2018 Investor Presentation – Riviera Resources – slide 42
    Blue Mountain Executive Management Team Most recently served as President, Gas Pipelines & Processing for Enbridge Energy from January 2014 to April 2017 C. Gregory Harper Formerly SVP of Midstream for Southwestern Energy, SVP and…
  43. August 2018 Investor Presentation – Riviera Resources – slide 43
    Blue Moutain Key Priorities Cryo Plant I in-service June 2018 Capture incremental third-party volumes to system Ensure sufficient take-away capacity for system volumes Design and engineering of Cryo Plant II commenced…
  44. August 2018 Investor Presentation – Riviera Resources – slide 44
    Initial Blue Mountain System Overview 250 mmcf/d of designed processing capacity with Cryo Plant I 87,000 HP of total compression 110 miles of gathering pipe Supported by dedicated acreage position of more than 80,000 net acres…
  45. August 2018 Investor Presentation – Riviera Resources – slide 45
    Blue Mountain Midstream Cryo Plant I Update State of the art cryogenic processing facility in- service June 2018 Initial operating capacity of 150 mmcf/d and 62,000 horsepower of compression now online Full 250 mmcf/d to…
  46. August 2018 Investor Presentation – Riviera Resources – slide 46
    Merge / SCOOP Play Overview Active Rigs by Operator in Merge / SCOOP(1) Merge / SCOOP Rig Activity(1) 14 13 12 10 8 8 6 4 3 3 3 2 2 2 2 2 1 1 1 1 1 0 Horizontal Drilling Permits in the Merge(2) 136 125 3 20 20 56…
  47. August 2018 Investor Presentation – Riviera Resources – slide 47
    Customer Acreage Dedication More than 80,000 acres dedicated to Blue Mountain System Roan Resources is anchor producer (1) Pure play operator in Merge/SCOOP/STACK formed by LINN Energy and Citizen Energy Largest position in the…
  48. August 2018 Investor Presentation – Riviera Resources – slide 48
    Blue Mountain Key Statistics Estimated Operating Margin(1) (in millions) Capital Forecast (2) (in millions) 200 200 22 175 170 32 150 140 18 125 125 100 mmcf/d 75 75 62 50 61 53 6 25 1 3 0 0 Q1 2018 A Q2 2018…
  49. August 2018 Investor Presentation – Riviera Resources – slide 49
    Blue Mountain Key Takeaways Deep Experienced management team in place with proven track record of Midstream successful execution in midstream energy infrastructure Expertise Strong believers in Anadarko Basin and current asset…
  50. August 2018 Investor Presentation – Riviera Resources – slide 50
    Financial and Management Update
  51. August 2018 Investor Presentation – Riviera Resources – slide 51
    2019 Guidance to be 2018 Guidance Provided Following Budget Approval Q3 2018E Q4 2018E FY 2018E Net Production (MMcfe/d) 275 305 270 305 314 330 Natural gas (MMcf/d) 225 250 220 248 237 250 Oil (Bbls/d) 1,300 1,500 1,300 1,500…
  52. August 2018 Investor Presentation – Riviera Resources – slide 52
    Pro-Forma Adjusted Riviera Upstream 2018 Adjusted EBITDAX Outlook Adjusted Riviera 2018 Pro-forma Upstream Riviera Estimates Guidance Resources 140 Guidance 120 52 100 in Millions 80 (23) 132 60 35 (26) 94 40 80…
  53. August 2018 Investor Presentation – Riviera Resources – slide 53
    FY 2018 Capital Allocation Total Capital 235 million ( in millions) Drilling = 45MM Seismic = 8MM Leasing = 11MM Total = 64MM Upstream Assets Oil & Gas Capital (1) Blue Mountain 64 Midstream 1H'18 90 Asset Sales (2) 2…
  54. August 2018 Investor Presentation – Riviera Resources – slide 54
    2018 Capital Bridge Full Year ( in millions) Blue Mountain Midstream Capital Bridge 160 32 160 120 8 120 120 128 80 40 0 Prior Guidance Plant 1 Field / Plant 2 Current Guidance Other (1) Riviera Upstream Capital Bridge…
  55. August 2018 Investor Presentation – Riviera Resources – slide 55
    Commodity Hedge Portfolio Henry Hub and WTI Natural Gas Positions Oil Positions 200 191 2000 175 1750 1500 Volume Hedged (MMbtu/d) 150 1500 Volume Hedged (bbls/d) 125 1250 100 3.02 1000 75 750 54.07 61 500 50…
  56. August 2018 Investor Presentation – Riviera Resources – slide 56
    Commodity Hedge Portfolio Natural Gas Basis PEPL Basis Positions NGPL TXOK Basis Positions 100 25 Volume Hedged (MMbtu/d) Volume Hedged (MMbtu/d) 20 75 60 60 15 50 10 10 (0.659) (0.659) 25 5 (0.185) 0 0 0 2018…
  57. August 2018 Investor Presentation – Riviera Resources – slide 57
    Capital Structure Approximately 76.2 million shares issued and outstanding at record date Common Equity Approximately 0.5 million shares of restricted shares(1) Interest on borrowings determined by reference to either LIBOR +250…
  58. August 2018 Investor Presentation – Riviera Resources – slide 58
    Board of Directors Evan Lederman is a Managing Director, Co-Head of Restructuring and Partner on the Investment Team at Fir Tree Partners. Mr. Lederman focuses on the funds distressed credit and special situation investment…
  59. August 2018 Investor Presentation – Riviera Resources – slide 59
    Riviera Resources Executive Management Team David Rottino is President and Chief Executive Officer and a director of Riviera Resources. Prior to Riviera Resources spin-off from LINN Energy, David Rottino Inc., he served as LINN…

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