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August 2018 Corporate Update – Extraction Oil and Gas

Extraction Oil and Gas · Aug 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. August 2018 Corporate Update – Extraction Oil and Gas – slide 1
    Corporate Update August 2018
  2. August 2018 Corporate Update – Extraction Oil and Gas – slide 2
    Capital Structure and Market Summary Capital Structure Market Capitalization (As of August 3, 2018) 2.7 billion Series A Preferred 185 million Net Debt 1.3 billion Enterprise Value 4.1 billion Net Debt(1) / EBITDAX(2) 2.2x Market…
  3. August 2018 Corporate Update – Extraction Oil and Gas – slide 3
    Extraction Company Overview DJ Basin Net Acreage DJ Basin-Focused Position of Scale CO 325,000 net acres with 170,000 in Core DJ Basin Laramie Kimball Contiguous acreage blocks allow for longer laterals Limited vertical well…
  4. August 2018 Corporate Update – Extraction Oil and Gas – slide 4
    Key Investment Highlights Experienced management and technical teams with proven track record of execution Extensive acreage position yields decades of high-quality drilling inventory Strong balance sheet with ample liquidity…
  5. August 2018 Corporate Update – Extraction Oil and Gas – slide 5
    Transitioning from Growth to Returns-Focused Growth Phase Returns Phase Targeting Cash-flow Positive beginning in 2H18 Significant outspend pre- Cash flow-driven growth Average Daily Production funded with equity and…
  6. August 2018 Corporate Update – Extraction Oil and Gas – slide 6
    Management Incentives Aligned with Shareholder Value Creation 7% Management Ownership 2018 Annual Short-Term Incentive Plan Highlights Financial Goals (50% weighting) Net Debt Ratio Free Cash Flow Per-Share Rate-of-Return for 2018…
  7. August 2018 Corporate Update – Extraction Oil and Gas – slide 7
    XOG Offers Attractive Valuation; Robust Growth 2019 EV/EBITDAX 9x 8x 7x 6x 5x 4x 3x 2x 1x 0x 2017-2019 Production CAGR 100% 80% 60% 40% 20% 0% Peers Source: Factset consensus, 8/6/2018; Peers include: APC, AR, BCEI, CDEV,…
  8. August 2018 Corporate Update – Extraction Oil and Gas – slide 8
    Track Record of Production Growth 100 80 73.6 68.9 66.1 62.9 60 MBoed 44.2 38.2 40 33.4 27.6 28.9 24.8 20 36.1 38.8 34.6 33.7 23.1 13.8 13.8 14.0 16.1 13.5 0 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18…
  9. August 2018 Corporate Update – Extraction Oil and Gas – slide 9
    Elevation Midstream, LLC: Full Midstream Solution Summary Midstream Asset Map(3) Elevation will construct a crude oil, natural gas and SWW AMI Grand Mesa water gathering system to provide necessary Discovery midstream needs to…
  10. August 2018 Corporate Update – Extraction Oil and Gas – slide 10
    Elevation Financing Summary Elevation buildout is fully financed without cash outlay from Extraction (XOG) Elevation has secured a perpetual preferred equity commitment of up to 500 million from funds managed or advised by GSO…
  11. August 2018 Corporate Update – Extraction Oil and Gas – slide 11
    Transaction Drives Strategic Benefits and Value Midstream Buildout Highlights 100% common equity ownership yields large potential value uplift to XOG shareholders Unlocks a decade of development opportunities in XOGs southern acreage…
  12. August 2018 Corporate Update – Extraction Oil and Gas – slide 12
    Recent Niobrara Wells Outperforming Type Curves Recent Niobrara Oil Performance 140,000 120,000 4Q17-2Q18 Niobrara wells (79) Cumulative Oil (normalized to 2 mi) 100,000 80,000 60,000 1Q/2Q17 DCP Niobrara wells…
  13. August 2018 Corporate Update – Extraction Oil and Gas – slide 13
    Recent Codell Wells Outperforming Type Curves Recent Codell Oil Performance 140,000 120,000 4Q17-2Q18 Codell wells (38) Cumulative Oil (normalized to 2 mi) 100,000 80,000 60,000 40,000 1Q/2Q17 DCP Codell wells…
  14. August 2018 Corporate Update – Extraction Oil and Gas – slide 14
    Recent Well Pads Demonstrate Strong Performance Average Cumulative Oil by Pad: Most Recent 136 Wells 140,000 WES DCP 120,000 Cumulative Oil (normalized to 2 mi) 100,000 80,000 60,000 40,000 Triple Creek…
  15. August 2018 Corporate Update – Extraction Oil and Gas – slide 15
    Triple Creek Wells Demonstrate Greeley Acreage Quality 22 Well Pad with 2.5 Mile Laterals Niobrara Oil Rates 800 Unconstrained Average 700 Constrained Average Barrels of Oil per Day (normalized to 2 mi) 600 500 400…
  16. August 2018 Corporate Update – Extraction Oil and Gas – slide 16
    Hawkeye Area: Large Inventory of High-Return, High Working Interest Drilling Locations Acquisition total in Hawkeye area: 66,000 net acres in Hawkeye Area Well Results Arapahoe and Adams Counties; 140,000 S Hawkeye Nio 69,000 net…
  17. August 2018 Corporate Update – Extraction Oil and Gas – slide 17
    Offset Operator Activity in Hawkeye Area 1 11 Watkins 30-5-4H Sunset 21-22 1H 6 Mo CUM/1,000: 21 MBOE 6 Mo CUM/1,000: 15 MBOE (61% Oil) (78% Oil) LL: 3,866 LL: 8,950 2 12 Tebo 29 2H Tebo 4 1H 6 Mo CUM/1,000: 19 MBOE 6 Mo CUM/1,000:…
  18. August 2018 Corporate Update – Extraction Oil and Gas – slide 18
    Expansive Acreage Position Provides Midstream Optionality DJ Basin Net Acreage Laramie Kimball Uniquely positioned to grow production CO despite the elevated line pressures in northern portion of Wattenberg Field 75% of core…
  19. August 2018 Corporate Update – Extraction Oil and Gas – slide 19
    Strong Offset Operator Results Near Broomfield Project Offset Broomfield Niobrara Oil Production Extraction Acreage, Offset Well Pads 16,000 Actual Average 14,000 Standard Nio Type Curve 12,000 Cumulative Oil per 1,000'…
  20. August 2018 Corporate Update – Extraction Oil and Gas – slide 20
    Ample Liquidity to Execute Growth Plan Liquidity as of 6/30/18 Enhanced liquidity profile through IPO, Dec. 2016 equity offering, and recent senior ( in millions) unsecured notes issuances Cash on Balance Sheet 68 Top tier balance…
  21. August 2018 Corporate Update – Extraction Oil and Gas – slide 21
    Highly Efficient Operating Cost Structure PUD Development Costs / Boe (1) (/boe) 9.33 Median: 8.86 8.86 8.72 XOG Permian Peers DJ Basin Peers Recycle Ratio (2) 3.0x 2.9x Median 2.9x 2.4x Permian Peers XOG DJ…
  22. August 2018 Corporate Update – Extraction Oil and Gas – slide 22
    Cash Flow Protection Through Hedges Strong hedge portfolio protects cash flow Maintain a multi-year rolling hedge program 2018E positions: 5,100 MBbls of oil hedged with swaps that have an average price of 51.61/Bbl 7,050 MBbls of…
  23. August 2018 Corporate Update – Extraction Oil and Gas – slide 23
    Appendix 24
  24. August 2018 Corporate Update – Extraction Oil and Gas – slide 24
    Current Focus on Niobrara and Codell Formations Other Horizons Provide Additional Upside Extraction has producing wells in the Niobrara A, B, C and Codell benches DJ Basin Prospective Horizons DJ Basin Formations Other Major…
  25. August 2018 Corporate Update – Extraction Oil and Gas – slide 25
    Longer Laterals Lead to Increased Economics Niobrara average lateral length: 1.7 miles Codell average lateral length: 1.5 miles Niobrara (Standard Completions) Codell Lateral Length D&C Cost F&D Cost EUR Lateral Length D&C Cost F&D…
  26. August 2018 Corporate Update – Extraction Oil and Gas – slide 26
    High Caliber Management Team Management Team Name Position Prior Experience Years in Industry Mark Erickson CEO, Chairman and Co-Founder 35+ Matt Owens President, Director and Co-Founder 10+ Rusty Kelley Chief Financial…
  27. August 2018 Corporate Update – Extraction Oil and Gas – slide 27
    Board of Directors Name Position Background Mr. Erickson serves as Chairman, CEO and co-founder of Extraction. Prior to this, he served as Mark Erickson Chairman, CEO, Co-founder Chairman and CEO of PRE Resources, LLC from 2010 to 2014…
  28. August 2018 Corporate Update – Extraction Oil and Gas – slide 28
    Non-GAAP Measures The following table presents a reconciliation of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged to the GAAP financial measure of Net income (loss) for each of the periods indicated: For the Thre e Months Ended For…
  29. August 2018 Corporate Update – Extraction Oil and Gas – slide 29
    Corporate Contact Information Extraction Oil & Gas, Inc. Auditor 370 17th Street PricewaterhouseCoopers LLP Suite 5300 Denver, Colorado Denver, Colorado 80202 720-974-7773 Independent Petroleum Engineer Ryder Scott Denver,…

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