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Corporate Update – Extraction Oil and Gas

Extraction Oil and Gas · Nov 6, 2018 · 25 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. Corporate Update – Extraction Oil and Gas – slide 1
    Corporate Update November 2018
  2. Corporate Update – Extraction Oil and Gas – slide 2
    Capital Structure and Market Summary Capital Structure Market Capitalization (As of November 5, 2018) 1.5 billion Series A Preferred 185 million Net Debt 1.3 billion Enterprise Value 2.9 billion Net Debt / EBITDAX(1) 2.1x Market…
  3. 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. 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. Corporate Update – Extraction Oil and Gas – slide 5
    Transitioning from Growth to Returns-Focused Growth Phase Returns Phase Targeting Cash-flow Positive beginning in 4Q18 Significant outspend pre- Cash flow-driven growth Average Daily Production funded with equity and…
  6. 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. Corporate Update – Extraction Oil and Gas – slide 7
    Track Record of Production Growth 100 80 73.6 75.7 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 39.3 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…
  8. Corporate Update – Extraction Oil and Gas – slide 8
    Strategy and Guidance Summary Strategy Positive free cash flow in 4Q18 and FY19 (excluding Elevation Midstream impact) Targeting run-rate net leverage of approximately 1.5x Net Debt-to-EBITDAX in the long-term Continue to protect…
  9. 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. 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. 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. Corporate Update – Extraction Oil and Gas – slide 12
    Recent Well Pads Demonstrate Strong Performance Average Cumulative Oil by Pad: Most Recent 196 Wells 160,000 Other DCP 140,000 120,000 Cumulative Oil (normalized to 2 mi) 100,000 80,000 60,000 Triple Creek…
  13. Corporate Update – Extraction Oil and Gas – slide 13
    Strong Offset Operator Results Near Broomfield Project Offset Broomfield Codell Oil Production Extraction Acreage, Offset Well Pads 150,000 Actual Average Coyote Average Cumulative Oil (normalized to 2 mi) 125,000 Standard…
  14. Corporate Update – Extraction Oil and Gas – slide 14
    Hawkeye Area: Large Inventory of High-Return, High Working Interest Drilling Locations Hawkeye Area Well Results Acquisition total in Hawkeye area: 66,000 net acres in 140,000 Arapahoe and Adams Counties; S Hawkeye Nio N Hawkeye Nio…
  15. Corporate Update – Extraction Oil and Gas – slide 15
    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…
  16. Corporate Update – Extraction Oil and Gas – slide 16
    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) 3.4x Median 3.4x 3.2x 3.2x Permian Peers XOG DJ…
  17. Corporate Update – Extraction Oil and Gas – slide 17
    Cash Flow Protection Through Hedges Strong hedge portfolio protects cash flow Maintain a multi-year rolling hedge program 2018E positions: 5,050 MBbls of oil hedged with swaps that have an average price of 51.58/Bbl 7,050 MBbls of…
  18. Corporate Update – Extraction Oil and Gas – slide 18
    Appendix 19
  19. Corporate Update – Extraction Oil and Gas – slide 19
    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…
  20. Corporate Update – Extraction Oil and Gas – slide 20
    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…
  21. Corporate Update – Extraction Oil and Gas – slide 21
    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…
  22. Corporate Update – Extraction Oil and Gas – slide 22
    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…
  23. Corporate Update – Extraction Oil and Gas – slide 23
    Elevation Balance Sheet Breakout Extraction Oil & Gas, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) September 30, 2018 December 31, 2017 Condensed Balance Sheets (1) Cash and cash equivalents 274,065…
  24. Corporate Update – Extraction Oil and Gas – slide 24
    Reconciliation of 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…
  25. Corporate Update – Extraction Oil and Gas – slide 25
    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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