Falcon Minerals Overview NASDAQ: FLMN o Independent, high-quality oil & gas minerals C-Corp began publicly trading in August 2018 o Current enterprise value of 750 million Strong balance sheet at 0.4x leverage o Focused…
Core-of-the-core Eagle Ford minerals position Key highlights Falcon Minerals acreage is in the Eagle Ford core 251,435(1) gross unit acres in the core of the Eagle Ford fairway; 2,500 net royalty acres 3,000 locations with IRRs to…
Falcon Minerals business strategy Benefit from organic development of our acreage Pursue accretive acquisitions Growth within Focus on total stockholder returns free cash flow Maintain a conservative capital…
Falcon Minerals investment thesis Falcon Minerals intends to acquire core-of-the-core minerals assets in leading plays with sustainable free cash flow and visible growth Future acquisitions will be geared towards driving accretive…
Advantaged, differentiated high-margin oil-weighted assets with high-FCF conversion and no capex Falcon Minerals E&P operator No direct operating costs or capital expenditures Reduced sensitivity to commodity prices Consistent…
Royalties provide superior economics vs. working interests Eagle Ford Condensate Window Economics 65/Boe Illustration 50/Boe Illustration Falcons business model maintains its high cash margin in a comparatively lower-priced oil…
The Eagle Ford shale is the most geographically advantaged large-scale oil play in the U.S. Primary Eagle Ford Characteristics Well-established and extensive midstream infrastructure with ample future capacity Strategically located in…
Tier 1 operators on Falcon Minerals acreage Best-in-class operators on Falcon Minerals acreage Operator acreage locator Credit % of Net debt / rating Falcon's (1) 2018E (Moody's / 2018E EF Active EF 2018 cash Operator TEV (bn) EBITDA…
Top operator activity supports Falcons growth efforts Recent Commentary from Falcons Top Producers Eagle Ford development has become one of COPs most successful US unconventional plays COP realized 30% increase in its Eagle Ford…
Top tier assets paired with top tier operators IP30 progression by operator (Boe/d) 2009-2011 2012-2014 2015-2017 Hooks Ranch April 2018 Avg. 1,680 1,673 1,420 1,286 1,327 1,223 1,209 1,101 1,071 1,005 823 729 597…
Example of active development on Falcon Minerals acreage Primary Highlights Hooks Ranch unit summary & locator map Falcon Minerals has a 22.5% royalty 6-well pad brought interest in the Hooks Ranch position online in late February…
Fragmentation of minerals market presents opportunity for consolidation Falcon management and Blackstone have broad industry networks Minerals space is highly fragmented Limited universe of public buyers Public equity provides…
Conservative and disciplined financial philosophy o Strong balance sheet capable of funding accretive acquisitions o Target debt / EBITDA…
Falcon Minerals summary High margin cash flows with strong free cash flow generation Assets in the core-of-the-core Eagle Ford shale Extensive, repeatable drilling inventory of highly economic locations High-quality…
Appendix
Falcon Minerals Forecast Provided on 3Q18 earnings announcement in Nov 2018 o 4Q18E net adjusted production of 6,100-6,500 boe/d o FY19E net production of 7,600 boe/d, including 2 Hooks Ranch pads TIL during the year; FCF of 1.20…
Built to withstand volatility: Falcons high margin structure is favorable compared to energy peers Full-cycle cash margins (Cash margin and per BOE) 45 100% 89% 90% 40 90% 35 80% 41.15 71% 30 64% 70% 25 59% 58% 35.66 Average:…
Illustrative fully diluted share count and ownership Illustrative share price Share counts in millions 10.00 11.00 12.00 13.00 14.00 15.00 16.00 17.00 18.00 Osprey - Public IPO shares(1) 27.5 27.5 27.5 27.5 27.5 27.5 27.5 27.5 27.5…
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