2018 RESULTS & 2019 OPERATING PLAN FEBRUARY 20, 2019
PREMIER OPERATOR OF TOP TIER ASSETS 2018: ANOTHER YEAR OF OUTSTANDING EXECUTION Permian Production Operating Margin PV-10 Growth(1)(2) Increase(1) Value Creation(1)(2) +97% +66% +79% Long-term Debt Discretionary Cash Flow…
PREMIER OPERATOR OF TOP TIER ASSETS 2019 PLAN OBJECTIVES 1 Generate free cash flow in 2H19 2 Deliver 20% production growth in the Permian 3 Generate solid full cycle returns from last spent per drilling unit 4 Maintain…
2019 CAPITAL PROGRAM FOCUS ON HIGH MARGIN GROWTH EXPECTED CAPITAL SPEND REDUCTION 20%(1) Total Capital Spend 1,000 1,070MM D&C Budget Eagle Ford 20% 5% Drilling and Facilities Completion Other 5% 90% Permian 80%…
2017 2019 PLAN HIGHLIGHTS TARGETING FREE CASH FLOW 2H19 EXPECTED MIDLAND PRODUCTION UP 135% 2017-2019(1) 50,000 40,000 Production 30,000 (Mboe) 20,000 10,000 - 2017 2018 2019e Midland Basin Eagle Ford…
(1) 2019 PLAN GUIDANCE Capital & Production FY 2019 Total Capital Spend (MM)(2) (before acquisitions) 1,000 - 1,070 Total Production (MMBoe) 45 48 Total Production (MBoe/d) Oil 123.3 131.5 43 44% 20% Expected Reduction in Capital…
2018 PROVED RESERVES: ADDITIONS & REVISIONS 503 MMBOE - UP 18%(1); PV-10 UP 79%(1)(2) Proved reserves up 18%(1) on retained assets Net proved reserve additions were 188 MMBoe (excluding revisions), or 119 MMBoe (net of revisions)…
PROVED RESERVES AND PV-10(1) YE 2016 YE 2018 600 PORTFOLIO TRANSITION - BUILDING VALUE 6,000 500 5,000 PV-10 Proved Reserves (MMBoe) 5.1B 400 4,000 PV-10(1) (MM) 300 3,000 PV-10 2.8B 200 2,000 100 1,000…
MIDLAND BASIN: NEW WELL RESULTS GREAT RESULTS - NEW MIDLAND WELLS AVG 1,417 BOE/D, 89% OIL (10,523 LL) Big Iron Coyote 18 Wells RockStar Valley 30 Day Avg. Peak Rate: 1,478 Boe/d (89% oil) Big Iron C o y o t e Va l l e y…
MIDLAND BASIN: ROCKSTAR NEW WELL RESULTS SM AMONG RSEG IDENTIFIED TOP 4 PERMIAN PERFORMERS YTD(1) BIG NEW WELLS SUPPORT CONTINUED TOP TIER PERFORMANCE 250,000 Cumulative Production (Boe) 200,000 150,000 100,000…
MIDLAND BASIN: DRIVING CAPITAL EFFICIENCY COMPLETIONS EFFICIENCY AND LOCAL SAND USAGE Percent Improvement in Current Sand Costs(1) Stages Pumped Per Day Since 3Q16 Indexed to January 2018 180% 1.1 160% Indexed to Northern…
MIDLAND BASIN 2019 PLAN FOCUSED ON EXECUTION AND RETURNS ACROSS OUR TOP TIER ASSETS 2019 Plan Objectives OPTIMIZE RETURNS PER DEVELOPMENT UNIT Co-development of multiple intervals HOWARD Maximize use of local sand RockStar 2019…
DIFFERING DECLINE PROFILES OF LS & WCA WELLS SIMILAR RETURNS LS & WCA: SLOWER RAMP UP BUT SHALLOWER & LESS CAPEX Jester Pad Wells Papagiorgio Pad Wells % OF PEAK INITIAL PRODUCTION (IP) RATES VS TIME % OF PEAK INITIAL PRODUCTION…
SOUTH TEXAS: AUSTIN CHALK HIGHER LIQUID CONTENT = HIGHER RETURNS Galvan Ranch C 917H 7,886 Lateral 30-day IP rate 2,084 Boe/d (3-stream) 10,000 Production Rate (MCFD, BPD) 1,000 Galvan Ranch C 917H AC Partial…
SOUTH TEXAS 2019 PLAN FOCUSED ON VALUE ENHANCEMENT AND RETURNS ACROSS TOP TIER ASSETS 2019 Plan Objectives ENHANCING INVENTORY VALUE Demonstrate value enhancement from new Eagle Ford wells with longer laterals and wider spacing…
MIDLAND BASIN WELL RESULTS SM RANKS 1 IN WELL PRODUCTIVITY IMPROVEMENT(1) Well Productivity Improvement Ye a r o v e r Ye a r 30% Well Productivity Midland Basin 20% 10% Boe 20:1/ft 0% -10% -20% -30% -40%…
BUILDING THE RIGHT CULTURE COMMITMENT TO ETHICAL OPERATIONS AND CORE VALUES We are committed to honoring our core values, including conducting our business with ethics and integrity and in compliance with applicable laws and…
Appendix 19
Fourth Quarter and Full Year Performance 20
4TH QUARTER AND FULL YEAR 2018 PERFORMANCE BIG CASH FLOW GROWTH Production & Pricing 4Q18 2018 Total Production (MMBoe / MBoe/d) 11.3/122.8 43.9/120.3 Oil Percentage 45% 43% Pre-Hedge Realized Price (/Boe) 34.74 37.27 Post-Hedge Realized…
4Q18 REALIZATIONS BY REGION Benchmark Pricing NYMEX WTI Oil (/Bbl) 58.81 NYMEX LLS Oil (/Bbl) 66.78 NYMEX Henry Hub Gas (/MMBtu) 3.64 Hart Composite NGL (/Bbl) 29.91 Production Volumes Eagle Ford(1) Permian Total Oil (MBbls) 303 4,789…
2018 PROVED RESERVES BY REGION YE 2017(1) (MMBoe) 270.1 156.5 426.6 South YE 2018 Permian Total Texas Oil (MMBbl) 16.3 159.4 175.7 Gas (Bcf) 993.4 328.4 1,321.8 NGL (MMBbl) 107.2 0.2 107.4 Total (MMBoe) 289.1 214.3 503.4 % Proved…
2018 ACTIVITY BY REGION WELLS DRILLED, FLOWING COMPLETIONS, AND DUC COUNT Wells Drilled Flowing Completions DUC Count As of December 31, 4th Quarter 2018 2018 YTD 4th Quarter 2018 2018 YTD 2018 Region Gross Net Gross Net Gross Net…
LEASEHOLD SUMMARY Net Acres(1) Region 12/31/2018 Midland Basin RockStar 64,870 Sweetie Peck(2) 16,850 Midland Basin Total 81,720 Eagle Ford(3) 162,990 Rocky Mountain Other(4) 173,980 Other Areas/Exploration 26,385 Total…
BALANCE SHEET OFFERS FINANCIAL FLEXIBILITY LIQUIDITY OF 1.1B(1); NO NEAR-TERM MATURITIES Redeemed 345 million principal outstanding 6.5% senior notes due 2021 Extended 480MM in near-term maturities to 2027 Net debt:TTM Adjusted…
NGL REALIZATIONS SM NGL price realizations are predominantly tied to Mont Belvieu, fee based contracts Differential reflects NGL barrel product mix, transportation and fractionation fees SM Typical NGL Bbl(1) 4Q17 1Q18 2Q18…
2019 Plan Activity & Hedges 28
2019 PLANNED RIG ACTIVITY AND COMPLETIONS BY MONTH 10 100 8 80 Total Net DUCs Operated Rigs 6 60 4 40 2 20 - - Completion Crews Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Midland Basin 3 3 4 4 4 4…
WELL HEDGED PERCENTAGE OF EXPECTED PRODUCTION HEDGED Production Hedged(1) 70% of expected 2019 production volumes hedged 70% oil volumes 70% 65% gas volumes (NGLs hedged by product) Midland-Cushing Basis Swaps 60% of…
OIL AND GAS DERIVATIVE POSITIONS BY QUARTER THROUGH 2020 Midland - Cushing Oil Swaps Oil Collars Oil Basis Swaps Price Volume Volume Ceiling Floor Volume Differential Period (MBbls) /Bbl(1) (MBbls) /Bbl(1) /Bbl(1) (MBbls) /Bbl(1)…
NGL DERIVATIVE SWAP POSITIONS(1) OPIS MT. BELVIEU Ethane Purity Propane Isobutane Volume Volume Volume (2) (2) (2) Period (MBbls) /Bbl Period (MBbls) /Bbl Period (MBbls) /Bbl 1Q19 853 12.25 1Q19 540 28.72 1Q19 29 35.70 2Q19 877…
Fourth Quarter and Full Year 2018 Non-GAAP Reconciliations & Disclosures 33
TOTAL CAPITAL SPEND RECONCILIATION TO COSTS INCURRED (GAAP) Reconciliation of costs incurred in oil and gas activities (GAAP) to total capital spend Three Months Ended Twelve Months Ended (non-GAAP)(1)(3) (in millions) December 31, 2018…
(1) ADJUSTED EBITDAX RECONCILIATION TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) Reconciliation of net income (GAAP) and net cash provided by operating activities (GAAP) to adjusted Three Months Ended Twelve Months Ended…
(1) ADJUSTED NET INCOME (LOSS) RECONCILIATION TO NET INCOME (GAAP) Reconciliation of net income (GAAP) to adjusted net income (loss) (non-GAAP): Three Months Ended Twelve Months Ended (in thousands, except per share data) December…
DISCRETIONARY CASH FLOW RECONCILIATION TO NET CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) Reconciliation of net cash provided by operating activities (GAAP) to discretionary cash flow Three Months Ended Twelve Months Ended…
PV-10 RECONCILIATION TO STANDARDIZED MEASURE (GAAP) Reconciliation of standardized measure (GAAP) to As of As of PV-10 (non-GAAP)(1) (in millions) December 31, 2018 December 31, 2017 Standardized measure of discounted future net cash…
DEFINITIONS AND RECONCILIATION OF NET DEBT : TTM ADJUSTED EBITDAX The Company defines Net debt as the total principal value of outstanding senior notes, senior convertible notes plus balances drawn on the revolving credit facility (also…
CONTACT INFORMATION Jennifer Martin Samuels Vice President - Investor Relations 303-864-2507 jsamuelssm-energy.com 42
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