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4Q 2018 Earnings Presentation – Silverbow Resources

Silverbow Resources · Feb 27, 2019 · 39 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. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 1
    SilverBow Resources Corporate Presentation February 2019
  2. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 2
    Company Overview NYSE Symbol SBOW Market Cap(1) 288 million La Salle Enterprise Value(1) 680 million 12/31/18 PV-10 Value(2) 1.1 billion Live Oak Production 4Q18(3) 227 MMcfe/d Mc Mullen Production Mix(4) 84% Gas Proved Reserves (2)…
  3. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 3
    Key Accomplishments 2018 2018 Objectives Highlights Accelerate growth through expanded Added 2nd drilling rig, production growth of capital program 42% from 2Q18 to 4Q18 EBITDA / Production Achieve Adj. EBITDA margin of 65% FY18 Adj.…
  4. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 4
    Building Value Across the Organization Production(1) Reserves and PV-10(2) (MMcfe/d) (Bcfe) 300 1,500 1,345 1,500 250 239 1,250 1,128 1,250 1,024 200 225 1,000 1,000 805 744 150 750 750 442 100 183 500 500 122 143 50 250…
  5. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 5
    Executing on Strategy Revenue LOE (mm) (/Mcfe) (mm) (/Mcfe) 100 5.00 7.5 0.47 0.50 4.23 Thousands 0.41 3.68 0.34 80 3.48 3.45 3.42 3.60 3.65 3.53 4.00 6.0 0.36 0.34 0.40 60 3.00 4.5 0.26 0.24 0.30 0.23 88 40 2.00 3.0 5.8…
  6. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 6
    Key Objectives 2019 Free cash flow generation while realizing double-digit production and EBITDA growth Free Cash Flow Target free cash flow positive in 2H19 Generation Target production growth of 25% based on mid-point of 2019…
  7. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 7
    SilverBow Then and Now 35 6.00 HHUB Gas Price (/Mcf) 32 5.00 SBOW Stock Price HHUB: 29 2.70 4.00 26 3.00 23 2.00 SBOW: 24.60 20 1.00 1/2/17 3/19/17 6/3/17 8/18/17 11/2/17 1/17/18 4/3/18 6/18/18 9/2/18 11/17/18…
  8. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 8
    Top-Tier Economics in Premier Location World Class Gas Lifting Cost(1) Henry Hub Breakeven Cost(1)(2) (/Mcfe) (/Mcfe) 2018 Natural Gas Pricing & Differentials Sources of Demand Growth Petrochemical Rockies Complex 2.38 +0.5…
  9. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 9
    Eagle Ford Stands Out Amongst Gas Basins SilverBows Characteristic Haynesville Appalachia Western Eagle Ford Competitive Lifting Cost Low Breakeven Cost Low Basis Differential / T&P Proximity to Key Downstream Markets…
  10. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 10
    Quality Reservoir With Stacked Pay Potential Lower Eagle Ford Isopach Map SBOWs acreage A is among the thickest in Lower Eagle Ford which further supports stacked pay development A A A Cross Section and Targeting Fasken Oro…
  11. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 11
    SilverBow Leads Pack in Top 50 Gas Wells Top 50 Wells First 12 Mo Cum Gas Prod Production Top 50 Eagle Ford Gas Locations (MMcf) Legend SilverBow SBOW Other Recent Additions (Since 9/9/18) Existing Wells Benchmarks SilverBow…
  12. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 12
    ...as well as in the Southern Eagle Ford Gas Trend Southern Eagle Ford Gas: First 12 Mo Cum Gas Production Southern Eagle Ford: Gas Well Locations (MMcf) Legend Legend SBOW Pre 2017 SBOW Pre 2017 SBOW Post 2017 SBOW Post 2017…
  13. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 13
    Portfolio Overview 4Q18 Gross Net % Production Undrilled Prod Area (% Avg WI) Acres Gas (MMcfe/d) Locations(3) Wells Webb County Fasken Area 7,742 100% 107.4 (64% - 100%) Gas Lower EF Gas 20 72 Upper EF Gas 66 12 Uno Mas…
  14. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 14
    Strong Well Results Across Acreage Position Bracken 2 Well Pad (AWP) SMR 2 Well Pad (AWP) 30-day rate: 29.1 MMcfe/d 30-day rate: 1,850 Boe/d (37% Liquids) (95% Liquids) Evans 2 Well Pad (Artesia) PCQ 1 Well Pad (AWP) 30-day…
  15. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 15
    Webb County (Upper) Well Performance Webb County Upper Eagle Ford Wells Daily Gas Production (Normalized to 7,500) Webb 4 6 5 3 1 2 Well Statistics Cumulative Gas Production (Normalized to 7,500) Cluster Well CLAT Prop…
  16. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 16
    Southern Eagle Ford Gas Well Performance Southern Eagle Ford Gas Wells Daily Gas Production (Normalized to 7,500) La Salle McMullen Live Oak 2 7 6 1 Uno Mas Oro Grande S-AWP 3 4 5 Well Statistics Cumulative Gas…
  17. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 17
    La Salle Condensate La Salle Eagle Ford Condensate Wells Daily Production (Normalized to 7,500) La Salle 1 4 3 2 5 Well Statistics Cumulative Production (Normalized to 7,500) Cluster Well CLAT Prop Fluid Well Name…
  18. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 18
    McMullen Oil Well Performance McMullen Eagle Ford Oil Wells Daily Production (Normalized to 7,500) McMullen 1 2 3 Well Statistics Cumulative Production (Normalized to 7,500) Cluster Well CLAT Prop Fluid Well Name…
  19. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 19
    Strong Returns in Current Price Environment IRRs Across SilverBows Portfolio 3.00 gas / 55.00 oil(1) 81% 63% 41% 36% (2) La Salle Condensate McMullen Oil Webb County Gas Southern EF Gas Producing Wells(3) 46 78 84 37 (3)(4)…
  20. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 20
    2019 Capital Budget 2019 Capital Budget Activity by Area Net Wells Drilled 2018 2019E Webb County Gas 14 1 Southern EF Gas 9 5 McMullen Oil 5 2 La Salle Condensate 5 18-19 Total 33 26-27 85% D&C 2019 Capital Budget Breakdown…
  21. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 21
    2019 Guidance ACTUAL GUIDANCE 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 FY19 Production Volumes: Oil (Bbls/d) 1,967 1,549 1,685 2,340 1,886 2,650 - 2,750 3,500 - 3,800 Gas (MMcf/d) 132 137 160 191 155 173 - 179 176 - 187 NGL (Bbls/d) 2,756…
  22. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 22
    Financial Summary CORPORATE PRESENTATION Page 23 2/27/2019
  23. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 23
    Top Quartile Operating Expenses Total Operating Expenses 3Q18 (Pre-G&A, /Mcfe) 2.50 2.50 2.00 2.00 1.50 1.50 Peer Group Avg. (excl. SBOW): 1.17 1.00 1.00 0.50 0.50 0.00 0.00 Note: Total operating expenses…
  24. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 24
    Culture of Continuous Capital Cost Optimization Drilling Cost Per Well(1)(2) Completion Cost Per Well & Proppant Intensity(1) (000) (000) lb/ft 6,000 6,000 6,000 5,000 4,560 5,000 4,533 5,000 4,395 4,000 4,000 3,550 4,000 3,085…
  25. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 25
    Financial Discipline is Integral to Strategy Preserve financial flexibility NYSE Symbol SBOW Share Price (2/1/19) 24.60 Strong liquidity position: 217 million(1) Shares Outstanding 11.693 Active hedge program to protect cash flows…
  26. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 26
    Hedging Summary(1) SilverBow actively hedges expected production to protect project returns and support planned capital expenditures Bias towards swaps and collars Hedge volumes for balance of 2019 cover 65% of 2019 production…
  27. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 27
    Conclusion CORPORATE PRESENTATION Page 28 2/27/2019
  28. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 28
    Attractive Valuation vs. Natural Gas Peers EV/2019E EBITDA(1) LTM EBITDA Margin(2) 8.0x 80% 7.0x 70% 6.0x 60% 5.0x 50% 4.0x 40% 3.0x 30% 2.0x 20% 1.0x 10% 0.0x 0% Peer I Peer G Peer J Peer A Peer…
  29. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 29
    Investment Highlights: Why SilverBow Pure Play 104,673(1) net acres in core gas and condensate windows of Eagle Ford shale Eagle Ford Acute focus on production and EBITDA growth while prudently delineating position Operator Access to…
  30. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 30
    Type Curves CORPORATE PRESENTATION Page 31 2/27/2019
  31. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 31
    La Salle Condensate Single Well Economics(1) Type Curve(1) Summary 2019 Spuds Per Year (Gross) 22 Development D&C (MM)(2) 6.0 NPV 10 (MM) 8.7 Rate vs. Time IRR (%) 81% 4,500 900 LaSalle Gas Type Well Assumptions 4,000 800 Completed…
  32. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 32
    McMullen Oil Single Well Economics(1) Type Curve(1) Summary 2019 Spuds Per Year (Gross) 2 Development D&C (MM)(2) 6.0 NPV 10 (MM) 4.7 Rate vs. Time IRR (%) 63% 4,000 1000 McMullen Gas Type Well Assumptions 3,600 900 Completed Lateral…
  33. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 33
    Webb County Eagle Ford Gas Single Well Economics(1) Type Curve(1) Summary 2019 Spuds Per Year (Gross) 1 Development D&C (MM)(2) 6.0 NPV 10 (MM) 2.9 Rate vs. Time IRR (%) 41% 15,000 14,000 Webb County Gas Type Well Assumptions 13,000…
  34. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 34
    Southern Eagle Ford Gas Single Well Economics(1) Type Curve(1) Summary 2019 Spuds Per Year (Gross) 5 Development D&C (MM)(2) 8.4 NPV 10 (MM) 5.2 Rate vs. Time IRR (%) 36% 15,000 14,000 Southern EF Gas Type Well Assumptions 13,000…
  35. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 35
    Appendix CORPORATE PRESENTATION Page 36 2/27/2019
  36. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 36
    Capital Structure Revolving Credit Facility (due 2022) 410 million borrowing base LIBOR + 2.00%-3.00% 12 banks led by J.P. Morgan Total Debt / LTM Adj. EBITDA < 4.0x Second Lien Facility (due 2024) 200 million outstanding LIBOR…
  37. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 37
    Adjusted EBITDA Reconciliation ( thousands) 2018 1Q 2Q 3Q 4Q FY Net Income 8,466 2,319 7,080 56,751 74,615 Adjustments to EBITDA DD&A 13,131 13,096 18,766 23,041 68,035 Accretion of ARO 159 84 87 88 419 Interest, net 5,890…
  38. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 38
    Reconciliation of PV-10 to Standardized Measure Estimates of future net revenues from our proved reserves, Standardized Measure and PV-10 (PV-10 is a non-GAAP measure defined below), as of December 31, 2018 is made in accordance with…
  39. 4Q 2018 Earnings Presentation – Silverbow Resources – slide 39
    Corporate Information CORPORATE HEADQUARTERS SilverBow Resources, Inc. 575 North Dairy Ashford, Suite 1200 Houston, Texas 77079 (281) 874-2700 or (800) 777-2412 www.sbow.com CONTACT INFORMATION Jeff Magids Senior Manager…

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