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Scotia Howard Weil Annual Energy Conference – HighPoint Resources

HighPoint Resources · Mar 25, 2019 · 32 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. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 1
    Scotia Howard Weil Energy Conference Scot Woodall President & CEO March 25-26, 2019 NYSE: HPR
  2. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 2
    Company Overview Exclusively Rural and Oily Acreage Position in the Market Capitalization1 500MM Stock Shares Outstanding 212MM DJ Basin Overview Net Debt 594MM Enterprise value1 1,100MM 4Q18 Production 3.11 MMBoe % Oil 63%…
  3. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 3
    Investment Highlights Exclusively rural and oily acreage position that should be resilient to potential Colorado regulatory changes High oil weighting, low cost structure and attractive oil differentials delivers peer leading…
  4. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 4
    Rural Acreage Located Outside of Municipalities Acreage position is located exclusively in rural Weld County outside of municipalities with no urban exposure Total Acreage 155,400 net acres 2019 drilling program is fully…
  5. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 5
    Top Tier Margin Generation DJ Basin Operating Margin and Oil Weighting 21% higher margin than Peer Average Peer Leading 40 37.69/boe 70% Operating Margins 35 Peer Average - 31.24/boe 30 Generating greater unhedged 60% %…
  6. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 6
    2019 Guidance Production Volumes (MMBoe) 2019 Outlook 13.0 12.5 Focused development program designed to deliver 10.2 enhanced value in Hereford and NE Wattenberg Disciplined capital investment to high-margin, high- 6.2 return…
  7. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 7
    Operational Overview NYSE: HPR
  8. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 8
    Complementary Asset Portfolio High-return oil-weighted locations within two core assets Oily acreage located exclusively in rural areas with no urban exposure; should be resilient to potential Colorado regulatory changes…
  9. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 9
    Hereford Field Overview Largely undeveloped rural acreage position provides multi year inventory of highly economic drilling locations across multiple horizons Excellent source rock quality, thermal maturity, 80% Oil Avg.…
  10. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 10
    Hereford Field Activity Laramie 1 Section 11-63-15 (10 XRL Wells) Initial 5 wells placed on flowback in February Remaining 5 wells are being completed; expected to be placed on flowback in April 2 Section 11-63-16 (11 XRL…
  11. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 11
    Hereford Development Optimization Extensive 3-D seismic data provides strong geologic overview of producing formations 129 square miles of existing data; 325 square miles of 3D Expansion Hereford 3-D increased coverage expected by…
  12. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 12
    Delivering Maximum Asset Value Downhole Fiber Optics Assesses Completion Cluster Performance Initiated a comprehensive data collection effort utilizing integrated surface microseismic, tilt meter and downhole fiber optic and…
  13. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 13
    Hereford Development Sequencing Methodical sequencing of drilling and completion operations across multiple DSUs drives operational efficiencies and reduces completion interference Results in more effective wellbore stimulation with…
  14. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 14
    NE Wattenberg Focus Area Acreage provides cash flow base to support Hereford development opportunity 60% Oil Avg. 68,600 net acres favorable for XRL development Continuous optimization of completions and flowback has resulted…
  15. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 15
    Continuous Improvement from Optimized Completions and Flowback 140000 120000 Continuous year-over-year Seeing early separation refinement of completions and following controlled flowback has resulted in improved flowback…
  16. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 16
    NE Wattenberg Efficiencies Drive D&C Costs Lower Full DSU development maximizes NE Wattenberg XRL D&C Cost drilling and completion efficiencies 45% improvement in well costs with 57% increase in fluid intensity 9 30 30 Continue…
  17. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 17
    Diversified Crude and Gas Processing Crude Overview Multiple crude outlets provide 650 MBbls/d of take- away capacity with current basin production of 500 SUMMIT MBbls/d Local refineries and rail provide additional outlets No…
  18. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 18
    Finance Overview NYSE: HPR
  19. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 19
    Strong Balance Sheet with No Near Term Maturities Debt Maturities (mm) 400 350 Significant liquidity to fund development 300 250 33 million cash on hand at 12/31/2018 200 150 Undrawn 500 million credit facility 100 No…
  20. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 20
    Hedging Supports Capital Program and Protects Cash Flow Manage hedge portfolio to support capital program, protect future cash flow and reduce commodity price risk Strategy is to hedge 50-70% of production on a forward 12-month to…
  21. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 21
    Investment Summary DJ Basin pure-play with high-quality, oily, rural acreage largely held by production Rural nature of assets insulates development program from potential regulatory changes Demonstrated technical execution with…
  22. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 22
    Appendix NYSE: HPR
  23. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 23
    4Q 2018 Highlights Production sales volume of 3.11 MMBoe (63% oil) for 4Q 2018 represents an increase of 47% from 4Q 2017 Oil sales volume of 1.97 MMbbls grew 55% over 4Q 2017 EBITDAX of 92 million increased 18% from 3Q 2018…
  24. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 24
    HighPoint has Exclusively Rural and Oily Acreage Operational Control and Efficient Development Combined acreage position is exclusively rural Exclusively Rural Acreage Away in nature with no urban exposure from Populated Areas…
  25. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 25
    Hereford Field Targets Consistent Across Acreage Consistent geology from Colorado Hereford Field to Wyoming Fairway Field Continuity and consistency of primary targets across acreage position Niobrara B bench thickness range = 100…
  26. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 26
    Hereford Located in Strong Oil Producing Fairway Key Geologic Criteria Key geologic criteria indicates strong oil Hereford Hereford producing fairway and hydro carbon charge Position Position that compares favorably to Greater…
  27. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 27
    Core and Petrophysical Analysis Confirms Resource Niobrara Codell Stacked B1 and B2 zone creates the Codell thickness ranges from highest net chalk pay for a single 17-23; thicker than most areas of Greater Wattenberg Niobrara…
  28. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 28
    2018 Year End Proved Reserves Proved reserves increased 22% Proved Reserves 22% Growth in 2018 (MMBoe) over YE 2017 to 105 MMBoe Maintained conservative 140 approach to PUD additions by 120 limiting PUD inventory to only 104.6…
  29. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 29
    Financial Results Summary Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 Production sales volumes (MBoe) 3,112 2,123 10,171 7,002 Net cash provided by (used in) operating activities (…
  30. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 30
    Financial Results Summary (continued) Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 Average Sales Prices (before the effects of realized hedges): Oil (per Bbl) 56.35 52.63 62.04 48.37 Natural…
  31. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 31
    Non-GAAP Reconciliation (Unaudited) EBITDAX Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 (in thousands) Net Income (Loss) 222,423 (77,821) 121,220 (138,225) Adjustments…
  32. Scotia Howard Weil Annual Energy Conference – HighPoint Resources – slide 32
    Non-GAAP Reconciliation (Unaudited) Discretionary Cash Flow Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 (in thousands) Net Cash Provided by (Used in) Operating Activities…

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