Scotia Howard Weil 47th Annual Energy Conference Presentation March 2019
Jagged Peak Overview A Leading Delaware Basin Pure Play Delaware Basin Large contiguous position in the deep, over-pressured oil window of the Delaware Basin 79,500(1) net acres with average WI 88% laid out in blocky, contiguous…
Asset Overview Three Concentrated Project Areas in the Oily Multi-Stack Portion of the Southern Delaware Multi-Stack Pay Potential Inventory Breakdown(1) JAG Acreage % Oil Lateral Length 0 5 10 Miles Whiskey Cochise Cochise…
RESULTS FOCUSED EXECUTION
3-Year Annual Lookback Since IPO, JAG Has Generated Attractive Production, Cash Flow and Reserves Growth Average Daily Production Capital Expenditures versus Net Wells Turned Online 38.339.8 41.3 ( MM) 711.0 Equivalent Production…
Solid Operational Performance High-growth Oily Asset With Competitive Cost Structure Industry leading oil content drives 2018 vs. 2017 Annual Production Growth 2018 Oil Content superior revenue (% growth) (% oil) Established…
Attractive Corporate Level Returns Low-cost, High-margin Asset Base Drives High Return on Capital Employed (ROCE) Profitable wells coupled with attractive corporate margins drive strong full-cycle returns Oily asset base drives…
2018 Strategic Initiatives Delivered on All Initiatives in 2018 Strategic Initiative 2018 Result Completed the acquisition and integration of seismic data throughout acreage to inform Increase technical understanding of the reservoir…
2019 PROGRAM BUILDS OFF OF 2018 EXECUTION
2019 Program Overview Weighted to Whiskey River and Cochise Development while Continuing Key Development Initiatives 2019 Operated Program JAG Acreage 0 5 10 % Oil 5 rigs and 1 dedicated frac crews are expected to provide 54 gross…
2019 Guidance Focused on Capital Efficiency to Protect Strong Balance Sheet, Multi-Year Growth Story Remains Intact Capital Expenditures(1) (MM) 2019 Guidance Summary 711 665 Decreased DC&E costs by 2019 Guidance 605 15% from 2018…
Drilling and Completion Efficiencies Improving Efficiencies to Drive Down Costs and Improve Returns Improving D&C Efficiencies DC&E Costs / Lateral Foot 1,400 1,450 30% Design + 70% 882 Efficiency 743 758 Service 679 Costs…
Continued Solid Well Performance Wolfcamp A Wells Continue to Outperform Well Performance Continues to Improve 2016-2018 Whiskey River & Cochise WCA Continuing to high-grade the target interval and completion design 500 3D seismic…
Eastern Whiskey River Success Seismic Unlocks Value in More Complex Structural Area Strong Well Performance Locator Map 3D seismic enables more accurate structural mapping and precise well placement Wells exhibit EURs equal to or…
Continued Delineation Success Active Delineation Program to Validate Additional Zones in All Areas of the Field 1st JAG Well in Cochise to Target 3rd Bone Spring Exceptional Performance from Secondary Targets 200 UTL LJ Beldin…
2019 Development Pilots Initiating Development Mode Pilots in Cochise and Whiskey River Pilot Placement Begin transition to multi-horizon co-development to optimize project returns Whiskey River Cochise Execute on larger scale,…
Oil Takeaway Capacity Firm Sales and Transportation Contract Increases Flow Assurance and Mitigates Pricing Risk Regional Gathering & Transportation Overview Oil dominates product and revenue stream 2018 Production Volumes 2018…
Water Infrastructure Overview Owned and Operated Water Infrastructure Provides Operating and Cost Advantages Water infrastructure provides 100% of water Cochise Whiskey River requirements with significant capacity for future…
MAINTAINING A STRONG FINANCIAL POSITION
Strong Financial Position Company Maintains Ample Liquidity and Low Leverage Profile Current borrowing base of 900 million with 540 million Capitalization Table as of December 31, 2018 of commitments in millions 35 million of…
Hedging Update Current Hedge Book Protects Cash Flows Through 2020 With Capacity to Opportunistically Add More Hedges WTI Swaps Jagged Peak has hedged 30 59.95 59.95 59.95 59.95 60.82 60.82 60.82 60.82 significant volumes…
Investment Case for Jagged Peak Top-Tier Asset, Peer Leading Returns 79,500(1) net acre contiguous position in the deep, over-pressured oil window of the Premier Asset in Southern southern Delaware Basin Extensive inventory of…
APPENDIX
Continued Reserve Growth Increased Proved Reserves by 44% Year over Year YE18 total proved reserves up 44% year over year Proved Reserves Summary Proved developed reserves up 89% year over year Oil Gas NGL Total Two-year proved…
Proving Up Additional Inventory Whiskey River Type Log State Eiland 18-GG Houston Current location inventory includes Current Location Inventory the well-delineated Upper / Lower Active Appraisal Wolfcamp A, Wolfcamp B, 3rd Bone…
Thick Oil Column Significant Upside Beyond Current Target Zones Cochise University 2801 Whiskey River Collier 1201 Big Tex BTS 501 Brushy Brushy Brushy Avalon Avalon 1st Bone Lime Avalon 1st Bone Lime 1st Bone Lime 1st…
Fourth Quarter 2018 Operating Results Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 Production volumes: Oil (MBbls) 2,673 1,771 9,620 4,979 Natural gas (MMcf) 1,968 1,377 7,992 3,601 NGLs…
Non-GAAP Reconciliation Three Months Ended Twelve Months Ended December 31, December 31, 2018 2017 2018 2017 (in thousands, except per share and per Boe metrics) Adjusted Net Income (Loss) Net income (loss) 186,346 12,763 165,458…
Organic Proved Developed Finding and Development Costs Organic proved developed finding and development (F&D) costs is a financial measure that is used by management to assess the relative amount of development capital needed to develop…
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