Scotia Howard Weil Energy Conference March 26-27, 2019 New Orleans, LA
Capital Structure and Market Summary Capital Structure Market Capitalization (March 21, 2019) 765 million Series A Preferred 185 million Net Debt(1) 1.3 billion Enterprise Value 2.3 billion Net Debt / EBITDAX(2) 1.8x Market…
Extraction Company Overview DJ Basin Net Acreage DJ Basin-Focused Position of Scale CO 317,000 net acres with 179,000 in Core DJ Basin Laramie Kimball Contiguous acreage blocks allow for longer laterals Limited vertical well…
Key Investment Highlights Experienced management and technical teams with proven track record of execution Extensive acreage position yields decades of high-quality drilling inventory Strong balance sheet with ample liquidity…
Transitioning from Growth to Returns-Focused Growth Phase Returns Phase Cash-flow Positive in 4Q18 and expected for FY19 Significant outspend pre- Cash flow-driven growth Average Daily Production funded with equity and…
Management Incentives Aligned with Shareholder Value Creation 6% Management Ownership 2018 Annual Short-Term Incentive Plan Highlights Financial Goals (50% weighting) Net Debt Ratio Free Cash Flow Per-Share Rate-of-Return for 2018…
Strategy and Guidance Summary Strategy Positive free cash flow in 4Q18 and expected in FY19 (excluding Elevation Midstream impact) Targeting run-rate net leverage of approximately 1.5x Net Debt-to-EBITDAX in the long-term Continue to…
Operating with Extensive Local Community Support Proposition 112 No Vote % by County Approved Core % of Core & Extraction Acreage County Permits Acreage Adams 75 26% Arapahoe 125 19% Weld (75%) Boulder - 11% Larimer (54%)…
Spud First Batch of Wells from Broomfield Surface 11
Elevation Midstream, LLC: Full Midstream Solution Summary Midstream Asset Map(3) Elevation will construct a crude oil, natural gas and SWW AMI Grand Mesa water gathering system to provide necessary RMM midstream needs to support…
Elevation Financing Summary Elevation buildout is fully financed without cash outlay from Extraction (XOG) Elevation has secured a perpetual preferred equity commitment of up to 500 million from funds managed or advised by GSO…
Transaction Drives Strategic Benefits and Value Midstream Buildout Highlights 100% common equity ownership yields large potential value uplift to XOG shareholders Unlocks a decade of development opportunities in XOGs southern acreage…
Recent Well Pads Demonstrate Strong Performance Average Cumulative Oil by Pad: Most Recent 257 Wells 180,000 WES DCP 160,000 140,000 Cumulative Oil (normalized to 2 mi) 120,000 100,000 80,000 60,000 Triple Creek…
Strong Offset Operator Results Near Broomfield Project Extraction & Offset Broomfield Codell Oil Production Extraction Acreage, Offset Well Pads 150,000 Peer Offset Average Coyote Average Cumulative Oil (normalized to 2 mi)…
Hawkeye Area: Large Inventory of High-Return, High Working Interest Drilling Locations Hawkeye Area Well Results 140,000 69,000 net acres including legacy Extraction acreage S Hawkeye Nio Previous acquisition total in Hawkeye area:…
Highly Efficient Operating Cost Structure PUD Development Costs / Boe (1) (/boe) 9.72 Median: 9.24 9.14 9.33 XOG Permian Peers DJ Basin Peers Recycle Ratio (2) 3.4x Median 3.13x 3.1x 2.9x Permian Peers XOG…
Cash Flow Protection Through Hedges Strong hedge portfolio protects cash flow Maintain a multi-year rolling hedge program 2019E positions: 6,900 MBbls of oil hedged with swaps that have an average price of 55.48/Bbl 5,700 MBbls of…
Appendix 20
2019 Outlook XOG Guidance 2019 outlook reflects a 1-2 rig & 1+ frac fleets operated program as well as additional capital Production 2019E for land and non-operated wells Net Sales (MBoed) 87.5 93.0 Oil (MBbld) 43.0 45.5 2019…
Current Focus on Niobrara and Codell Formations Other Horizons Provide Additional Upside Extraction has producing wells in the Niobrara A, B, C and Codell benches DJ Basin Prospective Horizons DJ Basin Formations Other Major…
Longer Laterals Lead to Increased Economics Niobrara average lateral length: 1.7 miles Codell average lateral length: 1.5 miles Niobrara (Standard Completions) Codell Lateral Length D&C Cost F&D Cost EUR Lateral Length D&C Cost F&D…
High Caliber Management Team Management Team Name Position Prior Experience Years in Industry Mark Erickson CEO, Chairman and Co-Founder 36+ Matt Owens President, Director and Co-Founder 10+ Rusty Kelley Chief Financial…
Board of Directors Name Position Background Mr. Erickson serves as Chairman, CEO and co-founder of Extraction. Prior to this, he served as Mark Erickson Chairman, CEO, Co-founder Chairman and CEO of PRE Resources, LLC from 2010 to 2014…
Elevation Balance Sheet Breakout Extraction Oil & Gas, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) December 31, 2018 December 31, 2017 Condensed Balance Sheets Cash and cash equivalents 234,986 (1)…
Reconciliation of Non-GAAP Measures The following table presents a reconciliation of Adjusted EBITDAX and Adjusted EBITDAX, Unhedged to the GAAP financial measure of Net income (loss) for each of the periods indicated: For the Three…
Corporate Contact Information Extraction Oil & Gas, Inc. Auditor 370 17th Street PricewaterhouseCoopers LLP Suite 5300 Denver, Colorado Denver, Colorado 80202 720-974-7773 Independent Petroleum Engineer Ryder Scott Denver,…
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