Capital Structure and Market Summary Capital Structure Market Capitalization (April 30, 2019) 765 million Series A Preferred 185 million Net Debt(1) 1.4 billion Enterprise Value 2.4 billion Net Debt / EBITDAX(2) 2.1x Market…
Extraction Company Overview DJ Basin Net Acreage DJ Basin-Focused Position of Scale CO 289,000 net acres with 159,000(1) 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 470 approved state permits Limited vertical…
Well-Positioned in Colorado After Passage of SB181 Expect No Impact to Core Drilling Inventory Extraction already operates within the spirit of SB-181 in several aspects: Obtaining local Statutory pooling Best-in-Class BMPs…
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…
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…
Extraction Acreage: Minimal Vertical Penetration Less-depleted rock drives better well performance compared to offset operators MBo Greeley Area Oil Production (1) 200 180 Cumulative Oil (norm. to 2 mi.) 160 140 120 100 80…
Access to Multiple Gas Processors Provides Diversity Extraction DJ Basin Acreage Rocky Mountain Midstream (RMM) Laramie Kimball CO Building a 300 MMcf/d gathering line to East Greeley Initial in-service: expected 4Q19 Enables…
Recent Well Pads Demonstrate Strong Performance Average Cumulative Oil by Pad: Most Recent 264 Wells 225,000 WES DCP 200,000 175,000 Cumulative Oil (normalized to 2 mi) 150,000 125,000 100,000 75,000 50,000…
Operating with Extensive Local Community Support Proposition 112 No Vote % by County Approved Core % of Core & Extraction Core Acreage County Permits Acreage Adams 75 32% Arapahoe 125 22% Weld Broomfield 75 3% Larimer (54%) (75%)…
Drilling First Batch of Wells from Broomfield Surface 14
Broomfield Comprehensive Drilling Plan (CDP) Local CDP Approved September 2018 CDP allows for drilling on the last pad to commence by Dec. 31, 2022 (almost four years from first spud) Covers development of 84 wells located in…
Broomfield Development Program World Class Development Project in All Phases Ultra-Low Emission Facilities 99.9% of emissions captured No Tanks = No Venting = More Revenue No tanks = no venting = more revenue No permanent oil storage…
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 (2 wells) Previous acquisition total in…
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 XOGs…
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…
Elevation 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…
Continuing to Reduce Industry-Leading Cycle Times Core DJ Basin Two Mile Cycle Times 30 Flowback Clean-out 40% Completion + Re Drilling 25 duc tion 22.2 in All- In Cyc le T 20 18.8 ime s sin ce 2 016 15.4 Days…
Appendix 22
The Extraction Way: Safe, Responsible and Reliable GOLD PLATINUM AWARD 1,490,888 LEADER FACILITY WINNER Awarded to top 2018 Rocky hours without an GOLD Leader 10% of companies Mountain employee lost Award from with a Operator of…
Elevations Badger CGF & Buffalo Compressor Station Artist rendering 24
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…
Management Incentives Aligned with Shareholder Value Creation 6% Management Ownership 2019 Annual Short-Term Incentive Plan Highlights Financial Goals (45% weighting) Return on Invested Capital (1-year) Free Cash Flow Operational…
Highly Efficient Operating Cost Structure PUD Development Costs / Boe (1) (/boe) 10.66 Median: 10.29 9.94 9.14 XOG Permian Peers DJ Basin Peers Recycle Ratio (2) 2.8x 3.0x Median 2.81x 2.3x Permian Peers XOG DJ…
Cash Flow Protection Through Hedges Strong hedge portfolio protects cash flow Maintain a multi-year rolling hedge program 2019E positions: 7,400 MBbls of oil hedged with swaps that have an average price of 55.84/Bbl 6,100 MBbls of…
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+ President, Director and Co-Founder Matt Owens 10+ (Acting CEO) Rusty Kelley…
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…
Significant Components of Elevation Midstream Extraction Oil & Gas, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) March 31, 2019 December 31, 2018 Condensed Balance Sheets (1) Cash and cash equivalents…
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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