C O R P O R AT E P R E S E N TAT I O N May 2019 NYSE: HPR
Company Overview Exclusively Rural and Oily Acreage Position in the Market Capitalization1 560MM Stock Shares Outstanding 212MM DJ Basin Overview Net Debt 650MM Enterprise value1 1,210MM 1Q19 Production 2.8 MMBoe % Oil 62%…
Investment Highlights Exclusively rural and oily acreage in unincorporated Weld County High oil weighting, low cost structure and attractive oil differentials deliver peer leading operating margin Full DSU development maximizes…
1Q 2019 Highlights Production sales volume of 2.8 MMBoe (62% oil) for 1Q 2019 represents an increase of 46% from 1Q 2018 Oil sales volume of 1.72 MMbbls grew 51% over 1Q 2018 EBITDAX of 76.9 million increased 65% from 1Q 2018…
Advantaged Asset Portfolio Located Outside of Municipalities Acreage position is located exclusively in rural unincorporated Weld County outside of municipalities with no urban exposure Total Acreage 155,400 net acres 155,400 net…
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% %…
2019 Guidance Production Volumes (MMBoe) 2019 Outlook 13.0 12.5 10.2 Focused development program designed to deliver enhanced value in Hereford and NE 6.2 Wattenberg Disciplined capital investment to high- 2017 2018 2019E…
Operational Overview NYSE: HPR
Hereford Field Overview Largely undeveloped and exclusively rural acreage position provides multi year inventory of highly economic drilling locations 80% Excellent source rock quality, thermal maturity, Oil Avg. Fairway Field…
Hereford Field Activity 1 Section 11-63-15 (10 XRL Wells) Laramie Initial five wells placed on flowback in February Remaining wells placed on flowback in April Completed during 4Q18 using 1,500 lbs of sand per lateral foot and 20…
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…
Hereford Development Optimization Extensive 3-D seismic data provides strong geologic overview of producing formations 3D Hereford 3-D 129 square miles of existing data; 325 square miles of Expansion Coverage Area increased…
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…
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…
NE Wattenberg Focus Area 1 Section 5-61-34/35 (14 XRL Wells) 60% Oil Avg. Currently drilling; expect to be placed on flowback in 2Q19 2 Section 4-63-3 (4 SRL Wells) Currently completing; expect to be placed on flowback in 3Q19…
Continuous Improvement from Optimized Completions and Flowback 140,000 Continued outperformance compared to historical Continuous year-over-year completions 120,000 refinement of completions and flowback has resulted in improved…
NE Wattenberg Efficiencies Drive D&C Costs Lower NE Wattenberg XRL D&C Cost 45% improvement in well costs with 57% increase in fluid intensity Full DSU development maximizes 9 30 30 drilling and completion efficiencies 8.25…
Diversified Crude and Gas Marketing Crude Overview Multiple crude outlets provide 600 MBbls/d of take- away capacity SUMMIT Local refineries and rail provide additional outlets Favorable API gravity crude In the process of…
Finance Overview NYSE: HPR
Strong Balance Sheet with No Near Term Maturities Debt Maturities (mm) 400 Strong liquidity of 449 million to fund 350 300 future development 250 200 No near term debt maturities 150 100 No maturities until 2022 50…
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…
Investment Summary Exclusively rural DJ Basin pure-play with high- quality, oily acreage largely held by production Demonstrated technical execution with strong continuous year-over-year improvement in well performance and costs…
Appendix NYSE: HPR
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…
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…
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…
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…
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 one…
Financial Results Summary Three Months Ended Three Months Ended March 31, December 31, 2019 2018 Change 2018 Change Combined production sales volumes (MBoe) 2,798 1,914 46 % 3,112 (10 )% Net cash provided by operating activities…
Financial Results Summary (continued) Three Months Ended Three Months Ended March 31, December 31, 2019 2018 Change 2018 Change Average Realized Prices before Hedging: Oil (per Bbl) 50.82 60.45 (16)% 56.35 (10)% Natural gas (per…
Non-GAAP Reconciliation (Unaudited) EBITDAX Reconciliation Three Months Ended March 31, 2019 2018 (in thousands) Net Income (Loss) (96,229) (24,937) Adjustments to reconcile to EBITDAX: Depreciation, depletion and amortization…
Non-GAAP Reconciliation (Unaudited) Discretionary Cash Flow Reconciliation Three Months Ended March 31, 2019 2018 (in thousands) Net Cash Provided by (Used in) Operating Activities 77,683 54,317 Adjustments to reconcile to…
555 17th Street, Suite 3700 Denver, Colorado 80202 303.293.9100 Website: www.hpres.com Investor Relations Contact: Larry C. Busnardo 303.312.8514 lbusnardohpres.com
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