First Quarter 2019 Earnings Presentation May 10, 2019
Company Overview 98,200 gross (84,200 net) acres(1) in Gonzales, Fayette, Lavaca and DeWitt Counties; 99% Operated; 93% HBP Eagle Ford Substantial Lower Eagle Ford inventory Net Acreage: 84,200(1) (93% HBP) Drilling Locations:…
1Q19 Highlights 24,692 83.8 57.39 16,145 Increased 50.5 Grew Adjusted Realized Production 54.88 EBITDAX(1) 105% BOEPD 66% MM 53% MM 1Q'18 1Q'19 of WTI 1Q'19 Realized 1Q'18 1Q'19 WTI Price 1Q'19 13.05(1)…
Keys to Continued Success Grow Focus on Maintain Ensure Generate Production Costs Strong Financial Free Cash Margins Discipline Flow Significant Free Cash Flow Expected in 2020 First Quarter 2019 Earnings Presentation May…
Increased Proved Reserves by 69% Year over Year Proved Reserves Summary YE18 total proved reserves up 69% year over year Oil Gas NGL Total YE18 MMBbl MMcf MMBbl MMBoe Proved developed reserves up 47% from year-end 2017 Proved…
2019 Capital Plan Estimated Capital Expenditures: Between 345 and 365 Million Expected to Drill a Total of 40 Gross Wells (35 net wells) (20 gross XRLs) Capital by Type 0% -3 25 21,765 BOEPD EOR 3% 0% Land 1%…
Large Inventory of Locations With Attractive Returns Area 1 Area 2 (North) 86% 85% 517 56% 282 49% 58% 44% Area 2 107 23% (South) PVAC Acreage 46 41 25 16 Count ROR Count ROR Count ROR Count ROR Count ROR Count ROR Count…
Selling into LLS/MEH Market LLS/MEH Commanding Significant Premium Over WTI and Midland Prices 1Q19 Production: 88% Liquids; 74% Oil Receives LLS/MEH Pricing, Premium Over WTI and Midland Realized 57.39 per Barrel in 1Q19, or 105%…
Strategic Solutions Driving Costs Lower Focused on Lowering Costs Salt Contiguous Gas Lift Water Acreage System Disposal Foot Print LOE per BOE 7.00 6.08 6.00 5.50 5.02 4.95 4.50 - 5.00 5.00 4.70 4.32 4.21 4.00 Lower 3.00…
Crude Oil Delivery Optionality Crude Spreads Balance of 2019(1) Geographic Location Provides PVACs Production Cushing +6.81 (Brent) Access to LLS/MEH Markets and Pricing (WTI) +4.87 (1.17) Four Delivery Points Midland…
Increasing Production Low Adjusted Increasing Direct Operating High Adjusted EBITDAX Low Leverage Production Expenses per per BOE BOE Meaningful Production Growth -30% 21,765 25 BOEPD 0% 11 10,353 BOEPD 2017A…
Adjusted Direct Operating Expenses per BOE(1)(2) Low Adjusted Increasing Direct Operating High Adjusted Low Leverage Production Expenses per EBITDAX per BOE BOE LOE per BOE declined by 14% from 2017 Adjusted Cash G&A(2) per BOE…
Adjusted EBITDAX per BOE(1) Low Adjusted Increasing Direct Operating High Adjusted Production Low Leverage Expenses per EBITDAX per BOE BOE LLS/MEH Pricing and Low Cost Structure Yield Strong Margins 37.70 37.70 % 39 d…
Balance Sheet Improvement LTM Net Debt to Adjusted EBITDAX Low Adjusted Increasing Direct Operating High Adjusted EBITDAX Production Expenses per per BOE Low Leverage BOE l Expect to generate free cash flow in 2H 2019 2.6x(1) l…
PVAC vs. Eagle Ford Peers The Highest EBITDAX/BOE in PVACs Peer Group (1)(2) 37.34 36.97 33.87 33.64 27.22 24.85 Penn Virginia Provides Attractive Valuation(1)(3) 4.8x 4.4x 3.9x 3.7x PVAC Peer1 Peer 2 Peer 3 Peer 4 Peer 5…
PVAC Investment Qualities 1 2 3 4 5 Strong Low Cost High Premium Production Balance Structure Margins Pricing Growth Sheet Expected to Generate Free Cash Flow in 2H 2019 and Beyond First Quarter 2019 Earnings…
Appendix First Quarter 2019 Earnings Presentation May 10, 2019
Updated Hedge Portfolio(1) Mitigating Commodity Price Volatility Through Proactive Hedging Program 8,000 55.58 54.94 7,000 Oil Barrels Per Day 6,000 59.17 5,000 4,000 3,000 61.03 2,000 64.00 1,000 -0 2019 2020…
Guidance The table below sets forth the Companys guidance for 2019: 27,100 28,300 BOEPD 0% -3 25 21,765 BOEPD 2018A 2019E PVAC Expects to Grow Production by 25-30% in 2019 First Quarter 2019 Earnings Presentation…
Well Positioned for EOR Development Pilot Planning and EOR Implementation First Production Starting 1Q 2020 Facility Scoping 4Q 2019 2H 2020 Potential PVAC EOR Pilots Recently Added 2 Additional Pads Existing Well Future…
Non-GAAP Reconciliation PV-10 Reconciliation of GAAP Standardized Measure of Discounted Future Net Cash Flows to Non-GAAP PV-10 Non-GAAP PV-10 value is the estimated future net cash flows from estimated proved reserves discounted at an…
Non-GAAP Reconciliation Reserve Replacement Ratio Reserve Replacement Ratio - Definition The Company uses the reserve replacement ratio as an indicator of the Companys ability to replenish annual production volumes and grow its…
Non-GAAP Reconciliation Adjusted Net Income - Unaudited Reconciliation of GAAP Net income (loss) to Non-GAAP Adjusted net income Adjusted net income is a non-GAAP financial measure that represents net income (loss) adjusted to include…
Non-GAAP Reconciliation Adjusted EBITDAX - Unaudited Three Months Ended March 31, December 31, March 31, 2019 2018 2018 (in thousands, except per unit amounts) Net income (loss) (38,697) 200,735 10,295 Adjustments to reconcile to…
Non-GAAP Reconciliation Adjusted EBITDAX - Unaudited First Quarter 2019 Earnings Presentation May 10, 2019 26
Non-GAAP Reconciliation Adjusted Direct Operating Expenses - Unaudited Three Months Ended March 31, December 31, March 31, 2019 2018 2018 (in thousands, except per unit amounts) Operating expenses - GAAP 66,560 69,935 43,299…
Non-GAAP Reconciliation Adjusted Direct Operating Expenses - Unaudited First Quarter 2019 Earnings Presentation May 10, 2019 28
Non-GAAP Reconciliation Adjusted Cash G&A - Unaudited Reconciliation of GAAP General and administrative expenses to Non-GAAP Adjusted cash general and administrative expenses Adjusted cash general and administrative expense (Adjusted…
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