Skip to main content June 2019 Corporate Presentation – Montage Resources Corp. | Shale Experts
Loading...
Pm

June 2019 Corporate Presentation – Montage Resources Corp.

Montage Resources Corp. · Jun 3, 2019 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. June 2019 Corporate Presentation – Montage Resources Corp. – slide 1
    INVESTOR PRESENTATION June 2019 NYSE: MR
  2. June 2019 Corporate Presentation – Montage Resources Corp. – slide 2
    YEAR-TO-DATE HIGHLIGHTS 1Q19 PRODUCTION (MMCFE/D) FINANCIAL UPDATE 28% increase in revenue Q1 2019 vs Q1 2018 420.0 400.0 407.5 First quarter 2019 adjusted EBITDAX exceeded analyst consensus 380.0 360.0 391.2 390.0…
  3. June 2019 Corporate Presentation – Montage Resources Corp. – slide 3
    PEER COMPS COMPARISON Montage Resources screens better than peer averages on operating, leverage and reserve metrics vs Appalachian Peers NET DEBT TO LQA Q4 EBITDAX1 2018 EBITDAX MARGIN (/MCFE)1 2.05 1.95 2.00 3.5x 1.85 1.91…
  4. June 2019 Corporate Presentation – Montage Resources Corp. – slide 4
    STOCK WELL POSITIONED FOR MULTIPLE EXPANSION Montage Resources is currently trading at depressed levels relative to its peer groups and should be immediately positioned for multiple expansion given its larger scale and strong balance…
  5. June 2019 Corporate Presentation – Montage Resources Corp. – slide 5
    MONTAGE RESOURCES OVERVIEW SMALL CAP APPALACHIA UTICA & MARCELLUS OPERATOR 2019 PRODUCTION 520 540 Mmcfe/d1 565 585 Mmcfe/d2 1P 2.4 Tcfe PROVED RESERVES3 PDP 1.1 Tcfe PROVED RESERVES 1P 1.77 B PV103 PDP 0.99 B NET UNDEVELOPED…
  6. June 2019 Corporate Presentation – Montage Resources Corp. – slide 6
    WHY MONTAGE Montage Resources is a pure play Appalachia operator located in the core Marcellus and Utica fairway, adopting a low risk development plan executed by an experienced Appalachia team positioned for disciplined growth and…
  7. June 2019 Corporate Presentation – Montage Resources Corp. – slide 7
    MONTAGE STRATEGY SHIFT Small cap Appalachia Utica and Marcellus operator rebranded and focused on maximizing shareholder value Arrest corporate outspend while facilitating disciplined growth CASH FLOWS & Optimize development plan for…
  8. June 2019 Corporate Presentation – Montage Resources Corp. – slide 8
    CYCLE TIME IMPROVEMENT Focused on accelerating cash flows by shifting to a low risk, repeatable program and optimizing capital allocation towards the wellbore with returns-based spending that possesses well mix optionality COST STRUCTURE…
  9. June 2019 Corporate Presentation – Montage Resources Corp. – slide 9
    CORPORATE INTEGRATION Contiguous acreage allows Montage Resources to leverage operational synergies; post-merger consolidation of headquarters and integration expected to achieve 15 million in G&A savings COST STRUCTURE FINANCIAL &…
  10. June 2019 Corporate Presentation – Montage Resources Corp. – slide 10
    DRILLING & COMPLETIONS CAPITAL SYNERGIES Development plan integration was accelerated for Day 1 execution which allows Montage Resources to take advantage of synergies and incorporate cost reductions immediately COST STRUCTURE FINANCIAL…
  11. June 2019 Corporate Presentation – Montage Resources Corp. – slide 11
    FINANCIAL POSITIONING & FLEXIBILITY Strong balance sheet and capital discipline positions the company to opportunistically accelerate development and take advantage of strategic initiatives COST STRUCTURE FINANCIAL & ENHANCING SCALE…
  12. June 2019 Corporate Presentation – Montage Resources Corp. – slide 12
    OPERATIONAL FLEXIBILITY Balanced firm transportation portfolio along with limited operational commitments allow the company to focus on strategy and capital execution COST STRUCTURE FINANCIAL & ENHANCING SCALE CASH FLOW & PORTFOLIO…
  13. June 2019 Corporate Presentation – Montage Resources Corp. – slide 13
    EFFICIENT CAPITAL DEPLOYMENT Over 90% of 2019 capital is allocated to drilling and completions spend in revenue accretive inventory with highest investment returns, maintaining flexibility in well mix depending on commodity environment…
  14. June 2019 Corporate Presentation – Montage Resources Corp. – slide 14
    PORTFOLIO OPTIMIZATION Montage Resources controls an economic core footprint that allows for development mix flexibility and scalability COST STRUCTURE FINANCIAL & ENHANCING SCALE CASH FLOW & PORTFOLIO IMPROVEMENT & OPERATIONAL W/…
  15. June 2019 Corporate Presentation – Montage Resources Corp. – slide 15
    ACHIEVING SCALE THROUGH DISCIPLINED GROWTH Significant reserve growth provides valuation uplift and increased liquidity COST STRUCTURE FINANCIAL & ENHANCING SCALE CASH FLOW & PORTFOLIO IMPROVEMENT & OPERATIONAL W/ DISCIPLINED…
  16. June 2019 Corporate Presentation – Montage Resources Corp. – slide 16
    2019 DEVELOPMENT PLAN OVERVIEW Greater than 90% of 2019 capital is allocated to low-risk D&C activity leading to pro forma 12 month year-over- year production growth of 19% to 565 585 Mmcfe per day 2019 Development Areas Land &…
  17. June 2019 Corporate Presentation – Montage Resources Corp. – slide 17
    2019 PLAN FOCUSES ON HIGH RETURNING AREAS Key development areas with balance of wet and dry well mix deliver attractive single well IRRs and flexibility for liquids pricing upside Spuds TILs 46% 72% CONDENSATE 59% Gross 46 11 13…
  18. June 2019 Corporate Presentation – Montage Resources Corp. – slide 18
    2019 OPERATING EXPENDITURES Highly competitive operating cost structure provides for significant margin expansion through scale OPEX VS APPALACHIAN PEERS1,2 Operating Cost (/Mcfe) vs Daily Production (Mmcfe/d) 3,200 3,000 2.5…
  19. June 2019 Corporate Presentation – Montage Resources Corp. – slide 19
    DIVERSE RESOURCE PORTFOLIO Attractive portfolio of diverse assets with an even split of wet and dry well inventory, providing optionality to a constantly evolving commodity price environment Utica and Marcellus Type Curve Areas Flat…
  20. June 2019 Corporate Presentation – Montage Resources Corp. – slide 20
    MARCELLUS VALUE ATTRACTS CAPITAL ALLOCATION Initial delineation wells are outperforming type curve expectations, de-risking Ohio Marcellus acreage position for full scale development mode MARCELLUS MARCELLUS UTICA UTICA CONDENSATE…
  21. June 2019 Corporate Presentation – Montage Resources Corp. – slide 21
    SUCCESSFUL WELL RESULTS IN WASHINGTON CO. Step-out test into the southern portion of Utica Condensate area generates results similar to the proven northern portion of Utica Condensate area MARCELLUS MARCELLUS UTICA UTICA CONDENSATE…
  22. June 2019 Corporate Presentation – Montage Resources Corp. – slide 22
    EXCEPTIONAL WELL PERFORMANCE IN DRY GAS NORTH Highly deliverable and repeatable Dry Gas North well results provide long term corporate production growth ability with attractive economics to allocate capital MARCELLUS MARCELLUS UTICA…
  23. June 2019 Corporate Presentation – Montage Resources Corp. – slide 23
    SUCCESSFUL WEST VIRGINIA UTICA WELL RESULTS Second successful well test in West Virginia confirms performance expectations and creates opportunities for accretive value solutions MARCELLUS MARCELLUS UTICA CONDENSATE UTICA CONDENSATE…
  24. June 2019 Corporate Presentation – Montage Resources Corp. – slide 24
    UNLOCKING FLAT CASTLE Painter 2H is exceeding the base Flat Castle Type Curve of 2.0 BCF/1,000 driven by engineered completion designs coupled with choke management techniques to enhance productivity MARCELLUS MARCELLUS UTICA UTICA…
  25. June 2019 Corporate Presentation – Montage Resources Corp. – slide 25
    MIDSTREAM AND MARKETING OVERVIEW Leveraging scale, diversified markets and low commitments to increase net back prices MONTAGE RESOURCES FOOTPRINT SCALE FACILITATES FLEXIBILITY & OPTIONALITY Synergies allow opportunity to negotiate…
  26. June 2019 Corporate Presentation – Montage Resources Corp. – slide 26
    STRONG BALANCE SHEET Strong balance sheet provides financial flexibility and allows for organic growth 400.0MM (13.5MM) Q1 2019 PRO FORMA1 (97.5MM) 400.0MM Increase of 25 MM 350.0MM 7.6MM 296.6MM 300.0MM 250.0MM…
  27. June 2019 Corporate Presentation – Montage Resources Corp. – slide 27
    2019 SECOND QUARTER AND UPDATED FULL YEAR GUIDANCE Q2 2019 FY 2019 Production MMcfe/d 500 - 515 520 - 540 % Gas 80% - 82% 74% - 78% % NGL 12% - 14% 12% - 15% % Oil 5% - 7% 9% - 11% Gas Price Differential (/Mcf)1,2 (0.10) -…
  28. June 2019 Corporate Presentation – Montage Resources Corp. – slide 28
    APPENDIX
  29. June 2019 Corporate Presentation – Montage Resources Corp. – slide 29
    EXPERIENCED APPALACHIAN BASIN LEADERSHIP TEAM Montage Resources management team possesses significant Appalachia specific experience with an excellent track record of execution EXPERIENCE PRIOR COMPANIES (YRs) John Reinhart 25…
  30. June 2019 Corporate Presentation – Montage Resources Corp. – slide 30
    HEDGING PORTFOLIO1 Montage currently has a significant portion of its 2019 production hedged and plans to continue adding to its hedge positions at attractive prices to provide cash flow certainty and reduce commodity price risk Natural…
  31. June 2019 Corporate Presentation – Montage Resources Corp. – slide 31
    SUBSTANTIAL PROVED RESERVE GROWTH Montage Resources has had significant proved reserves growth on a pro forma basis with 265% increase in reserves and 600% increase in PV10 over the last two years 2018 YE Pro Forma Net Oil Net NGL Net…
  32. June 2019 Corporate Presentation – Montage Resources Corp. – slide 32
    TYPE CURVE DETAILS 2019 Utica 2019 Utica Dry Gas 2019 Utica Dry Gas As of 3/2019 2019 Marcellus North 2019 Marcellus South 2019 Utica Rich Gas 2019 Flat Castle Condensate North South Type Curve Assumptions Inter-Lateral Spacing (ft.)…
  33. June 2019 Corporate Presentation – Montage Resources Corp. – slide 33
    NON-GAAP RECONCILIATIONS EBITDAX Thre e Months Ende d March 31, thousands 2019 2018 Net loss (14,098) (2,626) Depreciation, depletion, amortization and accretion 29,897 31,311 Exploration expense 16,789 15,278 Stock-based…
  34. June 2019 Corporate Presentation – Montage Resources Corp. – slide 34
    NON-GAAP RECONCILIATIONS CASH G&A Thre e Months Ende d Guidance March 31, Ye ar Ending De ce mbe r 31, Thre e Months Ending Ye ar Ending De ce mbe r 31, Thre e Months Ending Ye ar Ending De ce mbe r 31, thousands 2018 March 31,…

From the store

Browse maps, data & reports in the Shale Experts store