Chaparral Story High-growth, pure-play STACK/Merge oil company 15.9 MBoe/d Q1 2019 STACK production 20.8 MBoe/d Q1 2019 total production Premier, contiguous acreage position 132,000 acres in world-class STACK Play Primarily in black…
Recent Chaparral Highlights Recorded STACK production growth of: 30% Q1 2018 to Q1 2019 Completed 11-well cube style, co-development Foraker spacing test in Canadian County Three wells with first sales in late March with average…
2019 Strategy PURE-PLAY Accelerate development in Canadian County Merge STACK/MERGE Define optimal spacing across de-risked acreage COMPANY Continue operated delineation and development of acreage position RETURNS Focus…
2019 Guidance FY 2018 FY 2019 YoY Guidance Highlights Actual Guidance Change Production (MBoe/d) Maintaining capital discipline in volatile Total Company 20.5 25.0 - 27.0 commodity environment Q2 Total Company 26.0 - 27.5 Reducing…
Operational Overview NYSE: CHAP 7
STACK/Merge Attributes World-class Woodford source rock Favorable Geology +700 feet of saturated hydrocarbon column Multiple reservoir development opportunities Robust service sector support Extensive Infrastructure Numerous…
Oil Price Breakevens for U.S. Shale Plays 55 50 45 40 35 30 Eagle Ford Northern STACK Southern Southern SCOOP Northern Bakken Eagle Ford Niobrara (Oil) Delaware Midland Delaware Midland (Gas & Cond.) Source: Credit…
Continuous Petroleum System STACK/Merge Attributes N Stacked reservoirs proximal to the world-class Woodford source rock Efficient hydrocarbon stratigraphic trap creates a continuous petroleum STACK system Play attributes are…
Strong Culture of Continuous Learning Science and technology driven collaborative approach Process of continuous improvement drives results Science Learnings Technology Results Execution Key Spacing Principals Development…
Systematic Approach to Spacing Development Canadian Kingfisher Denali King Koopa Meramec partial spacing test Meramec/Osage partial spacing test Minimal inter-well communication Minimal inter-well communication Parent at pre-infill…
Canadian County Foraker Spacing Test Upper Meramec Foraker Lower Meramec/Sycamore Woodford Testing full undeveloped section in Meramec (9 wells) and partial section Woodford (2 wells) spacing test First sales in…
Canadian County Foraker Test Execution Estimated Avg. Cost: 4.3mm Avg. AFE Estimate: 4.4mm Average D&C Capex First operated cube style, co-development 5.0 4.7 spacing test 4.2 4.3 Gross Capital (mm) 4.0 All wells placed on…
Canadian County Foraker Test Well Performance Type curve IRRs: 60 to 65%* (initial well results materially exceeding type curve) Merge Miss 9-well average 30-day IP of 1,491 Boe/d 195% of oil type curve at 60 days Woodford 2-well…
Canadian County Foraker Test Pad Performance East pad 3-well average 30-day IP of 1,292 Boe/d West/Middle pads 8-well average 30-day IP of 1,382 Boe/d East Pad Cumulative Oil West/Middle Pad Cumulative Oil vs. Type Curve1 vs. Type…
Canadian County Denali Spacing Test Upper Meramec Denali Lower Meramec/Sycamore Woodford Meramec 3-well partial spacing test in undeveloped section (first sales in Q3 2018) Drilled in two targets of the Meramec and…
Denali Well Performance Update Type curve IRR: 65%* (well results materially exceeding type curve) Denali pad is a single-mile, Canadian County Merge Miss 3-well partial section spacing test and has been online more than 260 days…
Operational Excellence Drilling and Completions Strong, Effective Focus on Cost Control Chaparral Osage and Meramec D&C represents top tier in normal pressure STACK D&C Cost Comparison (/lateral foot) 1,400 1,200 D&C (/lateral…
Drilling and Completions Increased Efficiencies Drilling Completions Avg. Feet/Day Avg. Stages/Day 1,000 8 7 Feet Drilled per Day Frac Stages per Day 750 6 5 500 4 3 250 2 1 0 0 1H18 2H18 1Q19 1H18 2H18 1Q19…
Financial Overview NYSE: CHAP 22
Financial Strategy Maintain balance sheet strength Target net debt to adjusted EBITDA ratio of approximately 2.5x or less Development plan funding available due to ample liquidity 11 million in cash as of Q1 2019 plus 30 million…
Financial Position and Liquidity Highlights Chaparral Liquidity 325 million borrowing base ( in Millions) Actual Q1 2019 reaffirmed in spring 2019 redetermination Cash and Cash Equivalents 11 Closed on 300 million senior Revolving…
Why Chaparral Strong Balance Sheet Experienced Execution-focused, Management with Pure-play STACK Excellent Track Operations Record Deep Inventory of High-return Drilling Prospects NYSE: CHAP 25
Appendix NYSE: CHAP 26
Crude Oil Marketing Crude Oil Acreage in close proximity to Cushing and in-state refineries Premium price due to gravity and quality of barrel Substantial capacity to market via truck or existing pipeline Majority of oil marketed…
Natural Gas & NGL Marketing Natural Gas and NGL Midstream super system, with multiple plants and residue outlets Residue and NGL agreements with midstream operators who have firm transportation Approximately 50/50 NGL markets and…
Commodity Realizations Oil & NGL Realizations as % of WTI Crude Oil Differentials 96% 99% 97% 80 93% 100% Proximity to numerous markets provides better CHAP 90% WTI Average Daily Settle 70 net back compared to other basins 80%…
Core STACK & Merge Type Curve Overview STACK Osage, Meramec & Merge Miss North South Lower Upper Meramec Merge Woodford Woodford Osage Osage Lateral Length (ft.) 4,800 4,800 4,800 4,800 4,800 4,800 Well Cost (mm) 4.0 4.5 4.4 4.4…
STACK Type Curve Assumptions STACK Meramec Lower Osage Upper Osage North Woodford South Woodford Merge Miss Well Cost Assumptions Well Costs (mm) 4.0 3.9 4.1 4.4 4.4 4.5 Well Costs (/ft) 833 813 854 917 917 938 Type Curve…
Year-End 2018 Proved Reserves Grew STACK year-end 2018 reserves by 50% Replaced 519% of 2018 STACK production at 7.80/Boe F&D cost 94.8 MMBoe of Reserves1 34% Oil, 61% Liquids Reserves by Area 1.9 27% 34% 53.6 74.1 20.7 39.3…
Non-Core Legacy Asset Overview Mature legacy fields Low-maintenance capital Provides free cash flow to fuel STACK growth Potential strategic alternatives Net Production1 Gross Margin1 Net Proved Reserves Area Boe/d % Oil…
STACK Drilling Joint Venture Joint venture between CHAP and Bayou City Energy (BCE) Accelerate development of 132,000 STACK acres Key driver in de-risking Garfield and Canadian County Merge 27 wells completed as of Q1 2019 Three…
Reconciliations Three Months Three Months Ended Ended (in thousands) Mar 31, 2019 Mar 31, 2018 Net (loss) income (103,540) (11,442) Interest expense 4,564 1,371 Depreciation, depletion, and amortization 23,715 21,106 Loss on…
Reconciliations STACK Drillbit F&D and Reserve Replacement 2017 Metrics 2018 Metrics Calculation Total Company Production (MBoe) 8,399 7,490 STACK Production (MBoe) 3,464 5,279 (A) Proved Reserves (MBoe) Total Company Proved…
Contact Information Chaparral Energy, Inc. 701 Cedar Lake Boulevard Oklahoma City, OK 73114 Investors Media Scott Pittman Brandi Wessel Chief Financial Officer Manager Communications investor.relationschaparralenergy.com…
ENERGIZING Americas Heartland NYSE: CHAP NYSE: CHAP chaparralenergy.com 40
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