Stifel 2019 Cross Sector Insight Conference JUNE 10. 2019
Investment Highlights Core position in Northern and Southern Delaware Basin of 13,000 acres Permian Pure Play Deep inventory of 500+ operated locations from multiple stacked benches Delaware Focused Actively expanding position from…
Pure Play Delaware Basin Operator Well positioned in one of the most prolific basins in the United States Leading Delaware Basin small-cap E&P company Lea County Two core operating areas: Northern and Southern Net Acres: 13,000…
First Quarter 2019 Updates and 2019 Objectives Recent Highlights 2019 Objectives Q119 average net production of 21,478 Pursue accretive acreage acquisitions Boepd, 70% oil and 85% total liquids Q119 Adjusted EBITDAX of 46.5 million,…
Continued Growth of Proved Reserves and PV-10 Year-end 2018 proved reserves totaled 48.4 Proved Reserves December 31, 2018 (1) MMBoe Oil Gas NGL Total PV-10 Total proved reserves up 55% YoY Reserve Category (MBbls) (MMcf) (MBbls)…
Drilling Locations Provide Substantial Inventory 571 513 58 20 Rig-Years of Drilling Inventory 155 Additional Locations from Farm-in Acreage Not Included 83 76 76 56 26 14 27 Brushy Canyon Avalon Bone Spring 1st Bone 2nd Bone…
Southern Delaware Basin Progress Overview and Results Producing Formation Bell/Cherry Canyon Wolfcamp A Brushy Canyon Sand Parsley Structure Asset consisting of 300+ locations Avalon Equivalent IP30 179 Boepd/1,000 Ft CI = 100 Ft…
Southern Delaware Development Update Pilot Well Wolfcamp Structure Five initial pilots and associated State Blanco 58 CI = 100 Ft laterals drilled with four wells A3 Wolfcamp A State Blanco 58 completed in late 2018 3 Well Pad…
Northern Delaware Basin Execution Type Log Heart of the Delaware Lea Co. Rosehill has established production from 8 landing zones or benches, recently adding the 2nd Bone Spring Shale Offset operators (APC, EOG, CXO, etc.) Type…
Significant Operational Improvement Coupled with improving wells results translates to enhanced economics Average Drilling Cost (MM) Northern Delaware - Wolfcamp Wells 4.0 3.0 2.0 1.0 2016 2017 2018 2019E Focused…
Northern Delaware Basin Well Performance 3rd Bone Spring Sand Wolfcamp A Upper Wolfcamp A Lower 300 300 300 250 250 250 200 200 200 Cum. Oil Production (MBo) Cum. Oil Production (MBo) Cum. Oil Production (MBo) 150…
Well Economics and Type Curve Summary Northern Delaware Northern Delaware Type Curves (5,000 LL) 1,000 300 WCA X/Y WCA Lower BS Sand Wolfcamp A Wolfcamp A 2nd Bone Spring 250 Type Curve 800 X/Y Lower Sand Cumulative Oil (MBo)…
14 Midstream Infrastructure Flexible and Well-Positioned for Growth Ample Transport MidCush Basis 99% Oil Piped as Significantly Hedged in Capacity to Midland of May 2019 FY19 & FY20 Northern Delaware Lea County Winkler Core…
Water Assets Create Value and Flexibility Gross Water Production - Northern and Southern 240,000 Currently utilizing 30% of 200,000 30 day average (BWPD) available disposal capacity 160,000 235,000 Bwpd Disposal Capacity…
Capital Efficient Growth With Low Leverage Average Daily Production (Boepd) Adjusted EBITDAX (MM) (2) 210 - 230 20,000 - 21,500 204 18,337 5,838 47 2017 2018 2019 E 2017 2018 2019 E Capital Spending (MM) Debt / TTM…
Rosehills compelling investment profile Rosehill is valued below peers based on enterprise multiples. Enterprise Value / 2019 Adjusted EBITDAX (1) 14.0x 12.0x 10.0x 8.0x 6.0x Peer Average = 5.0x 4.0x 2.0x 0.0x A B C D E F G H…
Capital Structure Capitalization and Liquidity (MM) (1) Borrowing Base increased to 300MM Cash 28 Increase driven by larger production base and improved cost profile Revolving Credit Facility 207 Attractive borrowing cost of 200 300…
2019 Guidance Capital investment aligned with Adjusted EBITDAX Provide 13% year-over-year production growth based on midpoint of guidance Maintain momentum into 2020 with growth from Q418 to Q419 Approximately 75% of capital directed…
Hedge Positions Protect 2019+ Cash Flows Adjusted EBITDAX Sensitivity Leverage Ratio Sensitivity (based on midpoint of 2019 guidance and 2019 hedge positions) (based on midpoint of 2019 guidance and 2019 hedge positions) 30 3.0x…
Focused on the Future Well done is better than well said and we have the results to prove it Economic Growth Drill and Complete Existing Inventory of 500+ Locations Organic Leasing Accretive Acquisitions Conservative Financial…
Appendix
Experienced Management Team David French President and CEO Over 29 years of industry experience in multiple basins, including Permian Basin Former CEO of Obsidian Energy and Bankers Petroleum Ltd BS of Mechanical Engineering from Rice…
Board of Directors Gary Hanna Chairman Over 35 years of industry experience with Rosehill since September 2015 Former Chairman of Energy XXI Gulf Coast Inc.; Former Director of Hercules Offshore Inc. Former CEO and Chairman of EPL Oil…
Non-GAAP Measures The following tables present a reconciliation of Adjusted EBITDAX to net income (loss), the most directly comparable GAAP financial measure for the periods indicated. Q1'19 Q1'18 YE'18 YE'17 2019 Guidance (In…
Non-GAAP Measures PV-10 is a non-GAAP financial measures used by management, investors and analysts to estimate the present value, discounted at 10% per annum, of estimated future cash flows of the Companys estimated proved reserves…
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