Falcon Minerals Overview ? Independent, high-quality royalty company which began publicly trading in August 2018 ? Falcon’s primary assets are located in the core of the Eagle Ford Shale, the highestreturning oil basin in the US…
A History of Market Leading Returns Falcon’s management team has a long history of creating energy enterprises in the Atlas companies, ultimately providing substantial shareholder return Atlas Energy sold to Chevron for $4.3 billion…
A Model of Consistent Free Cash Flow 5 Falcon offers a unique yet highly effective business model: Providing consistent, high cash margin returns to shareholders Falcon’s Core Royalty Assets No Capex Required Low Operating…
Falcon Minerals Oilfield Services Midstream E&P Operated E&P Non-Operated No Operating Costs or Capital Expenditures ? ? ? ? ? Consistent, High Margins in Excess of 90% ? ? ? ? ? No Negative Impact from Increased Service Costs ?…
Focused Optimization and Effectiveness Key focus on maximizing efforts to source accretive opportunities Access to advanced technology for operations and analysis Highly-skilled technical staff and financial expertise Efficient…
Royalties Provide Superior Economics Operating Margin GP&T and Marketing Production and Ad Valorem Taxes Additional Costs (2) Illustrative Condensate Window Economics Illustrative Condensate Window Economics Realized Price: $65.00 /…
Significant Upside in Falcon’s Valuation vs. Other Yield Vehicles
Eagle Ford: Falcon’s Premier Asset Base • Key highlights Bakken Eagle Ford Permian ~($2.00) / bbl Differential ~($2.00) / bbl Differential ~+$7.00 / bbl Differential Best differentials of any U.S. oil play ? Core of the…
Top Operators Develop Falcon’s Position Falcon’s Eagle Ford position is anchored by several of the top US operators, all of whom have indicated increased future development on their positions ? Guided to flat Eagle Ford production in…
Historical Growth Profile Across Position Overview of Historical Activity on Acquired Assets Year 2016 2017 2018 Gross Wells TIL 169 wells 192 wells 235 wells
Falcon’s Hooks Ranch Position 6-well pad brought online in late February 2018 Primary Highlights ? Falcon Minerals has a 22.5% royalty interest in the Hooks Ranch position ? 100% HBP and operated by ConocoPhillips; wells achieving…
Financial Overview & Guidance 14 (1) Based on share price as of June 17, 2019. (2) The forecasted six-month net production range does not include any contribution from additional Hooks Ranch wells to be connected in the future. (3)…
15 Falcon’s flexible capital structure enables strong use of free cash flow Low-levered balance sheet: Debt-to-EBITDA 0.38x; Long-term target < 1.0x High EBITDA margins (1Q19: 80%) No capex requirement to maintain and grow…
Falcon Minerals Summary Extensive, repeatable drilling inventory of highly economic locations High-quality operators with active development programs and visible production growth High margin cash flows with strong free cash flow…
Reconciliation of Adjusted EBITDA and Pro-Forma Free Cash Flow Three Months Ended March 31, 2019 Fully Converted Per Share Basis March 31, 2019 (1) Net Income $ 11,303 $ 0.13 Interest expense (2) 654 0.01 Depletion 3,511 0.04…
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