Chaparral Story High-growth, pure-play STACK/Merge oil company 28.3 MBoe/d Q2 2019 total production 23.8 MBoe/d Q2 2019 STACK production Premier, contiguous acreage position 130,000 acres in world-class STACK Play STACK Primarily…
Recent Chaparral Highlights Recorded STACK production growth of: 50% Q1 2019 to Q2 2019 80% Q2 2018 to Q2 2019 Increased Adjusted EBITDA by: 54% Q1 2019 to Q2 2019 62% Q2 2018 to Q2 2019 Reduced full year guidance for Capex, LOE &…
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 Updated Guidance FY 2019 FY 2019 Reduced Capital Guidance Previous Updated Guidance Guidance Maintaining capital discipline in volatile Production (MBoe/d) commodity environment Total Company 25.0 - 27.0 25.0 - 27.0 Allocate…
Operational Overview NYSE: CHAP 7
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 Recent Developments Initial oil production outperformance Full and partial section Merge Miss, Osage and Meramec developments Partial section Woodford development…
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 Well Performance Merge Miss Outperformance 148% of oil type curve at 120 days (9-well average) Woodford Outperformance 101% of oil type curve at 120 days (2-well average) Foraker Cumulative Oil vs. Type…
Recent Spacing Program Performance Type curve IRRs: 50%* (initial well results materially exceeding type curve) Canadian County Merge Miss Outperformance 147% of oil type curve at 60 days (15-well average) 1 full section development…
Drilling and Completions Increased Efficiencies Reduction in average Osage and Merge Miss well costs to 3.5 - 4.0 million Represents a 15% - 20% reduction in from 2018 results Drilling Completions Avg. Feet/day Avg. Stages/day…
Financial Overview NYSE: CHAP 17
Financial Strategy Targeting cash flow neutrality by the second half of 2020 Maintain balance sheet strength Significant capital spend flexibility with no long-term commitments Entered into agreement to sell headquarters building;…
Financial Position and Liquidity Highlights Chaparral Liquidity 325 million borrowing base ( in millions) reaffirmed in spring 2019 Q2 2019 redetermination Cash and Cash Equivalents 33 Closed on 300 million senior Revolving Credit…
Why Chaparral Strong Balance Sheet Experienced Execution-focused, Management with Pure-play Excellent Track STACK/Merge Record Operations Deep Inventory of High-return Drilling Prospects NYSE: CHAP 20
Appendix NYSE: CHAP 21
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 55/45 NGL markets and…
Commodity Realizations Oil & NGL Realizations as % of WTI Crude Oil Differentials 96% 99% 98% 80 93% 100% Proximity to numerous markets provides better CHAP 70 90% net back compared to other basins WTI Average Daily Settle 80%…
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/Merge growth Potential strategic alternatives Net Production1 Gross Margin1 Net Proved Reserves Area Boe/d %…
Reconciliations Three Months Three Months Ended Ended (in thousands) June 30, 2019 June 30, 2018 Net (loss) income (45,229) (21,993) Interest expense 5,571 1,739 Depreciation, depletion, and amortization 30,282 20,407 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 Scott Pittman Chief Financial Officer investor.relationschaparralenergy.com 405-426-6700 NYSE: CHAP 31
ENERGIZING Americas Heartland NYSE: CHAP NYSE: CHAP chaparralenergy.com 32
Loading...
