Chaparral Story Expectations to be cash flow neutral in 2020 High-growth, pure-play STACK/Merge oil company 26.2 MBoe/d Q3 2019 total production 21.5 MBoe/d Q3 2019 STACK production Premier, contiguous acreage position STACK 129,000…
Recent Chaparral Highlights Recorded STACK production growth of: 37% Q3 2018 to Q3 2019 49% YTD 2018 to YTD 2019 Increased Adjusted EBITDA by: 4% Q3 2018 to Q3 2019 (8% increase excluding 2018 divestitures) Despite average WTI…
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 Original Updated Guidance Guidance Reducing midpoint of capital guidance by 6% Production (MBoe/d) from original guidance Total Company 25.0 - 27.0 25.0 - 27.0…
Operational Overview NYSE: CHAP 7
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 Merge represents…
Systematic and Flexible Development Approach Illustrative Spacing Development Assessment Chaparral Development Approach Optimum Ideal development approach seeks the Development for optimal balance of IRRs and NPV Maximum IRR…
Canadian County Foraker Well Performance Merge Miss Performance (9-well average) Woodford Performance (2-well average) 230% of oil type curve at 30 days 138% of oil type curve at 30 days 195% of oil type curve at 60 days 120% of oil…
Canadian County Spacing Tests 3,000 Upper Meramec Greenback 200 1,500 1,500 1,500 Lower Meramec/Sycamore Woodford Greenback Meramec 6-well spacing test in undeveloped section Estimated first sales in Q1 2020…
Recent Spacing Program Performance Canadian County Merge Miss 111% of oil type curve at 150 days (16-well average) 1 full section development spacing project without a parent well 3 spacing projects with existing parent wells…
Drilling and Completions Increased Efficiencies Reduction in current average Osage & Merge Miss well costs to 3.5 - 4.0 million Represents a 15% - 20% reduction in from 2018 results Further well cost reduction expected in 2020 to 3.4…
Financial Overview NYSE: CHAP 15
Financial Strategy Expectations to be cash flow neutral in 2020 Maintain balance sheet strength Significant capital spend flexibility with no long-term commitments Reduced 18 million of debt in Q3 through sale of corporate…
Financial Position and Liquidity Highlights Chaparral Chaparral Net Debt Net Debt 325 million borrowing base ( in millions) reaffirmed in fall 2019 Q3 2019 redetermination Cash and Cash Equivalents 22 Eliminated 18 million of…
Why Chaparral Experienced Management with Excellent Track Record Best in Class, Pure- Flexible Capital play STACK/Merge Structure Operations 2020 Cash Flow Neutrality NYSE: CHAP 18
Appendix NYSE: CHAP 19
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) September 30, 2019 September 30, 2018 Net (loss) income (130,935) (12,068) Interest expense 5,994 4,205 Depreciation, depletion, and amortization 28,021 22,252…
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 29
ENERGIZING Americas Heartland NYSE: CHAP NYSE: CHAP chaparralenergy.com 30
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