Southwest IDEAS Investor Conference NOVEMBER 20, 2019
Investment Highlights Core position in Northern and Southern Delaware Basin of 13,600 acres Permian Pure Play Deep inventory of 500+ operated locations, predominantly from stacked Wolfcamp and Delaware Focused Bone Spring horizons…
Pure Play Delaware Basin Operator Well positioned in one of the most prolific basins in the United States Lea County Leading Delaware Basin small-cap E&P company Net Acres: 13,600 Two core operating areas: Northern and Southern…
Production Profile Since Inception Impressive path to meaningful scale from small initial base Average Quarterly Net Production Net daily production Proved reserves for 2018 exceeds 23,000 BOEPD By Commodity increase 55% to 48 for…
Third Quarter 2019 Updates and 2019 Objectives Recent Highlights 2019 Objectives Q319 average net production of 20,576 Boepd, Pursue accretive acreage acquisitions growth of 9% compared to Q219 Increased oil percentage from 70% to…
2019 Guidance and Updates Maintain view of 13% year-over-year production growth based on midpoint of guidance Production midpoint of 20,750 BOEPD, September production of approximately 23,000 BOEPD Lowered Adjusted EBITDAX modestly…
Northern Delaware Basin Execution Type Log Heart of the Delaware Rosehill has established production from 8 landing zones or benches. Type Log Offset operators (OXY, EOG, CXO, etc.) actively developing 11 distinct benches over a…
Southern Delaware Development Update Parsley ROSE 3D Seismic IP30 178 BOEPD/1000 Ft. Parsley Wolfcamp A State Blanco 58 3 Well Pad Outline Extensive inventory of 300+ Pilot Well Parsley IP180 721 BOEPD Wolfcamp B Wolfcamp & 3rd…
Southern Delaware Geology Producing Formation Wolfcamp Sweet Spot Ward Bell/Cherry Canyon Brushy Canyon Sand County Avalon Equivalent A Wolfcamp depositional trough between the 1st Bone Spring 2nd Bone Spring deep…
Delaware Basin Geomechanics Vertical Slice View of 3D Poissons Ratio Volume (Brittleness) Use of advanced software to construct with Poissons Ratio Displayed Along Wellbores 3D geomechanical models of the State Blanco 58 subsurface…
Proven Operator Consistent improvement in performance and lower costs Average Drilling Days 0 Drilling Times Northern Delaware - Wolfcamp Wells1 Northern Delaware Wolfcamp Wells 40 2,000 30 4,000 Focused efforts to improve…
Capital Structure and Credit Profile Capitalization and Liquidity (MM) (1) Increase in Borrowing Base from 300 million to 340 Cash 4 million for Fall 2019 redetermination Revolving Credit Facility 270 Increase driven by continued PDP…
Rosehills Compelling Investment Profile Compared to peers, Rosehill has an impressive corporate return and leverage profile. CROCI TTM ending June 30, 2019 (1) Net Debt / 2019 Adjusted EBITDAX (3) 30% 5.0x 4.0x 20% 3.0x Peer…
Consistent Progress in Key Metrics Adjusted EBITDAX(1) vs. Capital Expenditures (MM) Average Daily Production (BOEPD) 2019E based on midpoint of guidance 2019E based on midpoint of guidance Adjusted EBITDAX 374 Capital Expenditures…
Hedge Positions Protect Future Cash Flows Adjusted EBITDAX Sensitivity Leverage Ratio Sensitivity (Annual) (Annualized impact of oil price changes through 2022 based (based on midpoint of 2019 guidance and 2019 hedge positions) on…
17 Midstream Infrastructure Flexible and Well-Positioned for Growth Ample Transport MidCush Basis Capacity to Midland Significantly Hedged in 99% Oil Piped Northern Delaware FY20 & FY21 Core Loving oil and gas gathering provided by…
Focused on the Future Well done is better than well said and we have the results to prove it Disciplined Growth Drill and Complete Existing Inventory of High Oil Content Locations Organic Leasing and Targeted Acreage Expansion…
Appendix
Continued Growth of Proved Reserves and PV-10 Proved Reserves (MMBOE) (1) Proved Reserves December 31, 2018 (1) Oil Gas NGL Total PV-10 Reserve Category (MBBLs) (MMCF) (MBBLs) (MBOE) (in thousands) Proved Developed 18,464 26,194…
Water Assets Create Value and Flexibility Gross Water Production - Northern and Southern Total Northern Total Southern 240,000 Currently utilizing 30% of 30 day average (BWPD) 200,000 available disposal capacity 160,000…
Experienced Management Team David French President and CEO Over 29 years of industry experience in multiple basins, including Permian Basin joined Rosehill in April 2019 Former CEO of Obsidian Energy and Bankers Petroleum Ltd BS of…
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…
Corporate Structure Class A Shares Class B Shares Series B Preferred Warrants (Public Shareholders) Series A Preferred (TEMA Oil and Gas Company) 104,000 shares outstanding 157,000 shares outstanding 25.6MM warrants outstanding…
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 Trailing Twelve Months ended Q3'19 Q2'19 Q3'18…
Non-GAAP Measures Cash return on capital invested (CROCI) is a non-GAAP financial measure calculated by dividing the trailing twelve month Adjusted EBITDAX (a non-GAAP financial measure reconciled above) by average gross property and…
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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