Transaction Summary In April 2018, Jack Hightower, HighPeak Pure Acquisition, LLC and certain of its affiliates (collectively, the Sponsor) raised 414 million in the form of a Special Purpose Acquisition Company (SPAC) called Pure…
Delivering on Investment Criteria Transaction Meets the Pure Investment Criteria Located in a North American oil shale play (i.e. Midland Basin) Substantial near-term production and cash flow growth potential Identify asset…
Transaction Summary (Contd) Based on the assumptions described below Transaction creates the largest HighPeak expected to have projected northern Midland Basin pureplay liquidity of approximately 520 670 MM 73,000 net acres at…
HighPeak Energy Northern Midland Basin PurePlay Capitalized for Efficient OilWeighted Value Generation Led by Jack Hightower, former CEO of 2 public E&P companies Legend Experienced, Cross and multiple partnerships with majors and…
Proven Track Record of Valuation Creation Jack Hightower has a proven track record of successfully acquiring, developing and optimizing oil and gas businesses Jack Hightowers prior businesses have generated average returns of 5.0x ROI…
HighPeak Has a Differentiated E&P Business Model Public E&P Peers Business plan designed to fully and efficiently develop a concentrated asset Focus on growth of production and inventory base, on an accelerated basis, harvest cash…
Experienced, CrossFunctional Management Team History of Creating Value Across Multiple Platforms Key Points (1) Name Position Select Prior Experience Sponsor has assembled a premier management and operationsteam Jack Hightower…
Evolution of Development in Howard County Legend 2014 Sticks 2016 Sticks 2019 Sticks and Permits HighPeak Acreage HighPeak Rig HighPeak FracCrew Middle Spbry Jo Mill Lower Spbry Dean Wolfcamp A Wolfcamp B Howard Howard…
Howard County is the Growth Engine of the Permian Howard County production mix has the highest oil percentage and margins across the Midland Basin (ie. best economics) Howard County has seen the most rapid growth in oil volumes of…
Industry Leading FullCycle Operating Margins HighPeak has the best margins among the Permian peers Peer / Boe Peer1 Peer 2 Peer 3 Peer4 Peer 5 Peer6 Peer 7 Peer8 Average Oil: 68% Oil: 44% Oil: 62% Oil: 63% Oil: 62% Oil: 68% Oil:…
Geology is Highly Analogous to Core Howard County Key Points Wolfcamp A and Lower Spraberry have consistently high gross thickness moving from SMs acreage through the easternmost HighPeak acreage Reservoir intervals are comprised of…
Wolfcamp A and Lower Spraberry Geologic Overview HighPeak Acreage Lies within the Core Fairways of the Wolfcamp A and Lower Spraberry Wolfcamp A characterized by 250 gross, 200 net, and 35 MMBo/section OOIP across majority of acreage…
HighPeak Acreage Overlies Thermally Mature Reservoir Thermal Maturity Data Indicates Pay Section is Well Within Oil Window Key Points Wolfcamp A Structure (SSTVD) and Wolfcamp A Geochemistry Tmax Data Howard County has one of the…
Analysis of Evolving Spacing & Sequencing Techniques Offset Operators Implementing Cube Development 2014 2016 2017 2018+ Increased Density Core Benches Combined Performance (1) A Stand Alone B BenchbyBench (Row) C CoDevelopment…
HighPeak CoDevelopment Strategy Batch Development Enhances Well Results and Improves Capital Efficiency CoDevelopment Implementation In June 2019, HighPeak drilled a 5 well (2 LSBY / 3 WCA) codevelopment pad pilot which yielded…
Significant Intrinsic Value of a Single Drilling Unit HighPeaks inventory of 875 gross operated drilling locations offers substantial resource and net asset value HighPeak will focus on codevelopment of the two primary zones, WCA and…
Wolfcamp A Type Curve 10,000 Wolfcamp A Key Points Cum Oil Production Normalized to 10,000 (Bo) Wolfcamp A type curve wells selected from 250,000 geologically similar region Oil Type Curve HighPeak has directly analogous landing…
Lower Spraberry Type Curve 10,000 Lower Spraberry Key Points Cum Oil Production Cum Oil Production Normalized Normalized to 10,000 (Bo) to 10,000 (Bo) Lower Spraberry type curve wells selected from 250,000 geologically similar region…
Substantial Existing InBasin Infrastructure with Premier Midstream & Marketing Solutions Available Attractive solutions identified for manufacturing modedevelopment Big Spring HighPeak anticipates entering into an agreement with a…
Investment Highlights Attractive entry point valuation Proposed valuation implies 3.7x 2020E EBITDA and 1.7x 2021EEBITDA 1 Proposed valuation is a 0.5x and 2.0x discount to the Permian comps on a 2020E and 2021E EBITDA multiple…
Financial Appendix 2 4
Transaction Overview Certain entities controlled by the Sponsor, Pure and HighPeak entered into a definitive agreement to acquire Grenadier Energy Partners II (Grenadier), a pureplay northern Midland Basin E&P Company for cash, equity…
Summary of YearEnd 2019 Resource (1) Key Statistics: Resource HighPeak Resource Summary (As of YE 2019) PD Reserves 31 MMBoe (3) Net Resource PD PV10 + DEV PV10 Unproved Resource 641 MMBoe Category Oil Gas NGL Total 50 / Bbl 55 / Bbl…
Illustrative Transaction Timeline Date (1) Event Business Combination Transaction Approved November 2019 Business Combination Transaction Announced Business Combination Proxy Filed with the SEC December 2019 / January 2020 Set…
Appendix 2 9
Overview of Regional Activity (1)(2) LL Prop Fluid Firs PeakRate EUR HighPeak Acreage Well Name Operator (ft) (lb/ft) (gal/ft) t (Boe/d) (MBoe) Key Offset Well Middle Spraberry 1 WOLFEBROPHY 4504 1MH SURGE 6,613 2,051 1,321 Pro…
Substantial Resource Potential in Upside Targets Key Points While HighPeak will focus development on the Wolfcamp A and Lower Spraberry, evolution in Borden targeting and completions has drasticallyunlocked the potential of…
Extensive Access to Well Data Key Points Active drilling programs on HighPeak acreage has provided an extensive well data set Access to daily production Access to drilling & completion designs Access to well costs HighPeak…
Loading...
