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March 2020 Investor Presentation – Silverbow Resources

Silverbow Resources · Mar 4, 2020 · 37 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. March 2020 Investor Presentation – Silverbow Resources – slide 1
    SilverBow Resources Corporate Presentation March 2020
  2. March 2020 Investor Presentation – Silverbow Resources – slide 2
    SilverBow Investment Highlights Pure Play Eagle Established operator with deep technical Ford E&P experience and in-basin knowledge Balanced Growth in liquids inventory provides optionality in Commodity Mix capital allocation based…
  3. March 2020 Investor Presentation – Silverbow Resources – slide 3
    Company Overview Dimmit La Salle Live Oak Mc Mullen Strategic Aim Targeted Results Webb SilverBow is an independent oil and gas company with operations across 118,000 net acres spanning all commodity phase windows of the…
  4. March 2020 Investor Presentation – Silverbow Resources – slide 4
    Peer Ranking: Premiere SMID Cap E&P Company RETURNS & MARGINS COST STRUCTURE 1 2 2 1 LTM Adjusted 3-Year Avg. Cash G&A All-in Cash EBITDA Margin ROCE Expense Operating Costs A value-focused company, demonstrating one Peer-leader…
  5. March 2020 Investor Presentation – Silverbow Resources – slide 5
    ESG: At the Core of Our Business Environmental Social SilverBow is committed to reducing environmental SilverBow incentivizes workforce through cultural impact through sustainable operations values, transparency and rewarding…
  6. March 2020 Investor Presentation – Silverbow Resources – slide 6
    4Q19: Execution is Driving Value 4Q19 HIGHLIGHTS Free cash flow generation Cash flow neutral for 2H19 Oil production of 4,760 Bbls/d 100% growth YoY Exceeded total production 3% growth YoY guidance Adjusted EBITDA of 57.6…
  7. March 2020 Investor Presentation – Silverbow Resources – slide 7
    FY19: Outperforming Expectations Key Objectives Key Highlights Expand Adjusted EBITDA margin with Free Cash disciplined approach to production growth 74% FCF +80% Adjusted EBITDA Neutral Increase in Flow Free cash flow neutrality…
  8. March 2020 Investor Presentation – Silverbow Resources – slide 8
    Operational Evolution Through a Volatile Environment Since inception, SBOW has maintained a successful, consistent track record of both strategic A&D and organic growth within the Eagle Ford Lake Washington Gas Acreage Expansion DVO…
  9. March 2020 Investor Presentation – Silverbow Resources – slide 9
    2020: Looking Ahead & Key Objectives Key Objectives 1. Target 30%-40% rate of return from 2020 1 2 3 drilling program. Prove up, grow inventory and increase oil production by 70% 2. Maintain ROCE of 15% or greater. Continue to…
  10. March 2020 Investor Presentation – Silverbow Resources – slide 10
    2020: Budget & Production Summary Operations Capital Budget 1 Rig Eagle Ford Drilling Program 2020 Capital Budget of 175-195 MM Focus on capital efficiencies delivers Plan retains flexibility to 3% on long-term strategy reallocate…
  11. March 2020 Investor Presentation – Silverbow Resources – slide 11
    Diversifying Commodity Mix Enhances Value Proposition Commentary Diversified Commodity Asset Base Strategic focus on increasing liquids production 35% Liquids Acreage 16 net wells turned-in-line from existing liquids 233 Gross…
  12. March 2020 Investor Presentation – Silverbow Resources – slide 12
    Eagle Ford: Premium Markets Driving Premium Margins Regional Pricing Benefits Providing for Sources of Demand Growth 100% of oil and gas production receives Ideally located to meet growing demands via premium Gulf Coast pricing…
  13. March 2020 Investor Presentation – Silverbow Resources – slide 13
    SBOW Realizes Premium Pricing vs. Peers Realized Oil Prices vs. Peers(1) SBOW Average = 2.46 (/Bbl) per Bbl Advantage (% of WTI) 75 103% 103% 104% 104% 103% 110% 101% 101% 70 100% 65 90% 60 80% 55 70% 50 60% 1Q18 2Q18 3Q18…
  14. March 2020 Investor Presentation – Silverbow Resources – slide 14
    Culture of Cost Reduction and Margin Expansion Adjusted EBITDA Margin(1) ROCE(2) RETURNS & MARGINS 100% 25% 21% 73% 75% 73% 74% 75% 74% 80% 67% 20% 18% 18% 65% 60% 15% 40% 10% 20% 5% 0% 0% Adj. EBITDA Margin…
  15. March 2020 Investor Presentation – Silverbow Resources – slide 15
    Proven Track Record of Growth & Expansion (MMcfe/d) Production (% Liquids) (MM) Adjusted EBITDA (/Mcfe) 250 50% 250 233 3.50 231 200 185 40% 200 3.00 168 GROWTH 143 150 122 2.50 150 30% 2.76 122 2.49 100 20% 100 2.33…
  16. March 2020 Investor Presentation – Silverbow Resources – slide 16
    Strong Well Results Across Acreage Position A DVO B La Salle Condensate C AWP 15,895 net acres 12,402 net acres 36,435 net acres 100% W.I. (88% - 100%) W.I. 100% W.I. 1 6 JRED Liquids (%): 78% Liquids (%): 57% Liquids (%): 55%…
  17. March 2020 Investor Presentation – Silverbow Resources – slide 17
    La Salle Condensate Area Commentary La Salle Condensate Area Wells Added 3 Briggs wells, 3 Knolle wells, 1 Briggs-Knolle KNOLLE EF 1H West KNOLLE EF 2H well and 4 Evans wells in liquids-rich window in 2019 KNOLLE EF 3H BRIGGS KNOLLE…
  18. March 2020 Investor Presentation – Silverbow Resources – slide 18
    McMullen Oil Area Commentary McMullen Oil Area Wells Added 2 SMR wells and 2 Hayes wells in 2019 SMR EF 20H SMR EF 21H Specific targeting of 30 foot brittle zone in LEF SMR EF 22H SMR EF 23H SMR NBR EF 5H Successfully tested…
  19. March 2020 Investor Presentation – Silverbow Resources – slide 19
    Expanding Liquids Footprint: Dimmit Volatile Oil Rapidly Moving From Exploration to Development West Dimmit Leasehold Map Established Position: Acquired 16,000 net acres at Dimmit low-cost entry point with 750 gross MMBbls of…
  20. March 2020 Investor Presentation – Silverbow Resources – slide 20
    La Mesa: Case Study in Execution Excellence Execution Highlights of Recent 6-Well Pad Co-Development Optimization Fasken Footage 120,000+ ft LEF-UEF Drilled 440 Drilling 2,400 ft/day Rate La Mesa LEF-LEF Proppant 440 440…
  21. March 2020 Investor Presentation – Silverbow Resources – slide 21
    Operational Execution Drilling Metrics Drilling Cost Efficiencies Cost per Lateral Ft. (1) 362 275 Decrease in Drill Costs (2019 / 2018) -24% 2018 2019 Drilling Faster Lateral Ft Drilled per Day (2) Increase in Lateral…
  22. March 2020 Investor Presentation – Silverbow Resources – slide 22
    Operational Execution Completion Metrics Completion Cost Efficiencies Completing Faster Completion Costs (MM) (1) (2) Stages Completed per Day 9.2 5.1 Decrease in 3.8 Completion Cost (2019 / 2018) -26% 4.4 Increase in Number…
  23. March 2020 Investor Presentation – Silverbow Resources – slide 23
    Returns Focus: Connecting Operational Efficiency & Value SBOW has successfully reduced cycle times by 10%... LOWER D&C CAPEX FASTER HIGHER IRR CYCLE TIMES EARLIER PROD DATE through efficiency improvements across all its…
  24. March 2020 Investor Presentation – Silverbow Resources – slide 24
    Levered to Todays Preferred E&P Valuation Framework Balance Sheet Simple capital structure with conservative leverage CAPITAL EFFICIENCY Capital Discipline Flexible budget allocation to highest return assets Financial Metrics…
  25. March 2020 Investor Presentation – Silverbow Resources – slide 25
    SilverBows Value Proposition Pure Play Eagle Increasing Liquids Focus on Costs & Ford E&P Leverage Margins Established operator with Growth in liquids inventory provides Peer-leading cost structure deep technical experience…
  26. March 2020 Investor Presentation – Silverbow Resources – slide 26
    Appendix Corporate Presentation 27 3/5/2020
  27. March 2020 Investor Presentation – Silverbow Resources – slide 27
    YE19 Reserves & Valuation SEC Pricing(1) Commentary Proved Reserves Roll-Forward (Bcfe) YE19 proved reserves totaled 1.4 Tcfe 6% Growth in Proved Reserves YoY 434.8 0.3 191.3 All-sources reserve replacement of 189% of 84.5 84.3…
  28. March 2020 Investor Presentation – Silverbow Resources – slide 28
    Peer-Leading Returns & Cost Structure LTM Adjusted EBITDA Margin 3-Year Average ROCE(1) 100% 25% RETURNS & MARGINS 21% 75% 19% 72% 18% 70% 70% 80% 20% 66% 65% 62% 61% 58% 57% 53% 48% 12% 60%…
  29. March 2020 Investor Presentation – Silverbow Resources – slide 29
    Top Quartile Metrics & High Quality Inventory Production Proved Reserves(1) (MMcfe/d) (Bcfe) 622 700 3,000 2,398 600 2,500 500 GROWTH 2,000 1,420 1,276 400 1,080 1,500 239 961 300 199 174…
  30. March 2020 Investor Presentation – Silverbow Resources – slide 30
    Financial Discipline is Integral to Strategy Preserve financial flexibility Total Debt / LTM Adjusted EBITDA 4.00x Strong liquidity position: 122 million(1) 3.50x Active hedge program to protect cash flows 3.00x and minimize…
  31. March 2020 Investor Presentation – Silverbow Resources – slide 31
    Hedging Summary(1) SBOW manages commodity price risk through its hedging program Bias towards swaps and collars Program includes crude oil, natural gas, natural gas basis and crude oil roll contracts Hedge volumes for 2020 cover…
  32. March 2020 Investor Presentation – Silverbow Resources – slide 32
    Capital Structure & Credit Profile Revolving Credit Facility (due 2022) Capitalization (MM, except per unit amounts) 400 million borrowing base Share Price (3/2/20) 2.64 Shares Outstanding (1/31/20) 11.807 279 million outstanding…
  33. March 2020 Investor Presentation – Silverbow Resources – slide 33
    2020 Guidance GUIDANCE 1Q19 2Q19 3Q19 4Q19 FY19 1Q20 FY20 Production Volumes: Oil (Bbls/d) 2,850 4,449 5,496 4,760 4,397 4,550 - 4,700 7,300 - 7,600 Gas (MMcf/d) 177 180 173 175 176 184 - 189 150 - 160 NGL (Bbls/d) 3,542 4,664…
  34. March 2020 Investor Presentation – Silverbow Resources – slide 34
    Calculation of Adjusted EBITDA & Free Cash Flow (000s, except per unit metrics) 2019 (Unaudited) 1Q 2Q 3Q 4Q FY Net Income 16,053 64,704 27,651 6,248 114,656 Plus: DD&A 21,805 24,029 24,937 25,145 95,915 Accretion of ARO 83 86 88…
  35. March 2020 Investor Presentation – Silverbow Resources – slide 35
    Calculation of Return on Capital Employed (ROCE) (000s, except per unit metrics) 2019 2018 2017 (Unaudited) FY FY FY Net Income 114,656 74,615 71,971 Plus: DD&A 95,915 68,035 46,933 Accretion of ARO 329 419 2,322 Interest…
  36. March 2020 Investor Presentation – Silverbow Resources – slide 36
    Reconciliation of PV-10 to Standardized Measure Estimates of future net revenues from our proved reserves, Standardized Measure and PV-10 (PV-10 is a non-GAAP measure defined below), as of December 31, 2019, is made in accordance with…
  37. March 2020 Investor Presentation – Silverbow Resources – slide 37
    SBOWay Corporate Information CORPORATE HEADQUARTERS SilverBow Resources, Inc. 575 North Dairy Ashford, Suite 1200 Houston, Texas 77079 (281) 874-2700 or (888) 991-SBOW www.sbow.com CONTACT INFORMATION Jeff Magids Senior…

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