4 Strategy Anchored to Strengths Experienced Flexible Technical Low Cost Management Development Excellence Operator Team Strategy Extensive experience Differentiated results Large HPB position and Low cost operator developing…
Whats New in 2020 5 CHAP 2020 Aggressively pursuing further cost Leveraging reductions and Experience efficiency gains Designed to manage Capital Extensive technical through current cycle and operational and position company…
6 Mid-Con Operator in Oil Window of Anadarko Basin Geologically Advantaged Nemaha Ridge Core acreage in sweet spot of oil window Moderately pressured Distanced from Nemaha Ridge Large Oil Rich Production Base 29.7 MBoe/d Q4…
7 2019 Highlights 25% 1.10 Increase in adjusted EBITDA, a 30mm Decline in cash G&A per BOE or 30% yoy uplift from 2018 decline 2.10 30 MBoe/d Decline in LOE per BOE or 30% yoy Sizeable liquids rich (63%) Q4 2019 decline…
8 Operational Overview
9 Core Area Subsurface N Play Attributes Multiple reservoirs proximal to the world-class Woodford source rock Efficient hydrocarbon stratigraphic trap creates a continuous petroleum system S Garfield Kingfisher Canadian…
10 Systematic and Flexible Development Approach Chaparral Development Approach Illustrative Spacing Development Assessment Fit-for-purpose approach for each section 80% 40.0 Optimum Ideal development approach seeks the 70%…
11 Detailed Subsurface Data Analysis Enhanced 3D Seismic Imaging Reservoir Enhanced Subsurface Image Combination of 3D seismic and well data using Attributes Facies Volume stochastic inversion and neural networks Canadian County,…
12 Application of Science & Technology Chemical Tracers Finding landing zones, well spacing and frac designs to maximize returns Assess performance of landing zone, fault impacts & well-to-well communication Machine…
Improving Efficiencies D&C and Cost Structure 13 Avg. Drilling Feet per Day Avg. Completion Stages per Day 1,000 12 FEET DRILLED PER DAY FRAC STAGES PER DAY 900 9 800 6 700 3 600 0 1H18 2H18 1H19 2H19 1H18…
Recent Spacing Performance in 2020 Focus Areas 14 Canadian Miss1 South Kingfisher Osage2 80,000 80,000 60,000 60,000 Cumulative BO Cumulative BO 40,000 40,000 20,000 20,000 - - - 100 200 300 400 500 0 60 120 180…
15 2020 Focus Areas & Economics Canadian Miss South Kingfisher Osage 2020 Focus Areas 50% 50% 40% 40% Kingfisher Focus Area 30% 30% IRR IRR 20% 20% 10% 10% 0% 0% Low EUR Base EUR Low EUR Base EUR 3.4mm (D&C)…
16 Financial Overview
17 Financial Strategy Capital Discipline Maintaining flexibility in operated development plan Operating 2 rigs in Q1 2020 as compared to 4 rigs in Q1 2019 Allocate capital to high-return areas Balance Sheet 23 million in cash…
Financial Position Financial Position 18 Simple Capital Structure Capitalization Table (4Q19) No near-term maturities in millions Q4-2019 Revolving credit facility with borrowing base of 325mm Cash 23 Credit Facility 130 300…
19 2019 Actuals vs. Guidance 2020 operating plan remains highly flexible due to our large HBP position, no long term rig contracts or minimum volume commitments and 2020 oil and gas hedges in place averaging over 51 and 2.70,…
20 Building the Foundation for Future Success Low Cost Operational Focused on Aligning Operator That and Financial Controlling Spend to Delivers on Flexibility Costs Revenue Guidance
21 Appendix
22 2019 Proved Reserves 67% Proved Developed 28% Oil (62% Liquids) (MMBoe) 28% 31.8 34% 1.3 63.4 38% PDP PNP PUD OIL GAS NGL YE 19 Total Proved Reserves1 Net Oil Net Gas Net NGL Net % of Total PV 10 Reserve Category…
23 Non-Core Asset Overview Western Miss Lime Anadarko Basin Mature legacy fields Low-maintenance capital Southern OK Provides free cash flow Net Production1 Net Proved Reserves Area Boe/d % Oil MMBoe2 PV-102 (mm) Miss…
24 Commodity Realizations Crude Oil Oil & NGL Realizations as % of WTI 99% 98% 96% Proximity to numerous markets provides improved 80 100% CHAP net back compared to other basins 70 90% Crude oil quality meets Oklahoma refining…
27 Reconciliations Twelve Months Twelve Months Ended Ended ( in thousands) December 31, 2019 December 31, 2018 Net (loss) income (468,948) 33,442 Interest expense 22,666 11,383 Income tax (benefit) expense (77) Depreciation,…
28 Reconciliations Twelve Months Twelve Months Twelve Months Ended Ended Ended ( in thousands) December 31, 2019 December 31, 2018 December 31, 2017 General and administrative 34,210 38,793 46,460 Less: Stock compensation, gross…
29 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
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