MONTAGE RESOURCES OVERVIEW SMALL CAP APPALACHIA UTICA & MARCELLUS OPERATOR 2020 PRODUCTION 565 585 Mmcfe/d 1P : 2.7 Tcfe PROVED RESERVES1 Proved Developed : 1.5 Tcfe PROVED RESERVES 1P : 1.5 B PV101 Proved Developed : 1.1 B NET…
FRAMEWORK FOR DISCIPLINED STRATEGY Montage Resources put in place on day one a Focus Five plan to address the current operating environment that has set it apart from most other small cap and natural gas focused companies 2020 FOCUS…
2019 TRANSFORMATIVE ACHIEVEMENTS Montage Resources efficient execution of its optimized development and operational plan resulted in financial and operational outperformance, despite a challenging commodity environment OBJECTIVE…
2019 RESULTS ESTABLISH CREDIBILITY Montage has repeatedly achieved or exceeded its guidance and consensus metrics = GUIDANCE RANGE1 Q1 385 395 = CONSENSUS2 PRODUCTION (MMCFE/D) 407.5 = ACTUAL RESULTS Q2 500 515 535.5 Q3…
EFFECTIVE MANAGEMENT FOCUSED ON VALUE DELIVERY Montage management has delivered on targeted objectives, focusing on a de-risked development plan and operational efficiencies that improve fundamental corporate value MANAGEMENT FOCUS OPEX…
OPERATIONAL TRANSFORMATION ACHIEVEMENTS Accelerated free cash flow and enhanced returns through our low cost, low risk development strategy of resource conversion, capital allocation and continued improvement in operational and cost…
COMMERCIAL TRANSFORMATION ACHIEVEMENTS Optimization of our contractual cost structure has allowed the company to expand margins, increase flexibility and be extremely well positioned to thrive at higher prices FIRM TRANSPORTATION…
FINANCIAL TRANSFORMATION ACHIEVEMENTS Delivery of the synergies and financial achievements ahead of schedule demonstrates business plan credibility and the impact of efficient operational and commercial execution CASH G&A SYNERGIES1…
RISK MITIGATION A strong balance sheet with significant financial flexibility is a strategic asset in a cyclical business FINANCIAL RISK MITIGATION HIGH QUALITY ASSET BASE LONG TERM DEBT DIVERSIFIED INVENTORY WITH ACCESS TO…
FOUNDATION IN ESG PRINCIPLES Montages unwavering commitment to be responsible stewards in our operating areas is governed by decisions that drive our leading safety record, minimize our environmental footprint and make sound economic…
MONTAGE VALUE ATTRIBUTES Montage Resources is a pure play Appalachia operator located in the core Marcellus and Utica fairway, adopting a low risk development plan executed by an experienced Appalachia team LOW LEVERAGE, GROWING,…
2020 CAPITAL AND OPERATING BUDGET 2020 CAPITAL PROGRAM PRODUCTION AND PRICING1 One rig drilling program with activity front loaded as 65% of CAPEX is expected in first half of 2020 565 Average lateral length of 11,700 to Drilling and…
2020 DEVELOPMENT PLAN ADJUSTMENTS 2020 development plan adjusted to take advantage of changing market conditions, focusing majority of the activity in dry gas Utica area which highlights the flexibility and depth of Montage inventory…
HIGHLY ADVANTAGED OPERATING COST STRUCTURE Highly competitive operating cost structure provides for significant margin expansion through scale Q4 2019 OPERATING COST1 VS APPALACHIAN PEERS2 (/MCFE) Operating costs are 10% lower than…
SUBSTANTIAL PROVED RESERVE GROWTH Measured capital spend allowed for continued growth in reserves while still providing for a significant intrinsic value increase for the companys tangible asset value 2019 YE PRO FORMA NET OIL NET NGL…
REPEATABLE WELL PERFORMANCE IN DRY GAS NORTH Highly deliverable and repeatable Dry Gas North well results provide long term corporate production growth ability with attractive economics to allocate capital CUMULATIVE GAS1 (BCF) 10…
MIDSTREAM AND MARKETING OVERVIEW Leveraging scale, diversified markets and low commitments to increase net back prices FT VS GROSS MARKETED PRODUCTION (MMBTU/D) SCALE FACILITATES FLEXIBILITY & OPTIONALITY Balanced FT portfolio with…
ATTRACTIVE FINANCIAL POSITIONING Q1 2020 LIQUIDITY1 PRO FORMA CAPITALIZATION (3/31/2020) in millions Capitalization Pro Forma 500MM (29MM) (150MM) 500MM Cash & Cash Equivalents2 7.3 400MM 7MM 328MM Revolving Credit Facility…
APPENDIX
EXPERIENCED APPALACHIAN BASIN LEADERSHIP TEAM Montage Resources management team possesses significant Appalachia specific experience with an excellent track record of execution EXPERIENCE PRIOR COMPANIES (YRs) John Reinhart 26…
2020 FULL YEAR GUIDANCE FY 2020 Production MMcfe/d 565 585 % Gas 81% - 83% % NGL 10% - 12% % Oil 6% - 8% Gas Price Differential (/Mcf)1,2 (0.20) - (0.30) Oil Differential (/Bbl)1 (5.00) - (6.00) NGL Prices (% of WTI)1 35% - 45%…
HEDGING PORTFOLIO1 Montage currently has a significant portion of its 2020 production hedged and plans to continue adding to its hedge positions at attractive prices to provide cash flow certainty and reduce commodity price risk NATURAL…
TYPE CURVE DETAILS 2020 Marcellus North 2020 Utica Dry Gas North 2020 Utica Condensate 2020 Flat Castle Type Curve Assumptions MARCELLUS NORTH DRY GAS EAST - ECR CONDENSATE 100-200 FLAT CASTLE Approximate Net Remaining Locations 1 88 109…
NON-GAAP RECONCILIATIONS EBITDAX Three Months Ended March 31, thousands 2020 2019 Net income (loss) 2,828 (14,098) Depreciation, depletion, amortization and accretion 44,135 29,897 Exploration expense 13,271 16,789 Stock-based…
Loading...
