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…
SWIFT RESPONSE TO MARKET CONDITIONS As a result of market conditions, Montage swiftly adjusted development plan focusing on dry gas production; decreasing capital 65% while still increasing its expected 2020 production 5% from 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 EXECUTION…
RESULTS ESTABLISH CREDIBILITY Montage has repeatedly achieved or exceeded its guidance and consensus metrics = GUIDANCE RANGE1 = CONSENSUS2 385 395 PRODUCTION (MMCFE/D) Q1 19 407.5 = ACTUAL RESULTS Q2 19 500 515 535.5…
OPERATIONAL TRANSFORMATIONAL 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 60-65% of CAPEX in first half of 2020 565 Average lateral length of 11,200 to Drilling and completions capital concentrated…
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 Q1 2020 CASH OPERATING MARGINS1 (/MCFE) Operating costs are 13% higher than in-basin peers2…
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 Q2 2020 LIQUIDITY1 PRO FORMA CAPITALIZATION (6/30/2020) in millions Capitalization Pro Forma 475MM (29MM) Cash & Cash Equivalents2 9.2 500MM (160MM) 400MM Revolving Credit Facility 160.0 9MM…
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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…
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 Locations1 88 109…
NON-GAAP RECONCILIATIONS EBITDAX Thre e Months Ende d Six Months Ende d June 30, June 30, thousands 2020 2019 2020 2019 Net income (loss) (68,851) 27,512 (66,024) 13,414 Depreciation, depletion, amortization and accretion 42,768…
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