Second Quarter 2020 Earnings Presentation August 7, 2020
PVAC Investment Thesis Highly Low Cost/ Strong Ability to Low Generate Weighted High Hedge Leverage Free Cash to Oil Margin Position Flow Expect to be Free Cash Flow Positive for Full Year 2020 (1) 1) Free cash flow is a…
Company Overview 99,000 gross (86,500 net) acres(1) in Gonzales, Fayette, Lavaca and DeWitt counties; 99% Operated; 92% HBP Production: 77% oil / 90% liquids(2); access to Eagle Ford LLS/MEH markets and strong adjusted EBITDAX…
2Q 2020 Highlights 24,617 50.37(1) Realized 66.4(2) Total Hedge Production 18,888 Strong Gains Adjusted Realized 23.97 EBITDAX BOEPD Oil MM BOPD Bbl Production Oil Price 2Q'20 2Q'20 2Q'20 2Q'20 Oil Total…
Investment Thesis Highly Weighted to Oil Ability to Low Cost / Generate High Free Cash Margin Flow Strong Low Hedge Leverage Position 6
Well Positioned in Oil Window of the Eagle Ford Highly Ability to Low Cost / Strong Hedge Generate Weighted Low Leverage High Margin Position Free Cash to Oil Flow We Believe PVAC Is One of The Oiliest Small Caps of Its Peers…
Gulf Coast Advantage Selling into MEH Market Highly Ability to Low Cost / Strong Hedge Generate Weighted Low Leverage High Margin Position Free Cash to Oil Flow MEH Premium Over WTI and Midland Prices 2Q 2020 2Q 2020…
Low Operating Expense Highly Ability to Low Cost / Strong Hedge Generate Weighted Low Leverage High Margin Position Free Cash to Oil Flow LOE per BOE declined by 30% from 2017 Adjusted Cash G&A(1) per BOE declined by 9% from…
Strong Margin Highly Ability to Low Cost / Strong Hedge Generate Weighted Low Leverage High Margin Position Free Cash to Oil Flow MEH Pricing and Low Cost Structure Yield Strong Margins Greater than 100% due to significant 106%…
Strong Oil Hedge Position Highly Ability to Low Cost / Strong Hedge Generate Weighted Low Leverage High Margin Position Free Cash to Oil Flow Mitigating Commodity Price Volatility Through Proactive Hedging Program 52.70 - 58.26…
Low Leverage Highly Ability to Low Cost / Strong Hedge Generate Weighted Low Leverage High Margin Position Free Cash to Oil Flow 2.2x(1) 1.7x(1)…
2019 Oil Weighting PVAC Has One of The Highest Percent Oil in E&P Sector 100% 80% PVAC 60% 40% 20% 0% Source: Press releases, presentations and other public data. Note: Peers include: APA, AR, BCEI, BRY,…
2020E Peer Group Margin PVAC Projected to Have the Highest EBITDA per BOE PVAC 30.00 20.00 10.00 0.00 Disclaimer: PVAC and Peer data is based on the arithmetic average of all consensus estimates publicly available…
2020E Peer Group Trading Multiple PVAC Currently the Lowest Forward Multiple(1) 12.0x 9.0x 6.0x PVAC 3.0x 0.0x Disclaimer: PVAC and Peer data is based on the arithmetic average of all consensus estimates…
Commodity Hedge Summary Quarterly(1) (Continued) 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 Hedges WTI Sold Puts (BO/d) 5,087 12,500 12,363 3,261 3,261 WTI Average Sold Put (/Bbl) 43.50 36.73 36.73 35.00 35.00 MEH Swaps (BO/d) 2,000…
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income Reconciliation of GAAP Net income to Non-GAAP Adjusted Net Income Adjusted net income is a non-GAAP financial measure that represents net income adjusted to include net…
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDAX Reconciliation of GAAP Net income to Non-GAAP Adjusted EBITDAX Adjusted EBITDAX represents net income before interest expense, income taxes, impairment of oil and gas…
Reconciliation of GAAP Operating expenses to Non-GAAP Adjusted Direct Operating Expenses and Adjusted Direct Operating Expenses per BOE Reconciliation of GAAP Operating Expenses to Non-GAAP Adjusted Direct Operating Expenses and…
Reconciliation of GAAP General and Administrative Expenses to Non-GAAP Adjusted Cash General and Administrative Expenses Reconciliation of GAAP General and Administrative Expenses to Non-GAAP Adjusted Cash General and Administrative…
Non-GAAP Reconciliation Free Cash Flow (FCF) Definition and Explanation of Free Cash Flow Free Cash Flow is a non-GAAP financial measure that management believes illustrates our ability to generate cash flows from our business that are…
Definition of Net Debt Net Debt Net debt, excluding unamortized discount and debt issuance costs is a non-GAAP financial measure that is defined as total principal amount of long-term debt less cash and cash equivalents. The most…
Reconciliation of SEC PV-10 and Adjusted PV-10 (non-GAAP) Reconciliation of GAAP Standardized Measure of Discounted Future Net Cash Flows to Non-GAAP PV-10 Non-GAAP PV-10 value is the estimated future net cash flows from estimated…
Reconciliation of SEC PV-10 and Adjusted PV-10 (non-GAAP) NYMEX pricing used in the calculation of PV-10 value at strip pricing as of August 5, 2020. The table below sets forth the calculation of the ratio of PV-10 of proved…
Reserve Reconciliation Proved Reserves Year End 2019 Proved Reserves Compared to 08/1/2020 Proved Reserves serves Reconciliation (MBOE)Reconciliation (MBOE) D&M YE 2019 Proved Reserves Total Proved Reserves Reconciliation (MBOE) of…
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