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Q3 2020 Earnings Presentation – Silverbow Resources

Silverbow Resources · Nov 4, 2020 · 35 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. Q3 2020 Earnings Presentation – Silverbow Resources – slide 1
    SilverBow Resources Corporate Presentation November 2020
  2. Q3 2020 Earnings 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 Inventory provides optionality in capital allocation Commodity Mix based on prevailing…
  3. Q3 2020 Earnings Presentation – Silverbow Resources – slide 3
    Company Overview Mc Mullen Dimmit La Salle Live Oak Strategic Aim Targeted Results Webb SilverBow is an independent oil and gas company with operations across 160,000 net acres spanning all commodity phase windows of the…
  4. Q3 2020 Earnings Presentation – Silverbow Resources – slide 4
    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…
  5. Q3 2020 Earnings Presentation – Silverbow Resources – slide 5
    3Q20: Remaining on Track 3Q20 HIGHLIGHTS 3rd consecutive quarter of FCF generation; 9MM of Free Cash Flow(1) 48 million of FCF 2020 YTD Reduced total debt by 17MM QoQ; Balance Sheet 37MM of total debt reduction vs. 1Q20 183…
  6. Q3 2020 Earnings Presentation – Silverbow Resources – slide 6
    2020: SilverBows Strategy in Play Key Objectives Key Actions Taken Reduced FY20 Capex by 60% to 95-100 Free Cash million; 160 million decrease from FY19 Flow Deferred completion and TIL of 8 DUCs from Investment Aligning 1Q20 to…
  7. Q3 2020 Earnings Presentation – Silverbow Resources – slide 7
    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…
  8. Q3 2020 Earnings Presentation – Silverbow Resources – slide 8
    2020 Operating Plan Supported by Returns Commentary Operating & Financial Goals Maximize FCF generation in current environment (e.g., capex reductions, activity deferrals and hedge unwinds) Strategically shift production volumes to…
  9. Q3 2020 Earnings Presentation – Silverbow Resources – slide 9
    Balanced Portfolio Provides Optionality Commentary Diversified Asset Base 2019/1Q20 liquids development broadened exposure to 40,000 net liquids acres PDP production base 25% of total acreage McMullen Expansion of offsetting…
  10. Q3 2020 Earnings Presentation – Silverbow Resources – slide 10
    SilverBow Primed to Fill the Natural Gas Void Filling the Gap Western Eagle Ford Stands Out Despite both a modest rebound in completions in 3Q20 and the return of most shut-in production, the U.S. gas Western Characteristic…
  11. Q3 2020 Earnings Presentation – Silverbow Resources – slide 11
    Top-Tier Dry Gas Assets U.S. Onshore Gas Plays 15% Full-Cycle IRR Gas Breakeven Prices(1) (/Mcf) 6.00 SBOWs Webb County Dry Gas is among the highest quality across all U.S. gas basins 5.13 5.00 4.36 4.08 4.00 3.54 3.60 3.61…
  12. Q3 2020 Earnings Presentation – Silverbow Resources – slide 12
    Eagle Ford: Geographically Advantaged Regional Pricing Benefits Sources of Demand Growth 100% of oil and gas production receives favorable Gulf LNG exports have rebounded, reaching 10 Bcf/d in Coast pricing October 2020 Access to…
  13. Q3 2020 Earnings Presentation – Silverbow Resources – slide 13
    SilverBow Realizes Favorable Pricing Realized Oil Prices 98% of WTI Average Over (/Bbl) Last 8 Quarters (% of WTI) 72.00 104% 104% 103% 120% 101% 98% 98% 92% 60.00 86% 100% 48.00 80% 36.00 60% 24.00 40% 12.00 20% - - 4Q18 1Q19…
  14. Q3 2020 Earnings Presentation – Silverbow Resources – slide 14
    SilverBow Leads Pack in Top 50 Gas Wells Top 50 Wells First 6 Mo Cum Gas Prod Production Top 50 Eagle Ford Gas Locations (MMcf) SilverBow Legend SilverBow SilverBow La Mesa Wells SilverBow La Mesa Wells Other Operators Other…
  15. Q3 2020 Earnings Presentation – Silverbow Resources – slide 15
    Strong Well Results Across Acreage Position A DVO B La Salle Condensate C AWP 15,899 net acres 12,280 net acres 51,829 net acres 100% W.I. (88% - 100%) W.I. 100% W.I. 1 1 La Mesa Liquids (%): 78% Liquids (%): 57% Liquids (%): 55%…
  16. Q3 2020 Earnings Presentation – Silverbow Resources – slide 16
    Wells Undamaged by Production Shut-ins Example of Eagle Ford Dry Gas Wells Example of Eagle Ford Oil Wells (Mcf/d) Choke/64 (Bbls/d) Choke/64 35,000 60 1,600 60 1,400 30,000 50 50 1,200 25,000 40 40 1,000 20,000 30 800 30…
  17. Q3 2020 Earnings Presentation – Silverbow Resources – slide 17
    Webb County Gas Area Average Production Commentary Map Locator 7,800 net acres across Webb County 84 future development locations(1) yielding 35% ROR(2) Facilities and infrastructure are already in place Track record of cost…
  18. Q3 2020 Earnings Presentation – Silverbow Resources – slide 18
    Operational Execution Drilling Metrics Drilling Cost Efficiencies Cost per Lateral Ft. (1) 362 275 198 Decrease in Drill Costs (2020 / 2018) -45% 2018 2019 2020 Drilling Faster Lateral Ft Drilled per Day (2) Increase in…
  19. Q3 2020 Earnings Presentation – Silverbow Resources – slide 19
    Operational Execution Completion Metrics Completion Cost Efficiencies Completing Faster (1) Stages Completed per Day (2) Completion Costs (MM) 9.2 9.2 5.1 Decrease in 3.9 3.6 Completion Cost (2020 / 2018) -30% 4.4 Increase…
  20. Q3 2020 Earnings Presentation – Silverbow Resources – slide 20
    Review of Key Cost Reduction Initiatives Rightsizing Repurposing Expanding Reworking Treating Equipment Equipment Compression Contracts Optimization Rightsizing compression and On older wells, on site Installed low pressure lines and…
  21. Q3 2020 Earnings Presentation – Silverbow Resources – slide 21
    Track Record of Performance & Managing Cycles Revenue LOE (MM) (/Mcfe) (MM) (/Mcfe) 100 4.75 7.5 0.60 79.0 83.4 73.1 77.9 5.6 5.7 5.8 80 4.00 6.0 5.2 5.2 0.50 66.0 4.9 5.0 53.6 60 3.25 4.5 0.40 42.6 40 2.50 3.0 0.30 20 1.75…
  22. Q3 2020 Earnings Presentation – Silverbow Resources – slide 22
    Built to Deliver Strong Margins at Low Prices Corporate Cash Margin (/Mcfe) 4.00 3.78 3.79 3.70 3.62 3.50 3.30 3.18 3.19 3.00 2.44 2.50 2.34 2.31 2.29 2.00 1.82 1.71 1.48 1.50 1.00 0.50 0.00 1Q19 2Q19…
  23. Q3 2020 Earnings Presentation – Silverbow Resources – slide 23
    Peer-Leading Metrics Compared to Gas Companies 2020E EBITDA Margin(1) 100% 80% 60% Peer Group Avg. (Excl. SBOW): 49% 40% 20% 0% 2020E FCF Yield(2) 100% 75% 50% 25% - (25%) Peer Group Avg. (Excl. SBOW): (7%) (50%)…
  24. Q3 2020 Earnings Presentation – Silverbow Resources – slide 24
    Financial Discipline is Integral to Strategy Maintain strong balance sheet Reduced RBL Borrowings (MM) Active hedging program to protect returns 310 290 14 and minimize downside exposure 29 (23) 270 7 270 5 5 253 Working capital…
  25. Q3 2020 Earnings Presentation – Silverbow Resources – slide 25
    Active Hedging Program to Protects Returns Manage commodity price risk through a disciplined risk management program Maintain a simple hedge portfolio comprised primarily of fixed price swaps and two-way collars Manage potential…
  26. Q3 2020 Earnings Presentation – Silverbow Resources – slide 26
    SilverBows Navigation Framework Todays E&P Industry is Exposed to Uncertain Fragmented, Debt Capital Intensive Commodity Prices Burdened To Succeed, SBOW Focuses on the Following Characteristics Focus on Capital Single-Basin…
  27. Q3 2020 Earnings Presentation – Silverbow Resources – slide 27
    SilverBows Value Proposition Pure Play Eagle Balanced Focus on Costs & Ford E&P Commodity Mix Margins Established operator with deep Inventory provides optionality in Peer-leading cost structure with technical experience and capital…
  28. Q3 2020 Earnings Presentation – Silverbow Resources – slide 28
    Appendix Corporate Presentation 29 11/3/2020
  29. Q3 2020 Earnings Presentation – Silverbow Resources – slide 29
    Market Update: Natural Gas Fundamentals Key Highlights Natural Gas Futures Strip (/MMBtu) 10% reduction in natural gas production exiting 2020 3.60 versus YE19 3.20 Reduced oil targeted D&C activity driving decline in associated…
  30. Q3 2020 Earnings Presentation – Silverbow Resources – slide 30
    2020 Guidance GUIDANCE 4Q19 FY19 1Q20 2Q20 3Q20 4Q20 FY20 Production Volumes: Oil (Bbls/d) 4,760 4,397 4,402 2,429 5,127 4,450 - 4,850 4,100 - 4,200 Gas (MMcf/d) 175 176 181 117 129 125 - 133 138 - 140 NGL (Bbls/d) 5,075 4,704…
  31. Q3 2020 Earnings Presentation – Silverbow Resources – slide 31
    Capital Structure & Credit Profile Revolving Credit Facility (due 2022) Capitalization(1) (MM, except per unit amounts) 310 million borrowing base Share Price (10/28/20) 4.75 253 million outstanding Shares Outstanding (10/28/20)…
  32. Q3 2020 Earnings Presentation – Silverbow Resources – slide 32
    Hedging Summary Current Hedge Position(1) 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 1Q 2022 2Q 2022 3Q 2022 (3 Months) (3 Months) (3 Months) (3 Months) (3 Months) (3 Months) (3 Months) (3 Months) NYMEX HH GAS Swaps Gas (MMBtu) 7,817,000…
  33. Q3 2020 Earnings Presentation – Silverbow Resources – slide 33
    Calculation of Adjusted EBITDA & Free Cash Flow (000s, except per unit metrics) 2019 2020 (Unaudited) 4Q FY 1Q 2Q 3Q Net Income / (Loss) 6,248 114,656 (5,858) (305,976) (6,896) Plus: DD&A 25,145 95,915 23,439 13,716 13,975…
  34. Q3 2020 Earnings Presentation – Silverbow Resources – slide 34
    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…
  35. Q3 2020 Earnings Presentation – Silverbow Resources – slide 35
    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 Director of…

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