Brutus Tension Leg Platform Investor Presentation March 2021
EnVen: The Pure-Play Deepwater Independent GoM E&P Operator One of the best balance sheets across US independent E&P companies Low leverage consistently at or below 1.0x (1) Strong liquidity with 56MM YE20 cash and undrawn 1L RBL,…
Economic Advantages of Operating in US GoM Deepwater Key EnVen Infrastructure Deepwater GoM EnVen Operated Materially under-exploited areas exist; attractive unexplored acreage EnVen Leasehold High barriers to entry limits new…
Environmentally Advantaged and Socially Beneficial US GoM Production Environmentally Advantaged Half the carbon intensity (kg/BOE) of the Permian Basin and the lowest emission intensity of domestic producing regions Minimal natural…
Successfully Executed Deepwater Corporate Strategy Identify and execute drill bit opportunities while generating free cash flow Leverage existing Maintain platform conservative balance infrastructure and sheet leverage and…
Management Members Careers Focused on Deepwater GoM E&P Offshore Name Title Experience Experience (Years) CEO & Steve Weyel 40+ Co-Founder John Wilkirson EVP & CFO 40+ David Carmony COO 35+ Jeff Starzec EVP, GC, &…
Credit Investor Oriented Financial Strategy and Capital Structure Conservative Leverage, Financial Flexibility, and Robust Asset Coverage Net Debt / 2020 Adjusted EBITDA of 1.0x Asset coverage of 2.6x on 1P PDP PV10 / Net Debt and 4.0x…
EnVen Maintains a Relative Premier Credit Position Comparison to GoM Companies Comparison to Onshore Companies Leverage (Net Debt / EBITDA) (1) Leverage (Net Debt / EBITDA) (1) 3.6x 3.7x 2.9x 2.4x 2.4x 2.0x 1.0x 1.0x 1.3x 0.8x…
Prudent Management of Deepwater E&P Challenges Regulatory Navigating political administration and event-driven changes Honoring the evolving interests and initiatives of governments, investors, partners, ESG employees, vendors,…
GoM Regulatory Update Agency Recent Agency EnVen Approval Actions Status Ample project inventory with 5 year Paused future lease sales on Federal Leasing BOEM average of remaining primary term lands and waters leases BOEM…
EnVens Environmental, Social and Corporate Governance (ESG) 20% reduction in GHG emissions reported from 2015 to 2019 Multi-year EY-audited financials Fewer than 5.5 ounces of produced oil spilled Active from 2016-2020…
Asset Quality and Operatorship Drive Low Costs and Safe Operations EnVen Operating Costs and Margins G&A (1) R&M / Workover Field Operating / BOE Expense (2) 15.47 16.27 14.75 4.76 4.54 4.12 1.76 2.00 1.88 8.95 9.74 8.75…
EnVen has an Oily, High Quality 3P Reserve Base NSAI 12/31/20 Strip Pricing (1) Total Pre-Tax Reserve Category % Oil (MMBOE) PV10 (MM) Proved Developed Producing (2) 29.1 86% 630 Production Handling Agreement Revenue (PHA) (3) - -…
Reporting Definitions for Deepwater GoM Reserves Often Result in Performance Additions A A TLP w/ Platform Rig Drillship (Illustrative) A Seismic Amplitude Extent Mean Sea Level (Supports 3P Estimate) TLP Subsea Subsea…
Deepwater Assets Outperform 3rd Party Reserve Forecasts Marathon Acq'd Fields - Long Term Completions (Lobster, Oyster, Arnold, Petronius, Neptune) Marathon Acquired Properties: PDP History (Net BOE/Month) EnVen Acquired Assets…
Successful Low-Cost Reserve Replacement with Increased R/P Reserves-to-Production Ratio 10 9 8 19% 7 Probable 8 years of 2P R/P (years) 6 5 reserves HBP Proved 4 (held-by- 3 production) leases 2 1 - (1) (2) YE16…
Leading GoM Asset Coverage (MM) YE20 Net Debt 221MM (1) (2) (1)(3) (1) (3) Best-in-class metrics with 4.0x 1P asset coverage and 6.5x 2P asset coverage (3) (1) Based on 12/31/20 NSAI evaluation; 1P based on Low PHA PV10…
EnVens Deepwater Infrastructure Provides Competitive Advantages Advantages Processing Capacity Utilization(1) Utilized Available capacity MBOEPD 0 20 40 60 80 100 120 Platform drilling allows lower rig and total well costs Advantaged…
Creating Advantaged Longer-Term Opportunities Napoleon Cognac PLT Brunello Burgundy Sancerre Lobster Bordeaux Spruance W. Bordeaux Novarupta PLT Riesling Beaujolais Oyster Brittany Alsace (EnVen) Arnold Manta Ray…
Minimal and Manageable Plugging Obligations Previously removed idle shelf wells and structures, reducing liability and History of Proactively Managing ARO (4) mitigating wind-storm exposure Through 2027, expected P&A activity targets…
Historical and Future Capital Programs Historical capital program focused on recomplete and sidetrack development opportunities at existing producing fields; initial operated subsea drilling commenced 2020 2018 2020 operated capital…
Historical Capital Performance 2018 2020 capital program emphasized platform drilling programs for reserve conversions and adds 2018 2020 Capital Performance Capital program contributed 9.2 MMBOE of production 683MM 10% Brutus:…
Forecasted Capital Allocation Future Capital Allocation: Operated Subsea Tieback Program 10% 16% Total 2021 - 2022: 180MM - 220MM 12% 17% 62% 17% 71% 8% 24% 51% 1% 10% 2018 - 2020 Avg 2021 2022 Low leverage and strong…
Non-Operated Subsea Project Example Spruance 13.5% WI; LLOG operator Ties back to EnVen operated Lobster platform (66.7% WI) Initial well in 2019 and second well in 2020; completion late 2021 with 1st production early 2022 Lobster…
Opearted Subsea Project Examples Dothraki and Sunspear Green Canyon 167 Dothraki Development Project Unrisked Reserves (1) EnVen operated with Total % Initial Prod. 30.15% WI (MMBOE) Oil (MBOEPD) Initial well drilled Gross…
GoM Deepwater Asset Rationalization Will Continue Attributes Sought in Deepwater Acquisitions 1 Quality Operator EnVen or well-established GoM operator with history of high safety standards, experienced team, and 2 successful…
EnVens Proactive Hedge Strategy Balanced hedge strategy provides meaningful downside protection to protect the balance sheet while allowing some upside participation with commodity price appreciation - Approximate 2021 WA Floor /…
Prudent Risk Mitigation GoM Risks Mitigants Highly active participant in GoM lease sales for several years secured robust inventory Regulatory Proactively accelerated permitting process of 15 high impact, deepwater projects No…
Appendix
Current Organizational Structure EnVen Equity Holdings, LLC Current Investors EnVen Energy Corporation 275MM 1L Borrowing Base (1) Energy Ventures GoM LLC 277MM Senior Secured 2L Notes (2) EnVen Finance EnVen Energy…
Reconciliation of Non-GAAP Financial Measures Year Ended December 31, 2020 2019 (In thousands) Net (loss) income reconciliation to Adjusted EBITDA: Net (loss) income (10,897) 17,936 Adjustments: Depreciation, depletion, and…
Definition of PV-10 PV-10 is derived from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure to PV-10. PV-10 is equal to the standardized measure of discounted…
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