LRR Energy, L.P. Wells Fargo Energy Symposium December 2014
LRR Energy, L.P. LRR Energy Overview Market Valuation1 Upstream MLP formed in November Equity Market Capitalization 246 MM 2011 (NYSE: LRE) Net Debt 271 MM Seek to provide investors with stable Enterprise Value 517 MM…
LRR Energy, L.P. Recent Acquisition Stroud Prue Sand Unit Land Legend Sales Properties Area with leases LRE acquired operated oil and natural gas properties in Dyer Prue Area 100% leased Sand Unit Lincoln and Creek Counties,…
LRR Energy, L.P. Strategy: Stable Cash Flows with Exposure to Growth Target long-lived, low-risk properties Make Accretive Proven management team with acquisition track record Acquisitions of Oil Leverage industry relationships to…
LRR Energy, L.P. Quality Assets Shallow production decline Low Risk, Mature Assets 89% proved developed reserves 13.6 reserve life Focused operations Focused Portfolio Three operating areas with scale Well, commodity and…
LRR Energy, L.P. Property Summary (Includes Stroud Acquisition) LRE Total Stroud Prue Sand Unit Acquisition Q3 2014 Production (Boe/d) 6,574 (1) Proved Reserves (MMBoe) 32.6 % Proved Developed 89% % Liquids 52% Total Proved…
LRR Energy, L.P. Production Summary AT IPO BY PRODUCT Q3 2014 BY PRODUCT 13% 29% 58% Oil Gas NGL Q3 2014 BY AREA Q3 2014 OP VS. NON-OP LRE has become more liquids weighted as a result of drilling at Red Lake and…
LRR Energy, L.P. Permian Basin Region Key fields: Red Lake, Pecos Slope, Corral Canyon Chaves Proved reserves1: 16.5 MMBoe (51% of total) Lea Q3 2014 Production: 3,519 Boe/d Eddy (54% of total) Reagan 662 gross (533 net)…
LRR Energy, L.P. Red Lake Field Largest LRE field, predominantly Chaves liquids Located in Eddy County, New Mexico 32% of total proved reserves1 and 40% of total Q3 2014 production Lea 223 gross (186 net) producing wells Eddy…
LRR Energy, L.P. Red Lake Field Significant Inventory of Drilling Opportunities Epoch/Series/ Time NW Shelf System Stage (M.Y.) New Mexico 2014 Red Lake Capital Plan Dewey Lake Ruster Ochoan 251 Salado New Wells Recompletes…
Appendix Recompletions LRE has drilled and completed 9 Yeso wells in last 12 months, which have San Andres behind pipe reserve potential Potential recompletions are booked as proved behind pipe reserves Example recomplete shown…
LRR Energy, L.P. Mid-Continent and Gulf Coast Regions Mid-Continent Overview1 Gulf Coast Overview Key fields: Potato Hills, East Velma, Key fields: New Years Ridge, George Putnam, Stroud Prue Sand Unit West-Stratton Proved…
LRR Energy, L.P. 2014 Capital Budget Oil-weighted capital budget of 35.0 million 25 million allocated to the Red Lake field 40 drill wells, including 23 Red Lake drill wells 34 recompletes / workovers (100% Red Lake) 35…
LRR Energy, L.P. Significant Growth Potential Multiple Acquisition Sources Drop-downs Joint Bids Acquisitions Acquisitions from with from From Lime Rock Lime Rock Lime Rock Third Parties Resources Resources Partners 3…
LRR Energy, L.P. Illustrative Acquisition Analysis Illustrative acquisition analysis based on following assumptions Assumes 25 million of annual EBITDA acquired on January 1, 2015 Financing assumptions: 33% revolving credit…
LRR Energy, L.P. Lime Rock Resources Strong Committed Sponsor Formed in 2005 and consists of three investment funds Acquires mature, low-risk producing oil and natural gas properties in U.S. with long-lived production profiles…
LRR Energy, L.P. Conservative Financial Strategy As of October 30, 2014 Strong balance sheet ( in thousands) commitment Cash & Equivalents 12,000 Target debt/Adjusted EBITDA Senior Credit Facility 233,000 of < 3.0x 2nd Lien…
LRR Energy, L.P. Stable and Consistent Source of Distributions Track record of increasing distributions Focused on increasing coverage while providing distribution growth over time Distribution growth driven by organic development…
LRR Energy, L.P. Robust Hedge Portfolio at Attractive Prices 10% increase or decrease in commodity prices would affect 2014-2015 EBITDA by less than 1%1 Hedge Summary2 100% 87% 81% 64% Oil Gas NGLs 92% 56% 80% 87% 87% 86% 81%…
LRR Energy, L.P. Protected from Commodity Price Volatility Since early October, oil prices have declined 25% from 85.00 to 65.00 per Bbl and natural gas prices have declined 10% from 4.00 to 3.60 per Mcf As a result of our commodity…
LRR Energy, L.P. Significant Total Return Potential Annual distribution of 1.99 per unit Current yield of 22.5% Substantial tax shield 100% shield on 2013 income Opportunity for price appreciation 26% potential appreciation,…
LRR Energy, L.P. Investment Highlights Stable, low-risk and predictable properties Quality Assets Operated, primary production and low cost asset portfolio Consistent Source Track record of distribution increases 9 consecutive…
Appendix 23
Appendix Lime Rock Overview Lime Rock Management Lime Rock Founded in 1998 5.5 BN of private capital commitments Lime Rock Partners Lime Rock Resources LRR Energy, L.P. LRP LRR LRE 4.0 BN of private Formed in 2005 Mature…
Appendix Organization and Ownership Summary Lime Rock Management LP 100% Class A Member Interest LRE GP, LLC Lime Rock Resources (LRR) Incentive Distribution Rights Fund I Common Units Subordinated Units 0.1% GP Interest…
Appendix Management Team and Board of Directors Executive Leadership Years of Name and Position Experience Select Prior Experience Eric Mullins 24 Lime Rock Resources; Goldman Sachs (Managing Director) Co-CEO and Chairman…
Appendix Commodity Hedges Current Hedge Position Q4 2014 2015 2016 2017 2018 NYMEX HH GAS SWAPS Gas (MMBtu) 1,462,599 5,500,236 5,433,888 5,045,760 2,374,800 Wt Avg Price 5.61 5.72 4.29 4.61 4.28 NYMEX WTI OIL SWAPS Oil (Bbl)…
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