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wells fargo energy symposium – Memorial Resource Development Corp.

Memorial Resource Development Corp. · Dec 9, 2014 · 33 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. wells fargo energy symposium – Memorial Resource Development Corp. – slide 1
    Wells Fargo Energy Symposium New York, New York John A. Weinzierl Andrew J. Cozby Chief Executive Officer Sr. Vice President and Chief Financial Officer December 9 10, 2014
  2. wells fargo energy symposium – Memorial Resource Development Corp. – slide 2
    Premier Unconventional Horizontal Company with Best-in-Class Results Consolidated core position in the Terryville Complex of North Louisiana Top tier returns projected single well IRRs in excess of 200%(1) Best-in-Class Production of…
  3. wells fargo energy symposium – Memorial Resource Development Corp. – slide 3
    3Q14 and Recent MRD Activity 2-well Colvin Estates pad 50.9 MMcfe/d 30-d rate 4-well McCrary pad 60.8 MMcfe/d 30-d rate Encouraging Recent 4-well Werner pad 60.2 MMcfe/d 30-d rate and includes 1st Upper Deep Pink well Well Results…
  4. wells fargo energy symposium – Memorial Resource Development Corp. – slide 4
    Best-in-Class Assets Reserves Breakdown (1) Asset Overview (1) 1P By Category Total MRD 1.1 Tcfe 29% Net Acres 205,818 Proved (Bcfe) 1,126 % Gas 71% Total 3P (Bcfe) 3,637 Terryville Complex NSAI 3P PV-10 (MM) 4,907 Net Acres 96,733…
  5. wells fargo energy symposium – Memorial Resource Development Corp. – slide 5
    High Production Rates Throughout Cotton Valley Trend MRD has the Top 12 Wells in the Cotton Valley Trend 27 Active Cotton Valley Horizontal Rigs across +250 miles Terryville Complex Wright 13 24 HC-3 30.3 MMcfe/d Lloyd 5-6H 11.3…
  6. wells fargo energy symposium – Memorial Resource Development Corp. – slide 6
    Best-in-Class Performance Exceptional Horizontal Well Results in 4 core zones(1) High IRR Wells Top Resource Plays(2) Average IP-30 +200% +200% +200% per Quarter Avg. 16.5 MMcfe/d (MMcfe/d) 21.6 17.2 16.7 15.2 15.8 14.6…
  7. wells fargo energy symposium – Memorial Resource Development Corp. – slide 7
    42 Years of High Quality Horizontal Drilling Inventory Gross Horizontal Drilling Locations (1) (3) Zone Proved Prob. Poss. MGT Total 43% of upside Upper Deep Pink -- 37 42 75 154 inventory falls Lower Deep Pink 4 28 47 79 158 within 3P…
  8. wells fargo energy symposium – Memorial Resource Development Corp. – slide 8
    Conviction, Execution and Results December 2013 PIK toggle notes issuance November 2007 June 2010 May 2012 June 2014 Acquired interests in Acquired additional Acquired interests in the Initial Public Offering the Joaquin Field,…
  9. wells fargo energy symposium – Memorial Resource Development Corp. – slide 9
    MRD Has Consolidated the Entire Terryville Complex Horizontal redevelopment unlocks over 1,400 drilling opportunities 76% of acreage HBP as of December 31, 2013 All acreage in the Terryville Complex can be held by running a 1-rig…
  10. wells fargo energy symposium – Memorial Resource Development Corp. – slide 10
    2014 Terryville Horizontal Drilling Activity Development Plan Projects to Expand Proved Reserves Combined NSAI Res Pad Name IP-30 First Prod. Wells Zone Category Upper / Lower 1 LA Minerals 15 22H Pad 31.7 1Q14 2 Red Proved 2 TL…
  11. wells fargo energy symposium – Memorial Resource Development Corp. – slide 11
    Experienced Management Team Years Name / Title Experience Previous Experience John A. Weinzierl 24 Managing Director and Operating Partner of Natural Gas Partners CEO Petroleum engineer with Conoco, Inc. (MEMP: Chairman and CEO)…
  12. wells fargo energy symposium – Memorial Resource Development Corp. – slide 12
    Asset Overview & Financial Summary 14
  13. wells fargo energy symposium – Memorial Resource Development Corp. – slide 13
    Key Highlights 2015 development plan predominately funded with internally generated cash flow Financial Strength September 30, 2014 liquidity of greater than 700MM and Flexibility Strong existing hedge program to protect cash flows…
  14. wells fargo energy symposium – Memorial Resource Development Corp. – slide 14
    World Class Resource Base MRD Has Top Productive Wells Top 100 Gas Wells by Operator Peak 30-Day Mcfe Production Since 2012, 39 wells of 15,000 horizontal gas wells in the U.S. have peak monthly production over 21 MMcfe/d 12 of those…
  15. wells fargo energy symposium – Memorial Resource Development Corp. – slide 15
    Horizontal Drilling Unlocks Full Potential Legacy Vertical Production Focused on Commingling Sections, Horizontal Development Focused on Specific Zones Legacy Vertical Development CV Stacked Horizontal Targets Competitor 8,500…
  16. wells fargo energy symposium – Memorial Resource Development Corp. – slide 16
    Multi-Zone Well Pad Development Plan Drives Efficiency Efficient Full Field Stacked Development Wright 13 12HC Super Site 7 horizontal laterals per zone per section First 10 acre Super Site 16 well pad constructed in 2013 770 spacing…
  17. wells fargo energy symposium – Memorial Resource Development Corp. – slide 17
    Rich NGLs Drive Strong Economics Liquids Provide 45% of Revenues MRDs NGL Barrel is Heavy (MM) Current realized NGL pricing is 39% of WTI due to high concentration of C-5 100 Gas Oil & NGLs 100% Pentane 90 13% 90% Pentane 46%…
  18. wells fargo energy symposium – Memorial Resource Development Corp. – slide 18
    Secured Midstream Infrastructure Supports Development Plan Sufficient, Existing Takeaway Diverse Regional Takeaway Current processing capacity of 405 MMcf/d 4Q 2015 projected processing capacity of 805 MMcf/d 3 current major gas…
  19. wells fargo energy symposium – Memorial Resource Development Corp. – slide 19
    Financial Strategy and Capitalization Financial Strategy Capitalization MRD Segment(1) Preserve Financial Flexibility ( in MM) As of Operate free cash flow positive asset base 9/30/14 1/0/00 Keep debt leverage at conservative levels…
  20. wells fargo energy symposium – Memorial Resource Development Corp. – slide 20
    Fiscal Year 2014 and Initial 2015 Capex Guidance FY 2014 and Initial 2015 Guidance MRD expects its FY14 capital expenditures to total approximately 351 million, consisting of the following: 304 million for drilling and completion in…
  21. wells fargo energy symposium – Memorial Resource Development Corp. – slide 21
    MRD Hedging Overview: Q4-2014 through 2018 MRDs commodity risk management policy provides for hedging estimated production from total proved reserves Proactive policy reduces MRDs exposure to movements in commodity prices and…
  22. wells fargo energy symposium – Memorial Resource Development Corp. – slide 22
    Investment Highlights Best-in-Class Assets with Top Tier Growth Premier Drilling Economics with Extensive Inventory Funding Growth Predominately with Internally Generated Cash Flow Coupled with a Conservative Balance…
  23. wells fargo energy symposium – Memorial Resource Development Corp. – slide 23
    Appendix
  24. wells fargo energy symposium – Memorial Resource Development Corp. – slide 24
    Organizational Chart & Ownership(1) NGP Funds Headquarters: Houston, TX Employees: 460 full-time Certain Former Management Members of MRD Holdco LLC Public WildHorse Resources 18% 38% 44% 6.2% limited partner interest…
  25. wells fargo energy symposium – Memorial Resource Development Corp. – slide 25
    Low-Cost Operations Provide Top Tier Margins Historical LOE Expense (/Mcfe) Q3 2014 Total Cash Cost (/Mcfe) (1) 6.83 1.20 7.00 Cash G&A Other Expenses 1.01 6.00 5.00 0.80 0.74 4.37 4.00 0.50 2.95 3.00 Average 2.28 2.22 0.40…
  26. wells fargo energy symposium – Memorial Resource Development Corp. – slide 26
    MRD NSAI Reserve Detail(1)(2) Oil Gas NGLs Total % Gas SEC PV-10 MBBL MMCF MBBL MMCFE % M PDP 2,626 234,037 12,260 323,351 72% 610,304 PDNP 777 29,760 1,645 44,290 67% 92,615 PUD 7,908 538,457 28,672 757,936 71% 766,033 Total…
  27. wells fargo energy symposium – Memorial Resource Development Corp. – slide 27
    Other Regions East Texas and Rockies East Texas Rockies TEXAS WOOD MARION WYOMING UPSHUR HARRISON CARBON SMITH RUSK PANOLA Joaquin WELD SHELBY UTAH COLORADO Tepee Key Field: Joaquin Field Tepee Field Piceance Basin:…
  28. wells fargo energy symposium – Memorial Resource Development Corp. – slide 28
    Significant Production Growth From Horizontal Wells(1) Horizontal redevelopment increases Terryville gross production by 8x from 46 wells 350,000 12,000 Wet Gas (Mcf/d) Well Count 300,000 Oil / Condensate (Bbl/d) May 2010:…
  29. wells fargo energy symposium – Memorial Resource Development Corp. – slide 29
    Secured Water Infrastructure for Future Development Ample Completion Fluid Supply Salt Water Disposal Infrastructure in Place Secured completion fluid supply Complete salt water disposal (SWD) pipeline Acquired ten long-term contracted…
  30. wells fargo energy symposium – Memorial Resource Development Corp. – slide 30
    Minimizing Stranded Reserves Regulatory Constrained Development Plan - 2011-2012 Current Development Plan - 2013-2014 Cross Unit Lateral Regulatory Constraint Cross Unit Laterals Approved Mid-2013 Stranded Reserves Uneconomic to…
  31. wells fargo energy symposium – Memorial Resource Development Corp. – slide 31
    Adjusted EBITDA Reconciliation Adjusted EBITDA is a non-GAAP financial measure. We evaluate segment performance based on Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss), plus interest expense; debt extinguishment costs;…
  32. wells fargo energy symposium – Memorial Resource Development Corp. – slide 32
    Adjusted Net Income Reconciliation MRD Segment Adjusted Net Income is a supplemental non-GAAP financial measure that is used by external users of MRDs financial statements. We define MRD Segment Adjusted Net Income as net income excluding…
  33. wells fargo energy symposium – Memorial Resource Development Corp. – slide 33

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