Strategic Combination EnerCom The Oil and Services Conference 13 San Francisco, CA February 18, 2015
Overview of Transactions Flatonia Energy, LLC Earthstone Energy, Inc. Oak Valley Resources, LLC NYSE MKT: ESTE Eagle Ford Asset Acquisition 100mm+ Net Cash 3.2 MMBoe 11.4 MMBoe 4.2 MMBoe 82% Liquids / 60% PD 65% Liquids / 32% PD…
Strategic Rationale Creating a growth-oriented company with significant upside for shareholders The combination Strengths: creates: Strengths: Stable production and Critical mass Significant production and reserves cash flow…
Investment Highlights Management team with proven ability to Well-capitalized to pursue drill-bit growth create shareholder value and acquisitions Market recognition Liquidity of 175mm, consisting of Repeat investors 106mm in cash and…
Combined Company Overview Proven, growth-oriented management team Pro Forma Asset Location Oil-weighted with strong cash margins Presently focused on the Eagle Ford and Bakken Robust liquidity with clean balance sheet Near-term…
Combined Financial Information(1) Nine Months Ended September 30, 2014 2014 Eagle Ford (2) (000s) Earthstone Oak Valley Acquistion Adjustments Combined Revenues Oil sales 13,139 25,292 13,776 52,207 Natural gas and natural gas liquid…
Combined Reserves and Production Proved Reserves (MMBoe)(1) CQ3 14 Production (Boepd) 20.0 4.2 18.8 4,000 715 3,704 3,500 11.4 2,327 15.0 3,000 2,500 10.0 2,000 1,500 5.0 3.1 1,000 662 500 0.0 0 ESTE OVR Flatonia Combined ESTE…
Earthstone Organizational Structure Oak Valley Resources, LLC Flatonia Energy, LLC PreTransaction Shareholders 9.124mm shares 2.957mm shares 1.738mm shares 66% 21% 13% Earthstone Energy, Inc. (NYSE MKT: ESTE) 100% 100%…
Oak Valley Members Management EnCap Investments L.P. Significant equity investors Leading provider of private equity to the independent E&P sector CEO has over 40 years of experience 25-year history of providing capital Executive…
Track Record New management team has repeatedly created significant value for shareholders 2005 2007 Southern Bay Energy, LLC Gulf Coast, Permian Basin Success with multiple entities over an Initial investors 40% IRR extended period…
GeoResources Performance Summary Stock Performance (%) Reserves Growth (MMBoe)(1) Merger with Southern Bay to Sale Announcement 40.0 35.9 40 CAGR = 57% Initial Investors: 29.2 IRR = 35% 30.0 30 Return on Capital = 4.8x 24.0 20.7…
Go-Forward Strategy Managements strategy is similar to that used in prior entities which delivered significant returns to shareholders Asset Strategy Corporate Strategy Optimize Existing Properties Constantly align interests between…
Management Strong management and technical team with demonstrated ability and prior success Equity investorsinterests are clearly aligned with shareholders Years Years of Working Responsibility Experience Together Frank Lodzinski…
Asset Overview
Property Overview Southern Region Portfolio of conventional LeFlore County: 13,900 net acres with 34 PDP and unconventional wells in Red Oak Field assets located in: South Texas Oklahoma Grayson County: 1,300 net acres prospective…
Operated Eagle Ford and Austin Chalk 47,200 gross leasehold acres in Gonzales and Fayette Counties 23,600 net leasehold acres Working interests range from 38% to 50% Position developed by management team while at GeoResources…
Operated Eagle Ford and Austin Chalk (Contd) 1 rig currently drilling Eagle Ford locations; multi-well pads 500 to 750 foot spacing between laterals Offset by Sanchez, Penn Virginia, and Argent Eagle Ford 21 gross wells brought…
Eagle Ford Drilling and Completion Summary Pad Averages Feet Drilled Per Day (Ft/Day) Drilling Capex Per Foot Drilled (/Ft) 300 1,200 269 1,077 1,086 957 250 1,000 221 894 820 199 796 200 186 800 172 170 159 625 140 150…
Non-Operated Eagle Ford Non-operated position with BHP and Lewis Energy; 60 gross producing wells 13 gross wells drilled in 2014 and expected to come online in Q1 2015 Two areas totaling 3,130 net acres White Kitchen 15% working…
Property Overview Northern Region Summary Near-Term Plans 98 gross / 7 net wells producing Expand acreage Average working interest of 2.5% Acquire production 44 approved AFEscurrently 7 are being Establish operating presence…
Other Areas 2,500 net acres, 23 gross producing wells South Texas oilfield under waterflood Webb County, Texas redevelopment Geologic re-evaluation underway 20,225 net acres prospective for multiple liquids- rich plays (Austin…
2015 Capital Expenditure Budget Budget As of Q4 2014 Budget As of Q4 2014 with 25% Reduction Drilling and Completion (mm) Drilling and Completion (mm) Operated Eagle Ford(2) Operated Eagle Ford(2) 87.0 65.3 (Fayette / Gonzales…
Combined Reserve Summary SEC Pricing(1) Proved Reserves by Category Proved Reserves by Commodity 18.8 MMBoe 18.8 MMBoe PDNP 3% Gas PUD Oil 25% PDP 66% 66% 31% NGL 9% PV-10 by Category 249.1mm PDNP 4% PDP PUD 54%…
Contact Information Frank Lodzinski Ray Singleton Robert Anderson Neil Cohen President and EVP, Northern EVP, Corporate VP, Finance, and CEO Region Development and Treasurer Engineering Corporate Headquarters Denver Office…
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