4Q 2018 Investor Presentation March 2019 1
Important Disclosures Forward-Looking Statements and Risk Factors The information in this presentation includes “forward-looking statements.” All statements, other than statements of historical fact included in this presentation, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this presentation, the words “could,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward- looking statements are based on certain assumptions and expectations made by Roan Resources, Inc. (“Roan” or the “Company”), which reflect management’s experience, estimates and perception of historical trends, current conditions and anticipated future developments. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or anticipated in the forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements found in the Company’s filings with the Securities and Exchange Commission, including its Current Report on Form 8-K, filed September 24, 2018 and any subsequently filed annual report on Form 10-K, quarterly reports on Form 10-Q or current reports on Form 8-K. We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, or incidental to the development, production, gathering and sale of oil, natural gas and NGLs. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures and the other risks. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date of this presentation. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this release. Our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price declines or cost increases. Non-GAAP Measures Adjusted EBITDAX, Adjusted Net Income, Adjusted Net Income per Share, Net Debt and PV-10 are financial measures not presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in the appendix to this presentation. Industry and Market Data This presentation has been prepared by Roan and includes market data and other statistical information from sources believed by Roan to be reliable, including independent industry publications, government publications or other published independent sources. Some data is also based on Roan’s good faith estimates, which are derived from its review of internal sources as well as the independent sources described above. Although Roan believes these sources are reliable, they have not independently verified the information and cannot guarantee its accuracy and completeness. Preliminary Results Our audit relating to the financial information included in this presentation is not yet complete. Accordingly, the information included herein is subject to change as we complete our annual audit process. 2
Roan Snapshot Company Overview Largest Contiguous Acreage Position in Merge • 54.1 MBoe/d net production (27% oil, 31% NGLs) as of 4Q’18 Acreage Position • ~172,000 total net acres with ~115,000 of contiguous acreage in (Net Acres) Merge 114,700 the Merge SCOOP 25,200 ‒ ~80% of acreage is in the oil and liquids-rich windows in Merge STACK 7,400 ‒ ~72% average working interest in Merge Other 24,700 • YE 2018 proved reserves of 306 MMBoe, up ~32% YoY; PV-10 (1): STACK Total 172,000 $2.1 billion 4 rigs running with 3 frac crews • • 33 DUCs as of 4Q’18 • Well-capitalized balance sheet with significant financial flexibility ‒ 1.4x 4Q’18 annualized leverage ratio ‒ Well hedged for 2019 with ~90% of oil hedged at ~$60 and ~80% of gas MERGE hedged at ~$2.90 ‒ Expected to be free cash flow positive by YE 2019 while growing production 30% FY 2018 to FY 2019 Average Daily Production (MBoe/d) 54.1 46.5 37.7 SCOOP 36.1 25.7 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 3 1) PV-10 is a non-GAAP measure, please see slide 22 for a reconciliation of this measure to the most directly comparable GAAP measure; at YE18 SEC pricing.
Roan Acreage has Optimal Woodford Petroleum System Characteristics Woodford Source Potential Index Woodford Maturity Woodford Thickness • High % liquids + gas • Thicker source rock • Higher maturity Roan’s acreage is in the heart of the liquids-rich Woodford petroleum system, optimally charging the prolific Woodford and Mayes reservoirs 4
2018 Highlights Metric 4Q 2018 FY 2018 Adjusted EBITDAX (1) ~$88 MM ~$299 MM 54.1 MBoe/d 43.7 MBoe/d Total Production (27% oil, 31% NGLs, 42% gas) (27% oil, 29% NGLs, 44% gas) Oil Production Up ~25% QoQ Up ~200% YoY Drilled wells (2) 26 92 Lateral miles drilled (2) 48.7 143.7 Average Rigs 8 6.5 Wells turned online (2) 20 78 Additional highlights • 306 MMBoe of proved reserves with a SEC PV-10 (3) value of $2.1 billion • 4Q’18 LQA leverage ratio: 1.4x • Executed Water Services Agreement with Blue Mountain Midstream LLC, projected to save ~$10MM in 2019 on an annualized basis ‒ Savings to increase as gathering/recycling system is implemented 1) Adjusted EBITDAX is a non-GAAP measures, please see slide 20 for a reconciliation of this measure to the most directly comparable GAAP measure 2) Gross, operated wells 5 3) PV-10 is a non-GAAP measure, please see slide 22 for a reconciliation of this measure to the most directly comparable GAAP measure; at YE18 SEC pricing.
Optimizing 2019 Based on 2018 Program 2018: Aggressive de-risking program 1.7 • Several lessons learned in 2018 will be applied in 2019 1.3 Optimizations • Applying lessons retroactively to the 2018 program would lead to a substantial ‒ Co-develop Woodford and improvement in PVI Mayes as a single flow unit - Full 2018 program delivered a 1.3 PVI weighted average across 78 wells ‒ Complete 3D seismic coverage and better geologic understanding of - Implement 2018 learnings and the asset optimizations – 2018 program delivers a 1.7 PVI (1) ‒ Frac preloads (early results have been successful) • Anticipating further optimization initiatives in 2019 2018 Program Optimized 2018 Program Note: 78 gross operated wells turned online in 2018 6 1) PVI based on 2019 AFEs and $55/Bbl & $2.75/Mcf
All 4Q 2018 Well Results Normalized to 10,000-foot lateral At 90-day rate Well Name Formation 30-day IP (Boe) 90-day IP (Boe) Oil % NGL% DON'S RANCH 6-31-9-5 1MXH Mayes 1,662 1,518 65% 16% FAIR PLAY 34-3-5-4 1XH Woodford 1,340 1,210 2% 44% JACOBS 30-9-7-1MH Mayes 1,972 1,281 13% 19% LARRY 26-23-9-5-2WXH Woodford 654 464 79% 10% NEEDLES 24-13-10-5 1XH Woodford 675 590 52% 22% NEEDLES 24-13-10-5 2XH Woodford 733 547 65% 16% SPAULDING 13-7-4 1WH Woodford 1,456 1,327 36% 30% SPAULDING 13-7-4 2MH Mayes 741 682 38% 29% TABOREK 26-35-13-6 1MXH Mayes 1,704 1,388 53% 22% THE DUKE 19-9-4 1H Woodford 2,273 1,810 81% 9% THE DUKE 24-13-9-5-1XH Woodford 1,422 1,090 82% 9% VICTORY SLIDE 21-28-9-5 1XH Mayes 1,357 1,165 49% 24% VICTORY SLIDE 22-27-9-5 2MXH Mayes 1,372 1,308 56% 21% VIRGINIA LIBERTY 3-34-9-5 2MXH Mayes 1,281 1,137 51% 17% WILKERSON 34-27-13-6 1MXH Mayes 912 778 48% 24% WILKERSON 34-27-13-6 2WXH Woodford 692 590 30% 33% 16-well average: 1,265 1,055 50% 21% Selected Wells Removed from Average due to improper co-development of the Mayes and Woodford intervals DON'S RANCH 6-31-30-9-5 2WXH Woodford 415 348 63% 17% SEABISCUIT 1-12-11-6 1WXH Woodford 563 546 21% 29% VICTORY SLIDE 22-27-9-5 1XH Woodford 313 271 84% 7% VIRGINIA LIBERTY 4-33-9-5 2WXH Woodford 108 74 76% 12% All 20-well average: 1,082 906 50% 21% 7 Note: IP rates are on a 3-stream, peak rolling 30-day or 90-day basis
Recommend
More recommend
