Company Presentation May 2018 Forward-Looking Statements This - PowerPoint PPT Presentation

Company Presentation May 2018

Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by terminology such as “may,” will,” “could,” “should,” “expect,” “plan,” “project,” “forecast,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “outlook,” “continue” the negative of such terms or other comparable terminology. All statements, other than historical facts included in this presentation, that address activities, events or developments that WildHorse Resource Development Corporation (WRD) expects or anticipates will or may occur in the future and such things as WRD’s future capital expenditures (including the amount and nature thereof), business strategy and measures to implement strategy, competitive strengths, goals, expansion and growth of WRD’s business and operations, plans, market conditions, references to future success, references to intentions as to future matters and other such matters are forward-looking statements. All forward looking statements speak only as of the date of this presentation. Although WRD believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. WRD cautions you that these forward-looking statements are subject to risks and uncertainties, most of which are difficult to predict and many of which are beyond WRD’s control, incident to the exploration for and development, production, gathering and sale of natural gas and oil. 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 natural gas and oil reserves and in projecting future rates of production, cash flow and access to capital; and the timing of development expenditures. Information concerning these and other factors can be found in WRD’s filings with the Securities and Exchange Commission (SEC), including its Forms 10-K, 10-Q and 8-K. Consequently, all of the forward-looking statements made in this presentation are qualified by these cautionary statements and there can be no assurances that the actual results or developments anticipated by WRD will be realized, or even if realized, that they will have the expected consequences to or effects on WRD, its business or operations. WRD has no intention, and disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise. Initial production rates are subject to decline over time and should not be regarded as reflective of sustained production levels. 2

I. Company Overview 3

Premier E&P Company with Top Tier Returns, Growth and Margins Key Investor Considerations Premier Acreage Position in the Eagle Ford  TOP TIER RETURNS, GROWTH AND MARGINS Second largest Eagle  89% growth in 2018 Eagle Ford production at guidance Ford position in the midpoint industry  High realizations and low operating costs lead to superior cash margins Eagle Ford Net Acres ~404,000  PROVEN ABILITY TO EXECUTE (3) Proved Reserves (MMboe) 385.6 % Liquids 88%  Outperformance of Gen 3 Eagle Ford wells % Oil 73%  Increased the Eagle Ford type curve to an EUR PV10 of Proved Reserves ($MM) $3,209 Q1'18 Production (Mboe/d) 40.4 of 95 Boe/ft from 91 Boe/ft (1) % Liquids 88% (4) Drilling Locations  Average of 117 wells, located throughout the Gross 4,785 acreage position, are outperforming the 95 Boe Net 3,207 (5) Development well IRR 60% per foot public Eagle Ford type curve  20%+ efficiencies in drilling days and cash operating costs/Boe achieved in 2017  POSITIONED FOR LONG TERM GROWTH  Deep Eagle Ford inventory  3,154 net locations at the 95 Boe/ft type curve (2) Peer Leading Production Growth in the Eagle Ford (5)  Over 30 years of inventory at current pace 50  Austin Chalk upside potential on ~100,000 net acres  Infrastructure in place to support long-term growth 40  FINANCIAL STRENGTH AND FLEXIBILITY 30 MBoe/d  Low leverage profile with no near term maturities  Net Debt / Q1’18 Annualized EBITDAX (7) 20 at 1.3x, expected to trend downward 10  Liquidity of $948 MM at Q1’18 (8) 0 2015 2016 2017 2018E 1. Eagle Ford wells drilled and completed as of March 31, 2018, excludes test wells and wells with insufficient production to estimate an EUR. 2. Includes locations outside of CGA’s 3P area. See “Management Locations” in the Appendix section of this presentation for more information. 3. Reserve data based on December 31, 2017 reserve report audited by Cawley, Gillespie & Associates (“CGA”) excluding the North Louisiana assets divested on March 29, 2018. 4. Includes 71 gross (53 net) Austin Chalk locations. 4 5. Based on consensus pricing as of 5/1/18: $61.50 / $2.97 for 2018, $62.00 / $3.00 for 2019, $62.75 / $3.01 for 2020, $61.00 / $3.15 for 2021, $57.00 / $3.20 for 2022 and thereafter for WTI and Henry Hub, respectively. 6. 2018E based on midpoint of guidance. 7. See slide 34 in the Appendix for reconciliation of EBITDAX. 8. Pro-forma for the issuance of $200 million of 6.875% Senior Notes due 2025 in April 2018 and repayment of borrowings under the revolving credit facility.

First Quarter 2018 Review: Best in Class Execution Production Growth (5) Year to Date Highlights  WRD delivered best in class execution in the first quarter 2018 Net Oil Production Net Production  Crude oil realizations in the first quarter of 2018 were 103% of WTI (Mbo/d) (Mboe/d)  117 Eagle Ford Gen 3 wells online continue to outperform the 95 Boe/ft type curve (1) 52.4  Brought online 19 gross (18.4 net) Eagle Ford wells and 4 gross (3.6 net) Austin Chalk wells in the first quarter of 2018  31.3 Strengthened balance sheet and liquidity position  Issued $200 million of 6.875% senior unsecured notes in April 2018 17.6  8.7 Net Debt / Q1’18 Annualized EBITDAX at 1.3x (2)  Increased the borrowing base on the credit facility to $1.05 billion from $875 million Q1’17 Q1’18 Q1’17 Q1’18  Liquidity increased by $359 million to $948 million from Q4’17 (3) Stock Price Outperformance Year to Date EBITDAX Growth and Decreasing Leverage (2) Net Debt / 150% EBITDAX Annualized WRD S&P E&P Index (SMM) EBITDAX 140% 41% 130% 158.6 36% 3 rd Best E&P Stock Performance Year-to-Date (4) Incremental 120% Return 110% 1.8x 5% 1.3x 100% 34.6 90% 80% Q1’17 Q1’18 Q1’17 Q1’18 Jan-18 Feb-18 Mar-18 Apr-18 May-18 1. Eagle Ford wells drilled and completed as of March 31, 2018, excludes test wells and wells with insufficient production to estimate an EUR. 2. See slide 34 in the Appendix for reconciliation of EBITDAX. 3. Pro-forma for the issuance of $200 million of 6.875% Senior Notes due 2025 in April 2018 and repayment of borrowings under the revolving credit facility. 5 4. Based on all U.S. E&P companies as of May 1, 2018. 5. Production data for the first quarter 2017 and 2018 includes the North Louisiana assets.

2018 Catalysts for Growth and Value Creation  Closed the North Louisiana divestiture positioning WRD as the premier Eagle Ford pure play Transition to Eagle Ford  Post divestiture, WRD has an oilier production profile with higher margin production, improved balance sheet Pure Play metrics and liquidity  Increased Eagle Ford acreage to ~404,000 net acres from ~263,000 net acres at year-end 2016  Proximity to Gulf Coast markets with no takeaway and logistical constraints Attractive  100% of crude oil production priced at a Louisiana Light Sweet (LLS) premium Differentials  Differentials drive top tier margins  WRD increased the Eagle Ford type curve to 95 Boe/ft from 91 Boe/ft based on continued outperformance Increased Eagle Ford  Plan to drill and complete 100 to 110 Eagle Ford and Austin Chalk wells in 2018 Type Curve  Active delineation program planned in the Eagle Ford and Austin Chalk  Development of an in-field sand mine will reduce D&C costs by an estimated $400K-$600K per well (a 58% reduction in sand costs at the midpoint) with an expected start date by first quarter 2019 Reduction in D&C Costs  Sand mine gives WRD greater operational control and reduces volatility in sand costs In-Field Sand Mine  Projected sand savings of $1.2 - $1.8 billion over ~3,000 net locations  Sand mine contains over 40+ years of reserves  Conservative location count of 53 net locations based on 1,500’ spacing and ~15,000 net acres. WRD expects that an additional ~85,000 net acres have Austin Chalk development potential Austin Chalk Upside  Conservative Washington County budget type curve of 341 Boe per foot (64% gas, 29% NGLs, and 7% oil)  Brought online the Morgan #1H/Brodnax #1H in Washington County with at an IP-30 (1) of 2,483 Boe/d or 14.9 MMcfe/d (67% natural gas, 32% NGLs, and 1% oil) on a 5,311’ lateral 1. The initial production rates represent the peak average of the initial production rates for the applicable consecutive days of production. 6