Johns nson on Rice e Conference ference, New ew Orlea eans ns, - - PowerPoint PPT Presentation

johns nson on rice e conference ference new ew orlea eans
SMART_READER_LITE
LIVE PREVIEW

Johns nson on Rice e Conference ference, New ew Orlea eans ns, - - PowerPoint PPT Presentation

NYSE American: GDP Manag agemen ment Presentat ntatio ion Johns nson on Rice e Conference ference, New ew Orlea eans ns, Louisi siana ana September, 2019 This presentation has been prepared by Goodrich Petroleum Corporation (the


slide-1
SLIDE 1

Manag agemen ment Presentat ntatio ion Johns nson

  • n Rice

e Conference ference, New ew Orlea eans ns, Louisi siana ana

September, 2019 NYSE American: GDP

slide-2
SLIDE 2

This presentation has been prepared by Goodrich Petroleum Corporation (the “Company”) solely for information purposes and may include "forward- looking statements" within the meaning of the U.S. Private Litigation Securities Reform Act of 1995. The Company, its respective employees, directors,

  • fficers or advisors, does not make any representation or warranty as to the accuracy or completeness of the information contained in the presentation
  • materials. The Company shall have no liability for this presentation, information contained herein, or any representations (expressed or implied),

whether the communications were oral or written. The statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include, but are not limited to forward-looking statements about acquisitions, divestitures, trades, potential strategic alliances, the availability of capital, the expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, hedging activities, capital expenditure levels and other guidance that may be included in this presentation. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. 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 expressed by the forward-looking statements. These include risks relating to the Company's financial performance and results, availability of sufficient cash flow to execute its business plan, prices and demand for oil, natural gas and natural gas liquids, the ability to replace reserves and efficiently develop current reserves, the ability to access the capital markets and finance operations, including capital expenditures, and

  • ther important factors that could cause actual results to differ materially from those projected as described in this presentation and the Company's

reports filed with the Securities and Exchange Commission. See "Risk Factors" in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

September, 2019 2

slide-3
SLIDE 3

>10 year inventory of high return core HS locations

High margin gas (HS), oil upside (TMS and EFS)

Low capital intensity from low decline rate PDPs

Cash margin expansion continuing in 2019

Low leverage on low reinvestment rate

Top-tier full cycle returns on low leasehold costs

Improving debt-adjusted growth for the multiple

2Q19 Average Production of 138 MMcfe/d

2Q19 Adjusted EBITDA of $21.5 Million

2Q19 Net Income of $11.8 Million (Includes MTM of Derivatives)

Return on Capital Employed (“ROCE”) of 18% on 2Q19 Annualized EBIT

TUSCALOOSA MARINE SHALE:

Gross (Net) Acres (2Q19): 49,000 (34,000) Proved Reserves (YE18 – SEC) 9 Bcfe Objectives: Tuscaloosa Marine Shale

EAGLE E FORD SHALE: E:

Gross (Net) Acres (2Q1 Q19): 18,000 (12,000) Proved Reserve ves (YE18 – SEC) 0 Objective ves: Eagle Ford Shale, Pearsall Shale & Buda Lime

HAYNESVILLE / BOSSIER SHALE ANGELINA RIVER TREND (“ART”)

Gross (Net) Acres (4Q18): 7,000 (3,000) Proved Reserves (YE18 - SEC) Objective: Haynesville & Bossier Shale

HAYNES ESVIL ILLE LE SHALE - CORE CORE

Gross (Net) Acres (2Q1 Q19): 39,000 (22,000) Proved Reserve ves (YE18 - SEC) 471 Bcfe2 Objective ve: Haynes nesvi ville Shale

>1.0 Tcf of natural gas resource potential in North Louisiana . Fully de-risked OPERA RATE TED OPPO PORTUN RTUNIT ITY STRONG RONG FUNDAME MENTA TALS 2Q19 19 HIG IGHLIG IGHTS TS

Texas Louisiana Mississippi

September, 2019 3

slide-4
SLIDE 4

PD-127 (26%) PUD-353 (74%) Oil (2%) Natural Gas (98%) NLA HAY CORE-471 (98%) TMS-9 (2%)

4 55 303 428 480 100 200 300 400 500 600 2015 2016 2017 2018* ETX TMS NLA - Haynesville Total

* SEC PV10 0 of $418 8 Mill llion

  • n

YE18 8 Prov

  • ved Rese

serv rves es by Area rea (Bcfe Bcfe, , %) YE18 8 Prove

  • ved

d Rese serv rves es by Category tegory (Bcfe cfe, , %) %) SEC Prove

  • ved

d Reserv eserves es (Bcfe cfe) YE18 8 Prove

  • ved

d Rese serv rves es by Commod

  • dity

ity

September, 2019

slide-5
SLIDE 5

(USD in thousands) Cash $ 1,669 Debt Senior Credit Facility 84,400 2L Convertible Notes (PIK) 12,135 Total Debt 96,535 Total Net Debt $94,866

September, 2019 5

slide-6
SLIDE 6

September, 2019

  • 20,000

40,000 60,000 80,000 100,000 120,000 140,000 160,000

Mcfe/Day /Day

Mcfe/Day

6 * Mid-Point of Guidance

slide-7
SLIDE 7

Period riod Nat atural ural Gas Volumes s Swap p Volumes s Collar lar Volumes s Swa wap p Price ce Collar lar Price ces s

(MCFPD PD) (MCFPD PD) (MCFPD)

CFPD)

3Q19 100,000 100,000 0 $2.89

4Q19 100,000 100,000 0 $2.89

1Q20 70,000 70,000 0 $2.87

2Q20 70,000 47,000 23,000 $2.58 $2.40 - $2.62

3Q20 70,000 45,000 25,000 $2.56 $2.40 - $2.62

4Q20 70,000 45,000 25,000 $2.59 $2.40 - $2.62

1Q21 70,000 43,000 27,000 $2.64 $2.40 - $2.62 Perio iod Oil Volumes s Swap p Volumes s Collar ar Volumes s Swap p Price ce Collar llar Price ces s (BOPD) OPD) (BOPD) OPD) (BOP OPD) D)

3Q19 300 300 0 $51.08

4Q19 300 300 0 $51.08

1Q20 250 250 0 $60.44

2Q20 225 225 0 $59.41

3Q20 210 210 0 $58.36

4Q20 200 200 0 $57.51

1Q21 200 200 0 $56.58 September, 2019 7

slide-8
SLIDE 8

Product uction 2019E 2019E

Annual Net Production: 49.3 – 52.9 Bcfe

Avg Daily Production (Mcfe/d): 135,000-145,000

Natural Gas: 98%

Capex pex (MM) $90 - 100

Price e Real alization ation HH Less $0.12 – 0.15

Unit Cost sts s (Per Mcfe)

LOE $0.20 – 0.30

Taxes $0.05 – 0.09

Transportation $0.40 – 0.48

G&A (Cash) $0.25 – 0.35

Activity y Well ells

Gross (Net) Wells: 12 (9.3)

Average Net Lateral Length: 8,000’

Percentage Operated (Net): 92%

Net Capit ital l Alloca catio ion

Bethany-Longstreet 67%

Thorn Lake 33%

Quarter erly ly Complet etio ion n Caden ence ce

1Q19 2 Gross (2.0 Net)

2Q19 3 Gross (2.6 Net)

3Q19 2 Gross (2.0 Net)

4Q19 5 Gross (2.7 Net)

Total 12 Gross (9.3 Net)

September, 2019

8

slide-9
SLIDE 9
  • 20%
  • 10%

0% 10% 20% 30% 40% GDP GDP

ROCE CE

September, 2019

Peer Group Includes: AMPY.APA,AR,AXAS,BCEI,BRY,CDEV,CHAP,CHK,CLR,COG,CPE,CRK,CRZO,CXO,DNR,DVN,ECA,EOG, EQT,ESTE,FANG,GDP,GPOR,HPR,JAG,KOS,LLEX,LONE,LPI,MCF,MGY,MR,MTDR,MUR,NBL,NOG,OAS, PDCE,PE,PVAC,PXD,QEP,REI,RRC,SBOW,SD,SM,SRCI,SWN,TALO,WLL,WPX,WTI,XOG Source: : Bloom

  • mbe

berg, , Compa pany (JSe Sept ptembe ber 3, 2019)

9

slide-10
SLIDE 10

$- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 GDP GDP

Capital tal Efficien iciency cy

September, 2019 10

Peer Group Includes: AXAS,BCEI,BRY,CHAP,CHK,COG,CPE,CRK,CRZO,CXO,DNR,DVN,ECA,EOG,ESTE,FANG, GDP,HPR,JAG,KOS,LLEX,LONE,MGY,MR,MTDR,MUR,OAS,PDCE,PE,PVAC,PXD,REI,SBOW, SRCI,TALO,WPX Source: : Bloom

  • mbe

berg, , Compa pany (Septe tember 3, 2019)

slide-11
SLIDE 11

1 2 3 4 5 GDP GDP

NET DEBT BT/EB /EBITDA ITDA

September 2019

Peer Group Includes: APA,AR,AREX,AXAS,BCEI,BRY,CDEV,CHAP,CHK,CLR,COG,CPE,CRK,CRZO,CXO,DNR,DVN,ECA, EOG,EQT,ESTE,FANG,GDP,GPOR,HPR,JAG,LONE,LPI,MCF,MGY,MPO,MR,MTDR,MUR,NBL, OAS,PDCE,PE,PVAC,PXD,QEP,REI,RRC,SBOW,SD,SM,SNEC,SRCI,SWN,TALO,UPL,WLL,WPX,WTI, XOG Source: : Bloom

  • mbe

berg, , Compa pany (Septe tember 3, 2019)

11

slide-12
SLIDE 12

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 GDP GDP

EV/EBITDA EBITDA

September, 2019

Peer Group Includes: AMPY,APA,AR,AREX,AXAS,BCEI,BRY,CDEV,CHAP,CHK,CLR,COG,CPE,CRK,CRZO,CXO,DNR,DVN,ECA ,EOG,EQT,ESTE,FANG,GDP,GPOR,HPR,JAG,KOS,LONE,LPI,MCF,MGY,MR,MTDR,MUR,NBL,OAS,PDCE, PE,PVAC,PXD,QEP,REI,RRC,SBOW,SD,SM,SRCI,SWN,TALO,UPL,WLL,WPX,WTI,XOG Source: : Bloom

  • mbe

berg, , Compa pany (Septe tember 3, 2019)

12

slide-13
SLIDE 13

GDP P 23,000 ,000 Net t Acres cres

Pay Zones

} 100 – 300 feet

September, 2019 13

slide-14
SLIDE 14

September, 2019 14

North Louisiana (Haynesville)

  • Total Gross/Net Acres:

~34,000/20,000

  • Average WI/NRI: ~59%/43%
  • Acreage HBP: 100%
  • 113 total producing wells (31

Operated)

  • 1/1/19 – Inventory of 214 gross (99

net) potential locations on 880’ spacing

  • Operator for Approximately 73% of

the NLA core position

  • CHK Joint Venture on most of the

remaining 27% of NLA Core Acreage

  • Recent Acreage Swaps Adding to

Operated and Long Lateral Acreage

  • Continuing to Look For Bolt-On

Opportunities Shelby Trough/Angelina River Trend (ART) Haynesville and Bossier Shales:

  • Total Gross/Net Acres: ~8,000/

3,000

  • Average WI/NRI: ~40% / 30%
  • Sale of Producing Wells and a

Portion of the Company’s Acreage for $23 Million

HAYNESV ESVILL ILLE E SHALE ~23,000 net Ac Greenw nwood- Waskom / Metcalf/ alf/Long ngwo wood 3,700 0 Net Ac Swan Lake/Tho horn rn Lake 1,300 0 Net Ac ART 3,000 0 Net Ac Ac

Beth thany ny Longst gstree reet 15,000 ,000 Net t Ac

Rig Source: Ulterra Bits

slide-15
SLIDE 15

HAYNESVILLE COMPLETION EVOLUTION

September, 2019 15 15

  • 4,600‘ Laterals
  • 1,000 lbs/ft Proppant
  • Hybrid Fluid
  • 300-450’ Frac Intervals
  • Cluster Spacing 50-70’
  • 10,000’ Laterals
  • 5,000+ lbs/ft Proppant
  • Slick Water & Hybrid Fluid
  • <100’ Frac Intervals
  • Cluster Spacing 20 - 50’
  • 4,600 - 10,000’ Laterals
  • 3,000 – 4,000 lbs/ft Proppant
  • Slick Water Fluid
  • 100 - 150’ Frac Intervals
  • Cluster Spacing 20 - 30’

Original Design Tested Current Design

Evolving completions maximize near-wellbore stimulation

slide-16
SLIDE 16

HAYNESVILLE – RECENT INDUSTRY ACTIVITY

September, 2019 16

(8) CHK ROTC 1 & 2 10,000’ Laterals IP: 72,000 Mcf/d 19 Bcf in 19 months (11) GDP-Wurtsbaugh 25-24 #2&3 7,500’ Laterals IP: 25,000 Mcf/d IP: 29,000 Mcf/d (10) GDP Wurtsbaugh 26 4,600’ Lateral IP: 22,000 Mcf/d (9) GDP MSR - Hunt 5H-1 4,600’ Lateral IP: 17,000 Mcf/d (22) CHK Black 1H IP: 44,000 Mcf/d 10,000’ Lateral (21) Vine HA RA SU74;L L Golson 3 - 003-ALT IP: 18,800 Mcf/d 4,661’ Lateral

  • 5. CHK

GEPH Unit IP: 47,988 Mcf/d 15,000’ Lateral

  • 4. CRK

HUNTER 28-21HC 1&2 IP: 27,000 Mcf/d each 9,200’ Laterals (13) GDP Franks 25&24 #1 IP: 30,000 Mcf/d 9,600’ Lateral (12) GDP Wurtsbaugh 25-24 #1 8,800’ Lateral IP: 31,000 Mcf/d (19) GDP Cason-Dickson #1&2 IP: 31 MMcf/d, IP: 23 MMcf/d 8,000 & 3,000’ Laterals

  • 3. CRK

FLORSHEIM 9-16 HC #1&2 10,000’ Laterals IP: 26,500 Mcf/d IP: 27,600 Mcf/d (20) GDP Cason-Dickson 23&24 #3&4 IP: 62,000 Mcf/d 9,300’ Laterals (18) GDP Harris 14&23 #1 IP: 27,500 Mcf/d 6,100’ Lateral (14) GDP Loftus 27&22 #1 & 2 26,000 Mcfe/d 25,000 Mcfe/d 7,500’ Laterals (15) GDP Demmon 34H #1 22,500 Mcf/d 4,600’ Lateral (16) GDP Wurtsbaugh 35H #1 IP: 22,500 Mcf/d 4,600’ Lateral (7) CRK Cook 21-28 HC #2 10,000’ Lateral IP: 26,800 Mcf/d 3,798#/ft (6) CRK Cook 21-28 HC #1 10,000’ Lateral IP: 25,600 Mcf/d 3,803#/ft (2) CRK Nissen 28-21HC #2 10,000’ Lateral IP: 25,000 Mcf/d 3,801#/ft (1) CRK Nissen 28-21HC #1 10,000’ Lateral IP: 27,000 Mcf/d 3,796#/ft (17) Covey Park Tucker 31-6C H1 IP 18,045 Mcf/d 7,466’ Lateral

1 2 3 4 5 6 7 8 9 10-16 17 18-20 21 22

(22) GDP Melody Jones 20H-1 4,600’ Lateral IP: 22,000 Mcf/d

22

slide-17
SLIDE 17

265 263 260 256 250 245 235 223 209 201 200 193 191 178 164 154 152 142 138 126 120 114 106 92 89 84 82 67 65 62 56 47 43 43 39 31

10 100 1,000 10,000

100 1,000 10,000 100,000 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36

Well Count

Gas Production, Mcfpd Months

Recent Haynesville 4,600' Wells

Company Type Curve: EUR: 11.5 Bcf (2.5 Bcf/1,000 ft) Company Type Curve: EUR: 9.2 Bcf (2.0 Bcf/1,000 ft) GDP, 5 Well Average (Avg 3,995' LL; 4,156 #/ft Frac) Industry Average Well Performance 265 Wells (3,125 #/ft Frac)

SI - Offset Fracs

Industry Average Proppant 2,775 #/ft Industry Average Proppant 3,365 #/ft

September, 2019 17

slide-18
SLIDE 18

178 176 177 178 177 175 171 167 156 155 151 140 139 132 127 117 107 103 86 83 67 68 64 57 49 46 42 38 34 32 31 31 29 26 23 14

10 100 1,000 10,000

100 1,000 10,000 100,000 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36

Well Count

Gas Production, Mcfpd Months

Recent Haynesville 7,500' Wells

Company Type Curve: EUR: 18.75 Bcf (2.5 Bcf/1,000 ft) Company Type Curve EUR: 15.0 Bcf (2.0 Bcf/1,000 ft) Industry Average Well Performance 178 Wells (3,026 #/ft Frac) GDP, 9 Well Average (Avg 7,638' LL, 3,646 #/ft Frac) Industry Average Proppant 2,511 #/ft Industry Average Proppant 3,354 #/ft

September, 2019 18

slide-19
SLIDE 19

152 141 143 139 135 129 123 118 112 103 96 89 77 68 67 60 53 51 44 36 28 27 25 21 19 17 12 12 10 10 8 7 6 6 4 4 1 10 100 1,000 100 1,000 10,000 100,000 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36

Well Count

Gas Production, Mcfpd Months

Recent Haynesville 10,000' Wells

Company Type Curve: EUR: 25 Bcf (2.5 Bcf/1,000 ft) Company Type Curve EUR: 20 Bcf (2.0 Bcf/1,000 ft) Industry Average Well Performance 152 Wells (2,956 #/ft Frac) GDP, 8 Well Average (Avg 9,656' LL; 3,462 #/ft) Industry Average Proppant 2,198 #/ft Industry Average Proppant 3,248 #/ft

September, 2019 19

slide-20
SLIDE 20

September, 2019 20

Assumptions Louisiana EUR 11.5 Bcf (2.5 Bcf/1,000’) Sales Gas BTU Price Adjustment 1.020 Pricing Differentials/ Transportation Average - NYMEX less $0.15 / MMBtu Transportation: $0.35 / Mcf Fixed Opex Fixed Opex: $3,290 / month Variable Opex $0.07 / Mcf Severance Tax Payout or 24 month tax holiday; thereafter $0.12 / Mcf Ad Val Tax $0.04 / Mcf Royalty Burden 27.0% D&C Capex $8.5 MM Facilities Capex $0.185 MM, included in D&C Capex Spud to 1st Sale 60 Days PV10 (M$)

($3.00/Mcf Pricing)

$4,875 Economic EUR’s vary depending on gas price assumptions. 100 1,000 10,000 100,000 20 40 60 80 100 120 Avg g Daily y Produ ducti tion

  • n (Mcfpd

pd) Month ths

4,600' Lateral ral Type Curve ve 4,600' Lateral

IRR Sensitivity Analysis (IRR sensitivity to EURs and Capex) IRRs Incorporates Early Time Outperformance

EUR Capex (Mmcfe) ($M) 90% 100% 110% 90% 100% 110% 2.25 4.5% 11.8% 20.3% 2.25 19.1% 11.8% 6.5% 2.50 14.7% 25.0% 37.3% 2.50 35.8% 25.0% 17.2% 2.75 27.0% 41.3% 58.3% 2.75 56.5% 41.3% 30.3% 3.00 41.9% 61.0% 83.6% 3.00 81.4% 61.0% 46.2% 3.50 80.0% 111.5% 148.8% 3.50 145.5% 111.5% 86.8%

Ownership: WI 100% - NRI 73% Pricing: Flat Pricing AFE: Two well pad.

Gas Price Gas Price

slide-21
SLIDE 21

September, 2019 21

Assumptions Louisiana EUR 18.75 Bcf (2.5 Bcf/1,000’) Sales Gas BTU Price Adjustment 1.020 Pricing Differentials/ Transportation Average - NYMEX less $0.15 / MMBtu Transportation - $0.35 / Mcf Fixed Opex Fixed Opex: $3,290 / month Variable Opex $0.07 / Mcf Severance Tax Payout or 24 month tax holiday; thereafter $0.12 / Mcf Ad Val Tax $0.04 / Mcf Royalty Burden 27.0% D&C Capex $10.9 MM Facilities Capex $0.185 MM, included in D&C Capex Spud to 1st Sale 60 Days

PV10 (M$)

($3.00/Mcf Pricing)

$10,198 Economic EUR’s vary depending on gas price assumptions. 100 1,000 10,000 100,000 20 40 60 80 100 120 Avg g Daily y Produ ducti tion

  • n (Mcfpd

pd) Month ths

7,500' Lateral ral Type Curve ve 7,500' Lateral

IRR Sensitivity Analysis (IRR sensitivity to EURs and Capex) IRRs Incorporates Early Time Outperformance

EUR Capex (Mmcfe) ($M) 90% 100% 110% 90% 100% 110% 2.25 18.3% 27.7% 38.7% 2.25 37.8% 27.7% 20.4% 2.50 31.4% 44.7% 60.0% 2.50 58.9% 44.7% 34.2% 2.75 47.1% 65.0% 85.7% 2.75 84.2% 65.0% 50.8% 3.00 44.7% 88.9% 115.9% 3.00 114.1% 88.9% 70.4% 3.50 65.7% 148.7% 192.1% 3.50 189.3% 148.7% 119.0%

Ownership: WI 100% - NRI 73% Pricing: Flat Pricing AFE: Two well pad.

Gas Price Gas Price

slide-22
SLIDE 22

September, 2019 22

Assumptions Louisiana EUR 25.0 Bcf (2.5 Bcf/1,000’) Sales Gas BTU Price Adjustment 1.020 Pricing Differentials/ Transportation Average - NYMEX less $0.15 / MMBtu Transportation - $0.35 / Mcf Fixed Opex Fixed Opex: $3,290 / month Variable Opex $0.07 / Mcf Severance Tax Payout or 24 month tax holiday; thereafter $0.12 / Mcf Ad Val Tax $0.03 / Mcf Royalty Burden 27.0% D&C Capex $13.1 MM Facilities Capex $0.185 MM, included in D&C Capex Spud to 1st Sale 60 Days

PV10 (M$)

($3.00/Mcf Pricing)

$14,376 Economic EUR’s vary depending on gas price assumptions. 100 1,000 10,000 100,000 20 40 60 80 100 120 Avg g Daily y Produ ducti tion

  • n (Mcfpd

pd) Month ths

10,000' Lateral ral Type Curve 10,000' Lateral

IRR Sensitivity Analysis (IRR sensitivity to EURs and Capex) IRRs Incorporates Early Time Outperformance

EUR Capex (Mmcfe) ($M) 90% 100% 110% 90% 100% 110% 2.25 24.8% 35.9% 48.5% 2.25 47.6% 35.9% 27.1% 2.50 40.1% 55.4% 72.9% 2.50 71.8% 55.4% 43.1% 2.75 58.2% 78.5% 101.9% 2.75 100.5% 78.5% 62.2% 3.00 79.3% 105.6% 135.8% 3.00 134.1% 105.6% 84.4% 3.50 131.0% 172.3% 220.3% 3.50 217.6% 172.3% 138.9%

Ownership: WI 100% - NRI 73% Pricing: Flat Pricing AFE: Two well pad.

Gas Price Gas Price

slide-23
SLIDE 23

Haynesville Generating Superior Returns Regardless of Commodity

  • Incorporating Company Hedges and Blended Average Lateral Length for 2019

Generates 45% - 89% IRR from $2.50 - $3.00 per Mcf

Continued Strong EBITDA Growth in 2019 Driven by Substantial Increase in Production on a Lower Unit Cost Structure

  • Production and EBITDA Projected to Double with Similar Capex and EBITDA

Eagle Ford and TMS Positions Provide Leverage to Oil Prices and Strategic Optionality

  • Encouraging Recent Offset Activity

Focusing on Strategic Acquisitions That Add Inventory While Keeping Debt Metrics 1.5X or Less

  • Completed Several Small Bolt-On Deals in 2018 Which More Than Replaced
  • Inventory. Expect to do More in 2019

September, 2019 23