ENERCOM AUGUST 14, 2017

Transcription

1 ENERCOM AUGUST 14, 2017

2 Introduction Ameredev II is an Austin-based exploration and production company focused on the acquisition and development of oil and gas properties in the United States Backed by a $400 million equity commitment from EnCap Investments, L.P. and members of Ameredev management Committed to a focus on relationships, a balanced commercial and technical perspective, and an emphasis on capital preservation Building capital-ready development projects with supporting infrastructure, resource delineation, regulatory approvals, and partner agreements generating top tier life-cycle IRRs Currently focused on acquiring leasehold in the Stateline area of the Delaware Basin 2

3 Management Team TEAM EXPERIENCE Parker Reese Chief Executive Officer Previous roles with Three Rivers Operating Company I/II, Cimarex Energy Co., and ConocoPhillips Texas A&M University BS Petroleum Engineering Registered Professional Engineer Floyd Hammond Chief Operating Officer Ron Zboril Chief Financial Officer Eric Rhoden VP Geology Noah Bramble VP Land Previously with Cimarex Energy Co. Tulsa University BS Petroleum Engineering Registered Professional Engineer Previously Vice President within JP Morgan s Oil and Gas Investment Banking team Baylor University BBA University of Texas MBA CFA Charterholder Previous roles with Arête Resources, Texas American Resources, and LLOG Exploration College of Charleston BS Geology Previously with Business Development team at Concho Resources Colorado State University BBA 3

4 Permian Basin Experience Permian Basin experience 500+ wells drilled $ 5+ Bn M&A Source: 1Derrick, IHS 4

5 Ameredev I Aggregated contiguous, operated ~16,700 1 net acre position through 10 acquisitions and grassroots leasing Located in structurally quiet basin floor position with multiple stacked resource targets in the core of the Southern Delaware Basin over-pressured oil window Supported by developed in-field infrastructure for gas gathering and compression and salt-water disposal - enhancing value and enabling rapid, efficient development Grew production 140% through well cleanout program, DUC completion, and development drilling Operated Boe/d 3 4,000 3,500 3,000 2,500 2,000 1,500 1,000 Ameredev operations /2010 5/2011 5/2012 5/2013 5/2014 5/2015 5/2016 5/2017 Oil EUR / 1,000 Lateral 4 Drilled two 10,000 lateral length Wolfcamp horizontals Corbets WA: 147 bo/ft EUR 2 Saratoga WB: 110 bo/ft EUR 2 Sold to Callon Petroleum Company on February 13, currently running 1 rig program in this area 2 1. CPE acquisition closing press release (2/13/17) 2. CPE 2Q 17 earnings call (8/3/17) 3. IHS 4. RS Energy Research 5

6 Ameredev II Corporate Overview Overview Asset map Established a contiguous, long term, acreage position within a highly coveted area of the Northern Delaware Basin with resilient activity levels and returns at current oil prices 13,246 net / 22,735 gross acres 30 rigs active in the Stateline Area Extension of over-pressured Wolfcamp oil trend championed by, RSP Permian, Diamondback, Jagged Peak, and others... southern Lea could end up being some of the most valuable acreage in the US... ~TPH Energy Thoughts 1 Delaware Basin is arguably the most prolific tight oil play in North America ~Lloyd W. Helms Jr. - EVP of E&P 2 "the returns from what we can see in the Delaware, at least in the Wolfcamp, could be superior to what we have in the Midland Basin ~Steven Gray - RSP Permian CEO 3 Contiguous acreage position provides superior lifecycle returns through enhanced long lateral economics and capital efficient in-field infrastructure development opportunities 2 gross / 2.0 net capital program for Q Methodically pursuing additional grassroots leasing and bolt-on acquisition opportunities 1. TPH Energy Thoughts June 27, Q1 earnings call May 9, RSPP Q1 earnings call April 23,

7 Industry Well Results Stateline Area Gaucho Unit 14H 2 nd Bone Spring IP30: 1,922 BOE/D LL: 4,801 Devon Leghorn 32 St. 201H Avalon IP30: 2,611 BOE/D LL: 4,914 Nocaster 19 Fed 3H 2nd Bone Spring IP30: 1,711 BOE/D LL: 4,562 COG Neptune 10 St. Com 2nd Bone Spring (3 well avg) IP24: 3,620 BOE/D LL: 9,700 Neptune 10 St. Com 701H IP24: 5,327 BOE/D LL: 8,482 Hound 30 Federal 704H IP24: 4,528 BOE/D LL: 7,000 Whirling Wind 14 Fed (4 well avg) IP30: 5,060 BOE/D LL: 7,100 Endurance 36 State C 706H IP30: 2,326 BOE/D LL: 7,157 Brunson Noah B Unit 1H Wolfcamp B IP30: 1,191 BOE/D LL: 9,287 Beowulf 33 St. Com 601H IP24: 2,765 BOE/D LL: 7,289 Fascinator Fee Com 2H 3rd Bone Spring IP30: 1,790 BOE/D LL: 7,465 COG Viking Helmet St. 2H 3rd Bone Spring IP30: 1,844 BOE/D LL: 7,383 COG Yates 16 St. 1H Brushy Canyon IP30: 1,487 BOE/D LL: 4,821 COG Talco Fed 3H IP24: 1,257 BOE/D LL: 7,391 Endurance Totum 18-TTT-C24 NL 211H IP30: 1,522 BOE/D LL: 4,935 Matador Grizzly 1H Wolfcamp B IP30: 1,323 BOE/D LL: 4,103 Lilis Hippo 1H Wolfcamp B IP30: 1,506 BOE/D LL: 4,228 Lilis Bison 1H Wolfcamp B IP30: 2,144 BOE/D LL: 6,987 Lilis Source: IHS and Company IP 7

8 Stateline Area Wolfcamp Peer Benchmarking EUR / lateral length (Boe / ft.) Peer median: 205 Boe/ft. Peer 1 Peer 2 Peer 3 Peer 4 D&C cost / lateral length ($ / ft.) $1,333 $1,120 $1,311 $1,086 Peer median: $1,216/ft. Peer 1 Peer 2 Peer 3 Peer 4 Lateral length 4,500 5,000 4,500 7,000 EUR (Mboe) 750 1,100 1,050 1,330 D&C ($mm) $6.0 $5.6 $5.9 $7.6 LOE / Boe ($/boe) $4.77 $5.55 $4.72 $4.64 Peers include:, MTDR, RSPP and WPX 8

9 Over-pressured Wolfcamp Oil Window Trend Woodford Structure WB WB 3 rd Bone Spring 3 rd Bone Spring 9

10 Optimal Position Updip of Basin Axis W E 2 nd Bone Spring 3BS WA Ameredev II Land Position WB Wolfcamp Structure W E WB Central Basin Platform Basin Axis 10

11 Ameredev II Highlights Track record of building top-tier development projects in core areas of the Permian Basin Established largely contiguous land position in the Stateline area of Lea County The over-pressured Wolfcamp oil window trend features resilient returns and activity levels Preparing for capital program to commence in Q