Amplify Energy Corp. · NYSE:AMPY
Amplify Energy — Memorial Production Partners — Debt Investor Presentation (December 2016)
41 slides from Amplify Energy's debt investor presentation, Dec 23, 2016
Slide 1: Discussion Materials for the Ad Hoc Committee of the Noteholders
Confidential Prepared in connection with settlement discussions - subject to FRE 408 and ‘similar provisions Discussion Materials for the Ad Hoc Committee of the Noteholders November / December 2016 Memorial Production Partners PEW) | ban ras
Slide 2: Disclaimer & Other Cautionary Statements
Confidentiat Prepared in connection with settlement ' . discussions ~ subject to FRE 408 and Disclaimer & Other Cautionary Statements ‘simitar provisions Precentason' sty poked “is Preeitn has been uh suet othe ems lhe cofenaty green xed by te ect he cf hs Pression, by "snaps rd eftas te apenas be b
Slide 3: Table of Contents
Table of Contents Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and ‘similar provisions Company Overview Asset Overview Business Plan Summa Restructuring Agreement Summary Appendix
Slide 4: Introduction / Agenda / Situation Overview
Confidentiat Prepared in connection with settlement discussions - subject to FRE 408 and ‘similar provisions Introduction / Agenda / ituation Overview 7.
Slide 5: Memorial Production Partners Management Team
Prepared in connection with settlement . . discussions - subject to FRE 408 and Memorial Production Partners Management Team ‘simitar provisions YEARS OF PRIOR AFFILIATIONS / EXPERIENCE EXPERIENCE President + President of Memorial Resource Develop Preskent ond CEO of twos NGP potolo panies; vaiely o
Slide 6: Agenda
Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and Agenda ‘similar provisions “Memorial” or the “Company”) is G) @ @m @ @® Proposed timing and next steps Pew/P a
Slide 7: Current Situation Update
Current Situation Update Confidentiat Prepared in connection with settlement discussions - subject to FRE 408 and ‘similar provisions operational * Divesting certain higher cost, non-core properties. + Suspending equity distributions going forward ives, including: December 15 November 1 bond interes
Slide 8: Capital Structure Summary
Confidentiat Prepared in connection with settlement . discussions subject to FRE 408 and Capital Structure Summary ‘simitar provisions ($ in millions) CAPITAL STRUCTURE Market Market Market weld To Description Price Valve Leverage Rate Worat'___Maturty Revolver" $703 +325, Mar-18 Secured US DOH 5705
Slide 9: Company Overview
Confidentiat Prepared in connection with settlement discussions - subject to FRE 408 and ‘similar provisions Company Overview pew aoe Weill
Slide 10: Diverse, Long-Lived Assets
Confidential Giscussione™ subject 0 PRE 408 and “subject to. ‘and Diverse, Long-Lived Assets() ‘similar provisions Sorte Proton (Mmefe'd) otal Proved Reserve Life (R/P) serves (MMBoe) oC UguideReveres SAt6 Avo Proust ion fe (RIP) 269 Production (Mmete) Proved Reserves (MI 28, % Oil Reserves gesenve
Slide 11: Reserve Overview by Asset
Reserve Overview by Asset (Sin millions) California 8 | 1755 | 130% | ste173 stagr7 stone19 — szesa23a7.% East Texas 1543321 reas | 5208 | 41.7% | 22417 12.625 © 40,548 335691 «31.9% Rockies 116 1943 2007 | 4508 2% | 204162 46410 94,888 45.459 2.8% ‘South Texas / Eagle Ford 19775 1 8 60, 6203 20,566
Slide 12: Growth & Diversification
Confidentiat Prepared in connection with settlement sions Growth & Di 019 Don as = : = MEMP at IPO?) MEMP MY 2016 1,270 Bcfe~ RIP of 16.3 Ye 325 Befe-R/P of 17 Years, ~50% equity /~50% high yield Acquisitions funded by AGM Weil Meme bec Zs
Slide 13: Significant Hedging Profile
Confidentiat Prepared in connection with settlement discussions subject to FRE 408 and Significant Hedging Profile ssinler provisions 016 ‘YEAR ENDING DECEMBER 31, 20160 Natural Gas Derivative Contracts Elan ianinabeae sv $405 S418 St Percent of expected 2016 production hedges 98% 93% 25% 70% ‘rude
Slide 14: Operational and financial performance vs. Wall Street estimates
Confidentiat Prepared in connection with settlement Operationa' Wall Street Estimates y Beaung discussions - subject to FRE 408 and simitar provisions production targets (Sin millions) ADJU ISTED EBITDA E See $81.3 | | 6 $84.1 $768 $769 | 2016 3016 m= Wall Street Estimates = MEMP Actual
Slide 15: Cost savings achieved to date
Confidentiat Prepared in connection with settlement i . . ots discussions ~ subject to FRE 408 and ig p g to Date similar provisions $50.0 $45.4 = $450 & sao0 fal 2 g $35.0 6 8 $300 3015 4015 1016 2016 3016 $1.55 to $1.65
Slide 16: Capital efficiency achieved to date
Confidentiat Prepared in connection with settlement . . Sree ool a ote p Ach d to Date simitar CAPITAL $100 $1,600 _ $1,200 <° S008 ~, $60 4 Rae EO; 2 ss00 = ~ $40 4 + $400 s20 | $0.0 $0 2014 Completed 2015 Completed ® 316 Completed © mmAverage C&C Cost ($M) D&C per CLL (Sift) 3Q16 vs. 2014 =D — Ser
Slide 17: Key Partnership Highlights
Key Partnership Highlights Team
Slide 18: III. Asset Overview
Confidentiat Prepared in connection with settlement discussions - subject to FRE 408 and ‘similar provisions Ill. Asset Overview pew aoe Weill
Slide 19: East Texas / North Louisiana: Core Position with Upside
‘connection with settlement Confidential discussions subject fo FRE 408 and East Texas / North Louisiana: Core Position with Upside *mirprovisions ASSET OVERVIEW ASSET LOCATION + Key Fields: Joaquin, Carthage and Henderson fields + Primary Formations: Cotton Valley, Travis Peak + Estimated Net Prove
Slide 20: East Texas Type Curve
East Texas Type Ci a engin — wuhicr 1000 FT 0 100 150 200 250 TYPE CURVE PARAMETERS IP (MCFD) actor Initial De (%) EUR Gross Gas (MMCF) IRVE Normalized Gross Daily Production per 1,000" CLL ECONOMICS @ STRIP PRICING CLL (ft) Gross D&C Cost ($M) 10/28/2016 Peak ie (@6MMcFD/ 12 MMCFD) NRI (78.4% 189.7
Slide 21: Rockies: Long-Lived Assets
Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and jes: , Long-Lived Assets ‘similar provisions ASSET OVERVIEW ASSET LOCATION Counties, WY + Key formations for tertiary oil recovery: Darwin Madison, Cambrian pe sein: ater production frm the Muddy, Lakota, Bucksp
Slide 22: California Asset Overview
Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and i i ig ifi igi: il in Place ‘similar provisions ASSET OVERVIEW ASSET LOCATION = Bele ow Angelos org Beach a een ns - 2wellhead platforms each with a permanent drilling rig: 1 processing platform; associated pipe
Slide 23: Beta Type Curve
Beta Type Curve TYPE CUI Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and ‘similar provisions ECONOMICS @ STRIP PRICING IRVE ‘Gross Daily Production of D Sand Wells » Se Average © 8 Sona g Comoiton 2 100 3 — Type cine a PARAMETERS IP (BOPD) 360 ctor 0s Initial
Slide 24: South Texas: Stable Eagle Ford Liquids Upside
Giscussions~ subject 0 FRE 408 and South Te Stabl i Ford Liquids s Upside EAGLE FORD ASSET OVERVIEW ASSET LOCATION Eagle Ford | 15,000 gross acres ss + Eagle Ford Producing Wells: 203 gross (17 net) = 100% non-op with primary operator, Murphy Oil ate eserves: 3.9 MMBoe"") ~ 90% liquids; 53% proved d
Slide 25: Eagle Ford Type Curve
Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and Eagle Ford Type Curve ‘simitar provisions TYPE Cul ECONOMICS @ STRIP PRICING Gres Bay Production ane) =a a Gross D&C Cost (SM) 4,800 600 ROR (2 § 0 5 00 PV 10" (SM) 396 = “ bo —— Und Payout" (yrs) 4.04 ” Price s
Slide 26: IV. Business Plan Summary
Confidentiat Prepared in connection with settlement discussions - subject to FRE 408 and ‘similar provisions IV. Business Plan Summary pew aoe Weill
Slide 27: Base Case Assumptions
Confidential CFocussione= subject oPRE 408 ond subject. Base Case Assumptions ‘simitar provisions * The Company’s Base Case assumes: (5-6 net wells / year) 400M |, 2016: $3.35 — Cash G&A forecast of $9.0M / quarter PEW! [os aoe Weill INBERG Source: MEMP model dates 12086 a
Slide 28: Base Case Summary
Base Case Summary Net Production Volume ‘08 (88) 3.548 are aes 37 NGL (ERY 2216 2307 24 2405 Gas tet 35.348 37.135 s7822 37.967 Total Net Production Values (MWe) 9.510 75888 75358 7475 Dally Production Volume ns 97 04 105 104 (MBv6) 61 64 67 66 86 a ‘men 68 1017 1096 1028 1040 werage Net Daly Prodco
Slide 29: Capital Expenditures by Region
Eee discussions ~ subject to FRE 408 and F y Region ‘similar provisions 2 (Sin thousands) $42,500 $10,000 2019 astTexas Eagle Ford © Rockies. California sous: MEM model de 12085 -
Slide 30: Reoccurring capital expenses by asset
Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and ‘similar provisions year thereafter Bairoil California East Texas South Texas and Eagle Ford pew $10M of reoccurring capital expenses S7M for ety maintenance $3M for a 15 day tumaround every year ~$8M reoccurrin
Slide 31: Base Case EBITDA and Free Cash Flow Sensitivity
Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and 'y ‘similar provisions (Sin millions) UNHEDGED EBITDA” UNHEDGED UNLEVERED FREE CASH FLOW") $750 $200 $23: $232 $290 225” 210 st09 160 st92 S187 Hos $121 si $128 $127 17e459 si64 , dy sao $88 $88 “i bod $128 oo 1
Slide 32: V. Restructuring
Confidentiat Prepared in connection with settlement discussions - subject to FRE 408 and ‘similar provisions V. Restructuring ue Wei
Slide 33: Restructuring Agreement Summary
Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and ‘similar provisions Transaction Implementation RBL Facility Unsecured Notes General Unsecured Claims (GUCs) Existing Unitholders: ‘Management Incentive Plan Tax Structure Prepackaged Chapter 11 Unimpaired Receiv
Slide 34: VI. Appendix
Confidentiat Prepared in connection with settlement discussions - subject to FRE 408 and ‘similar provisions VI. Appendix
Slide 35: Growth Case Assumptions
Confidential Giscussione™ subject 0 PRE 408 and subject. Growth Case Assumptions ‘similar provisions (5-6 net wells / year) $150M eee Weill / panrners source: MEM mec dnes Y20518 38
Slide 36: Growth Case EBITDA and Free Cash Flow Sensitivity
Confidentiat Prepared in connection with settlement er 4 discussions ~ subject to FRE 408 and h y y ‘similar provisions (Sin millions) ul INHEDGED EBITDA UNHEDGED UNLEVERED FREE CASH FLOW?) 100 20) 2017E 2018 20196 20008 2O7e 2018 20198 20008 stip 0% 20% 0% tip ——H10% 20 = 0% % of NYMEX Strip Pricin
Slide 37: No Development Case Assumptions
Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and ‘similar provisions — No operated rigs running source: MEMP melds 1/748 37
Slide 38: No Development Case: NYMEX Price Sensitivity Analysis 2017E
Contfidentia! No Development C: Prepared in connection with settlement discussions ~ subject to FRE 408 and NYMEX Price Sensitivity Analysis ‘simitar provisions (S in thousands) 2017E UNHEDGED EBITDA 2017E UNLEVERED FREE CASH FLOW") 141.519 basa ($107,428 $83,763 az I 7 i stip 110% 120% stip +10% 12
Slide 39: No Development Case: NYMEX Price Sensitivity Analysis 2018E
No Development C: NYMEX Price Sensitivity Analysis ‘simitar provisions (Sin thousands 018E UNHEDGED EBITDA $81,146 Strip % of NYMEX Strip Pri $55,238 $52,720 L] = +10% +10 2018E UNLEVERED FREE CASH FLOW") $107,085 $78,752 420% Sip ing (10/28/16) % of NYMEX Strip Pricing (10/28/16) — Status Quo (Stri
Slide 40: Projected Adjusted EBITDA Reconciliation
Confidentiat Prepared in connection with settlement ‘discussions - subject to FRE 408 and Fi sted Adj Recon n ‘similar provisions (Sin thousands) Calculation tN TON Net incom ($50,720) ($59,995) ($59,998) (60.438) (863.212) Interest expen: 19,058 17.875 17.747 18,008 16,768 Depletion epredton, and a
Slide 41: Historical Adjusted EBITDA Reconciliation
Confidentiat Prepared in connection with settlement discussions ~ subject to FRE 408 and Historical Adj ‘similar provisions (Sin thousands) 3 Months Total 3.Months 3Months 3 Months Historical 4Q15 2015 1016 2016 3Q16 Net Income $73,007 ($395,491) (838,097) ($147,550) ($32,866) Add (De Interest 26,74
Memorial Production Partners — Debt Investor Presentation (December 2016) on 6ix