Abraxas Petroleum — Investor Presentation (December 2019)
30 slides from Abraxas Petroleum's investor presentation, Dec 11, 2019
Slide 1: Abraxas Petroleum Corporation
Abraxas Petroleum Corporation December 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements ABRAXAS EEE as The information presented herein may contain predictions, estimates and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes tha
Slide 3: Corporate Profile
Corporate Profile ABREXAS nn NASDAQ: AXAS Headquarters... . San Antonio EV/BOEM.. $3.44 Shares outstanding... . 167mm Proved Reserves". 68.3 mmboe Market cap. $43mm NBV Non-Oil & Gas Assetst...... $20.1 mm Net debt .. $192mm Production®)... . 6,519 bopd (RBL... $92mm) (9899 boepd) (2" Lien $100mm) R
Slide 4: 2020 Operating and Financial Guidance
2020 Operating and Financial Guidance ABRAXAS Prelim 2020 Capex Budget Allocation Prelim 2020 Operating Guidance ca Tih Capital — of Gross (Net Operating Costs (smm)__Total__Wells__wells case Permian- Delaware s2i 64a 8 24 LOE ($/80) $9.00 $12.00 Bakken/Three Forks $2758 S6-74% 620 5.4155 peoauction
Slide 5: Revised Guidance 2019
Revised Guidance 2019 ABRAXAS Switching to barrels oil from barrels of oil equivalent format * Gas & NGL have become insignificant revenue generators compared to percent of production "Gas & NGL are tied to 3rd party gathering and processing, subject to unpredictable shut-ins, thus significant sourc
Slide 6: Historical Reserve & Production Growth
Historical Reserve & Production Growth ABRAXAS Neen Proved Reserves Summary = YE18 total proved reserves up 3% YoY OF oe NGL Tees PIO Wve2018__(w)_(wc_(wbi)_(winidos} _ {es = 55% increase over last 3 years ror 12,708 39,177 3,673 72,586 5 359,189 = 14% CAGR since 2013 lene 798403812560 §22687| é lpu
Slide 7: The Abraxas Advantage
The Abraxas Advantage ABRAXAS Es * Basin / GeologicBenefit © Core acreage positions in the Bakken and WTX (Delaware Basin) ® 11,500 net mineral acres in WTX (95% Operated, HBP) = Deep inventory of high quality locations in WTX providing 20 years of development with 2 rigs!) = Royalty / Leasehold Ben
Slide 8: Asset Base Overview
Asset Base Overview
Slide 9: Delaware Basin
Delaware Basin ABRAXAS ———— Permian Basin— Wolfcamp & Bone Spring [LexsenoLo oPERAToRs| z Winkler CHEVRON
Slide 10: Evolution in the Delaware Basin
Evolution in the Delaware Basin “KL TiAbrexas Opersted Acreage [i AbrevasNion Operas Acreage L 1 I /Reeve: 10
Slide 11: Delaware Basin Inventory
Delaware Basin Inventory AB KAS i = Abraxas has identified 404 net potential drilling locations assuming 880 ft spacing between wells in the same zone * Approximately 33% of these locations could be combined in the future for long lateral development should conditions warrant = Abraxas believes this
Slide 12: Delaware Basin: Caprito Development
Delaware Basin ABRAXAS EAS Caprito Development 2
Slide 13: Down-spacing Observations
Down-spacing Observations ABRAXAS Caprito 99 Down-Space Wells RATE ve TIME (CUM BOE ve TIME hia nn ‘0 Sou tsae 7 o sa § 1 Sania « © a «a a a of) o 8 mM wD wm mH @ Mm 0 2 40 60 8 100 120 140 160 180 200 bays bays a3
Slide 14: Delaware Basin — 3rd Bone Spring
Delaware Basin — 3"? Bone Spring AB Ss 3" Bone Spring Average vs. Type ry) Caprito82-101H Dec 17 1,000 ‘Mesquite 102H Oct 18 & 500 8 400 ; Es Ss i a 6
Slide 15: Delaware Basin — Wolfcamp A1
Delaware Basin — Wolfcamp A1 Wolfcamp A1 Average vs. Ty} ‘caprite 36-2014 Caprito 82-202 Caprito $9 202 Capritoss 212 Greasewood201H Pecan47 2014 Creosote201H Hiackbery 2034 Woodberry 201H wa? Dect? junis jun a8 ‘ug 18 Deci8 Maras Mayi9 quis 15
Slide 16: Delaware Basin — Wolfcamp A2
Delaware Basin — Wolfcamp A2 Wolfcamp A2 Average vs. Type Ceprito 89-3024 Capritoss-301H Capritoas-304H Caprito 99-3014 Caprito99-3114 Nov 26 wula7 oct a7 jun 18 Jun 18 Greasewood 301 Aug 18 Creosote 8024 Maris 16
Slide 17: Delaware Basin — Wolfcamp B
Delaware Basin — Wolfcamp B AB Ss Wolfcamp B Average vs. Type Capritoss-404H Dec 17 a
Slide 18: Delaware Basin Economics by Zone
Delaware Basin AB Ss Economics by Zone - EOY18 Model LY" Third Bone Spring, Wolfcamp AL Wolfcamp az Wolfcamps Abraxas OVI Assumptions AbraasEOriBAssumptions | [abrorastOviBassumptins || AbraxasEOVi8 assumptions wo mBorgrosstypecuve | |= 61 MBOEgrosstypecurve | | + SSO MBOE grosstypecuve || +505 MBOE
Slide 19: Bakken/Three Forks
Bakken/Three Forks Bakken / Three Forks (McKenzie Cty., ND) Asset Highlights: =~ 3,500 net acres in the heart of McKenzie Cty. + = 69 wells drilled by Abraxas (37MB/3ITF1, 17F2) 7 . é a e = 63 completions, 6 DUC's (Jore Federal extension pad) . . = Cum Production ~11 MMbo / 17 MMboe = Current Net Pr
Slide 20: Bakken/Three Forks Remaining Inventory
Bakken/Three Forks Remaining Inventory ABRAXAS Remaining Locations (19 Total - 8 MB, 11 TF1, includes 6 DUC’s) 150N 97W Three Forks 2"¢ Bench (20 TF2 PRUD’s booked) Jore Federal wi~ 98% (3MB, 7TF1) (includes 6DUC's) Yellowstone WI~ 75% (4MB, 4TF1) Ravin WI~ 48.6% (1MB) |AXAS book type curve= 555 MBO
Slide 21: Bakken Completion Evolution: 2010 - 2019
Bakken Completion Evolution: 2010 - 2019 ABRAXAS EE Highlights — "Increase in prop mass and fluid volume = Increase in stages and adding diverters to drive cluster efficiency * Using thinner fluids to promote complexity GENT GEN2 GEN GEN GENS IPE EXIT METHOD SLEEVES PERF/SLEEVERYORID _PERF/SLEEVE HY
Slide 22: Generational Uplift - Middle Bakken
Generational Uplift - Middle Bakken ABRAXAS SS North Fork Field Middle Bakken Completion Generations vs. Type 2
Slide 23: Three Forks Generational Uplift
Three Forks Generational Uplift North Fork Field
Slide 24: Bakken System Economics
Bakken System Economics Economics by Zone - EOY18 Model Middle Bakken Abraxas EOY18 Assumptions = 975 MBOE gross type curve = 88% Oil © Initial rate: 1,302 boepd © di: 95.90% © dm: 8.0% © bfactor:1.3 = Assumed CWC: $7.6 million Abraxas EOY18 Assumptions = 791 MBOE gross type curve © 87% il © Initial
Slide 25: Oil and Gas Marketing & Takeaway
Oil and Gas Marketing & Takeaway ABRAXAS Delaware Basin Bakken/ThreeForks OilMarketingand Takeaway | Caprito Area North Fork/Pershing Area: + Caprtocilpreduesononpipein Mey/June2028 Allolpreduetiononpipe + Agreement withthiaparty on lore erm contract + Agreemert wihthira parison org tem coreract + R
Slide 26: Abraxas Hedging Profile
Abraxas Hedging Profile ABRAXAS EE Current ae Book Oil Swaps (bbls/day) 5,438 3,779 2,809 Swap Price ($/Bbl)"? $ 56.69 $ 55.23 $ 57.83 Mid-Cush Basis Swaps (bbls/day) 4,000 4,000 [Swap Price ($/Bbl)" $ (3.00) $ (300) $ - 26
Slide 27: Appendix
Appendix 7
Slide 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ABRAXAS EE ‘Adjusted EBITDA is defined os net income plus interest expense, depreciation, depletion and amortization expenses, deferred income taxes and other non-cosh items. The folowing table provides areconciiation of Adjusted EBITDA to net income forthe periods pre
Slide 29: TTM Adjusted EBITDA Reconciliation
TTM Adjusted EBITDA Reconciliation ABRAXAS nn ‘Adjusted EBITDA is defined os net income plus interest expense, depreciation, depletion and amortization expenses, deferred income taxes and other non-cosh items. The folowing table provides areconciiation of Adjusted EBITDA to net income forthe periods
Slide 30: Standardized Measure Reconciliation
Standardized Measure Reconciliation ABRAXAS EEE as PV-10is the estimated present value of the future net revenves from our proved oll and gas,eserves before income toxes discounted using a 10% discount rote. PV-10is considered anon-GAAP financiol measure under SEC regulations becouse it does notincl
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