Abraxas Petroleum — Investor Presentation (April 2019)
28 slides from Abraxas Petroleum's investor presentation, Apr 4, 2019
Slide 1: Abraxas Petroleum Corporation April 2019
‘Abraxas Caprito 92 #201H; Ward Cty., TX. Abraxas Petroleum Corporation April 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 21£ of the Securities Exchange Act of 1934. Although the Company believes that its expectati
Slide 3: Corporate Profile
Corporate Profile NASDAQ: AXAS Headquarter: Shares outstanding"... Market cap@®) ... Net debt)... 2019E CAPEK... (e) eeseamanang cnofceamaer 2 2i8 Ware png snr psf arn 8,208 (2) Toa nt icing ty ad lig mae es einen sh eo ro 282 San Antonio 167mm $222mm $182 mm $95mm EV/BOE(2)... $6.16 Proved Reserves
Slide 4: 2019 Operating and Financial Guidance
2019 Operating and Financial Guidance AB KR Ss 2019 Capex Budget Allocation %of Gross Total __Wells Permian - Delaware Bakken/Three Forks Acquisitions/Facilities/Other $945 1009 Daily Production vs Yearly CAPEX (#) 22.0 10.00 | Si ‘6000 ‘4.000 2.000 ° mm1sa 164 mA mien 2o196 (2) 2019 Operating Guida
Slide 5: The Abraxas Advantage
The Abraxas Advantage ABRAXAS nnn = Capital Structure Benefit = RBLrepresents only meaningful form of leverage, no other balance sheet dilutives = Currently $217.5MM after recent bank redetermination ity to carry out current development plan and operate within cash flow = Provides ample li Basin / G
Slide 6: Asset Base Overview
AB Asset Base Overview
Slide 7: Delaware Basin
Delaware Basin A Permian Basin — Wolfcamp & Bone Spring ———— LEASEHOLD OPERATORS | ABRAXAS PET. ‘APACHE CORP. 5 ARRINGTON osG TB cation | CHEVRON [ DEVON ENERGY | DAwoNDBACK 1G exonxto. (Gl FELIXENeRGY G onsis PETROLEUM © HALCON “JAGGED PEAK ENERGY MEWBOURNE Box ore SHELL G sunooWN eneRcy [5 MBP LeG
Slide 8: Delaware Basin Inventory
Delaware Basin Inventory ABRACGS EE = Abraxas has identified 270 net potential dri assuming 660’ (80-acre) spacing per 1 mile DSU across our leasehold ‘1! = Approximately 32% of these locations could be combined in the future for long lateral development should conditions warrant = Abraxas believes
Slide 9: Evolution in the Delaware Basin
Evolution in the Delaware Basin AB Ss NOnay NN XY \ s XO N
Slide 10: Historical Reserve & Production Growth
Historical Reserve & Production Growth = YE18 total proved reserves up 3% YoY [ Pe eeen ) ] = 55% increase over last 3 years eons a = = = = 14% CAGR since 2013 POP 12,788 38,177 ‘3678 22.996 $ 359,192 = YE18 production up 33% YoY 2D mo aes 530 Me #166 increase over lack years Tone Ped fais t8.0Togsa
Slide 11: Delaware Basin - Caprito Development
Delaware Basin ABRAGAS See Caprito Development a
Slide 12: Delaware Basin — 3rd Bone Spring
Delaware Basin — 3" Bone Spring ABRAXAS nn 'd Bone Spring Average ype 1100 ‘BOED en 1000 wer 900 oe 700 Goon-ae 600 500 400 300 200 100 0 ° 60 100 180 200 280 300 380 400 taaias WELL COUNT 0 50 100 150 200 250 400 2
Slide 13: Delaware Basin — Wolfcamp A1
Delaware Basin — Wolfcamp Al ABRAXAS Wolfcamp A1 Average vs. Type ‘BOED WELL COUNT cae
Slide 14: Delaware Basin — Wolfcamp A2
Delaware Basin — Wolfcamp A2 ABRAXAS nn Wolfcamp A2 Average vs. Type 0 50 100= 150200 250 « 300350400450 500 55060050700 BOED Ee BES 28 Fe a WELL COUNT cry
Slide 15: Delaware Basin — Wolfcamp B
Delaware Basin — Wolfcamp B ABRAXAS Wolfcamp B Average vs. Type WELL COUNT 800 10 600 s00 400 gw L | 3 20 0 0 0 100 180 20 20 00 ss0 10 ° 50 100 150 200 250 350 400 15
Slide 16: Delaware Basin Economics by Zone - EOY18 Model
Delaware Basin Economics by Zone - EOY18 Model Lah ht Abraxas EOY18 Assumptions = 630 MBOE gross type curve + 86% Oil = Initial rate: 1,100 boepd + dis 99,9% = dm: 6.0% + b-factor:1.4 + Assumed CWC: $7.6 million Abraxas EOY18 Assumptions = 640 MBOE gross type curve + 88% Oi = Initial rate: 809 boepd
Slide 17: Bakken/Three Forks
Bakken/Three Forks Bakken / Three Forks (McKenzie Cty., ND) Asset Highlights: ~ 4,000 net acres in the heart of McKenzie Cty. 63 wells drilled by Abraxas (34MB / 29TF1) 59 completions, 4 DUC'’s (Li ridge DSU) Cum Production ~ 10.5 MMbo / 14.9 MMboe Current Net Production ~ 7,000 boepd Remaining Loca
Slide 18: Bakken/Three Forks Remaining Inventory
Bakken/Three Forks ABRAXAS Remaining Inventory ——ee EE Remaining Locations Three Forks 2" Bench (19 Total - 8 MB, 11 TF1) (20 TF2 PRUD’s booked) 150N 97W ‘Wee Fora 2nd Boch Jore Federal WI~ 75% (3MB, 7TF2) Yellowstone WI~51.5% (4MB, 4TF1) Ravin WI~ 48.6% (1 MB) ‘AKAS book type curve = 555 MBOE CLR r
Slide 19: Bakken Completion Evolution: 2010 - 2019
Bakken Completion Evolution: 2010 - 2019 ABRAXAS Ne Highlights — > Increase in prop mass and fluid volume > Increase in stages and adding diverters to drive cluster efficiency > Using thinner fluids to promote complexity GENI GEN2 GENS GEN4 GENS PIPE EXIT METHOD ‘SLEEVES PERF/SLEEVE HYBRID PERF/SLEE
Slide 20: Generational Uplift - Middle Bakken
Generational Uplift - Middle Bakken North Fork Field . Type ations vs. 8 S 8 5 6 5 s =| g a § s § S 3 Q 2 3 3 = 80 pays
Slide 21: Generational Uplift — Three Forks
Generational Uplift —- Three Forks North Fork Field . Type ations vs. g G < 3 1c) s s 3 2 a 5 8 2 5 ig Py S 5 80 Days
Slide 22: Bakken System Economics
Bakken System Economics Economics by Zone - EOY18 Model Middle Bakken ABRAXAS Three Forks Abraxas EOY18 Assumptions = 975 MBOE gross type curve = 88% Oil ® Initial rate: 1,302 boepd = di: 95.90% = dm: 8.0% ® bfactor: 13 = Assumed CWC: $7.6 million Abraxas EOY18 Assumptions = 791 MBOE gross type curv
Slide 23: Oil and Gas Marketing & Takeaway
Oil and Gas Marketing & Takeaway Caprito Area: + Caprito oilproduction on pipeinMay/sune2018 ‘+ Agreement with third partyon long termcontract + Rate of $0.65/bbIto Wink + Wink tradesatasignt discountto Midland + Abraxaswill likely add other unitsto thethird party system as development progresses ac
Slide 24: Abraxas Hedging Profile
Abraxas Hedging Profile AB R 019 020 0 Oil Swaps (bbls/day) 4,104 3,026 = 2,051 Swap Price ($/Bbl)"” § 56.85 § 55.25 $ 59.79 Mid-Cush Basis Swaps (bbls/day) 4,000 4,000 s Swap Price ($/Bbl)” $ (3.00) $ (3.00) $ - 3.995 Sopa and 1.8 Sopa of WT suspen 2018 and 2012 espace. Includes S00 Bop and 1,000 B
Slide 25: Appendix
AB Appendix
Slide 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Adjusted EBITDA is defined as net income plus interest expense, depreciation, depletion and amortization expenses, deferred income taxes and other non-cash items. The following table provides a reconciliation of Adjusted EBITDA to net income for the periods presented.
Slide 27: TTM Adjusted EBITDA Reconciliation
TTM Adjusted EBITDA Reconciliation Adjusted EBITDA is defined as net income plus interest expense, depreciation, depletion and amortization expenses, deferred income taxes and other non-cash items. The following table provides a reconciliation of Adjusted EBITDA to net income for the periods present
Slide 28: Standardized Measure Reconciliation
Standardized Measure Reconciliation PV-10 is the estimated present value of the future net revenues from our proved oll and gas reserves before income taxes discounted using a 10% discount rate. PV-10/is considered a non-GAAP financial measure under SEC regulations because it does not include the ef
Abraxas Petroleum — Investor Presentation (April 2019) on 6ix