Sundance Energy — Sundance Energy Australia — Q3 2019 Earnings Presentation
24 slides from Sundance Energy's earnings presentation, Nov 18, 2019
Slide 1: Disclaimers
Disclaimers Industry data Certain market and industry data used in connection with this presentation, including in relation to other companies in Sundance’s peer group, may have been obtained from public filings, research, surveys or studies conducted by third parties, including industry or general
Slide 2: Disclaimers: Proved Reserves
Disclaimers Proved Reserves Ryder Scott Company, L.P. (Ryder Scott) has prepared an independent estimate of the proved reserves, future production and income attributable to Sundance Energy’s leasehold interests in the Eagle Ford shale play in the State of Texas, USA as of 1 January 2019. The Compan
Slide 3: A Leading Pure Play Eagle Ford Producer
A Leading Pure Play Eagle Ford Producer Free Cash Flow Generation Expected in Fourth Quarter 2019 20 wells turned to sales year to date(5), including 12 in 3Q19 and two in 4Q19 2019 Live Oak wells continue track record of material type curve outperformance 3Q19 average daily oil sales volumes of 8,6
Slide 4: Final Shareholder & Court Approvals for Redomiciliation Received
Final Shareholder & Court Approvals for Redomicilation Received Sundance received Shareholder, regulatory and court approval to redomicile to US and move to Nasdaq listing Management believes that a redomiciliation could have the following benefits: Establishing the Sundance parent company in the U.
Slide 5: Third Quarter 2019 Operational & Financial Results
Third Quarter 2019 Operational & Financial Results Third Quarter 2019 Operational Results 3Q19 average net sales volumes of 13,599 boe/d represent a ~22% year-over-year increase 3Q19 average daily oil volumes of 8,677 bo/d represented 64% of total sales by volume 12 Live Oak county wells turned to s
Slide 6: Ongoing Focus on Reducing Operating Costs
Ongoing Focus on Reducing Operating Costs ~40% Reduction in Total Cash Operating Costs(1) Per Boe Since Close of Pioneer Transaction Ongoing operating cost reduction initiatives drives incremental operating margin and long-term value creation Additional cost-saving opportunities have been identified
Slide 7: Summary Fourth Quarter and Full Year 2019 Guidance
Summary Fourth Quarter and Full Year 2019 Guidance(1) As per internal Company estimates at 31 October 2019. All figures are represented on a non-IFRS (ie cash) basis. “GP&T” refers to Gathering, Processing and Transportation fees incurred in moving hydrocarbons to market. 2019 Plan Is To Operate Wit
Slide 8: Capitalization Table and Available Liquidity
Capitalization Table and Available Liquidity Strong balance sheet and significant liquidity, with no debt maturities until 4th Quarter of 2022 Sufficient Available Liquidity to Fund Development Through Free Cash Flow Strong organic cash flow plus available cash and short term liquidity sufficient to
Slide 9: Corporate Debt Overview
Corporate Debt Overview Reserve Based Loan Amount: $170.0 MM availability; $115 MM drawn(1) Redetermination: Bi-annually Coupon: Floating, Libor + 225-325 bps depending on utilization(2) Term: 4.5 years Maturity: October 2022 Covenants: Current Ratio > 1.0x; Total Debt to EBITDAX < 4.0x; Interest Co
Slide 10: Debt Maturity and Service Schedule
Debt Maturity and Service Schedule No debt maturities until 4th Quarter of 2022 Assuming consensus 2019 EBITDA run flat forward (and ignoring anticipated future growth), Sundance has sufficient cash flow to service current debt levels as shown by elevated Debt Service Coverage Ratio Excludes impact
Slide 11: Closed Sale of Dimmit County Asset
Closed Sale of Dimmit County Asset Closed sale of all Dimmit County, $17.8mm proceeds received to date Dimmit Transaction Overview Sale to Bayshore Energy TX LLC closed on 1 October 2019 $17.8mm proceeds received to date; remaining proceeds anticipated at the end of the 120-day post-close period Sal
Slide 12: Assets Deliver Attractive Returns At Lower Oil Prices
Assets Deliver Attractive Returns At Lower Oil Prices Based on Company’s 2019 drilling program cadence of 18 wells per annum. Over 20 Years of Oil Rich Eagle Ford Drilling Inventory (1) Drilling Inventory By Location Disposition of Dimmit assets leaves Sundance with a high-graded asset portfolio of
Slide 13: Year to Date 2019 Development – Quarterhorse Acreage
La Salle McMullen AREA 41 AREA 11 AREA 21 Year to Date 2019 Development – Quarterhorse Acreage 5 1 Atascosa Live Oak Roy Esse Four Well Pad 15H, 16H 17H & 18H 1 Georgia Buck Four Well Pad 01H, 02H, 03H & 10H 2 Justin Tom Two Well Pad Justin Tom 08H & 09H 5 Area 41 HT Chapman Four Well Pad 11H, 12H,
Slide 14: Year to Date 2019 Development – Legacy Acreage
Year to Date 2019 Development – Legacy Acreage Atascosa McMullen La Salle McMullen AREA 41 AREA 11 AREA 21 Legacy Acreage Development Detail 2 wells drilled, completed and brought online Excludes 2 well Red Ranch 18H & 19H pad included in the Dimmit divestiture Bracken well costs in line with capita
Slide 15: Robust 2019 Initial Production Results Support Growth Plan
Robust 2019 Initial Production Results Support Growth Plan 2019 Operations Support Continued Production Growth Excellent 2019 well results year to date support Sundance’s production and EBITDA growth targets 2019 IP rates reflect revised choke strategy intended to increase EUR and overall well econo
Slide 16: 2018 Wells Continue to Demonstrate Superior Results
2018 Wells Continue to Demonstrate Superior Results 2018 Wells Continue to Outperform on Cumulative Production Basis 2018 wells materially outperformed type curve expectations on an initial production basis Wells on Pioneer acquisition (“Quarterhorse”) acreage continue their outperformance on a cumu
Slide 17: 2018 Live Oak County Initial Well Performance vs Type Curve
2018 Live Oak County Initial Well Performance (1) vs Type Curve(2) Note: Cum Oil Type Curve is normalized to well Lateral Length Well results shown as of 11 November 2019. Ryder Scott Type Curve at 31 December 2018.. Harlan Bethune Area Live Oak RSC119 TC RSC119 TC 2018 Area 41 Live Oak wells, on av
Slide 18: 2019 Live Oak County Initial Well Performance vs Type Curve
2019 Live Oak County Initial Well Performance (1) vs Type Curve(2) 2019 Area 41 Live Oak wells, on average, are performing at 122% of RSC type curve at 60 days Note: Cum Oil Type Curve is normalized to well Lateral Length Well results shown as of 11 November 2019. Ryder Scott Type Curve at 31 Decemb
Slide 19: 2018 Atascosa County Initial Well Performance vs Type Curve
2018 Atascosa County Initial Well Performance (1) vs Type Curve(2) 2018 Area 41 Atascosa County wells, on average, are performing at 135% of the RSC type curve at 300 days Note: Cum Oil Type Curve is normalized to well Lateral Length Well results shown as of 11 November 2019. Ryder Scott Type Curve
Slide 20: Robust 2019 Hedge Book Supports Strong Cash Flow Generation
Robust 2019 Hedge Book Supports Strong Cash Flow Generation Gas Hedges(1) Oil Hedges(1) Hedging covers ~90% of remaining 2019 forecast oil sales volumes at an average ~$60 per barrel floor price(1) Gas HH/HSC Contracts Year Mcf Floor Ceiling 2019 662,000 $2.85 $3.06 2020 2,226,000 $2.67 $2.71 2021 1
Slide 21: High Quality Asset Base – Material Inventory With Low Full-Cycle Break Even Costs
High Quality Asset Base – Material Inventory With Low Full-Cycle Break Even Costs Over 20 years of highly attractive oil rich drilling inventory with $1,110MM(1) of 1P PV10 as at year end 2018 Full-cycle break even costs of ~$30.00 per boe allows production and EBITDA growth under various oil price
Slide 22: IFRS Earnings to Adjusted EBITDAX Reconciliation
IFRS Earnings to Adjusted EBITDAX Reconciliation We define “Adjusted EBITDAX”, a non-IFRS measure, as earnings before interest expense, income taxes, depreciation, depletion and amortization, property impairments, gain/(loss) on sale of non-current assets, exploration expense, share based compensati
Slide 23: For Additional Information Please Contact
For Additional Information Please Contact: United States John Roberts, VP Finance & Investor Relations jroberts@sundanceenergy.net +1 (720) 638-2400 Eric McCrady, CEO & Managing Director emccrady@sundanceenergy.net +1 (303) 543-5703 Australia Mike Hannell, Chairman + 61 8 8274 2128 or + 61 418 834 9
Slide 24: Sundance Energy contact information
NY SUNDANCE energy For A tional information Please Contact: United states John Roberts, VP Finance & Investor Relations roberts@sundanceenergy.net +1(720) 638-2400 Eric MeCrady, CEO & Managing Director emecrady@sundanceenergy.net +1 (303) 543-5703 ‘Australia Mike Hannell, Chairman + 6188274 2128 or
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