Lilis Energy — Q1 2019 Earnings Presentation
17 slides from Lilis Energy's earnings presentation, May 10, 2019
Slide 1: 1st Quarter 2019 Earnings Presentation
1st Quarter 2019 Earnings Presentation NYSE American | LLEX Joseph Daches, President and CFO
Slide 2: Disclaimer – Forward-Looking Statements
Disclaimer – Forward-Looking Statements This presentation contains forward-looking statements. The use of words such as “believes”, “expects”, “anticipates”, “intends”, “plans”, “estimates”, “should”, “likely” or similar expressions, indicates a forward-looking statement. These statements and all th
Slide 3: First Quarter 2019 Highlights & Achievements
LLEX First Quarter 2019 Highlights & Achievements • 1Q’19 oil production of 3.5 MBbls/d (+52% YoY), total production of 6.1 MBOE/d (+75% YoY) LLEX Continues • 1Q’19 oil, natural gas, and NGL sales revenue increased 23% YoY to $17.7MM to Demonstrate • Sales volumes were 72% Liquids, including 58% cru
Slide 4: 2019 Outlook & Guidance
2019 Outlook & Guidance Demonstrating Significant Year over Year Production and EBITDAX Growth • 2019 guidance generates significant production and associated EBITDAX growth, with a reduced CapEx program compared to 2018 • Increased EBITDAX 45% YoY and expect continued growth • The 2019 budget is fr
Slide 5: First Quarter 2019 Review
First Quarter 2019 Review CapEx Breakdown ($MM) Average Daily Liquids Production (MBbls/d) 1Q’19 Actual Full Yr 2019 CapEx Proj. • Flat production from FYE‘18 speaks to the quality of our existing $33MM $60MM – $70MM production base as only one new well came online at the end of 1Q’19 • We are optim
Slide 6: Continued Growth of Proved Reserves
Continued Growth of Proved Reserves 1Q’19 Reserve Report Summary (SEC Pricing) 1Q'19 Total Net Reserves PV-10 ($MM) $359.7 Oil Gas NGL Total % of PV10 $327.8 Category (Mbbl) (MMcf) (Mbbl) Mboe Total (SEC) PDP: 5,879 28,794 2,256 12,934 29% $182,475 PNP: 1,376 4,287 391 2,481 6% $36,498 PUD: 15,205 5
Slide 7: Operations / Technical Update
Operations / Technical Update 7
Slide 8: Recent Technical Developments
Recent Technical Developments • Highly encouraging production from Tiger 3H (7,634’ LL), 6 month cum of 95,000 BO • AG Hill 2H (4,550’ LL) is an eastern Bone Spring well and currently flowing 400 to 500 Bo/d with flat decline Strong Initial • Established Bone Spring type curve with single well IRRs
Slide 9: Technical – Highly Encouraging Bone Spring Results
Technical – Highly Encouraging Bone Spring Results 1.5 mile Lateral, Cumulative Oil Production (Mbo) Bone Spring Type Log GR RT_MH 0 200 0.2 2000 BYCN 200 1.5 Mile BSPG T/C 180 Oil Max IP (Bbl/d) 850 7600 ) ) 160 Oil Di (%) 76 7800 140 B factor 1.2 Mbo GOR (SCF/Bbl) 6,500 8000 120 EUR Oil (MBbl) 527
Slide 10: Type Curve Economics and IRR
Type Curve Economics and IRR The Wolfcamp and Bone Spring Provide Attractive Return Economics in Today’s Commodity Price Environment Sensitivity tables assume 1.5 mile Wolfcamp and Bone Spring type curves Expected AFE Range $65 Oil / $3 Gas Wolfcamp Bone Spring $60 Oil / $3 Gas Wolfcamp Bone Spring
Slide 11: Upcoming Well Status & Recent Well Results
Upcoming Well Status & Recent Well Results Upcoming Well Status Well Status Target Count Well Name Lateral Length Flowback 1 Oso #1H – Wolfcamp A 1 ½ mile lateral Operations WCA 2 NE Axis #2H – Wolfcamp A 1 ½ mile lateral 3 NW Axis #1H – Wolfcamp A 1 ½ mile lateral Completion 4 Ox #1H – Wolfcamp B 1
Slide 12: Midstream – Crude Infrastructure and Marketing Technical Update
Midstream – Crude Infrastructure and Marketing Technical Update Crude Oil Infrastructure Highlights Gas & NGL Infrastructure Highlights Gathering System Gathering System • Imminent commissioning of initial system infrastructure connecting • Pipeline infrastructure in place connecting all dedicated p
Slide 13: Appendix
Appendix @LILIS 13
Slide 14: Current Hedging Schedule
Current Hedging Schedule Jan - Jun 2019 Jul - Dec 2019 2020 2021 WTI Oil Hedges Current Swap Volume (Bbl) - - 278,446 - Average Daily Swap Volume (Bbl/d) - - 761 - Average Price - - $56.21 - Current Collar Volume Long Put (Bbl) 437,000 368,000 149,890 270,838 Average Daily Collar Volume (Bbl/d) 2,41
Slide 15: Consolidated Statements of Operations
Consolidated Statements of Operations For Three Months Ended March 31, 2019 2018 ($ in thousands, except share and per share data) Oil and gas revenue $ 17,697 $ 14,395 Operating expenses: Production costs 4,764 3,263 Gathering, processing and transportation 1,178 462 Production taxes 906 850 Genera
Slide 16: Non-GAAP Adjusted EBITDAX Reconciliation
Non-GAAP Adjusted EBITDAX Reconciliation (Unaudited) The following table provides a reconciliation of Net Loss to the non-GAAP Adjusted EBITDAX for the years ended December 31, 2017 and 2018 (please see the Disclaimer on slide 2): ’ For the Three Months Ended March 31, 2019 2018 Reconciliation of Ad
Slide 17: Investor Relations Contact
Wobbe Ploegsma VP of Capital Markets & Investor Relations ir@lilisenergy.com 210.999.5400 NYSE American | LLEX