Amplify Energy Corp. · NYSE:AMPY
Amplify Energy — Investor Presentation (July 2017)
45 slides from Amplify Energy's investor presentation, Jul 20, 2017
Slide 1: Amplify Energy Corp. Emergence Presentation
Amplify Energy Corp. Emergence Presentation | July 19, 2017
Slide 2: Disclaimers - Forward-Looking Statements
DisclaimersForward-Looking StatementsThis presentation and the oral statements made in connection therewith contain forward-looking statements. All statements, otherthan statements of historical facts, included in this presentation or made in connection therewith that address activities, events or d
Slide 3: Amplify Energy Today: Asset Map & Highlights
Amplify Energy TodayAsset Map & HighlightsAssetNet Acres Net Production%GasPDPV-101PPV-10ETX / NLA~110,000114.2 MMcfe/d 74%$285 MM$315 MMRockies CO2~7,0004.4 MBoe/d 0%$169 MM$207 MMCaliforniaOffshore ~17,0004.0 MBoe/d 0%$174 MM$224 MMEagle Ford~7501.4 MBoe/d 9%$26 MM$43 MMSouth Texas~98,00016.2 MMcf
Slide 4: Amplify Portfolio Overview
Amplify Portfolio Overview 1East Texas / North Louisiana2Rockies CO2 3California Beta Field4 / 5Eagle Ford & South Texas ConventionalNet Acres~110,000 (1)Average WI % 87% (1)HBP %~90%Operated %~70%Net Production (2)114.2 MMcfe/dPD PV-10 (3)(4) $285 MMPD R / P (2)(3)7 yearsCommodity74% Gas1P Reserve
Slide 5: Current Trading Levels Offer Attractive Valuation
Current Trading Levels Offer Attractive ValuationKey Points 1P reserve value at NYMEX strip pricing is significantlyin excess of Amplify’scurrent enterprise value (1)(2)(3)—Current share price:$10.00—Implied1Pequityvalue/share:$17.35 Analysisexcludes potential upside value associated with probable r
Slide 6: Amplify Strategy - Focused, Growth Oriented E&P Company
Amplify Strategy –Focused, Growth Oriented E&P Company Transition to a Growth-Focused, LeadingLow-Cost OperatorMaintain Capital and Financial DisciplineEvaluate Portfolio for Potential Growth Opportunities Post emergence, Company is transitioning to be a growth-oriented C-Corp, focused on becoming a
Slide 7: Significant Resource & Stacked Pay Potential in Core ETX/NLA Asset
SignificantResource&StackedPayPotentialinCoreETX/NLAAssetBallard Gas Unit 1 Type LogCotton Valley & Haynesville Stacked Pay Potential ~250 gross operated locations identified in the Cotton Valley B, Cotton Valley C and Haynesville Shale across Amplify’sposition Opportunity for multiple additional de
Slide 8: 2017 Capital Budget - Focused on East Texas Growth
2017 Capital Budget –Focused on East Texas GrowthAsset2017 Capex % of TotalCommentaryEast Texas$49.2 MM66% Drill and complete 7 wells (6 CV / 1 HSVL) ~$7.8 MMof non-drilling capex (land, infra., etc)Rockies CO2 $6.4 MM9% No new drills; infrastructure and workoversCaliforniaOffshore $7.7 MM10% No new
Slide 9: Long-Life, Shallow Decline PD Reserve Base
Long-Life, Shallow Decline PD Reserve BasePeer Average: 4.6 YearsKey Points (1) Amplify’s mature production base has a proved developed reserve to production life (PD R/P) of approximately 10 years Long life PD reserves with ~9% annual declines through 2025 PD reserves supported by diverse, long-lif
Slide 10: Significant Cost Structure Improvements
Significant Cost Structure Improvements Amplify Historical LOE$38$40$34$31$25$32$30$26$12$10$5$5$4$50$50$39$36$29$32$30$26$-$0.50$1.00$1.50$2.00$2.50$3.00$-$10$20$30$40$50$602Q3Q4Q1Q2Q3Q4Q1Q201520162017MEMP LOEDivested LOE$ / Mcfe$2.12 / Mcfe$1.50 / McfeCost Structure Improvements Position Amplify t
Slide 11: Management Team
William ScarffCEO and President 35+Christopher CooperCOO27+Robert Stillwell, Jr.CFO15+David BeckVP Land40+Bruce Berwager VP Operations, Offshore35+John DeckVP IT35+Matthew Hoss VP Accounting12+Richard SmileyVP Operations, Onshore35+Martyn Willsher VP Treasurer16+Jake RadcliffeDirector Corporate Deve
Slide 12: Active Commodity Hedge Portfolio to Limit Commodity Price Risk
Active Commodity Hedge Portfolio to Limit Commodity Price Risk Hedged Collar VolumesHedged Swap VolumesWeighted Avg. PriceOil Hedge Positions$45.00 -$54.50$71.44$75.69$40.00$60.00$80.00$100.00$120.000.01.02.03.04.05.02H 20172018Price ($ / Bbl)Volume (MBbl/d)Natural Gas Hedge Positions$3.96$3.91$3.00
Slide 13: Amplify Pro Forma Capitalization
Amplify Pro Forma Capitalization ($MM) Strong Balance Sheet Provides Financial Flexibility Key Points Reduced total debt by ~$1.4 B and annual interest expense by >$90 MM, since Sept. 2016 Amplify’scurrent debt is solely comprised of a Revolving Credit Facility due March 2021 supported by 27 banks
Slide 14: Amplify Energy Highlights
Amplify Energy Highlights 2 Advanced completion designs provide significant upside to current type curves 3 5 4 Ultra long-life reserve / production profile with a PD R/P of ~10 years and 1P R/P of ~13 years(3) 6 ~250 gross operated locations in the highly economic Cotton Valley and Haynesville Shal
Slide 15: East Texas / North Louisiana
East Texas / North Louisiana amplify
Slide 16: Overview of East Texas / North Louisiana - Core Growth Asset
TexasLouisianaOklahomaArkansasMississippiOverview of East Texas / North Louisiana –Core Growth AssetAsset Map Enhanced completion designs in the Cotton Valley and Haynesville Shale have re-rated drilling economics; higher proppant loading and tighter stage spacing have yielded significant improvemen
Slide 17: East Texas / North Louisiana Asset Summary
Key Points Net Acres (CV):~110,000 acres—Average WI:~87% Net Acres (HSVL):~25,500 acres—Average WI:~69% Net Production:114.2 MMcfe/d (1) PD PV-10:$285MM (2)(3) PD Reserves: 310Bcfe(2)—Natural Gas:~72%—PD R/P:~7years (1)(1)Current production is based on the average daily volume for the month of March
Slide 18: Near Term Development Plan
Near Term Development PlanNear Term Development PlanKey Points Amplify’s 2017 development plan consists of 7 gross wells (6 Cotton Valley wells, 1 Haynesville well) 2017 development plan assumes 1 operated rigCompletion DesignCotton Valley HaynesvilleLateral Length6,000’7,500’Proppant Volume 2,000 l
Slide 19: Accelerating Activity Across East Texas / North Louisiana
Accelerating Activity Across East Texas / North LouisianaKey Points Activity in ETX / NLA has accelerated significantly with the transition to advanced completions and longer laterals Incumbents such as Chesapeake, Covey Park, GeoSouthern, Indigo and Vine continue to deliver highly economic results
Slide 20: Optimized Completions in the Cotton Valley
Key Points Significant improvements in well performance are being realized from larger fracsin the Cotton Valley Completion jobs with higher proppant loading, more volume and tighter spacing are significantly increasing recoveries High-intensity completion designs are being implemented across the pl
Slide 21: Illustrative Cotton Valley Economics
Illustrative Cotton Valley Economics Single Well Gas Production Profile –6,000’ LL (Mcf/d)Cotton Valley Economics –6,000’ Lateral(1)Assumes strip pricing as of June 30, 2017.(2)Refer to slide 1 for additional information regarding PV-10 disclosure.De SotoPanolaShelbyLouisianaTexasJoaquin FieldComple
Slide 22: Select Haynesville Horizontal Wells
SelectHaynesville Horizontal Wells (1)(2)Well NameOperator LL(ft) Prop(lbs/ft) IP30(MMcf/d) 6 Mo. Cum.(MMcf) DatePyle 6-7 HCComstock7,578’2,589 19.9 2,522 Apr-15Shahan5-8 HCComstock6,880’2,855 19.1 2,423 Apr-15Boggess5-8 HCComstock7,430’2,626 17.4 2,199 Jun-15Horn 8-17 HCComstock7,401’2,677 13.8 1,8
Slide 23: Illustrative Haynesville Economics
Single Well Gas Production Profile –7,500’ LL (Mcf/d)Haynesville Economics –7,500’ LateralIllustrative Haynesville EconomicsDe SotoPanolaShelbyLouisianaTexasJoaquin FieldCompletion DesignHaynesvilleLateral Length 7,500’Proppant Volume 3,600 lbs/ftStage Spacing 150’
Slide 24: Proximity to Market - Superior Realized Pricing
Historical Differentials to NYMEXProximity to Market –Superior Realized PricingKey Points ETX / NLA Basin benefits from close proximity to Henry Hub, LNG export terminals, and the Gulf Coast petrochemical industrial complex Significantly reduces risk of basis differential “blow-outs” experienced in
Slide 25: Select Precedent Transactions - ETX / NLA Basin
Select Precedent Transactions (1) TTV Total Net Daily Prod. $ / Mcf/d $ / Net Acre Date Buyer Seller ($MM) Acres (MMcf/d) ($/Mcf/d) ($/Acre) 06/12/17 GeoSouther n Sabine 45 $ 7,900 9 4,787 $ 5,696 $ 12/20/16 Covey Park Chesapeak e 465 41,500 50 9,300 11,205 12/05/16 Undisclosed Chesapeak e 450 78,00
Slide 26: East Texas / North Louisiana Reserves Summary
East Texas / North Louisiana Reserves SummaryKey Points PD reserve base of 310 Bcfewith $285 MM in PV-10 cash flows and 1P PV-10 cash flows of:(1)(2)—NYMEX:$315 MM (2)—$55.00 / $3.50:$411 MM—$60.00 / $4.00:$512 MM Substantial unquantified upside associated with advanced completion designs and undeve
Slide 27: Rockies CO2
Rockies CO2
Slide 28: Overview of the Rockies CO2 Asset - Long Life, Low Decline Oil
MontanaIdahoUtahColoradoNebraskaS. DakotaN. DakotaWyomingActive FloodsDeveloping FieldsPlanned FieldsPrimary CO2 SourcesOverview of the Rockies CO2 Asset –Long Life, Low Decline OilAsset Map Oil-rich asset with extremely low decline and long reserve life—Amplify’s asset is situated in Sweetwater and
Slide 29: Rockies CO2 Asset Overview
Locator MapKey Points Net Acres:7,000 acres—WI%:100%—HBP%:100% Net Production:4.4 MBoe/d (1) PD PV-10:$169MM (2)(3) PD Reserves: 29 MMBoe(2)—Liquids:100%—PD R/P:~18 years (1)Rockies CO2 Asset OverviewKey Highlights ~$6 MM (9%) of 2017 capital budget Mature, ultra-long life asset 100% operated, 100%
Slide 30: Renewed Interest in Low Decline, Low Capital Intensity EOR Assets
Purchase Price Production Date Buyer Seller Region ($MM) (MBoe/d) ($/Boepd) 06/19/17 Permian 600 $ 8 .2 73,171 $ 06/12/17 Rockies 105 2 .5 42,000 05/30/17 Rockies 72 2 .1 34,048 10/03/16 Permian 235 4 .0 58,750 07/27/16 Permian 300 8 .6 34,884 04/11/16 Permian 870 16.5 52,727 03/03/15 Rockies 700 14
Slide 31: Rockies CO2 Reserves Summary
1P Reserve Summary (1)Rockies CO2 Reserves SummaryKey Points PD reserves of 29 MMBoewith$169 MM in PV-10 cash flows (1)(2) Meaningful upside potential with 1P PV-10 cash flows of:—NYMEX:$207 MM (2)—$55.00 / $3.50:$242 MM—$60.00 / $4.00:$311 MMPD PV-10 @ Various Prices (1)1P: 37 MMBoe1P Commodity Mix
Slide 32: California Beta Field
California Beta Field amp ify energy’
Slide 33: Overview of the California Beta Asset - Long Life Oil with Upside
Overview of the California Beta Asset –Long Life Oil with Upside Asset Map Located ~11 miles offshore the Port of Long Beach Platforms located in federal waters with limited exposure to state regulations Significant original oil in place of ~940 MMBblswith only 10% recovered to date Oil recovery fac
Slide 34: California Beta Field Asset Overview
Locator MapBeta Field Net Acres:17,000 acres—WI %:100%—HBP %:100% Net Production:4.0 MBoe/d (1) PD PV-10:$174 MM (2)(3) PD Reserves: 18 MMBoe(2)—Crude Oil:100%—PD R/P:12 years (1) $152 MM P&A obligation fully cash funded Substantial infrastructure assets:—2 wellhead production platforms (w/ rigs)—1
Slide 35: Recent Well Result Confirm Beta Field Economics
Recent Well Result Confirm Beta Field EconomicsKey Points Amplify drilled the A36 ST-1 well in April 2015 A36 ST-1 well is the most recent BetaField well drilled,andrepresents one of the most economic wells drilled to date in the field Using geosteeringcapabilities and advanced completion techniques
Slide 36: California Beta Field Reserves Summary
1P Reserve Summary (1)California Beta Field Reserves SummaryKey Points PD reserves of 18 MMBoewith$174 MM in PV-10 cash flows (1)(2) Material upside potential with 1P PV-10 cash flows of: (1)—NYMEX:$224 MM (2)—$55.00 / $3.50:$268 MM—$60.00 / $4.00:$343 MMPD PV-10 @ Various Prices (1)1P: 29 MMBoe1P C
Slide 37: Eagle Ford / South Texas
Eagle Ford / South Texas
Slide 38: Overview of the Eagle Ford Asset - Core Non-Op Position
Overview of the Eagle Ford Asset –Core Non-Op Position Asset Map Amplify non-op position located in the heart of the oil window in Karnes County offset to recent M&A transactions that have transacted at ~$100,000 / acre Thick, stacked target-rich reservoir with well-defined upper and lower Eagle For
Slide 39: Phase Windows - Amplify Leasehold
Dry GasCond. ~15 Bbl/MMcfCond. ~35 Bbl/MMcfCond. ~75 Bbl/MMcfCond. ~150 Bbl/MMcfCond. ~300 Bbl/MMcfVolatile OilOilBlack oilPhase WindowsAmplify Leasehold38
Slide 40: Significant Resource and Stacked Pay Across Amplify Position
Significant Resource and Stacked Pay Across Amplify Position Type Log and Horizon Overview TVD:~9,600-11,100’ Spacing: 8 wells / section (660’ spacing) Delineation: Well delineated with multiple producing AC wells over Amplify’sacreage. Proximal location to Karnes Trough assists well productivity. M
Slide 41: Austin Chalk Well Results and Map
12345768910111213141516171822232526272829KarnesGoliadDeWittBeeGonzalesTexas24313233343536373830UEF WellsLEF WellsAmplifyEOGMurphyConocoEnervestEncanaAC WellsGonzales202119Austin Chalk (1)Well NameOperator Lateral(ft) IP-30 (Bo/d)IP-30 (Boe/d) Prop(lbs/ft) Prod.DateJOG Unit A-1H (2) Murphy4,890’1,352
Slide 42: Overview of the South Texas Asset - Low Decline Gas Asset
Overview of the South Texas Asset –Low Decline Gas Asset Demonstrated well control throughout the area Shallow decline with low reinvestment rate Established fields with low-risk recompletion and behind pipe development opportunities Additional infill drilling opportunities in the Wilcox and Lobo tr
Slide 43: Amplify STX Conventional: Asset Overview
Locator Map Amplify STX Conventional: Asset Overview Key Points Net Acres:~98,000 acres HBP:~96% Net Production:~16.2 MMcfe/d (1) PD PV-10:$36 MM (2)(3) PD Reserves: 66 Bcfe(2) Natural Gas:~82% PD R/P:~11 years (1) 100% production from producing properties and workover opportunities Low risk recompl
Slide 44: Appendix
Appendix
Slide 45: Amplify Board of Directors
Amplify Board of Directors Chairman of the Board of Directors of Amplify Managing Director, Co-Head of Restructuring and Partner on the Investment Team at Fir Tree Partners Member of New Emerald Energy Board and member of Eco-Stim Energy Solutions board Former member of investment team at Kore Advis