Sanchez Energy — Presentation (August 2019)
64 slides from Sanchez Energy's investor presentation, Aug 12, 2019
Slide 1: Management Presentation
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Results Driven. Manufacturing Focused. Management Presentation July 2019 January 23, 2017 www.sanchezenergycorp.com
Slide 2: Legal Disclaimers
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Legal Disclaimers This Presentation is being provided to potential investors to assist them in their investigation of Sanchez Energy Corporation in accordance with procedures established by
Slide 3: Management Representatives
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Management Representatives Tony Sanchez, III President and Chief Executive Officer Cam George Executive Vice President and Chief Financial Officer Greg Kopel Executive Vice President, Genera
Slide 4: Agenda
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Agenda I. Executive Summary II. Asset Overview III. Management Track Record IV. Proposed Business Plan V. Projections and Financial Highlights Appendices: A. Consolidated and UnSub Financial
Slide 5: I. Executive Summary
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION I. Executive Summary 5 5
Slide 6: Company History
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Company History Strong Track Record of Organic and Transactional Growth 90,000 80,000 70,000 60,000 50,000 Boe/d 40,000 30,000 20,000 10,000 0 2011 2012 2013 2014 2015 2016 2017 2018 Complet
Slide 7: Organizational Structure
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Organizational Structure Services Agreement Sanchez Oil & Gas Corporation (“SOG”) Other Sanchez Group Public Sanchez Energy Corporation (“SN”) Issuer SN Palmetto, LLC 100% SN UR Holdings, LL
Slide 8: Summary Asset Ownership
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Summary Asset Ownership Gavilan Venado KNOC Mitsui Sanchez Energy Corporation (Blackstone) ~25% (KKR) ~12.5% ~25% ~12.5% Restricted UnSub Comanche Comanche ~15% ~10% Catarina Maverick Palmet
Slide 9: Situation Overview
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Situation Overview We have achieved tremendous growth through both organic development, as well as significant acquisition activity, and assembled a world-class asset in the Eagle Ford Shale
Slide 10: Key Takeaways
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Key Takeaways Strategic, Dominant position of ~485,000 gross (~283,000 net) acres in the Eagle Ford Shale Highly Concentrated ~77% of our net acreage is held by production and continuous
Slide 11: II. Asset Overview
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION II. Asset Overview 11 11
Slide 12: Core Asset Overview
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Core Asset Overview Sanchez Energy holds one of the largest contiguous Catarina acreage positions across any U.S. producing basin Acquired from Shell (2014) Gross acres: ~106,000 Net a
Slide 13: Strategically Concentrated Acreage Position
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Strategically Concentrated Acreage Position Core Acreage Position Within a ~40 Mile Radius Provides Unique Competitive Advantages Large, concentrated asset base drives significant synergies
Slide 14: Stable Production Base Across 2,400+ Wells
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Stable Production Base Across 2,400+ Wells Sanchez Energy produces from a broad base of more than 2,400 wells across its asset portfolio(1) Managing the business for a more stable produc
Slide 15: Well-Defined Geology with Repeatable Development Potential
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Well-Defined Geology with Repeatable Development Potential Upper Eagle Ford Thickness Lower Eagle Ford Thickness Maverick Maverick Comanche Comanche Catarina Catarina 255’ 150’ 0’ 350’ 175’
Slide 16: Multi-Year Inventory of Organic Growth Opportunities
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Multi-Year Inventory of Organic Growth Opportunities Palmetto Maverick Catarina Comanche Est. Total Est. Total Net Gross Well Producing Engineered Identified Area Production(1) % Oil(1) Comm
Slide 17: III. Management Track Record
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION III. Management Track Record 17 17
Slide 18: Catarina Case Study: Value-Added Asset Optimization
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Catarina Case Study Strong Track Record of Value-Added Asset Optimization Management has demonstrated the ability to create substantial value and generate attractive returns, even in a decli
Slide 19: Catarina Case Study: Addressing Operational Challenges
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Catarina Case Study Demonstrated Ability to Rapidly Address Operational Challenges Nimble and experienced management team has proven highly effective in quickly addressing operational issues
Slide 20: Lessons Learned and Proactive Operational Leadership
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Lessons Learned and Proactive Operational Leadership Initiative Original Rationale Outcome Response Implemented 1. Upper Eagle Ford Well Based on proven success at Disappointing Upper Ea
Slide 21: Focusing Upper Eagle Ford Activity in the Fairway
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Focusing Upper Eagle Ford Activity in the Fairway Completed Appraisal Activity to Define Upper Eagle Ford Fairway OUTSIDE FAIRWAY OUTSIDE FAIRWAY UEF Cumulative BOE 46% of LEF TC UEF Cumulat
Slide 22: Returning to Conservative Flowback
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Returning to Conservative Flowback Tested Flowback Strategies to Accelerate NPV Results do not support continued Standard Choke Avg. Aggressive Choke Avg. implementation of aggressive chok
Slide 23: Testing Completion Design and Well Spacing Strategies
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Testing Completion Design and Well Spacing Strategies Extensively Tested Completion Designs Since Comanche Acquisition Appropriate completion design at appropriate well spacing is critically
Slide 24: Focusing on Frac Mitigation to Protect Existing Production
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Focusing on Frac Mitigation to Protect Existing Production Implementing Highly Promising Frac Mitigation Strategy CPF Frac interference contributed to Downtime nearly half of the PDP 27% u
Slide 25: Prioritizing Workover and Artificial Lift Program
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Prioritizing Workover and Artificial Lift Program Rod Pump to Gas Lift Well Uptime Continues to Improve 400 ~80 Wells Targeted 350 Reduce lift point and EOT by ~800 ft. TVD 300 Reduce op
Slide 26: Aggressive Cost Management Drives Value
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Aggressive Cost Management Drives Value Sanchez has been recognized as one of the lowest cost operators in the Eagle Ford During the commodity downturn, we earned a strong reputation by
Slide 27: Clear Path to Achieving G&A Target
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Clear Path to Achieving G&A Target Management has already made substantial progress toward achieving our long-term G&A target We have already reduced our corporate overhead costs by nearly
Slide 28: Actively Right-Sizing the Organization and Cost Structure
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Actively Right-Sizing the Organization and Cost Structure Cumulative management efforts to-date have reduced employee headcount to pre-Comanche levels, while the Company retains full benef
Slide 29: IV. Proposed Business Plan
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION IV. Proposed Business Plan 29 29
Slide 30: Core Objectives
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Core Objectives Sanchez Energy is committed to developing and implementing a sustainable business model that meets the following core planning objectives: Minimize external funding needs w
Slide 31: Unique Asset Base Provides High Degree of Capital Flexibility
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Unique Asset Base Provides High Degree of Capital Flexibility Path 1: Maximize Cash Flow Path 2: Maximize Production Growth 2019 2020 2021 2022 2023 5-Year Total 2019 2020 2021 2022 2023 5-Y
Slide 32: Reinvestment Ratio Analysis – Oil Price Sensitivities
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Reinvestment Ratio Analysis – Oil Price Sensitivities Path 1: Maximize Cash Flow Efficient business plan drives significant potential margin expansion with modest price recovery 2019 202
Slide 33: V. Projections and Financial Highlights
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION V. Projections and Financial Highlights 33 33
Slide 34: Business Plan Assumptions (SN Consolidated)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Business Plan Assumptions (SN Consolidated) Base Case - Strip 2019 2020 2021 2022 2023 Pricing WTI Oil ($/Bbl) $59.33 $57.10 $54.88 $54.16 $54.22 (As of 6/27/19) Henry Hub Gas ($/MMBtu) $2.3
Slide 35: Business Plan Assumptions (SN Consolidated)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Business Plan Assumptions (SN Consolidated) Catarina Comanche Other 125 125 118 10 10 108 10 10 # gross wells 64 65 57 59 Drilling 43 Activity 1 30 51 51 50 39 12 2019 2020 2021 2022 2023 Gr
Slide 36: Business Plan Assumptions (SN Consolidated)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Business Plan Assumptions (SN Consolidated) Catarina Comanche Other $317 $311 $313 $299 $33 $33 $33 $33 $57 $59 $56 $66 Capital ` $MM Expenditures $110 $227 $218 $223 $18 $200 $56 $36 2019 2
Slide 37: Illustrative Marketing Diagrams and Cost Overview
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Illustrative Marketing Diagrams and Cost Overview Catarina Gas (~$3.43/Mcf) (1) 47% 47% Contract 1* Contract 3* Contract 6* Contract 9 Contract 4 Contract 7 Contract 10 53% 53% Contract 11 2
Slide 38: Reconciliation of YE 2018 SEC Proved Reserves to 3P Management Case
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Reconciliation of YE 2018 SEC Proved Reserves to 3P Management Case We have prepared a 3P database which reflects the key assumptions presented in the proposed business plan The below il
Slide 39: Reserve Summary (Restricted Group)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Reserve Summary (Restricted Group) Year-End 2018 Ryder Scott 1P Report (1) (2) 3P Management Case Reserve and PV10 Summary Reserve and PV10 Summary ($ in millions) ($ in millions) Reserves R
Slide 40: Illustrative Asset-Level Type Curve Parameters
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Illustrative Asset-Level Type Curve Parameters CATARINA Type curve parameters represent average for asset IP (Bbls/d) 372 Initial Decline (%) 81% Oil Weighted average of IPs and initial
Slide 41: Representative Type Curve Parameters by Area
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Representative Type Curve Parameters by Area Below are illustrative parameters for certain of the major type curve areas by asset that represent the majority of future development value in
Slide 42: Catarina Completion Design
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Catarina Completion Design Completion Designs – Evolution Completion Designs – Proppant Volumes Previous operator tested variations of conventional designs Lower fluid and proppant volum
Slide 43: Comanche Completion Design
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Comanche Completion Design 2019 Planned Wells Completion Design Evolution Prior operator design 2017-2018: Tested higher intensity designs ~30 Bbls/ft and ~800 lbs/ft with ~500+ well s
Slide 44: Sanchez Energy Corporation and its Restricted Subsidiaries
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Sanchez Energy Corporation and its Restricted Subsidiaries (“Restricted Group”) 44
Slide 45: Financial Highlights: Base Case (6/27/19 Strip Pricing)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Financial Highlights: Base Case (6/27/19 Strip Pricing) Restricted Group Production (MBoe/d) Capital Expenditures ($MM) 62.5 $294 57.0 $287 $290 $272 52.1 44.0 45.2 $86 2019 2020 2021 2022 2
Slide 46: Summary Projections: Base Case (6/27/19 Strip Pricing)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Summary Projections: Base Case (6/27/19 Strip Pricing) Restricted Group ($ in thousands) 1Q 19 2Q 19 3Q 19 4Q 19 2019 1Q 20 2Q 20 3Q 20 4Q 20 2020 2021 2022 2023 Net Production: Comanche Res
Slide 47: Summary Projections: 13 Week Cash Flow Forecast
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Summary Projections: 13 Week Cash Flow Forecast Restricted Group Sanchez Energy Corp1 13 Week Cash Flow Total Week Ending: Jul 5 '19 Jul 12 '19 Jul 19 '19 Jul 26 '19 Aug 2 '19 Aug 9 '19 Aug
Slide 48: Key Takeaways
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Key Takeaways Proven management team with a strong track record of creating value and driving growth Unique asset base with large, contiguous acreage position and extensive future invent
Slide 49: Appendices
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Appendices 49 49
Slide 50: A. Consolidated and UnSub Financial Projections
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION A. Consolidated and UnSub Financial Projections 50 50
Slide 51: Sanchez Energy Corporation and its Consolidated Subsidiaries
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Sanchez Energy Corporation and its Consolidated Subsidiaries (“Consolidated”) 51
Slide 52: Financial Highlights: Base Case (6/27/19 Strip Pricing)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Financial Highlights: Base Case (6/27/19 Strip Pricing) Consolidated Production (MBoe/d) Capital Expenditures ($MM) 77.3 $317 $311 $313 $299 68.8 72.7 64.9 63.2 $110 2019 2020 2021 2022 2023
Slide 53: Summary Projections: Base Case (6/27/19 Strip Pricing)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Summary Projections: Base Case (6/27/19 Strip Pricing) Consolidated ($ in thousands) 1Q 19 2Q 19 3Q 19 4Q 19 2019 1Q 20 2Q 20 3Q 20 4Q 20 2020 2021 2022 2023 Net Production: Comanche (Boe/d)
Slide 54: SN EF UnSub, LP
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION SN EF UnSub, LP (“UnSub”) 54
Slide 55: Financial Highlights: Base Case (6/27/19 Strip Pricing)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Financial Highlights: Base Case (6/27/19 Strip Pricing) UnSub Production (MBoe/d) Capital Expenditures ($MM) 21.0 $26 18.0 16.7 15.7 14.8 $23 $24 $23 $23 2019 2020 2021 2022 2023 2019 2020 2
Slide 56: Summary Projections: Base Case (6/27/19 Strip Pricing)
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Summary Projections: Base Case (6/27/19 Strip Pricing) UnSub ($ in thousands) 1Q 19 2Q 19 3Q 19 4Q 19 2019 1Q 20 2Q 20 3Q 20 4Q 20 2020 2021 2022 2023 Total Net Production (Boe/d) 22,837 21,
Slide 57: B. Corporate G&A Overview
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION B. Corporate G&A Overview 57 57
Slide 58: G&A Allocation Process and Methodology Overview
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION G&A Allocation Process and Methodology Overview SN generally incurs G&A in two ways: Directly in its own name (e.g., professional fees, various insurance policies and other SN agreements
Slide 59: Summary of 2018 SOG G&A Allocation Among Entities
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Summary of 2018 SOG G&A Allocation Among Entities Allocated amounts generally include employee costs and other G&A expenses MSAs with respect to Comanche Assets (e.g., corporate occupancy
Slide 60: Summary of 2018 SN G&A Allocation
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Summary of 2018 SN G&A Allocation Summary of G&A Allocated from SOG Summary of Other SN G&A $60.8 MM $44.6 MM Field employees $8.0 + Professional fees $33.7 Allocated from SOG Other SN G&A O
Slide 61: C. Commodity Market Backdrop and Summary Capitalization
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION C. Commodity Market Backdrop and Summary Capitalization 61 61
Slide 62: Commodity Price Backdrop
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Commodity Price Backdrop WTI – Present (As of June 2019) $120.00 $100.00 $80.00 $58.99 $60.00 $55.98 ($/Bbl) $54.75 $54.59 $40.00 $20.00 $0.00 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 63: Summary Capitalization
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Summary Capitalization Amount Interest Interest Market ($mm) Maturity Outstanding Rate Expense Price SN Secured Debt: 1st Lien Credit Facility (1) Feb-23 -- L+3.250% $0 N/A 7.25% 1st Lien No
Slide 64: Non-GAAP Financial Measure Reconciliation
STRICTLY CONFIDENTIAL – SUBJECT TO CONFIDENTIALITY AGREEMENTS – PRELIMINARY – SUBJECT TO SUBSTANTIAL REVISION Non-GAAP Financial Measure Reconciliation Adjusted EBITDAX, Unlevered Free Cash Flow and Free Cash Flow Reconciliation 1Q 2019 Consolidated Restricted UnSub Eliminations Entity Adj./Other Re