Carbon Energy Corporation · OTC:CRBO
Carbon Energy — Shareholder Meeting (May 2019)
20 slides from Carbon Energy's shareholder meeting presentation, May 21, 2019
Slide 1: Carbon Energy Corporation Annual Meeting Presentation
Carbon Energy Corporation Annual Meeting Presentation May 21, 2019 1
Slide 2: Important Disclosures
IMPORTANT DISCLOSURES Forward-Looking Statements The slides contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Except f
Slide 3: Carbon Growth Strategy
Carbon Growth Strategy ➢ Emphasize Health, Safety and Environmental best practices and compliance ➢ Acquire and develop oil and gas producing assets • Appalachian Basin • Ventura Basin ➢ Build value from acquired assets through • Lease operating expense reductions • Gathering and compression optimiz
Slide 4: Carbon Energy Corporation CRBO operations structure
Carbon Energy Corporation CRBO California Appalachian Operations Operations 4
Slide 5: Carbon Energy Corporation and Carbon California ownership
Carbon Energy Corporation 100% Carbon California Company, LLC 53.92% 5
Slide 6: Growth Strategy: Acquire and Develop
Carbon Growth Strategy Acquire and Develop Appalachian Basin ➢ Legacy producers are divesting southern Appalachia production and midstream assets. ➢ This creates opportunity to acquire and develop producing and midstream assets and consolidate a southern Appalachian position. ➢ Extensive field devel
Slide 7: 2018 Highlights
2018 Highlights ➢ Emphasis on Health, Safety and Environmental best practices and compliance ➢ Name change to Carbon Energy Corporation, June 1, 2018 ➢ Sespe Field acquisition, Ventura Basin, May 1, 2018 ➢ Acquire balance of interest in Carbon Appalachian Company, LLC, December 31, 2018 ➢ Integratio
Slide 8: 2019 Plan: Growth Through Field Development
2019 Plan Growth Through Field Development ➢ Emphasis on Health, Safety and Environmental best practices and compliance ➢ Create incremental value from assets • Continue lease operating expense reduction • Identify and execute workover and recompletion opportunities • Optimize gas gathering compress
Slide 9: Financial Summary December 31, 2018
Carbon Financial Summary December 31, 2018 (1) Natural Gas (mcf of gas per day) 14,576 Oil (barrels of oil per day) 1,235 Natural Gas Liquids (barrels of oil per day) 91 Mcfe of gas per day (@6:1) 22,529 Adjusted EBITDA ($000) (2) $ 19,841 (1) Activity shown above includes only that which is include
Slide 10: Financial Summary March 31, 2019
Carbon Financial Summary Three Months Ended (1) March 31, 2019 Natural Gas (mcf of gas per day) 61,601 Oil (barrels of oil per day) 1,639 Natural Gas Liquids (barrels of oil per day) 147 Mcfe of gas per day (@6:1) 72,314 EBITDA ($000) $ 9,535 (1) Activity above includes Carbon’s consolidated activit
Slide 11: Carbon Credit Facilities December 2018
Carbon Credit Facilities Carbon Credit Facilities ($000) December 31, 2018 Carbon Energy Carbon California Corporation Company, LLC Ownership Interest 100.00% 53.92% 2018 Credit Facility (Revolver) $ 69,150 2019 Credit Facility (Term Loan) $ 15,000 Promissory Note $ 25,065 Senior Revolving Notes (1)
Slide 12: Carbon Credit Facilities March 2019
Carbon Credit Facilities Carbon Credit Facilities ($000) March 31, 2019 Carbon Energy Carbon California Corporation Company, LLC Ownership Interest 100.00% 53.92% 2018 Credit Facility (Revolver) $ 70,150 2019 Credit Facility (Term Loan) $ 13,333 Promissory Note $ 23,660 Senior Revolving Notes (1) $
Slide 13: Proved Reserves Summary
Carbon Energy Corporation Proved Reserves Summary As of January 1, 2019 SEC 18Q4 Prices Total Proved MBO MMCF MBBL MMBOE BCFE %Oil + NGL %GAS NPV @ 10% Carbon 1,382 429,999 - 73 438 2% 98% $ 237,488 Carbon California 9,445 11,919 1,037 12 75 84% 16% $ 136,827 Combined 10,827 441,918 1,037 86 513 14%
Slide 14: Appalachian Basin Assets
Appalachian Basin Assets 14
Slide 15: Appalachian Business Unit Overview
Carbon Appalachian Business Unit Overview December 31, 2018 ➢ 58,100 mcf gas and 360 barrels oil per day net production ➢ 6% base production decline rate ➢ No capital obligations ➢ Low lease operating expenses ➢ Interest in 8,200 wells (6,700 operated), 92% working interest ➢ SEC proved reserves • 4
Slide 16: Southern Appalachia Midstream Business Segment
Southern Appalachia | Midstream Business Segment Overview ▪ System transports over 90 MMcf/d ▪ Direct on system industrial end use customers ▪ Carbon owned gas storage facilities provide direct end user sales flexibility and gas marketing opportunities ▪ Extensive gathering and compression system ba
Slide 17: California Oil and Gas Basins
California Oil and Gas Basins Petrolia Sacramento Sacramento Basin San Francisco San Joaquin Basin Santa Cruz Salinas Basin Bakersfield Santa Maria Basin Ventura Ventura Basin Los Angeles Basin Los Angeles _______________________________ San Diego 17 17
Slide 18: Ventura Basin
Ventura Basin Ventura County Los Angeles County Temescal / Piru Creek / Wayside Canyon Hopper Canyon Honor Rancho Sespe Timber Del Valle Canyon Holser Ojai Fillmore Ramona Castaic Santa Paula Newhall-Portero Rincon South Mtn Newhall San Miguelito Bardsdale / Shiells Canyon Placerita / Cascade Satico
Slide 19: California Company Overview
Carbon California Company Overview December 31, 2018 ➢ 1,470 barrels of oil and 3,500 mcf of gas net daily production ➢ 3.5% base production decline rate ➢ No capital obligations ➢ Low lease operating expenses ➢ Interest in 571 (545 operated), 95% working interest ➢ SEC Proved Reserves • 19.4 millio
Slide 20: Office addresses and website
1700 Broadway Suite 1170 Denver, CO 80290 2480 Fortune Drive, Suite 300 Lexington, KY 40509 270 Quail Court, Suite B Santa Paula, CA 93060 www.carbonenergycorp.com