Sundance Energy — Investor Presentation (February 2020)
25 slides from Sundance Energy's investor presentation, Feb 10, 2020
Slide 1: Sundance Energy February 2020
Sundance Energy February 2020 sundanceenergy.net
Slide 2: Disclaimers
▫ 2 ▫ Disclaimers Cautionary Statement Regarding Forward - Looking Statements This presentation contains forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 . These statements are identified by the use
Slide 3: A Leading Pure Play Eagle Ford Producer
▫ 3 ▫ A Leading Pure Play Eagle Ford Producer ▪ Full NASDAQ listing post successful completion of US redomiciliation in 4Q19 • Management believes redomiciliation could d rive improved trading liquidity and valuation to bring Sundance’s valuation in - line with its US based Eagle Ford peers ▪ Free C
Slide 4: Evolution As Eagle Ford Pure Play Operator
▫ 4 ▫ Evolution As Eagle Ford Pure Play Operator Sundance’s cycle - tested DNA is building and profitably monetizing core positions in US shale basins 2004 2005 2006 2009 2012 2013 2014 2016 2018 Sundance Energy founded targeting Australia’s Cooper Basin Sundance completes IPO on the Australian Secu
Slide 5: Summary Fourth Quarter and Full Year 2019 Guidance
▫ 5 ▫ Summary Fourth Quarter and Full Year 2019 Guidance (1) (1) As per internal Company estimates at October 31, 2019. All figures are represented on a cash basis and are thus Non - IFRS in natu re. See Appendix for reconciliation to IFRS. (2) “GP&T” refers to Gathering, Processing and Transportati
Slide 6: Ongoing Focus on Reducing Operating Costs
▫ 6 ▫ $12.29 $9.04 $7.89 $9.15 $6.57 $6.01 $1.19 $1.94 $2.57 $2.55 $2.95 $2.67 $2.67 $3.33 $2.13 $2.83 $2.46 $2.27 $6.84 $3.82 $2.79 $3.37 $3.03 $2.88 $- $5.00 $10.00 $15.00 $20.00 $25.00 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 LOE (including WOE)/BOE GP&T/BOE Production Taxes/BOE Cash G&A/B
Slide 7: Eagle Ford Shale Basin Overview
▫ 7 ▫ Eagle Ford Shale Basin Overview Proximity to both HSC Refining and Corpus Christi export markets provides optionality and premium pricing Corpus Christi Export Market Houston Ship Channel Refining Market Sundance currently receives netback pricing of WTI plus $0.30 in HSC (1) Sundance currentl
Slide 8: Assets Deliver Attractive Returns At Lower Oil Prices
▫ 8 ▫ Assets Deliver Attractive Returns At Lower Oil Prices (1) 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
Slide 9: High Quality Reservoir Across Acreage Position
▫ 9 ▫ High Quality Reservoir Across Acreage Position A A’ A’ A Buda Eagle Ford Austin Chalk Eagle Ford Reservoir Properties ▪ EGFD thickness ranges from 130 ’ - 205 ’ ▪ Lower Eagle Ford averages > 125 feet across position ▪ Thickness and recoverable hydrocarbons in place allow for wine rack developm
Slide 10: Capitalization Table and Available Liquidity
▫ 10 ▫ Capitalization Table and Available Liquidity Strong balance sheet and significant liquidity, with no debt maturities until 4 th Quarter of 2022 ▪ Sufficient Available Liquidity to Fund Development Through Free Cash Flow • Strong organic cash flow plus available cash and short term liquidity s
Slide 11: Corporate Debt Overview
▫ 11 ▫ Corporate Debt Overview ▪ Reserve Based Loan • Amount: $190.0 MM elected commitment presently available under $210 MM borrowing base; $115 MM drawn (1) • Redetermination: Bi - annually • Coupon: Floating, Libor + 225 - 325 bps depending on utilization (2) • Term: 4.5 years • Maturity: October
Slide 12: Debt Maturity and Service Schedule
▫ 12 ▫ Debt Maturity and Service Schedule ▪ No debt maturities until 4 th Quarter of 2022 ▪ Assuming consensus 2019 EBITDA run flat forward Sundance has sufficient cash flow to service current debt levels as shown by elevated Debt Service Coverage Ratio ▪ Excludes impact of potential additional Cash
Slide 13: Closed Sale of Dimmit County Asset
▫ 13 ▫ Closed Sale of Dimmit County Asset Closed sale of all Dimmit County, $17.8mm proceeds received at Closing Dimmit Transaction Overview ▪ Sale closed on October 1 , 2019 ▪ $ 17 . 8 mm proceeds received to date ; remaining proceeds are due to Sundance in first quarter 2020 ▪ Sale of all remainin
Slide 14: 2019 Development – Quarterhorse Acreage
▫ 14 ▫ La Salle McMullen AREA 41 AREA 11 AREA 21 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, 13H &
Slide 15: 2019 Development – Legacy Acreage
▫ 15 ▫ 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 16: Robust 2019 Initial Production Results Support Growth Plan
▫ 16 ▫ 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
Slide 17: 2018 Wells Continue to Demonstrate Superior Results
▫ 17 ▫ 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 outperforma
Slide 18: 2018 Live Oak County Initial Well Performance vs Type Curve
▫ 18 ▫ 2018 Live Oak County Initial Well Performance (1) vs Type Curve (2) Note: Cum Oil Type Curve is normalized to well Lateral Length. (1) Well results shown as of November 1, 2019. (2) Ryder Scott Type Curve at December 31, 2019 . Harlan Bethune Area Live Oak RSC119 TC RSC119 TC 2018 Area 41 Liv
Slide 19: 2019 Live Oak County Initial Well Performance vs Type Curve
▫ 19 ▫ 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 Harlan Bethune Area Live Oak RSC119 TC RSC119 TC Note: Cum Oil Type Curve is normalized to well Lateral Length. (1) Well results sh
Slide 20: 2018 Atascosa County Initial Well Performance vs Type Curve
▫ 20 ▫ 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 Tom Justin 5H & 6H RSC119 TC Note: Cum Oil Type Curve is normalized to well Lateral Length. (1) Well results shown as of
Slide 21: Robust 2020 Hedge Book Supports Strong Cash Flow Generation
▫ 21 ▫ Robust 2020 Hedge Book Supports Strong Cash Flow Generation Gas Hedges (1) Oil Hedges (1) Current hedging covers ~5,500 barrels per day of crude sales volumes at an average ~$56.50 floor price (1) Gas HH/HSC Contracts Year Mcf Floor Ceiling 2020 1,810,000 $2.67 $2.70 2021 1,290,000 $2.65 $2.6
Slide 22: High Quality Asset Base – Material Inventory With Low Full-Cycle Break Even Costs
▫ 22 ▫ 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 , 110 MM ( 1 ) of 1 P PV 10 as at year end 2018 ▪ Full - cycle break even costs of ~ $ 30 . 00 per boe allows production and EBITDA gro
Slide 23: Appendix
Appendix sundanceenergy.net
Slide 24: Non-IFRS financial information reconciliation
▫ 24 ▫ The unaudited financial information below reflects the results of Sundance Energy Australia Limited, the predecessor of Sundance Energy Inc, which was prepared under International Financial Reporting Standards . We expect to file financial statements prepared under U . S . GAAP for the years
Slide 25: For Additional Information Please Contact
▫ 25 ▫ For Additional Information Please Contact: United States John Roberts, VP Finance & Investor Relations jroberts@sundanceenergy.net +1 (720) 638 - 2400 Eric McCrady, Chief Executive Officer emccrady@sundanceenergy.net +1 (303) 543 - 5703 www.sundanceenergy.net
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