Slide 1: 3rd Quarter 2024 Results
3rd Quarter 2024 Results OCTOBER 30, 2024
Slide 2: Disclaimer
Disclaimer This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations or forecasts of future events. These statements include
Slide 3: 3rd Quarter 2024 Highlights
3rd Quarter 2024 Highlights • Weak natural gas prices continued to weigh heavily on the third quarter financial results: • Natural gas and oil sales(1) - $305 million • Operating cash flow (2) - $152 million or $0.52 per diluted share • Adjusted EBITDAX - $202 million • Adjusted net loss - $48.5 mil
Slide 4: Q3 2024 Financial Results
Q3 2024 Financial Results $ in millions 4 4 4
Slide 5: YTD 2024 Financial Results
YTD 2024 Financial Results $ in millions 5 5 5
Slide 6: Natural Gas Price Realizations
Natural Gas Price Realizations Per Mcf 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 NYMEX Settlement Month Average $ 2.55 $ 2.88 $ 2.24 $ 1.89 $ 2.16 NYMEX Differential (0.22) (0.40) (0.18) (0.24) (0.26) Realized Prices $ 2.33 $ 2.48 $ 2.06 $ 1.65 $ 1.90 $2.48 $2.33 $2.06 $1.90 $1.65 NYMEX Contract Settl
Slide 7: Low Operating Costs
Low Operating Costs Operating Costs Per Mcfe / EBITDAX Margin 7 7 7
Slide 8: 2024 Drilling Program
2024 Drilling Program ($ in millions) 2024 Haynesville Drilling Program Haynesville Bossier Total Gross Net Gross Net Gross Net Third Quarter Nine Months Operated - 2024 2024 Drilled 23 18.6 12 11.1 35 29.7 ($ in millions) Turned to Sales 34 29.2 7 6.7 41 35.9 Haynesville Drilling Program - Drilling
Slide 9: Capitalization
Capitalization Bank Credit Facility ($ in millions) 9/30/2024 $1.5 Billion Secured Revolving Credit Facility: Cash and Cash Equivalents $14 • $2 billion borrowing base Revolving Credit Facility $415 (reaffirmed in October 2024) Secured Debt $415 • Maturity date November 15, 2027 • Key financial cove
Slide 10: Haynesville Horseshoe Wells
Haynesville Horseshoe Wells • Completed our first horseshoe well, the Sebastian 11 #5 with a 9,382 foot lateral and a 31 MMcf per day initial production rate. • The horseshoe design can convert four sectional laterals into two 2-mile lateral wells • D&C costs for four 4,450-foot laterals is $40 mill
Slide 11: Drilling Inventory
Drilling Inventory As of September 30, 2024 Haynesville Operated Non-Operated Total Lateral Length Gross Net Gross Net Gross Net WI Net Mft Avg Net ft Up to 5,000 ft 45 36 324 46 369 81 375 4,608 5,000 ft to 8,500 ft 182 136 115 25 297 161 1,128 6,996 8,500 ft to 10,000 ft 252 191 122 12 374 203 1,9
Slide 12: Drilling Statistics
Drilling Statistics Average Lateral Length (feet) 12 12
Slide 13: Q3 2024 Drilling Results
Q3 2024 Drilling Results 3 Panola Bossier 1 Caddo Completed 8 operated wells (average lateral length of 12,391 ft.) with average IP rate of 21 Mmcf/d LL Turned To IP Well Name (feet) Sales (Mmcf/d) 1 Cadenhead #2 12,760 07/28/2024 23 2 Cadenhead #1 12,590 07/28/2024 24 3 Rosehaven Verhalen #1 11,716
Slide 14: Legacy Haynesville D&C Costs
Legacy Haynesville D&C Costs Drilling Completion (Laterals > 8,500 ft.) ($ per Lateral Foot) Wells that reached Total Depth Wells turned to Sales 14
Slide 15: 2024 Outlook
2024 Outlook • Responding to low natural gas prices • Substantially reduced capital spending for 2024 • Reduced from 7 to 5 operated rigs • Reduced from 3 to 2 frac spreads; no remaining long-term commitments for pressure pumping services • Suspended quarterly dividend • Majority stockholder Jerry J
Slide 16: Guidance
Guidance Guidance 4Q 2024 Production (Mmcfe/d) 1,325 - 1,375 D&C Costs ($ in Millions) $225 - $275 Pinnacle Gas Services ($ in Millions) $50 - $90 Acreage ($ in Millions) $2 - $5 Expenses ($/Mcfe) - Lease Operating ($/Mcfe) $0.24 - $0.28 Gathering & Transportation ($/Mcfe) $0.34 - $0.40 Production &
Slide 17: Hedging Program
Hedging Program Building Longer Term Hedge Program (Mmcf/d) $/Mmbtu (Mmcf/d) $/Mmbtu (Mmcf/d) $/Mmbtu 2024 Total Swaps 400 $3.55 2025 Total Swaps 395 $3.50 2026 Total Swaps 300 $3.51 Q1 400 Collars Q1 545 Collars 150 $3.50 x $3.80 Q1 550 Collars 250 $3.50 x $3.98 2024 Total Swaps 400 $3.55 2025 Tota
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Income Quarter Ended September 30, Nine Months Ended September 30, $ in thousands except per share amounts 2024 2023 2024 2023 Net income (loss) available to common shareholders $ (25,718) $ 14,720 $ (163,441) $ 103,517 Unrealized (gain) loss on hedging contr
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Operating Cash Flow Quarter Ended September 30, Nine Months Ended September 30, $ in thousands 2024 2023 2024 2023 Net income (loss) $ (25,718) $ 14,720 $ (163,441) $ 103,517 Reconciling items: Deferred income taxes (benefit) (12,734) 3,608 (67,165) 28,878 Depreciation, d