Slide 1: 1st Quarter 2024 Results
1st Quarter 2024 Results MAY 1, 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: 1st Quarter 2024 Highlights
1st Quarter 2024 Highlights • Weak natural gas prices weighed heavily on the first quarter results (1) • Natural gas and oil sales for the quarter were $336 million (2) • Cash flow from operations was $182 million or 65¢ per diluted share and adjusted EBITDAX was $230 million • Reported an adjusted
Slide 4: Q1 2024 Financial Results
Q1 2024 Financial Results $ in millions 4 4 4
Slide 5: Natural Gas Price Realizations
Natural Gas Price Realizations Per Mcf 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 NYMEX Settlement Month Average $ 3.42 $ 2.10 $ 2.55 $ 2.88 $ 2.24 NYMEX Differential (0.44) (0.29) (0.22) (0.40) (0.18) Realized Prices $ 2.98 $ 1.81 $ 2.33 $ 2.48 $ 2.06 $2.98 $2.48 $2.33 $2.06 $1.81 NYMEX Contract Settl
Slide 6: 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 375 $3.51 2026 Total Swaps 300 $3.51 Q1 400 Collars Q1 525 Collars 150 $3.50 x $3.80 Q1 550 Collars 250 $3.50 x $3.98 2024 Total Swaps 400 $3.55 2025 Tota
Slide 7: Low Operating Costs
Low Operating Costs Operating Costs Per Mcfe / EBITDAX Margin 7 7 7
Slide 8: 2024 Drilling Program
2024 Drilling Program ($ in millions) 1Q 2024 Haynesville Drilling Program Haynesville Bossier Total Gross Net Gross Net Gross Net First Quarter Operated - 2024 Drilled 13 11.4 3 2.9 16 14.3 ($ in millions) Turned to Sales 14 12.3 4 4.0 18 16.3 Haynesville Drilling Program - Drilling & Completion $
Slide 9: Capitalization
Capitalization Sr. Notes Bank Credit Facility ($ in millions) 3/31/2024 Offering As Adjusted $1.5 Billion Secured Revolving Credit Facility: Cash and Cash Equivalents $6 $6 • $2 billion borrowing base Revolving Credit Facility $540 ($365) $175 (reaffirmed in April 2024) Secured Debt $540 $175 • Matu
Slide 10: Drilling Inventory
Drilling Inventory • Average lateral length of location inventory is 9,015 feet • Over 30 years of drilling based on 2023 activity As of March 31, 2024 Haynesville Operated Non-Operated Total Lateral Length Gross Net Gross Net Gross Net WI Net Mft Avg Net ft Up to 5,000 ft 134 105 345 50 479 154 711
Slide 11: Drilling Statistics
Drilling Statistics Average Lateral Length (feet) 11 11
Slide 12: Q1 2024 Drilling Results
Q1 2024 Drilling Results Harrison Bossier 3 Completed 14 operated wells Caddo 1 (average lateral length of 8,031 ft.) with average IP rate of 25 Mmcf/d LL Turned To IP Well Name (feet) Sales (Mmcf/d) 1 Turner 16-21-28 #1 14,137 01/08/2024 35 2 Cox H #2 7,658 01/18/2024 9 3 Cox H #3 7,994 01/18/2024
Slide 13: D&C Costs
D&C Costs (Laterals > 8,500 ft.) ($ per Lateral Foot) 13 13
Slide 14: Lower GHG Emissions
Lower GHG Emissions GHG and methane emission intensities down substantially over last three years • Deployed optical gas imaging and aircraft leak monitoring technology at almost 100% of our production sites • Natural gas and dual-fuel powered frac fleets eliminated 10.6 million gallons of diesel, o
Slide 15: 2024 Outlook
2024 Outlook • Responding to low natural gas prices • Substantially reduced capital spending in the first quarter of 2024 • Reduced from 7 to 5 operated rigs • Reduced from 3 to 2 frac spreads; no remaining long-term commitments for pressure pumping services • D&C capital expenditures expected to be
Slide 16: Guidance
Guidance Guidance 2Q 2024 2024 Production (Mmcfe/d) 1,425 - 1,525 1,425 - 1,525 D&C Costs ($ in Millions) $200 - $250 $750 - $850 Pinnacle Gas Services ($ in Millions) $30 - $40 $125 - $150 Acreage ($ in Millions) $2 - $5 $70 - $80 Expenses ($/Mcfe) - Lease Operating ($/Mcfe) $0.24 - $0.28 $0.24 - $
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Income Quarter Ended March 31, $ in thousands except per share amounts 2024 2023 Net income (loss) available to common shareholders $ (14,474) $ 134,503 Unrealized (gain) loss on hedging contracts 8,688 (56,026) (Gain) loss on sale of assets - (773) Explorati
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Operating Cash Flow Quarter Ended March 31, $ in thousands 2024 2023 Net income (loss) $ (14,474) $ 134,503 Reconciling items: Deferred income taxes (benefit) (8,287) 39,180 Depreciation, depletion and amortization 190,689 133,983 Unrealized (gain) loss on hedging contrac