Slide 1: 2nd Quarter 2024 Results
2nd Quarter 2024 Results JULY 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: 2nd Quarter 2024 Highlights
2nd Quarter 2024 Highlights • Weak natural gas prices weighed heavily on the second quarter results • Natural gas and oil sales for the quarter were $278 million (1) • Cash flow from operations was $118 million or 41¢ per diluted share and (2) adjusted EBITDAX was $167 million • Reported an adjusted
Slide 4: Q2 2024 Financial Results
Q2 2024 Financial Results $ in millions 4 4 4
Slide 5: YTD 2024 Financial Results
YTD 2024 Financial Results $ in millions Production (MMcfe/d) 1,486 1,401 5 2023 2024 5 5
Slide 6: Natural Gas Price Realizations
Natural Gas Price Realizations Per Mcf 2Q 2023 3Q 2023 4Q 2023 1Q 2024 2Q 2024 NYMEX Settlement Month Average $ 2.10 $ 2.55 $ 2.88 $ 2.24 $ 1.89 NYMEX Differential (0.29) (0.22) (0.40) (0.18) (0.24) Realized Prices $ 1.81 $ 2.33 $ 2.48 $ 2.06 $ 1.65 $2.48 $2.33 $2.06 $1.81 $1.65 NYMEX Contract Settl
Slide 7: Low Operating Costs
Low Operating Costs Operating Costs Per Mcfe / EBITDAX Margin 7 7 7
Slide 8: 2024 Drilling Program
2024 Drilling Program ($ in millions) 2024 Haynesville Drilling Program Haynesville Bossier Total Gross Net Gross Net Gross Net Second Six Months Operated - Quarter 2024 2024 Drilled 18 14.9 9 8.6 27 23.5 ($ in millions) Turned to Sales 26 23.9 4 4.0 30 27.9 Haynesville Drilling Program - Drilling &
Slide 9: Capitalization
Capitalization Bank Credit Facility ($ in millions) 6/30/2024 $1.5 Billion Secured Revolving Credit Facility: Cash and Cash Equivalents $19 • $2 billion borrowing base Revolving Credit Facility $325 (reaffirmed in April 2024) Secured Debt $325 • Maturity date November 15, 2027 6¾% Senior Notes due 2
Slide 10: Drilling Inventory
Drilling Inventory • Average lateral length of location inventory is 9,077 feet • Over 30 years of drilling based on 2024 activity As of June 30, 2024 Haynesville Operated Non-Operated Total Lateral Length Gross Net Gross Net Gross Net WI Net Mft Avg Net ft Up to 5,000 ft 123 98 339 48 462 146 673 4
Slide 11: Drilling Statistics
Drilling Statistics Average Lateral Length (feet) 11 11
Slide 12: Q2 2024 Drilling Results
Q2 2024 Drilling Results Webster Bossier Caddo Completed 15 operated wells 1 3 (average lateral length of 9,802 ft.) with average IP rate of 21 Mmcf/d 14 15 LL Turned To IP 8 9 Bienville Well Name (feet) Sales (Mmcf/d) 1 Baker 12-1 #4 8,479 05/20/2024 10 2 Baker 12-1 #5 9,802 05/20/2024 13 3 Baker 1
Slide 13: D&C Costs
D&C Costs (Laterals > 8,500 ft.) ($ per Lateral Foot) $1,730 $1,506 $1,543 $1,501 $1,446 $1,329 $1,215 $794 $1,026 $1,040 $883 $787 $941 $1,021 $806 $764 $569 $643 $936 $660 $714 $565 $523 $425 $451 $457 $397 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2024 Q2 Completion Drilling 13 13
Slide 14: Haynesville Horseshoe Wells
Haynesville Horseshoe Wells • Horseshoe design converts four sectional laterals into two 2-mile lateral wells • D&C costs for four 4,450-foot laterals is $40 million or $2,270 per lateral foot • D&C costs for two 9,200-foot horseshoe laterals is $32 million or $1,740 per lateral foot • D&C Savings o
Slide 15: 2024 Outlook
2024 Outlook • Responding to low natural gas prices • Substantially reduced capital spending for 2024 • Reduced from 7 to 5 operated rigs • Reduced from 3 to 2 frac spreads; no remaining long-term commitments for pressure pumping services • D&C capital expenditures expected to be down 33% - 41% from
Slide 16: Guidance
Guidance Guidance 3Q 2024 2024 Production (Mmcfe/d) 1,400 - 1,500 1,425 - 1,525 D&C Costs ($ in Millions) $135 - $185 $750 - $850 Pinnacle Gas Services ($ in Millions) $30 - $40 $125 - $150 Acreage ($ in Millions) $2 - $5 $80 - $90 Expenses ($/Mcfe) - Lease Operating ($/Mcfe) $0.24 - $0.28 $0.24 - $
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 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 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Income Quarter Ended June 30, Six Months Ended June 30, $ in thousands except per share amounts 2024 2023 2024 2023 Net income (loss) available to common shareholders $ (123,249) $ (45,706) $ (137,723) $ 88,797 Unrealized (gain) loss on hedging contracts 85,8
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Operating Cash Flow Quarter Ended June 30, Six Months Ended June 30, $ in thousands 2024 2023 2024 2023 Net income (loss) $ (123,249) $ (45,706) $ (137,723) $ 88,797 Reconciling items: Deferred income taxes (benefit) (46,144) (13,910) (54,431) 25,270 Depreciation, depleti