Permian Resources Corporation · NYSE:PR
Permian Resources — Centennial Resource Development — Merger or Acquisition (November 2016)
12 slides from Permian Resources's merger presentation, Nov 28, 2016
Slide 1: Important Information
Important Information 2 Forward-Looking Statements The information in this presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than st
Slide 2: Silverback acquisition overview
Silverback acquisition overview Transformative acquisition of core, bolt-on Reeves County acreage 3 An affiliate of Riverstone has agreed to acquire the E&P assets of Silverback Exploration (“Silverback” or “SBE”) for a total cash purchase price of $855 million, subject to customary adjustments. Riv
Slide 3: Key transaction highlights
Key transaction highlights 4 Highly contiguous, operated bolt-on acreage position Significant inventory of operated extended laterals and sizeable resource potential Accretive to NAV, production and cash flow Accretive to growth while maintaining balance sheet strength Attractive well economics in l
Slide 4: Silverback acquisition is consistent with strategy to add Delaware Basin acreage
Silverback acquisition is consistent with strategy to add Delaware Basin acreage of similar quality to existing CDEV position Opportunities to add highly accretive “offset” acreage in the Delaware Basin are rare Silverback acreage is scalable for CDEV: Nearly doubles operated locations / inventory E
Slide 5: Acquisition consistent with Centennial 2020 Game Plan
Objective: Best equity performance of any U.S. Small Cap E&P through 2020 Game Plan: Selectively pursue transformative acquisition in Permian Maintain one of the lowest net debt positions of all domestic E&P companies Maintain clear, easy to understand financials Grow net oil production from ~6,1001
Slide 6: Significant enhancement to 2020 Game Plan
Significant enhancement to 2020 Game Plan 7 Highly contiguous operated acreage position Contiguous Reeves County position with ~35,000 net acres (~44,000 gross acres) Acreage is 95% operated, with 88% working interest on operated acreage Silverback acreage directly offsets a significant portion of e
Slide 7: Silverback acquisition adds extensive inventory of economic locations
Silverback acquisition adds extensive inventory of economic locations across a larger pro forma operated footprint 8 Material increase in inventory life, operated extended lateral locations and resource potential Total locations1 Operated locations1 +44% +83% Total net acreage +83% Operated extended
Slide 8: Wolfcamp A oil results comparable to CDEV acreage
Wolfcamp A oil results comparable to CDEV acreage Wolfcamp A Production normalized to 4,500ft and unadjusted for downtime Average NSAI PUD type curve based on reserve estimates of NSAI as of 12/31/15 Includes Wolfcamp A well results for SBE and offset operators Includes all Wolfcamp A wells complete
Slide 9: Type curves and gas-to-oil ratio comparison
10 Source: HPDI, IHS All type curves run using a flat $55/Bbl flat WTI and $3.00 flat HHub pricing; Assumes 4,500’ lateral length and current D&C cost of $5.5 million; single well statistics estimated utilizing managements current commercial assumptions; actual economics may vary significantly Avera
Slide 10: Centennial pro forma horizontal development plan
Centennial pro forma horizontal development plan Initiate development on acquired acreage and continue shift to extended laterals 11 Q4 2016 2017 2018 Near-term development planned across the entirety of the pro forma core acreage footprint Increase focus on extended lateral locations Wolfcamp A wil
Slide 11: The Centennial Team
Mark Papa Chief Executive Officer Formerly Chief Executive Officer of EOG Resources Formerly Partner of Riverstone; Current Advisor to Riverstone Sean Smith Chief Operating Officer George Glyphis Davis O’Connor Jamie Wheat Matt Garrison 12 The Centennial Team Name Position Background Sean Marshall O
Slide 12: The Centennial Team
The Centennial Team Name Position Background Mark Papa Chief Executive Officer 1 Formerly Chief Executive Officer of EOG Resources 1 Formerly Partner of Riverstone; Current Advisor to Riverstone ‘Sean Smith Chief Operating Officer = Legacy VP of Geosciences, Centennial = Formerly General Manager, Hi
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