Abraxas Petroleum — Investor Presentation (August 2019)
30 slides from Abraxas Petroleum's investor presentation, Aug 27, 2019
Slide 1: Abraxas Petroleum Corporation August 2019
‘Abraxos Coprito 92 #2014; Ward Cty, ‘Abraxas Petroleum Corporation August 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements ABRAXAS Cn ‘The information presented herein may contain predictions, estimates and other forward-looking statements within the meaning of Section 27A of the ‘Securities Act of 1933 and Section 21E of the Secumties Exchange Act of 1934. Although the Company believes that i
Slide 3: Corporate Profile
Corporate Profile NASDAQ: AXAS Headquarters... . San Antonio Shares outstanding!) 168mm Market capt $115 mm Net debt). $183 mm 2019E CAPEX. $87 mm ABRAXAS EV/BOE(2).. $6.16 Proved Reserves"). 67.2 mmboe NBV Non-Oil & Gas Assets)... $20.1mm Production®. ~11,000 boepd Pv-1007) $689.3
Slide 4: 2019 Operating and Financial Guidance
2019 Operating and Financial Guidance ABRAXAS 2019 Capex Budget Allocation 2019 Operating Guidance opted - “a a pertingcots Permion-Delowore Loe 000) ar $600 Bakken/Tree Forks vin Production Tax (%Rev) 8.0% 9.0% Acquisitons/aciies/ther cash 8a(smm) sas sus Production (bot03) 10500 11500 Dat Producti
Slide 5: Revised Guidance 2019
Revised Guidance 2019 ABRACS Switching to barrels oil from barrels of oil =n ivalent format + Gas & NGL have become insignificant revenue generators compared to percent of production * Gas & NGL are tied to 3rd party gathering and processing, subject to unpredictable shut source of overall productio
Slide 6: Historical Reserve & Production Growth
Historical Reserve & Production Growth = YE18 total proved reserves up 3% YoY ‘© $59 increase over last 3 years = 143% CAGR since 2013 ‘= YE18 production up 33% YoY ‘© 6436 increase over last 3 years = 163% CAGR since 2013 © Oilcontribution up 40% since 2013 =~ 19 yearreserve life at current drillin
Slide 7: The Abraxas Advantage
The Abraxas Advantage ABRAXAS Es = Capital Structure Benefit + RBLrepresents only meaningful form of leverage, no other balance sheet dilutives + Provides ample liquidity to carry out current development plan and operate within cashflow " Basin / GeologicBenefit + Core acreage positions in the Bakke
Slide 8: Asset Base Overview
Asset Base Overview ABRAXAS
Slide 9: Delaware Basin
Delaware Basin ABRAXAS eee Permian Basin — Wolfcamp & Bone Spring [LEASEHOLD oPERATORS) L
Slide 10: Delaware Basin Inventory
Delaware Basin Inventory AB =] a Abraxas has identified 368 net potential drilling locations assuming 880 ft spacing between wells in the same zone * Approximately 323 of these locations could be combined in the future for long lateral development should conditions warrant = Abraxas believes this lo
Slide 11: Evolution in the Delaware Basin
Evolution in the Delaware Basin Tavrsxesopecies Acreage iiAbravasNen opened Acreage Tiros Opemevaege os Gaavcorstion Operas neoge 2 meee fess TT v Roowes |
Slide 12: Delaware Basin Caprito Development
Delaware Basin ABRAXAS Caprito Development 2
Slide 13: Down-spacing Observations
Down-spacing Observations ABRAXAS Caprito 99 Down-Space Wells RATE vs TIME (CUM BOE vs TIME a wow e882 88e88e888 988 on @ ® © mm © m wm m 0 2 4 6 8% 100 120 140 160 180 200 3
Slide 14: Delaware Basin — 3rd Bone Spring
Delaware Basin — 3" Bone Spring ABRAXAS OO Bone Spring Average vs. Type 700 caprtoaz-i0iH bei? 1000 Mesquite 02H Oci8 0 ‘Woodbery 004 19 0 100 0 i $00 0 200 20 100 0 ° a a a ) a f4on g 2 Es 0 a a a a
Slide 15: Delaware Basin — Wolfcamp A1
Delaware Basin — Wolfcamp A1 ABRAXAS Wolfcamp A Average caprko9e-20H Jul? caprtos2- 2004 Dec7 Ccapritess202H Jun i8 capntos92uiHjuni8 Grescovoos201H Aug 18 Pecona7201H —Deei8 Greosote201H Mari9 Mackbern/200H_May19 Woodberr/201H Jul 19 e383 3.22 2 5
Slide 16: Delaware Basin — Wolfcamp A2
Delaware Basin — Wolfcamp A2 ABRAXAS Es Wolfcamp A2 Average vs. Type 300 enrtoBPSOaH Vor 18 = anntosesoin ‘Mt Cenrtosesoan ti? ja Ceortosesoin hn Canrtoseatin hit eo Greens 31H hai Gene 00 Mr vo cy 0 20 1 ° a Be 8 a es ee Fi ee avs
Slide 17: Delaware Basin — Wolfcamp B
Delaware Basin — Wolfcamp B ABRAXAS Es Wolfcamp B Average vs. Type 00 Cepritoss-408H Dee 17, ° 0 100 150 200 250 +300 350 400 450 +500 ° 50 100 150 200 250 300 350 400 450 500
Slide 18: Delaware Basin Economics by Zone - EOY18 Model
Delaware Basin ABRAXAS Economics by Zone - EOY18 Model — ‘Abraxas EOV1 Assumptions ‘Abraxas EOV18 Assumptions Abraxas EOY18 Assumptions Abraxas EOV18 Assumptions + 630 MBOE gross typecurve ‘640 MBOE gross typecurve 580 MBOE grosstypecurve || «525 MBOE gross typecurve + 86% oll + 88% oll + 87% oil +
Slide 19: Bakken/Three Forks
Bakken/Three Forks Bakken / Three Forks (McKenzie Cty., ND) Asset Highlight ~ 3,500 net acres in the heart of MeKenale Cty. 63 wells drilled & completed by Abraxas Cum Production “11 MMbo / 17 MMboe Current Net Production ~5,500 boepd Remaining Locations: = 39 (MB /11TF1 /20TF2) Refrac Candidates ~2
Slide 20: Bakken/Three Forks Remaining Inventory
Bakken/Three Forks ABRAXAS Remaining Inventory Remaining Locations Three Forks 2°¢ Bench (19 Total - 8 MB, 11 TF1) (20 TF2 PRUD’s booked) | i | 150N 97W | Jore Federal WI” 98% (3MB, 7TF1) + AXASbooktypecurve= 555 MBOE Yellowstone WI” 75% (4MB, 4TF1) + CARresults> 1,000 MBOE Ravin Wi 48.6% (1Ma) + AX
Slide 21: Bakken Completion Evolution: 2010 - 2019
Bakken Completion Evolution: 2010 - 2019 ABRAXAS Cn Highlights— = Increase in prop mass and fl volume = Increase in stages and adding diverters to drive cluster efficiency = Using thinner fluids to promote complexity ca nt ans cena aes PEDITMETHOD seems FerREDeWTRO FPR NERD ras = 'souarion sreuncers
Slide 22: Generational Uplift — Middle Bakken
Generational Uplift —- Middle Bakken North Fork Field ‘ations vs. $ 3 5 8 s s = § 8 s g 3 & 2 3 3 =
Slide 23: Generational Uplift — Three Forks
Generational Uplift — Three Forks North Fork Field
Slide 24: Bakken System Economics
Bakken System Economics Economics by Zone - EOY18 Model Middle Bakken Three Forks ‘Abraxas EOY18 Assumptions 975 MBOE gross type curve © 88% Oil © Initial rate: 1,302 boepd © di: 95.90% = dm:8.0% © bfactor:1.3 Assumed CWC: $7.6 million ‘Abraxas EOY18 Assumptions #791 MBOE gross typecurve © 87%0il ®
Slide 25: Oil and Gas Marketing & Takeaway
Oil and Gas Marketing & Takeaway ABRACS nn Delaware Basi Bakkon/ThreeForks OilMarketingand Takeaway | CapritoArea: North Fork/Pershing Are + Cepritool producionenpipe in May/dune2018 Alloliprosucienonppe + Agreement witntnirdpartyontong term correct, + Agreement withtitépartesontong term contract +
Slide 26: Abraxas Hedging Profile
Abraxas Hedging Profile Current Hedge Book |Oil Swaps (bbls/day) 5,438 3,779 2,809 ISwap Price ($/Bbl) $ 56.69 $ 55.23 $ 57.83 Mid-Cush Basis Swaps (bbls/day) 4,000 4,000 |Swap Price ($/Bbl) $ (3.00) $ (3.00) $ 26
Slide 27: Appendix
Appendix a7
Slide 28: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation ABRAXAS Nee ‘Adjusted EBITOA is defined os net income plus interest expense, depreciation, depletion and.amortzation expenses defered income toxes ond other non-cash ‘tems. The following toble provides reconciliation of Adjusted EBITDA to net income forthe periods pres
Slide 29: TTM Adjusted EBITDA Reconciliation
TTM Adjusted EBITDA Reconciliation ABRAXAS Cn ‘Adjusted EBITOA is defined os net income plus interest expense, depreciation, depletion and.amortzation expenses defered income toxes ond other non-cash ‘tems. The following toble provides reconciliation of Adjusted EBITDA to net income forthe periods p
Slide 30: Standardized Measure Reconciliation
Standardized Measure Reconciliation ABRAXAS EE 'Pv-10is the estimated present vou ofthe future netrevenves from our proved oil and gosreseres before income toxesdlscounted using @10% discount rate. 'Pv-101s considered anon-GAAP financiol measure under SEC regulations because it does notinclude the e
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