Clayton Williams Energy — Merger or Acquisition (February 2017)
7 slides from Clayton Williams Energy's merger presentation, Feb 13, 2017
Slide 1: Key 2017 Goals and Objectives
Key 2017 Goals and Objectives 6 Entering multi-year high-margin growth cycle Enhance Capital Efficiency While Accelerating Onshore Activity ▪Continue to optimize drilling and completion performance across basins ▪Deliver material resource upside through enhanced completions and new zone testing Succ
Slide 2: Strategic Acquisition of Clayton Williams Energy Creates Industry-Leading Southern Delaware Basin Position
Strategic Acquisition of Clayton Williams Energy, Inc. Creates an Industry-Leading Southern Delaware Basin Position ▪Nearly 120,000 net acres ▪More than 4,200 gross future drilling locations ▪Over 2 BBoe net unrisked resources High-Quality, Contiguous Bolt-on Consistent with Expansion Strategy ▪Majo
Slide 3: NBL Transaction Accelerates Volumes and Cash Flow Even Faster
NBL Transaction Accelerates Volumes and Cash Flow Even Faster 8 New addition increases volume growth by 3 to 5 percentage points, Cash flow up 7 points Total NBL 33% 45% Total Company Operating Cash Flow Grows Even Stronger * (2016 – 2020E CAGR Pro forma) 11% 15% 16% 20% 16% 21% 28% 34% New Upside N
Slide 4: Outlook and Capital Program
NBL 2017 Outlook and Capital Program 10 Steady growth throughout 2017 * Excludes NBLX estimated capital expenditures, includes CWEI post assumed close in middle 2Q17 2017 Capital Program* Other EMED Delaware DJ Basin Eagle Ford Organic Capital Expenditures* Expected between $2.3 - $2.6 B Capital Foc
Slide 5: 2017 USO Activity Outlook
NBL 0 30 60 90 120 FY 2016 FY 2017E 2H 2016 2H 2017E 2017 USO Oil Growth** 2017 USO Activity Outlook 11 Accelerating activity and oil growth Delaware DJ Basin ▪2.5 average rigs ▪~145 wells drilled ▪~120 wells online Eagle Ford Marcellus Marcellus ▪~15 wells online DJ Basin Delaware** ▪5 average rigs
Slide 6: Full Year and First Quarter Guidance: Sales Volume
NBL 2017 Full Year and First Quarter Guidance 14 Sales Volume* Crude Oil and Condensate (MBbl/d) Natural Gas Liquids (MBbl/d) Natural Gas (MMcf/d) Total Equivalent (MBoe/d) Low High Low High Low High Low High First Quarter 2017 United States Onshore 70 75 45 48 690 705 230 240 United States Gulf of
Slide 7: Full Year and First Quarter Guidance: Capital & Cost Metrics
NBL 2017 Full Year and First Quarter Guidance 15 Capital & Cost Metrics* 1Q 2017 FY 2017 Low High Low High Capital Expenditures** ($B) Total Company Organic Capital 0.55 0.65 2.3 2.6 Cost Metrics LOE ($/BOE) 3.60 3.90 3.60 3.90 Transportation and Gathering ($/BOE) 3.70 4.00 3.70 4.00 Production Taxe
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