Yuma Energy Inc · OTC:YUMAQ
Yuma Energy — Merger or Acquisition (October 2016)
30 slides from Yuma Energy's merger presentation, Oct 4, 2016
Slide 1: Positioned for Growth: October 2016 Investor Presentation
vpliia vy. Inc Erle SY, 4N1C. Positioned tor Growth October 2016 Investor Presentation www.yumaenergyinc.com
Slide 2: Disclaimer and Pre-Merger Information
Disclaimer and Pre-Merger Information tock cker (NYSE MKT) — YUMA Common Stock Price '—$0 Market Cap.' — $18.1 million Contact Information Sam L. Banks President and Chief Executive Officer James J. Jacobs Chief Financial Officer Corporate Headquarters 1177 West Loop South, Suite 1825 Houston, Texas
Slide 3: Additional Information
Additional Information Disclaimer We may use the terms “resource potential” and “EUR” in this presentation to describe estimates of potentially recoverable hydrocarbons that the SEC rules prohibit from being included in filings with the SEC. These are based on Yuma’s internal estimates of hydrocarbo
Slide 4: Yuma Energy, Inc. Post-Merger Company Platform for Growth
Yuma Energy, Inc. VW The Post-Merger Company Provides a Solid Platform for Growth Proven Track-Record of §& Exploring TX & LA Gulf Coast since 1983 Success * 79% Exploration success rate over last 23 years * Experienced & efficient operating team * Improved balance sheet and liquidity ee - : ; * Low
Slide 5: Highlights of the Merger
Highlights of the Merger YW Definitive merger agreement announced February 12, 2016 = = All Stock Merger — shareholder meeting set for Oct. 26", 2016 to vote on transaction Davis Brings to Pro Forma Company: = Institutional shareholders with Bain Capital Credit, Evercore Partners and Red Mountain Pa
Slide 6: Merger Mechanics — Pro Forma Ownership
Merger Mechanics — Pro Forma Ownership Davis Common = Sochies — 61.1% + Preferred Converts 35:1 into Common Davis Common Stock Davis New Series D Exchanged for new eee Peers cAcsaan p= Bate peel Stock — = Yuma common shareholders (including previous Series A preferred shareholders) will own 38.9% of
Slide 7: Combined Core Asset Map
Combined Core Asset Map’ * Liquids — rich portfolio of conventional & Wel Yor Asses YF unconventional assets with a focus on onshore BB Davis Assers D Louisiana & Texas @ Ciproduerion @ Citand gas production 674 ner acres (~3% WI) North Dakota Masters Creek —974 net acres (12.5% — 69,470 net acres (
Slide 8: Merger Provides a Balanced Asset Base
Merger Provides a Balanced Asset Base VW Reserves', NPV10', and Production Metrics! (Percent) a= Reserve Report Summary (12/31/2015) IP by Reserve Category % Yuma Energy, Inc. (Pro Forma) Net Net Net Oil Gas NGL Total PV-1 Mbbls MMcf Mbbls Mboe $MM PDP 1,834 8,968 502 3,831 45,412 PDNP 671 = 10,049
Slide 9: Post-Merger Growth Strategy
Post-Merger Growth Strategy VW Leverage Stronger Balance Sheet & Improved Liquidity * New borrowing base provides higher liquidity at closing * G&A synergies lead to annual savings that improve cash flow * Disciplined capital allocation leads to a strong balance sheet Grow Production & Cash Flow wit
Slide 10: Pro Forma Company has Increased Liquidity & Cash Flow
Pro Forma Company has Increased Liquidity & Cash Flow VW a New credit facility with a conforming $44 MM borrowing base at closing ase \v G&A G&A synergies expected to result in ~ $8-10MM of annual savings J Lifting | Continue to reduce operating cost on a per barrel basis as demonstrated Cost over l
Slide 11: Yuma & Davis Operations Review — Lease Operating Expense
Yuma & Davis Operations Review — 2015 - 2Q2016 VW Combined Company Historical Lease Operating Expense‘ ua Yuma @ Davis $5,500 $5,000 $4,500 $4,000 g $3,500 £ $3,000 B $2,500 $2,000 $1,500 $1,000 $500 $0 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 ad valorem and severance taxes as disclosed in th
Slide 12: Yuma & Davis Operations Review — Lifting Cost
Yuma & Davis Operations Review — 2015 - 2Q2016 VW Combined Company Historical Lifting Cost! ua $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 $/BOE 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 ‘excludes marketing costs, ad valorem and severance taxes) as disclose
Slide 13: Merger Provides a Balanced & Diversified Inventory
Merger Provides a Balanced & Diversified Inventory VY Disciplined capital allocation with diversified investments leads to growth DIVERSIFIED & PREDICTABLE Production and Cash Flow LOW CAPEX & HIGH ROR PROJECTS Solid Foundation for Growth South Louisiana RESOURCE PLAYS 3D PROSP. Low Risk Growth Texa
Slide 14: M&A Focus
M&A Focus VW Proven Track Record * Demonstrated ability to get deals done in a challenging environment — Davis Petroleum: shareholder meeting set Oct. 26" 2016 to vote on transaction — Pyramid: closed in Sept. 2014 * Focus on La & Tx Gulf Coast where we have experience & knowledge derienced NV ement
Slide 15: South Central Louisiana — Lac Blanc Field
South Central Louisiana — Lac Blanc Field High value asset with high impact re-completion— Vermilion Parish, La Asset Overview Siph D1 & Upr Siph D Logs Working | — 62.5% SiphD1 interest = 100% Siph D Operator — Davis Acres = 1,744 Gross (1,090 Net) Formation(s) | — Miocene Siph Davisi Discovery Map
Slide 16: South Central Louisiana — Bayou Hebert Field
South Central Louisiana — Bayou Hebert Field High value asset with high impact re-completions — Vermilion Parish, PY Asset Overview Lower Cris R Log Working interest 12.5% t Provide Operator PetroQuest Acres 7,792 Gross (974 Net) * Predictable cash flow 3-D seismic area 40 square miles & future prod
Slide 17: Southwest Louisiana — Cameron Canal Field
Southwest Louisiana — Cameron Canal Field YW High impact producing asset — Cameron Parish, La = EE Broussard 1-ST2 Log- Het 1A Asset Overview 7z Sw 27% 5 Working interest — 100% | Operator | = Davis Acres — 773 Gross and Net) Formatlongs — Milocene Het and Sub Alliance Sands Discovery Map Up-Dip to
Slide 18: Southeast Texas — Chalktown Field
Southeast Texas — Chalktown Field VW Unconventional Liquids-Rich Play — Madison Co, Tx ! Upper & Lower Lewisville X-Section & Discovery Map Asset Overview Working interest | — 23.36% Operator — Contango Oil and Gas Co. ‘Acres = 7,010 (1,560 Net actes to Davis) — Upper and Lower Lewisville Formation(
Slide 19: Southeast Texas - Woodbine Horizontal Economics
Southeast Texas - Woodbine Horizontal Economics VW Unconventional Liquids-Rich Play — Madison Co, TX a Assumptions Upr Lewisville Type Curve- 1,000ft Spacing Working interest. | — 25%! 10,000, NRI — 18.75% E Well IPy, 4, (G) — 460 BOPD & 690 MCFPD Exam Sa 5 — 183 MBO, 2.0 BCF (615 MBOR) Sg f EUR — I
Slide 20: Southeast Louisiana — Livingston 3D
Southeast Louisiana — Livingston 3D 3-D Seismic Delineated Oil Play — Livingston & St. Helena Parishes Asset Overview Discovery Map Working interest. | — ~39% Operator = Yuma Actes = 3,023 Gross (977 Net) 3D scismic area | — 138 square miles i = Wilcox sand (oil) at 10,0008 ‘ormation(s) — Tuscaloosa
Slide 21: Livingston 3D — Tuscaloosa Vertical Play Economics
Livingston 3D — Tuscaloosa Vertical Play Economics VW Conventional oil play — Economic at current oil prices i (a) = or Assumptions' Tuscaloosa Type Curve Working interest = 100%! NRL - 5% Well IP 35 4.5 (G) - 250 BOPD EURs? — 460 MBO Fst. D.C&E Costs, — $3.9 MM/well Depth = 15,000f TVD 2 1 12 24 36
Slide 22: California — Shallow Decline and Long Life Reserves
California — Shallow Decline and Long Life Reserves VW U.S. conventional oil play — Kern and Santa Barbara Counties Asset Overview ! Upside Potential Working interest | — 100% i] (seperti esi * Multiple PUD & PROB | ‘Ate —_1,400 net acres opportunities economic at today’s Formation(s) — Pliocene, Mi
Slide 23: California — Monterrey Shale Vertical Play Economics
California — Monterrey Shale Vertical Play Economics VW U.S. Conventional oil play — Economic at current oil prices Assumptions Monterrey Working interest — 100%! Def 100 NRI - 80% Well IPs, 44, (G)® — 75BOPD _—— EURs? = 170MBO a 3 10 Est. D,C&E Costs = $1.5 MM/well ° Depth — 6,300f (@) Based on Com
Slide 24: Southwest Louisiana — Masters Creek Field
Southwest Louisiana — Masters Creek Field W es Top tier U.S. unconventional oil play — Beauregard, Rapides, & Vernon Parish Asset Overview Yuma Leasehold — Greater Masters Creek Area” Working interest. | — ~54% to 100%! Operator = Yuma Acres = 99,721 Gross (69,470 Nes) — Austin Chalk at 14,000ft to
Slide 25: Austin Chalk — Infill Program Economics
Austin Chalk — Infill Program Economics VW Top tier U.S. unconventional oil play — Beauregard, Rapides, & Vernon Parishes 1 = Assumptions Working interest. | — 100%! NRI = 15% Well IP) guy (G) = 1,100 BOPD & 4 MMCFPD. cae — 340 MBO, 1.2 BCF (640 MBOR) Includes 86 MB NGLs Est. D,C&E Costs $7.6 MM/wel
Slide 26: YUMA ENERGY
YUMA ENERGY
Slide 27: Yuma Energy, Inc. Management Team (Post-Merger)
Yuma Energy, Inc. Management Team (Post-Merger) Sam L. Banks has been Yuma’s Chief Executive Officer and Chairman of the Board of Directors since the closing of the merger on September 10, 2014 and also President since October 10, 2014. He was the Chief Executive Officer and Chairman of the board of
Slide 28: Yuma Energy, Inc. Board of Directors (Post-Merger)
Yuma Energy, Inc. Board of Directors (Post-Merger) Richard K, Stoneburner, Non-executive Chairman of the Board, has served as a director and member of Yuma’s compensation committee since the closing of the merger on September 10, 2014. He has served as a director of Yuma Co. since November 2013. He
Slide 29: Yuma Energy, Inc. Board of Directors (Post-Merger)
Yuma Energy, Inc. Board of Directors (Post-Merger) Stuart E. Davies, CFA, Director, has served as a director of Davis since 2006. Mr. Davies also serves as a Managing Director at Bain Capital Credit (“BCC”). Mr. Davies joined Bain Capital Credit in 1999. He is a Managing Director and the Chief Inves
Slide 30: Yuma Energy, Inc. Board of Directors (Post-Merger)
Yuma Energy, Inc. Board of Directors (Post-Merger) Neeraj Mital, Director, has served as a director of Davis since 2009. He was formerly a Senior Managing Director of Evercore Partners Inc., a New York-based global investment banking advisory and investment management firm, and Co-Head of its privat