Lilis Energy — FY2018 Earnings Presentation
24 slides from Lilis Energy's earnings presentation, Mar 8, 2019
Slide 1: Year-End 2018 Earnings Presentation
Year-End 2018 Earnings Presentation NYSE American | LLEX Joseph Daches, President and CFO
Slide 2: Disclaimer – Forward-Looking Statements
Disclaimer – Forward-Looking Statements This presentation contains forward-looking statements. The use of words such as “believes”, “expects”, “anticipates”, “intends”, “plans”, “estimates”, “should”, “likely” or similar expressions, indicates a forward-looking statement. These statements and all th
Slide 3: 2018 Highlights & Achievements
LLEX 2018 Highlights & Achievements • 2018 oil production of 3.0 MBbls/d (+193% y/y), total production of 5.0 MBOE/d (+215% y/y) • Oil, natural gas, and NGL sales revenue increased 225% to $70MM • Reduced LOE from $10.14/BOE in 2017 to $7.64/BOE in 2018 Continued Strong • Improvements in LOE/BOE exp
Slide 4: Recent 2019 Highlights
LLEX Recent 2019 Highlights • Transformative recapitalization transaction results in a simplified, RBL-only debt Reduced structure Leverage • Projected leverage of approximately 2.0x by year-end 2019 Increased • Increased First Lien RBL Borrowing Base to $125MM (~16% increase) Liquidity • Additional
Slide 5: 2018 Review – Record-High Performance & Execution
2018 Review – Record-High Performance & Execution 2018 Capital Expenditures ($MM) 2018 Avg. Daily Liquids Production (MBbls/d) 2018 LHAC Oil NGL $20.8 2017 D&C 2018 SWD Carryover 4.4 Costs $37.1 4.0 $5.4 3.4 0.8 0.7 2.7 0.8 0.4 72% 75% Liquids 72% Liquids 3.7 78% Liquids 3.3 2.3 Liquids 2.6 2018 D&C
Slide 6: 2018 Review – Well-Positioned Permian Assets Fuel Ongoing Growth
2018 Review – Well-Positioned Permian Assets Fuel Ongoing Growth Historical Net Production (MBOE) Proved Reserves (MMBOE) 1,812 42.7 722 575 11.5 1,090 203 128 67 0.6 61 372 2016 2017 2018 2016 2017 2018 Oil (MBbls) Natural Gas / NGLs (MBOE) Oil (MMBbls) Natural Gas & NGLs (MMBOE) Total Net Revenues
Slide 7: 2018 Review – Continued Growth of Proved Reserves
2018 Review – Continued Growth of Proved Reserves Year End 2018 Reserve Report Summary (SEC Pricing) (1) Total Proved Reserves YE 2018 Total Net Reserves ($ in thousands) (PV-10, in thousands) Oil Gas NGL Total % of PV10 $134,870 $172,941 Category (MBbl) (MMcf) (MBbl) (MBOE) Total (SEC) PDP 5,434 24
Slide 8: 2019 Guidance
2019 Guidance @LILIS
Slide 9: 2019 Outlook & Guidance
2019 Outlook & Guidance Significant EBITDAX Growth, Capex Reduction, and Cash Flow Neutrality • 2019 plan incorporates 1 operated rig with the ability to flex to 2 rigs in 2H’19 • Expected to generate strong year-over-year production growth, significant EBITDAX growth, and cash flow neutrality achie
Slide 10: Operations Update
Operations Update @LILIS 10
Slide 11: Operations Update – Upcoming Well Status & Recent Well Results
Operations Update – Upcoming Well Status & Recent Well Results Upcoming Well Status Well Status Target Count Well Name Lateral Length Flowback Operations 1 Oso 1H – Wolfcamp A 1 ½ mile lateral 2 Haley 1H – Wolfcamp A 1 mile lateral WCA 3 Haley 2H – Wolfcamp A 1 mile lateral Completion 4 NW Axis 1H –
Slide 12: Operations Update – Historical Well Results
Operations Update – Historical Well Results Historical Well Results Delaware Basin Well Locations IP24/1000' IP24/1000' Lateral Length Bench # Well Name IP24 (BOE) (BOE) (Liquids) (ft.) 1 Antelope 1H 1,309 235 125 5,560 Bone 19 7 21 5 2 Tiger 3H 1,821 239 150 7,634 Spring 3 AG Hill 2H 845 186 143 4,
Slide 13: Transformative Recapitalization & Liquidity Increase
Transformative Recapitalization & Liquidity Increase 13
Slide 14: Recapitalization – Transaction Overview
Transformative Recapitalization & Liquidity Increase – Transaction Overview Transaction Overview • Lilis exchanged its Second Lien Term Loan for a combination of new preferred and common equity • Significantly reduces the complexity of the Company’s capital structure to equity investors and improves
Slide 15: Recapitalization – Pro Forma Capitalization
Transformative Recapitalization & Liquidity Increase – Pro Forma Capitalization ($MM) 12/31/18 PF Adj. PF 12/31/18 Financial & Operating Metrics Cash & Cash Equivalents $ 21.1 $ - $ 21.1 4Q'18 LQA Adj. EBITDAX $43.4 4Q'18 Proved Reserves (MMBOE) 42.7 Debt 4Q'18 Proved Developed Reserves (MMBOE) 13.4
Slide 16: Recapitalization – Pro Forma Fully Diluted Share Count
Transformative Recapitalization & Liquidity Increase – Pro Forma Fully Diluted Share Count (1) Common Stock Issuance Pro Forma LLEX Diluted Share Count 1 • 7.8MM shares eliminate Series C&D conversion and voting rights Pro Forma 2L Conversion and 9.9MM shares for 2L claim value Extinguishment of Ser
Slide 17: Appendix
Appendix @LILIS 17
Slide 18: Perpetual Preferred Stock – Summary of Terms
Perpetual Preferred Stock – Summary of Terms Security Class Series C Series D Series E Series F Non-Convert. Participating Preferred Stock Non-Convert. Participating Preferred Stock Convertible Participating Preferred Stock Non-Convert. Participating Preferred Stock Principal Amount $125 million fac
Slide 19: Revolving Credit Facility – Summary of Terms
Revolving Credit Facility – Summary of Terms Borrower: Lilis Energy, Inc. Lead Arranger: BMO Capital Markets Facility: $500 million Senior Secured Revolving Credit Facility governed by a Borrowing Base of $125 million • The Borrowing Base is subject to semi-annual redeterminations scheduled each May
Slide 20: Current Hedging Schedule
Current Hedging Schedule Jan - Jun 2019 Jul - Dec 2019 2020 2021 WTI Oil Hedges Current Swap Volume (Bbl) - - 278,446 - Average Daily Swap Volume (Bbl/d) - - 761 - Average Price - - $56.21 - Current Collar Volume Long Put (Bbl) 437,000 368,000 88,700 182,500 Average Daily Collar Volume (Bbl/d) 2,417
Slide 21: Consolidated Statements of Operations
Consolidated Statements of Operations For the Years Ended December 31, 2018 2017 ($ in thousands except per share data) Oil and gas revenue $ 70,216 $ 21,612 Operating expenses: Production costs 13,843 5,832 Gathering, processing and transportation 3,392 1,191 Production taxes 3,709 1,187 General an
Slide 22: Non-GAAP Adjusted EBITDAX Reconciliation
Non-GAAP Adjusted EBITDAX Reconciliation (Unaudited) The following table provides a reconciliation of Net Loss to the non-GAAP Adjusted EBITDAX for the years ended December 31, 2017 and 2018 (please see the Disclaimer on slide 2): For the Three Months Ended For the Year Ended December 31, December 3
Slide 23: Operations Update – Offset Operator Activity & Well Performance
Operations Update – Offset Operator Activity & Well Performance (1) Lilis and peer operators active in the Eastern Delaware Basin… 1 Red Bud 25 36 32 115H 7 Ludeman 505H Ameredev 2 mile Wolfcamp Concho 1 mile 2nd Bone Spring IP-24: 4,226 Bbl/d (4,945 BOE/d) 6 10 month cum: 147 MBOE 2 Sioux 36 #1H 1
Slide 24: Investor Relations Contact
Wobbe Ploegsma VP of Capital Markets & Investor Relations [email protected] 210.999.5400 NYSE American | LLEX