Energy XXI Gulf Coast — Q1 2017 Earnings Presentation
20 slides from Energy XXI Gulf Coast's earnings presentation, May 22, 2017
Slide 1: First Quarter 2017 Earnings Conference Call
www.energyxxi.com First Quarter 2017 Earnings Conference Call May 22, 2017
Slide 2: Forward-Looking Statements
Forward - Looking Statements This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, including those relating to the intent, beliefs, plans, or expectations of EGC are based upon current expectations and ar
Slide 3: Non-GAAP Measures and Cautionary Language on Hydrocarbon Reserves
Non - GAAP Measures and Cautionary Language on Hydrocarbon Reserves EGC refers “PV - 10” as the present value of estimated future net revenues of estimated proved reserves using a discount rate of 1 0%. This amount includes projected revenues less estimated production costs, abandonment costs and de
Slide 4: First Quarter and Recent Highlights
First Quarter and Recent Highlights 4 • Production averaged ~41,000 BOE/d, with 71% oil • Reported strong cash and cash equivalents of $160.5 million at March 31, 2017 • Reestablished a commodity hedging program in February 2017 by entering into costless collars for 10,000 barrels of oil per day fro
Slide 5: Steps in the Right Direction
Steps in the Right Direction 5 Safety and Operational Excellence Experienced Leadership Driving New Culture Commitment to Financial Discipline Recent Strong Results Focus on Maximizing Shareholder Value x Executive Leadership Additions • Douglas E. Brooks named Chief Executive Officer & President •
Slide 6: EGC Overview
EGC Overview 6 Attractive Upside Optionality with Continued Recovery in Oil Prices Pure Play Gulf of Mexico Shelf Company • 109.4 MMBOE Proved Reserves • 80% Oil, 2% NGL, 18% Gas • 72% Proved Developed • 90% Operated • 258 Blocks with 57 Producing Fields • 616 Gross Producing Wells • 439,294 Net Dev
Slide 7: SEC Proved Reserves – March 31, 2017
SEC Proved Reserves – March 31, 2017 (1) 7 Reserves Category Net Oil Net NGL Net Gas Net Total PV10 1 MMBO MMBBL BCF MMBOE MM$ Proved Developed Producing 51.8 0.9 53.7 61.6 $304.9 Proved Developed Non - Producing 9.3 0.9 33.2 15.7 $100.8 Proved Undeveloped 26.5 0.5 30.3 32.0 $203.7 Plug and Abandon
Slide 8: Strip Proved Reserves – March 31, 2017
Strip Proved Reserves – March 31, 2017 (1) 8 Reserves Category Net Oil Net NGL Net Gas Net Total PV10 1 MMBO MMBBL BCF MMBOE MM$ Proved Developed Producing 53.8 0.9 56.1 64.1 $457.4 Proved Developed Non - Producing 9.7 0.9 34.8 16.4 $133.9 Proved Undeveloped 27.5 0.5 31.1 33.2 $278.4 Plug and Abando
Slide 9: Leading Operator in GOM Shelf
Leading Operator in GOM Shelf 9 EGC Core Properties (1) Field Operator W/I Cum. Prod. (MMBOE) West Delta 73 Energy XXI 100% 389 South Timbalier 54 Energy XXI 100% 152 South Pass 49 Energy XXI 100% 111 Main Pass 61 Energy XXI 100% 65 Ship Shoal 208 Energy XXI 100% 457 West Delta 30 Energy XXI 100% 75
Slide 10: Production Analysis
Production Analysis 10 BOED 2017 Capital Program Focused on Minimizing Base Decline Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Gas 14,133 14,417 12,142 12,300 10,983 NGL 2,100 1,530 1,290 530 900 Oil 32,890 31,390 31,190 29,615 29,100 Total 49,133 47,347 44,632 42,455 40,993 49,133 47,347 44,632 42,455
Slide 11: Lease Operating & Gathering
Lease Operating & Gathering 11 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Gathering and Transportation $14.2 $10.0 $14.1 $5.5 $21.7 Workover/Maintenance $12.1 $17.5 $11.0 $11.7 $10.0 Direct LOE/Insurance $69.9 $63.6 $57.8 $63.2 $65.1 Total $96.2 $91.1 $82.9 $80.4 $96.8 $96.2 $91.1 $82.9 $80.4 $96.8 $-
Slide 12: Margin Analysis
Margin Analysis 12 12 $/BOE $19.65 $17.58 $23.57 $1.33 $3.00 $2.71 $5.79 $3.10 $4.79 $15.03 $(4.97) $15.51 $11.76 $(10.00) $- $10.00 $20.00 $30.00 $40.00 $50.00 Q4 2015 Realized Price $36.83/BOE Q4 2016 Realized Price $39.19/BOE Q1 2017 Realized Price $42.83/BOE LOE/Insurance/Transportation Workover
Slide 13: Crude Hedge Profile
13 Crude Hedge Profile FY2017 Weighted Average Prices ($/Bbl) Volume Sub - floor Floor Ceiling Mbbls March $52.30 $57.43 310 April – June $52.30 $57.43 910 July – Sept. $52.30 $57.43 920 Oct. – Dec. $52.30 $57.43 920 Full Year 3,060 Hedges Initiated to Protect Capital Spend and Cash Flow 0 2,000 4,0
Slide 14: 2017 Preliminary Capital Budget
2017 Preliminary Capital Budget 2017 Capital Program Funded with Internally Generated Cash Flow and Available Cash 14 • Estimated Capital: $140 - $170 million – Includes Abandonment Costs of $50 - $70 million • 2017 Development Drilling Program – Commencing mid - year – Two to four development wells
Slide 15: Liquidity – March 31, 2017
Liquidity – March 31, 2017 15 (1) Does not include restricted cash of $57MM which consists of collateral related to bonding and escrow accounts (2) Primarily to secure ExxonMobil plug and abandonment obligations (3) Subject to restrictions under credit facility terms $MM Cash & Cash Equivalents (1)
Slide 16: Renewed Focus
Renewed Focus 16 Strategic Alternative Review Process Underway to Unlock the Value of our Resource Base Utilizing Our Strong Balance Sheet • New Management Team – Continued commitment to HSE excellence – Highly experienced technical and financial team – Focused on maximizing value for shareholders •
Slide 17: Appendix
APPENDIX 17
Slide 18: BOEM and BSEE Update
BOEM and BSEE Update 18 • Excellent working relationship with BOEM and BSEE • Continue to operate under the terms and proposals of our plan with the BOEM • EGC has bonded its sole properties and further focused bonding efforts on expired properties and properties without a major oil company in the c
Slide 19: Adjusted EBITDA Reconciliation
Three Months Ended March 31, 2017 Net Loss $ (65,315) Interest expense 3,834 Depreciation, depletion and amortization 42,006 Impairment of oil and natural gas properties 44,054 Accretion of asset retirement obligations 12,397 Change in fair value of derivative financial instruments (3,409) Non-cash
Slide 20: Investor and Media Relations Contact
www.energyxxi.com [email protected] 713 - 351 - 0617 Al Petrie – Investor + Media Relations Coordinator
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