Lilis Energy — Q3 2019 Earnings Presentation
16 slides from Lilis Energy's earnings presentation, Nov 8, 2019
Slide 1: 3rd Quarter 2019 Earnings Presentation
3rd Quarter 2019 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 the
Slide 3: Third Quarter 2019 Highlights & Achievements
LLEX Third Quarter 2019 Highlights & Achievements • Significantly reduced cycle times by decreasing average drilling days for longer‐lateral wells from approximately 45 to 17 days (spud to total depth) • Saved over $4.3MM on the Grizzly A #2H, Grizzly B #2H, and East Shammo #3H due to reduced drilli
Slide 4: 2019 Outlook & Guidance
2019 Outlook & Guidance Financial Overview During the quarter the Company voluntarily shut‐in additional wells, outside of the four previously shut‐in wells (to remain in flaring compliance), related to upgrading surface facilities for natural gas and crude oil treating. These upgrades are intended
Slide 5: Third Quarter 2019 Review
Third Quarter 2019 Review D&C CapEx Breakdown ($MM) Average Daily Liquids Production (MBbls/d) Full Yr 2019 CapEx Proj. 3Q'19 Actual Oil NGL $60MM – $70MM $13.9MM 73% 75% 72% Liquids Liquids 72% Liquids 4.6 Liquids 4.4 4.3 4Q’19 72% 0.7 Liquids 4.0 3.9 Projected Facilities & 0.7 0.8 3.7 ~$8MM 3.4 0.
Slide 6: Operations Update
Operations Update @LILIs
Slide 7: Operations Update
Operations Update • Reduced cycle times by decreasing average drilling days for longer‐lateral wells from approximately 45 to 17 days (spud to total depth) • Reduced drilling days and costs associated with the Grizzly A #2H and Grizzly B #2H under the direction of the Company’s new operations team,
Slide 8: 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 1 Grizzly A #2H –Wolfcamp B1.9 mile Operations WCB Drilled Awaiting 2 Grizzly B #2H– Wolfcamp B1.6 mile Completion 3E. Shammo #2H –Wolfcamp B 1.5 mile Recent
Slide 9: Drilling Update
Drilling Update The Company’s drilling days have been reduced by over half and the Company has realized significant cost savings. This has been accomplished primarily by incorporating a higher quality rig, oil‐based mud system and better down‐ hole tools/configurations Grizzly A 2H Kudu A 2H Kudu B
Slide 10: Third Quarter 2019 Transactions Overview
Third Quarter 2019 Transactions Overview ORRI & Working Interest Transaction Overriding Royalty Interest Sale (“ORRI”): Lea • Sold 1,446 net royalty acres, effectively carving position wide 8/8th NRI to 75% • Modest impact to Proved Reserves New Mexico P • Structure includes a repurchase option for
Slide 11: Appendix
Appendix @LILIs 11
Slide 12: 3Q'19 Proved Reserves
3Q’19 Proved Reserves 3Q’19 Reserve Report Summary (SEC Pricing) 1 Q3 2019 Proved Reserves (SEC Pricing $57.77/BBL Oil & 2.834/Mcf Gas) PV‐10 ($MM) $359.7 Oil Gas NGL Total Undisc. CF PV10 $327.8 $337.3 Category MBbl MMcf MBbl MBOE $M $M $275.9 PDP: 5,818 26,477 1,799 12,029 249,947 $156,363 PNP: 1,
Slide 13: Current Hedging Schedule – as of November 2019
Current Hedging Schedule(1) –as of November 2019 Oct‐19 Nov‐19 Dec‐19 2020 2021 WTI Oil Hedges Current Swap Volume (Bbl) 8,726 5,050 2,139 376,153 135,068 Average Daily Swap Volume (Bbl/d) 281 168 69 1,028 370 Average Price $58.80 $58.80 $58.80 $56.28 $53.07 Current Collar Volume Long Put (Bbl) 62,0
Slide 14: Consolidated Statements of Operations
Consolidated Statements of Operations For Three Months Ended September 30, 2019 2018 ($ in thousands, except share and per share data) Oil and gas revenue $ 11,597 $ 19,482 Operating expenses: Production costs 4,243 3,184 Gathering, processing and transportation 942 963 Production taxes 543 1,034 Ge
Slide 15: Non-GAAP Adjusted EBITDAX Reconciliation
Non‐GAAP Adjusted EBITDAX Reconciliation (Unaudited) The following table provides a reconciliation of Net Income to the non‐GAAP Adjusted EBITDAX for the three months ended September 30, 2018 and 2019 (please see the Disclaimer on slide 2): For the Three Months Ended September 30, 2019 2018 Reconcil
Slide 16: Investor Relations Contact
Wobbe Ploegsma VP of Capital Markets & Investor Relations [email protected] 210.999.5400 NYSE American | LLEX