Rex Energy — Debt Investor Presentation (April 2018)
18 slides from Rex Energy's debt investor presentation, Apr 12, 2018
Slide 1: Second Lien Noteholder Discussion Materials
Second Lien Noteholder Discussion Materials March 21, 2018 Exhibit 99.1
Slide 2: Table of Contents
Table of Contents Update on Financials / Liquidity Settlement Construct Next Steps Appendix
Slide 3: Update on Financials / Liquidity
Update on Financials / Liquidity
Slide 4: Bridge to 2018 Base Case Forecast
Bridge to 2018 Base Case Forecast
Slide 5: January 2018 P&L Actuals
January 2018 P&L Actuals(1) Note:(1)Not pro forma for the Westmoreland sale (2)
Slide 6: January 2018 Balance Sheet Actuals
January 2018 Balance Sheet Actuals(1) Assets Liabilities & Equity Note:(1)Not pro forma for the Westmoreland sale (2)Term loan has face value of $203M; outstanding LC’s is $32M (2)
Slide 7: Settlement Construct
Subject to FRE 408; Confidential; Prepared at the Direction of Counsel Il. Settlement Construct P/W/P JONES
Slide 8: Proposal Comparison
Subject to FRE 408; Confidential; Prepared at the Direction of Counsel Proposal Comparison LATEST REX PROPOSAL NOTEHOLDER COUNTER COMPANY SETTLEMENT (01/19/18) (01/22/18) CONSTRUCT (03/01/18) = NA = $2Mamendment fee = $6M amendment fee 1L Term Loan 1 quarter make-whole extension = 2quarter make-whol
Slide 9: Proposal Comparison (Cont'd)
Proposal Comparison (Cont’d) Notes:(1)Potential for alternative MIP consideration in the form of cash or notes
Slide 10: Potential Alternative Paths
Potential Alternative Paths Consensual Plan (as described on prior pages) Chapter 11 Plan that Toggles to a 363 Sale Execute an RSA with 1L lenders that binds 1L into similar treatment to the Consensual Plan 2L’s have [ ] days to accept the terms of the Consensual Plan, or the Plan toggles to a 363
Slide 11: Next Steps
Subject to FRE 408; Confidential; Prepared at the Direction of Counsel Ill. Next Steps P/W/P JONES
Slide 12: Next Steps
Next Steps MARCH 2018 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 APRIL 2018 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NEAR TERM WORK PLAN Continue to provide diligence information to 2L adviso
Slide 13: Appendix
Subject to FRE 408; Confidential; red at the Direction of Counsel Appendix P/W/P JONES
Slide 14: Defaults and Forbearance
Defaults and Forbearance Rex failed to timely deliver its fourth quarter 2017 financial statements, which resulted in a Financial Statement Default Subsequent to the Financial Statement Default, on February 26, 2018, Rex presented a certificate to request a Delayed Draw Loan, in which it represented
Slide 15: Two-Well Bloom Pad Development
Two-Well Bloom Pad Development Continued development of the Bloom pad would allow for significant efficiencies and benefits, including: Notes:(1) Calculated only on the first two years of production (2)Assumed 10% increase in completions cost based on having to renegotiate contract for future develo
Slide 16: Bloom Pad Economics / Two Well Pad
Bloom Pad Economics / Two Well Pad THIRD PARTY BUTLER CENTRAL TYPE CURVE 8,000’ REX BLOOM CURVE 8,000’ Well Capex(2) ($MM), Gross $7.1 $7.1 Well Capex(2)(3) ($MM), Net $4.8 $4.8 $/ft Capex $888 $888 Lateral Length (ft) 8,000 8,000 BCFE / 1000ft (55% C2) 3.18 3.27 EUR (Bcfe) 25.4 26.2 IRR(1) $3.00 NY
Slide 17: Kern Production
Kern Production Average wellhead rate of 3,700 as of 0600 on 3/21/18. Pressure and rate continuing to increase.
Slide 18: Legal Disclaimer
Legal Disclaimer This Presentation has been provided to you by Perella Weinberg Partners and its affiliates (collectively “Perella Weinberg Partners” or the “Firm”) and may not be used or relied upon for any purpose without the written consent of Perella Weinberg Partners. The information contained