Midstates Petroleum Company Inc
Midstates Petroleum — Corporate Update (May 2016)
49 slides from Midstates Petroleum's corporate update, May 2, 2016
Slide 1: Forward-Looking Statements
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Forward-Looking Statements Private and Confidential – Subject to FRE 408 These materials are highly confidential and may not be used or relied upon for any purpose other than
Slide 2: Reserve and Non-GAAP Information
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Reserve and Non-GAAP Information Private and Confidential – Subject to FRE 408 This presentation also includes financial measures that are not in accordance with generally ac
Slide 3: Executive Summary
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 OTC: MPOY | www.MidstatesPetroleum.com 3 Executive Summary
Slide 4: Management Team
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Management Team Private and Confidential – Subject to FRE 408 • • Mr. Brace has been President, Chief Executive Officer and a Director since March of 2015 Mr. Brace is curren
Slide 5: Investment Highlights
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Investment Highlights Private and Confidential – Subject to FRE 408 • Strong team currently in place with a history of delivering best-in-basin results in the Mississippian L
Slide 6: Corporate Overview / Operations Update
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 OTC: MPOY | www.MidstatesPetroleum.com 6 Corporate Overview / Operations Update
Slide 7: Organizational Chart
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Organizational Chart Private and Confidential – Subject to FRE 408 • • • • • • • Accounting Treasury Planning Investor Relations IT Supply Chain Human Resources Recruiting Of
Slide 8: Midstates Petroleum Overview
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Midstates Private and Confidential – Subject to FRE 408 CONFIDENTIAL Petroleum Overview • Completed transition to a Mid-Continent focused organization from an onshore Louisiana concentrat
Slide 9: Demonstrated Performance
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Demonstrated Performance Private and Confidential – Subject to FRE 408 Adjusted EBITDA(1) Net Production 35,000 500 30,000 400 25,000 300 20,000 15,000 200 10,000 100 5,000 0
Slide 10: Cash Operating Expenses Improving Over Time
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Expenses(1) Cash Operating Private and Confidential – Subject to FRE 408 Cash Operating Expenses Improving Over Time ($/Boe) Operating Expenses(2) Production Taxes Cash G&A $
Slide 11: YE 2015 Technical Reserves
YE 2015 Technical Reserves(1)(2)Total 3P Reserves9581268299714808PROB1114612481747POSS2826323958294Total Proved5640332155615667PDP221761566408440PDNP222273032PUD322061682177196PV10PV10OilGasNGLTotal4/01 Strip Pricing4/19 Strip PricingReserve CategoryMMBblBcfMMBblMMBoe($MM)($MM)11OTC: MPOY | www.Mids
Slide 12: Asset Overview
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 OTC: MPOY | www.MidstatesPetroleum.com 12 Asset Overview
Slide 13: Mississippian Lime Operations Update
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 Mississippian Lime Operations Update OTC: MPOY | www.MidstatesPetroleum.com
Slide 14: Mississippian Lime - Premier Position
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Mississippian Private and Confidential – Subject to FRE 408 CONFIDENTIAL Lime - Premier Position Net Production (Boe/d)(1) 30,000 8 7 25,000 6 20,000 5 15,000 4 3 10,000 2 5,000 1 - 0 Q1'
Slide 15: Mississippian Lime - Differentiated Performance
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Mississippian Lime - Differentiated Performance Private and Confidential – Subject to FRE 408 • • • Continuing Top Tier overall well performance in the Mississippian Lime 299
Slide 16: Mississippian Lime – Type Curve
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Mississippian Lime – Type Curve Private and Confidential – Subject to FRE 408 • Mississippian Type Curve Oil Cawley, Gillespie and Associates Mississippian Lime PUD type curv
Slide 17: Mississippian Lime – 2014 & 2015 Well Performance
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Mississippian Lime – 2014 & 2015 Well Private and Confidential – Subject to FRE 408 CONFIDENTIAL Performance Well Production vs. YE 2015 PUD Type Curve 2014 & 2015 Wells Normalized Flowin
Slide 18: Demonstrating Capital Discipline
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Demonstrating Capital Discipline Private and Confidential – Subject to FRE 408 2015 Realized Savings Anticipated 2016 Savings • • Reduced average drilling cycle time from 22
Slide 19: Mississippian Lime Operating Expense Trend
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Mississippian Lime Operating Expense Trend Private and Confidential – Subject to FRE 408 2015 Average LOE by Category(2) • Early infrastructure investments yielding best in c
Slide 20: Mississippian Lime Asset Development
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 Mississippian Lime Asset Development OTC: MPOY | www.MidstatesPetroleum.com
Slide 21: Mississippian Lime Acreage
Overviewl1H2l Mississippian Lime Acreage - Subject to FRE Premier position of ""82,000(1)(2) net acres in the high-return core of the Mississippian Lime (1)Excludes Hunton play in Lincoln County (2) As of 2/18/2016 21 OTC: MPOY I www.MidstatesPetroleum.com
Slide 22: Mississippian Lime – Regional Geology
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Mississippian Private and Confidential – Subject to FRE 408 CONFIDENTIAL Lime – Regional Geology Miss Lime Geologic Overview Mississippian reservoirs have diagenetic enhanced porosity, an
Slide 23: Potential Mississippian Lime Downspacing
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Potential Mississippian Lime Downspacing Private and Confidential – Subject to FRE 408 Downspacing Well Performance Downspacing Strategy • Leverage infrastructure and reservo
Slide 24: Drilling Potential Upside – Mississippian Lime
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Drilling Potential Upside Private and Confidential – Subject to FRE 408 – Mississippian Lime Other Gross Locations (1) (1) Does not include locations on acreage acquired afte
Slide 25: Mississippian Lime SWD System
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 Mississippian Lime SWD System OTC: MPOY | www.MidstatesPetroleum.com
Slide 26: Woods/Alfalfa SWD System
Woods/Alfalfa SWD System OTC: M POY I www.MidstatesPetroleum.com 26 LEGEND 1x6"Poly ---2X 6"Poly 1X 12"Poly 1x4•
Slide 27: OCC SWD Curtailment Disposal Recap
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL OCC SWD Curtailment Private and Confidential – Subject to FRE 408 Disposal Recap • • • 10 existing Arbuckle SWD’s across Woods & Alfalfa Counties, Oklahoma Majority of wells
Slide 28: Water Disposal Plans
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Water Disposal Plans Private and Confidential – Subject to FRE 408 Midstates Multi-Tier Strategy • Existing non-producing vertical well conversion to SWD well • • • Rank well
Slide 29: Alternate Disposal Zones
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Alternate Disposal Zones Private and Confidential – Subject to FRE 408 GR RES POR Endicott Sandstone and Limestone Disposal interval ~40’ thick Endicott • Shallow, often comi
Slide 30: Anadarko Basin
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 Anadarko Basin OTC: MPOY | www.MidstatesPetroleum.com
Slide 31: Anadarko Basin
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Anadarko Basin Private and Confidential – Subject to FRE 408 •Primary horizons demonstrate similar and predictable results and provide attractive returns with achievable cost
Slide 32: Cleveland: Significant Cornerstone Horizon
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Cleveland: Significant Cornerstone Horizon Private and Confidential – Subject to FRE 408 • • • • Pennsylvanian sandstone reservoirs include granite wash and fluvial and marin
Slide 33: Anadarko – Primary Reservoirs
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Anadarko – Primary Private and Confidential – Subject to FRE 408 CONFIDENTIAL Reservoirs Target Cleveland Marmaton Cottage Grove Tonkawa OTC: MPOY | www.MidstatesPetroleum.com 33 Clevelan
Slide 34: Inventory Summary Anadarko Basin
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Inventory Summary Anadarko Basin Horizontal Private and Confidential – Subject to FRE 408 Gross Locations (1) “Other” includes Douglas, Kansas City, Red Fork, Morrow, and St.
Slide 35: Gulf Coast
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 Gulf Coast OTC: MPOY | www.MidstatesPetroleum.com
Slide 36: Prospects Gulf Coast – PetroQuest JV
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Prospects Gulf Coast – PetroQuest JV Private and Confidential – Subject to FRE 408 Fleetwood JV Summary • $24 million joint venture with PetroQuest announced in June 2014 • $
Slide 37: Business Plan Overview
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 OTC: MPOY | www.MidstatesPetroleum.com 37 Business Plan Overview
Slide 38: Business Plan – Assumptions
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Business Plan – Assumptions Private and Confidential – Subject to FRE 408 • The following sets forth certain assumptions utilized by Midstates’ management (“Management”) in c
Slide 39: Business Plan – Assumptions (cont’d)
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Business Plan – Assumptions (cont’d) Private and Confidential – Subject to FRE 408 ($ in millions, except per unit amounts) Management utilized the Mississippian Lime type cu
Slide 40: Business Plan – Financial Summary
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Business Private and Confidential – Subject to FRE 408 CONFIDENTIAL Plan – Financial Summary ($ in millions, except per unit amounts) Forecast Commodity Prices Oil - WTI ($/Bbl) Gas - HHU
Slide 41: Alternative Comparison Scenario
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Alternative CONFIDENTIAL Comparison Scenario EBITDA Average Daily Production (Boed) 30,000 $90 $80 $70 $60 $50 $40 $30 $20 $10 $- 25,000 20,000 15,000 10,000 5,000 - 2016E 2017E 2018E 201
Slide 42: Appendix
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Private and Confidential – Subject to FRE 408 APPENDIX OTC: MPOY | www.MidstatesPetroleum.com
Slide 43: Business Plan – Financial Summary (Strip Pricing)
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Business Private and Confidential – Subject to FRE 408 CONFIDENTIAL Plan – Financial Summary ($ in millions, except per unit amounts) Strip Pricing April 19, 2016 Oil WTI ($/Bbl) Gas HHUB
Slide 44: Adjusted EBITDA Reconciliation
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Adjusted Private and Confidential – Subject to FRE 408 CONFIDENTIAL Reconciliation EBITDA mber 31, OTC: MPOY | www.MidstatesPetroleum.com 44 For the Year Ended Dece 20152014 Adjusted EBIT
Slide 45: Reconciliation Cash Operating Expenses
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Reconciliation Cash Operating Expenses Private and Confidential – Subject to FRE 408 OTC: MPOY | www.MidstatesPetroleum.com 45 2015 2015 2015 2015 2014 Q4 Q3 Q2 Q1 Full Year
Slide 46: G&A Forecast
G&A Forecastf1J 2015 G&A Actuals Vs. 2016 G&A Projection (Employee Charges) 40,000 35,000 30,000 25,000 E 'Ill-20,000 15,000 10,000 5,000 0 2015 G&A Actuals Vs. 2016 G&A Projection (Excluding Employee Charges) 18,000 16,000 14,000 12,000 E 'Ill-10,000 8,000 6,000 4,000 2,000 0 (1) Represents cash ex
Slide 47: Anadarko Operating Expense Trend
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx Anadarko Private and Confidential – Subject to FRE 408 CONFIDENTIAL Operating Expense Trend 2015 Average LOE by Category(2) • Yielding benefits from 2015 focus on high return workover pro
Slide 48: Forced Pooling in Oklahoma
DASHED2014\A&D\Management Presentation\GS Drafts\Management Presentation\Bravo Data Room Presentation_vVDRf.pptx CONFIDENTIAL Oklahoma Forced Pooling in Private and Confidential – Subject to FRE 408 OTC: MPOY | www.MidstatesPetroleum.com 48 •Oklahoma Corporation Commission (“OCC”) regulates all oil
Slide 49: Forced Pooling in Oklahoma
Forced Pooling in Oklahoma ‘Oklahoma Corporation Commission ("OCC") regulates all oil and gas activity in Oklahoma Lands must be “spaced” by the OCC in order to drill a well in ‘Oklahoma — When OCC spaces lands, they create a “Spacing Unit” which describes size, formations/zones & development patter
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