Baird Investment Banking Pitch Book slide image

Baird Investment Banking Pitch Book

AR BENCHMARKING Financial and operational metrics ($ in millions, unless otherwise noted) GAS-WEIGHTED PEERS EQT (3) Gulfport ELITE E&P's Corpora swn (4) Beogre (1) (2) (3) C&C (4) (5) Current Simpt og resources Pre-Sailing Stone 130 Antero (6) PIONEER NATURAL RESOURCES Equity Total Implied E&P Market Enterprise Enterprise Value Value $10,985 $11,268 CONCHO 22,877 25,435 DIAMONDBACK (5) 12,006 Antero (6) Equity Total Implied E&P Market Enterprise Enterprise Cap. Value Value $10,985 $11,268 $11,268 (20 13,060 25,387 1,710 3,519 3,684 64,315 7,628 13,711 70,263 32,899 34,656 $6,313 $11,574 $6,454 $11,992 12,987 2,502 3,684 7,628 5,165 ESP EBITDAX (1) 2018E 2019E 2020E $1,256 1,274 1.151 Market and Financial Data 25,435 2,265 2,625 2,886 EXPEDITDAX (1) 2018E 2019E 2020E $11,268 $1,256 $1,718 $7,673 $1,604 960 3,571 11,411 1,479 70,263 7,395 8,576 10,372 34,656 3,374 3,992 4,805 2,495 $6,820 $1,604 $1,868 $1,832 Source: Company filings, S&P Capital IQ and Wall Street research as of April 17, 2018. Wall Street consensus estimates. $1,832 ESP DACF (1) 2018E 2019E $1,645 $1,236 2,431 917 2018E 2,241 1,461 3,353 2,238 930 1,383 E&P DACE (1) 2019E $1,645 1,836 8.033 3,896 $1,806 2020E $1,543 $1,806 $1,857 2,460 969 2,928 3,557 1,311 1,198 2020E $1,857 2,396 4,719 $1,770 $1,770 E&P Debt/ NAV (1)/ 2018E Share EBITDAX $23 51 9 18 4 165 107 0.2 x 205 2.2x NAV (1)/ Share EDITOAX 3.2x E&P Debt / 02x 09x 0.5x 2.2x 2.3x 2018E Production (Mmcfe/d) (1) Prod 2018E 2019E 2020E Gas 3,261 99% Current 1,808 2,115 2,792 3,143 1,263 1,387 1,267 557 1,404 2,471 682 2018E Prod. Production (Mmche/d) (1) Current 2018E 2019E 2020 %Gas 2,115 894 Operational Metrics 3.972 4,357 5,021 5,573 93% 1,390 1,800 2,075 1,823 1,933 2,182 1,573 89% 2,784 99% 1,116 12% 5,853 29% 2,516 20% Conficen la 3,892 72% Proved Reserves X PDP Tele 9.7 214 5.4 15.3 Tde 9.7 50 20 152 3.5% 55% Proved Reserves 2,347 2,682 3,275 3,881 71% 17.3 % PDP 70% * Gas 54% 96% 92% 89% 67% % 96% 5.9 92% 30% 16.5 49% 59% BAIRD 2018E Canh R/P Ratio Margins (Y) (S/Mche 12.6 $1.42 13.9 11.5 18.8 15.8 9.9 8.1 2018E R/P Ratio Margins (Years) (S/Mche] 12.6 9.8 16.5 1.17 17.6 1.28 1.52 3.95 5.24 3.64 3.87 $1.24 Pro forma the $765 million sale of Eagle Ford assets as announced in December 2017. E&P statistics adjusted to remove contribution of EQGP, EQM and RMP. EQT E&P firm value adjusted to remove public ownership of EQGP, EQM and RMP at a 10% discount to equity value. E&P statistics adjusted to remove contribution of Fayetteville midstream assets. SWN E&P firm value adjusted to remove value of midstream assets based on 7.0x EV /2019E EBITDA and a 10% discount to equity value. E&P statistics adjusted to remove contribution of VNOM. SWN E&P firm value adjusted to remove public ownership of VNOM at a 10% discount to equity value. E&P EBITDAX and DACF based on management's base case projections. AR E&P firm value adjusted to remove public ownership of AM at a 10% discount to equity value. Project Bronco | Page 28
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