Louisiana Energy Conference. June 2016

Transcription

1 Louisiana Energy Conference June 2016

2 Differentiating Strategy Compelling Foundation Right Team, Right Size, Right Place, Right Time Robust existing portfolio; oily, 90%+ operated, conservatively booked with extensive drill-ready inventory Proven ability to execute denoted strategy (Shell Cognac) First Mover Advantage Next evolution of following the majors (Flex-Trend niche) First with a dedicated focus, aggregating early deepwater assets incorporating infrastructure optionality Infrastructure wins (BARRIER TO ENTRY) Opportunistic Counter-Cyclical Investment Timing Commodity prices are finding the bottom Capitalize on weakened service market realizing a reduced cost basis Leverage the EnVen Management Team and Platform Opportunistically Pursue Long-Life Reserves with focus on Wellbore Economics (each well is worth something) Targeted assets are in primary completions with stacked oil pays behind-pipe (repeatable economics) De-risk investment and capture incremental economics with acquired infrastructure Utilize the Competitive Advantage of being Private while Maximizing the IPO Opportunity Capital structure matched to commodity prices Long-life, oily, operated, and low-cost barrels facilitate exponential returns 2

3 Investment Highlights (EnVen Today) Flex-Trend focused Gulf of Mexico E&P company Scalable platform positioned for growth Conservative proved reserve base (Ryder Scott / NSAI) Strong PDP base; oil weighted Material organic project inventory Experienced GoM team Appropriate leverage & liquidity EnVen Prince Platform Statistics (1) 1P PV-10 3P PV-10 1P Reserves $466MM (72% PDP) $880MM (58% PDP) 35 MMBoe (80% oil) 3P Reserves 70 MMBoe (76% oil) Production ~20 MBoepd (70% oil) Acreage (Net) ~250,000 Percent Operated 87% of 1P PV-10 EnVen s 144A equity raise represents the only successful E&P new issuance since mid-2014 (1) Based on NSAI and Ryder Scott 12/31/2015 SEC reserve reports + Neptune 1/31/2016 SEC reserve report 3

4 EnVen s Track Record of Reserve Growth Note: Reserves in MMBoe % % % % 80% 59% 64% 65% MY14 (1) YE14 MY15 YE15 Foundation July 2014: EIG, Sankaty and Management purchased equity in EnVen; Tarpon contributed % Oil % Gas Organic results April 2015: EW 1003 well Acquisition Sept 2015: ENI acquisition (Cognac and Main Pass fields) YE15 equity valuation metrics (2) : - $4.73 per 1P Boe - $6.81 per PDP Boe (1) Pro forma for the July 2014 transaction (2) $226MM debt at Acquisition Sept 2014: Shell Cognac and Royal Offshore acquisitions Transformative Acquisition Oct-Dec 2015: Completed successful 144A equity raise facilitating acquisition of Marathon s operated GoM interests 4

5 2016 Cash Flow Forecast Positive cash operating margins above ~$25/bbl WTI EnVen Operating Margin - $/Boe 2016 Highlights $ MBoe/d average $15 $105 - $120MM full year EBITDA Realized price (1) cash margin G&A LOE Trans & mkt fees ($4) ($13) ($2) Capital investment program of $30 - $40MM $25 - $30MM P&A program Maintain < 2.75x debt/ttm EBITDA Every $1/bbl change in oil price has an estimated $5MM impact to EBITDA EnVen s FY16 capital program targets no degradation of liquidity at year end (1) 1Q16 actuals + 5/27/16 strip Note: Hedge impact or other revenue is not included 5

6 EnVen s Strategy & Path to an IPO EnVen s challenge is optimizing near-term economic viability and shareholder value in current commodity markets while positioning for a successful IPO. As challenging as this will be, we are uniquely positioned and these are opportunistic times. Near-term Strategy Focus on liquidity and leverage as Priority #1 Create value without degradation versus do nothing approach Plan forward replaces and increments production volumes with same resulting liquidity and leverage Aggressively manage near-term costs capturing long-term benefit Continue organization high-grading while maintaining G&A Path to the IPO Transact to level supported by existing equity and debt capacity pre-ipo ($75MM second lien accordion) Transforming transaction concurrent with or pre-ipo Current and acquisition economics capture distressed energy investment funds Leverage IPO commitment and readiness Sector has privatized, but remains focused on establishing a public equity currency Leverage EnVen s current per BOE economic basis and EBITDAX Supports the reverse merger opportunity near-term Results in exponential EnVen shareholder uplift with commodity price recovery Mitigated with commodity price increase (high cost vs. low cost per BOE volume arb) Leverage EnVen s Team and Platform Best-in-class with increasing visibility of success Disgruntled shareholders and Boards are pursuing change or exit Long-term Strategy Prosecute EnVen s impactful organic drill-ready portfolio Organic growth driven by and subject to attaining scale with resulting capital availability Explore alternative capital investment vehicles and joint ventures to accelerate strategy Time and capture low-cost environment against long term reserves and improving cashflows Current industry challenges represent EnVen opportunities; pick a winner 6