samson resources ii, llc · (2) sec price for 6/30/2018 is $57.67 per bbl and $2.917 per mmbtu. (3)...

Samson Resources II, LLCJohnson Rice & Company Energy ConferenceNew Orleans, LouisianaSeptember 25-26, 2018

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Forward-Looking Statements and Risk FactorsThis presentation contains certain matters that may be considered “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, asamended, Section 21E of the Securities Exchange Act of 1934, including statements regarding the intent, belief or current expectations and projections of SamsonResources II, LLC (the “Company”) and its management. These statements can be identified by the use of forward-looking terminology, including “plan”, “intend”, “will”,“expect”, “anticipate”, “project”, “should”, “could” or other similar words. You are cautioned that any such forward-looking statements are not guarantees of futureperformance and are subject to a number of assumptions, risks and uncertainties many of which are beyond the control of the Company, its subsidiaries, or its and theirmanagement, representatives and advisors, that could materially and adversely affect actual results. These include risks relating to our financial performance andresults, our ability to improve our financial results and profitability following emergence from bankruptcy, our ability to complete pending asset sales, availability ofsufficient cash flow to execute our business plan, continued low or further declining commodity prices and demand for oil, natural gas and natural gas liquids, our abilityto hedge future production, our ability to replace reserves and efficiently develop current reserves, and the regulatory environment and other important factors thatcould cause actual results to differ materially from those anticipated or implied in the forward-looking statements and none of the Company, its subsidiaries, or its andtheir representatives and advisors undertake any obligation to update any such statements.

Reserve EstimatesThe SEC permits oil and natural gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions forsuch term. The Company may use terms in this presentation that the SEC’s guidelines strictly prohibit in SEC filings, such as “estimated ultimate recovery” or “EUR,”“resources,” “net resources,” “total resource potential” and similar terms to estimate oil and natural gas that may ultimately be recovered. These estimates are by theirnature more speculative than estimates of proved, probable and possible reserves as used in SEC filings and, accordingly, are subject to substantially greater uncertaintyof being actually realized. These estimates have not been fully risked by management. Actual quantities that may be ultimately recovered will likely differ substantiallyfrom these estimates. Factors affecting ultimate recovery include the scope of the Company’s actual drilling program, which will be directly affected by the availabilityof capital, drilling and production costs, commodity prices, availability of drilling services and equipment, lease expirations, transportation constraints, regulatoryapprovals, field spacing rules, actual drilling results and recoveries of oil and natural gas in place, and other factors. These estimates may change significantly as thedevelopment of properties provides additional data. These estimates may not be reflective of the Company’s current view of reserves.

PV-10PV-10 represents the present value, discounted at 10% per year, of estimated future net cash flows. The Company’s calculation of PV-10 herein differs from thestandardized measure of discounted future net cash flows determined in accordance with the rules and regulations of the SEC in that it is calculated before income taxes,rather than after income taxes. The Company’s calculation of PV-10 should not be considered as an alternative to the standardized measure of discounted future netcash flows determined in accordance with the rules and regulations of the SEC.

Adjusted EBITDAAdjusted EBITDA is defined as earnings before interest expense (net); income taxes; depreciation, depletion and amortization of oil and gas properties and otherproperty and equipment; impairment of oil and gas properties and other property and equipment; gains or losses on oil and gas properties and other property andequipment; accretion expense relating to asset retirement obligations; non-cash stock compensation and non-recurring expenses such as reorganization-related andrestructuring expenses; as well as excluding the impacts of the mark-to-market adjustments for derivatives. Adjusted EBITDA is not defined under GAAP and should notbe considered as an alternative measure of net income, cash flows or liquidity.

Disclaimer

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Samson Today

Samson is focused on delivering shareholder return with a balanced and lower risk growth strategy...........

(1) Q2 2018 SEC Pricing Natural Gas / Oil : $2.917 / $57.67. (2) Includes PDP, PDNP and SEC PUDs, plus PUDs developed within 5 years.

▪ Strategically Repositioned…

➢ Pure play Wyoming focused E&P Operator.

➢ Company has ~200,000 net acres in the Powder River Basin (PRB) and the Greater Green River (GGR) Basin of Wyoming.

• Total drilling inventory of ~3,315 gross development locations.

• ~6,300 Boe/d current production (65% liquids / 35% natural gas).

• Proved Reserves 06/30/2018 of ~73.5 MMBoe (using Q2 2018 SEC prices) and 3P Reserves of 940.5 MMBoe. (1)(2)

• PV-10 of ~$355 MM. (1)(2)

• Debt free with a strong Balance Sheet and liquidity position

• Actively drilling and developing its asset base in the PRB and GGR

Samson Today

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Current Liquidity Summary.Samson Resources II – 2017 was a busy year………

2018 Focus

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➢ Focused on oil production and reserve growth in the Powder River and Green River Basins of Wyoming.

• 2018 Capital program of ~$170 MM (includes ~$20 MM in acquisitions YTD).

• Project drilling 17 – 20 gross wells in Wyoming in 2018.

❖ Running 2 rigs in Wyoming

• Project growing 2018 production approximately 25 - 30% over 2017 exit production levels.

• The capital program funded from operating cash flows, cash on–hand and non-core asset sales.

➢ Focus on executing a delineation drilling program in both the Powder River and Green River Basins:

• Delineate acreage for conventional and unconventional targets in the PRB.• Establish low cost, efficient, repeatable and highly economic drilling program in the GGR.• Continue to monetize non-core assets to strengthen balance sheet.

• Sold ~$85 MM of non-core assets YTD

➢ Well hedged commodity exposure for PDP volumes at strong prices.• $57.39 (2018), $56.19 (2019), and $60.00 (2020)/ Bbl crude• $3.01 (2018) & $2.91 (2019) / Mcf natural gas

▪ Overview of RBL Credit Facility

➢ $106.5 MM Borrowing Base, $0 Drawn

✓ Scheduled redetermination on 10/01/2018Anticipating material increase to current borrowing base

➢ Facility matures on 11/01/2020

➢No other debt

▪ Solid balance sheet and liquidity to drive strong returns from the drill bit


Samson’s Liquidity

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9/1/2018

RBL Borrowing Base 107$

Less: RBL Balance -

RBL Availability 107$

Plus: Cash 85

Total Liquidity 192$

Liquidity Build-Up

11%0%

7% 0%

39%

43%

1PDP 3PNP 4PUD5PUDT 5PROB 6POSS

2%0%

6%

2%

46%

44%

1PDP 3PNP 4PUD5PUDT 5PROB 6POSS

28%

29%

43%

Oil NGL Gas

Q2 2018 Samson Reserves

Reserves Category

Reserves Summary PV-10 ($K)

Oil(MBbl)

NGL(MBbl)

Nat. Gas(MMcf)

Total(MBoe)

SEC 06/30/2018(2)

PDP 7,809 5,299 44,789 20,573 $211,388

PDNP 0 0 0 0 $0

PUD 6,186 23,296 140,910 52,967 $143,141

Total Proved 13,995 28,595 185,699 73,540 $354,529

Adjusted Technical PUDs (1) 2,468 6,099 37,075 14,747 $2,593

Probable 78,854 129,343 1,382,586 438,628 $765,731

Possible 168,515 108,564 819,12 413,604 $865,237

Adjusted Total Unproved 249,838 244,006 2,238,813 866,979 $1,633,562

Adjusted Total 3P 263,833 272,600 2,424,512 940,519 $1,988,091

(1) Adjusted Technical PUDs represent PUDs that are accounted for after the 5-year SEC rule.(2) SEC price for 6/30/2018 is $57.67 per Bbl and $2.917 per MMBtu.(3) Q2 2018 Reserve Report was prepared internally.

Commodity Mix ~941 MMBoe of 3P Reserves ~$1,988 MM of 3P Value

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Samson’s Production Growth

8II (1) CAGR calculation based on 2017 exit to 2020 exit production.

Operated Rig Count

Powder River 0 1 2 4

Green River 0 1 2 2

Total 0 2 4 6

Asset Overview

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Powder River Basin

◼ Net Acres: ~150,000 (83% HBP)

◼ Current Prod: 2,600 Boe/d (89% liquids)

◼ Op Producing: ~120 gross

◼ Locations: 2,470 gross

◼ Current Drilling Program:

Average GWI 78%

Average NRI 64%

8/8th NRI 82% - 85%

◼ Highly-economic stacked-pay oil resource with significant industry momentum applying modern completion and drilling designs.

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Powder River Activity – Unconventional Wells

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LS Energy Silva 34-712850’ Mowry/Muddy Vert Test

WOC

**Samson Res**Rufous Fed 44-0113 47-79MH

Mowry 2-Sect Hzl TestSpud: 10-2018

ATX Expl Grizzly Bear 36-2NHNiobrara 1-Sect Hzl, WOC

ATX EXPL 2-well padTatanka 16-2 MH

Mowry 1-Sect Hzl, WOCTatanka 16-4H

Niobrara 1-Sect Hzl, WOC

2018 Samson OperatedDrilling Focus Area

Titan Expl/Kimmeridge EnergyNiobrara Rig

5 well programSet to spud Sept, 2018

EOG Tiburon 296-2436HMowry 2-Sect Hzl

Rig on Loc, H&P 520

EOG Flatbow 423-1720HMowry SH Hzl

IP 30 2190 BOEPD [60% oil]

EOG Katara 602-0916HNiobrara 2-Sect Hzl

IP 30 1150 BOEPD [55% oil]

EOG Ballista 204-1102HMowry SH Hzl

IP 30 2500 BOEPD [60% oil]

DVN Conley Draw 09-043870-1XTHNiobrara 2-Sect Niobrara HzlIP 30 1300 BOEPD [95% oil]

DVN SDU Tillard 17-203771-1XNHNiobrara 2-Sect test

IP 30 1200 BOEPD [90% oil]

DVN PDU WJ Ranch Fed 22-153772-1XNHNiobrara 2-Sect Niobrara HzlIP 24 1800 BOEPD [95% oil]**Samson Res**

Allemand Fed 31-1918 39-74H2-Sect Niobrara Hzl

Drlg ahead…

**Samson Res**Ogallala Fed 31-2116 40-75MHMowry 2-Sect Hzl Spud: 12-18

Peak PowderStoddard Fed 1-15NH

Niobrara 2-Sect HzlRig on Loc, Patterson 272

BalidorLost Springs 3567-29-32-2 NXH

Niobrara 2-Sect testRig on Loc, Cyclone Rig 3 11

2018 Samson OperatedDrilling Focus Areas

Renos L&MHornbeck Draw Un 36-74 34-1NH

Niobrara Hzl WOC

Powder River Activity – Conventional Wells

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2018 Samson OperatedDrilling Focus Area

SME Gneiss Fed 4075-27-34-1SHShannon SD Hzl

IP 30 1600 BOEPD [92% oil]

SME Sawtooth Fed 3975-11-2-1SHShannon SD Hzl

IP 30 1700 BOEPD [90% oil]

Impact State 15W-36-25-3775HFrontier HzlDrlg ahead

Wold State 3675-16-2-2FHFrontier

IP30 1446 BOEPD [85% oil]

Wold Tuesday Draw 3874-26-23-14-3SHShannon SD Hzl

IP30 1200 BOEPD [90% oil]Wold Tuesday Draw 3874-26-23-14-3FH

Frontier SD HzlIP30 4535 BOEPD [60% oil]

EOG Catapult 364-1402HEOG Catapult 368 1402H2-well pad, Turner SD HzlSet Surf Csg, WO Drlg Rig

SRC WI/NRI: 9.34%/7.62%

DVN RU State Fed 2X & 4XTurner SD Hzl

IP30- 1450 BOEPD/well 75% oilDVN 4-well Turner TestIP30- 1500 BOEPD/well

*T-55 Fed 35-023872-1XTHIP30 1625 BOEPD [65% oil]

EOG Catapult 297-1324HTurner Sd Hzl


AEC Remi State 3671-16-21-9FHTurner Sd Hzl


AEC Theo Fed 3571-17-5-1FHTurner Sd Hzl


CHK Turner Sd PlaySundquist IP30- 1800 BOEPD

Lebar IP30- 2400 BOEPD*recent Turner Sd down spacing test

3-well Linden Unit

**Samson Res**Spearhead Fed 44-0112 39-75SH

Shannon SD Hzl TD’d, W.O.C.

Ogallala Fed 21-2115 40-75HShannon SD Hzl Spud 11/2018

**Samson Res**Allemand 21-2017 39-74FH

Frontier SD Hzl Spud 02/2019

Allemand 14-2932 39-74FHFrontier SD Hzl Spud 03/2019

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2018 Samson OperatedDrilling Focus Areas

Growing Industry Momentum in the Powder River

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◼ Active Rigs: 5

◼ Q2 ‘18 Net Prod.: 32 MBoe / day

◼ Net Acres: 256,000 net acres

“The Powder River Basin (PRB) in Wyoming is quickly establishing itself as the growth engine of the company, as recently demonstrated by a 78 percent increase in net production compared to the average 2017 fourth quarter rate.”

Douglas Lawler, CEO August 1, 2018

◼ Active Rigs: 1



“We're seeing some very strong upsides for the Powder River Basin. We're looking at adding more rigs in the Powder River Basin.”

David Hager, CEOAugust 1, 2018

◼ Active Rigs: 2


“Yesterday afternoon we introduced two new premium plays in the Powder River Basin, demonstrating once again the value created by our leadership and exploration. Over the last few years, our Powder River Basin team has focused on understanding the geological complexities of our 400,000 net acre position. Like the Delaware Basin, the Powder River Basin is prolific, with almost a mile deep column of pay and multiple targets. And the Powder River Basin is now ready to become a meaningful contributor to EOG's future growth.”

David Trice, EVP, Exploration & ProductionAugust 3, 2018


◼ Net Acres: ~415,000 net acres

“I am pleased this morning to begin discussing our appraisal efforts in Wyoming's Powder River Basin where we believe we have another onshore oil opportunity in its southern portion. As an emerging area of interest by industry, this part of the Powder has been receiving increased visibility.”

Al Walker, CEOAugust 1, 2018

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Samson 2018 Drilling Area

of Focus

Samson 2018 Drilling Areas

of Focus

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Powder River Basin Permit Activity

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(1) Adjusted permits used permits through 09/18 to project to year end(2) Wyoming and PRB permits were filtered to permits drilled, waiting on approval and approved(3) Acreage sourced from Anschutz 2018 EnerCom presentation

Net Acres(3) by Operator Permits

1) 450,000 - Anadarko 3,154

2) 406,000 - Anschutz 1,542

3) 400,000 - EOG 4,925

4) 398,000 - Devon 1,340

5) 275,000 - Chesapeake 445

6) 150,000 - Samson 1,441

7) 148,000 - Wold 2,900

8) 115,000 - Ballard 327

9) 112,000 - Northwoods 299

10) 60,000 - Conoco 119

11) 58,000 - ATX 45

12) 52,000 - Impact 468

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2015 2016 2017 TD 2018 2018 YE Adj(1)

US WY(2) PRB(2)

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Samson Field Development Plan

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Crazy Woman/HummingbirdParkman – 33Sussex – 29Shannon – 21Niobrara – 108Frontier – 42Mowry – 112Muddy – 26Dakota – 32

North TreeShannon – 20Niobrara – 17Frontier – 4Mowry – 25

SpearheadShannon – 22Niobrara – 71Frontier – 23Mowry – 70

HornbuckleSussex – 20 Shannon – 110 Niobrara – 263Frontier – 83Mowry – 310

Crazy Woman/Hummingbird

North Tree

Hornbuckle

Spearhead

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Samson’s Powder River Basin Permit Activity

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PlayModified

Samson Locs. (2)

WH EURs (MBoe)

IRRs (3)

(%)Play

MaturityResource

Continuity

Shannon 200 950 35% Early Medium/High

Niobrara (1) 690 1,240 45% Early High

Frontier / Turner (1) 285 800 – 1,700 25% - 60% Early Low / Medium

Mowry (1) 840 1,915 50% Early High

Total ~2,015 800 – 1,915 25% - 60% N/A N/A

Deep Inventory Opportunity in the PRB

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➢ Samson’s 150,000 net acres are situated down the Powder River Basin’s geological axis and strategically located over the Shannon, Niobrara, Frontier / Turner, and Mowry formations.

− Overall, the Powder River Basin remains relatively underdeveloped horizontally, particularly in key Samson areas, but that is beginning to change with more rigs running across the basin and Samson’s acreage.

− Samson is aggressively pursuing State permitting activity to secure Operatorship, and focus will be on the Shannon, Niobrara, Frontier / Turner and Mowry formations.

− Initiated 1 rig operated drilling program in 2018 that will target the Shannon, Niobrara, Frontier and Mowry formations.

(1) Reflects current industry density assumptions. Further down-spacing expected in the future.(2) Samson’s inventory is designed around 2-section lateral length wells, approximately 10,000’.(3) IRRs calculated using 08/01/2018 strip.

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Samson Position in Powder River “Hot Spots”

CHK “Hot Spot”

NW Converse “Hot Spot”

Hummingbird “Hot Spot”

Mowry Shale Pressure Gradient Map– Deeper Depths = Higher BHP– Increased BHT = Higher BHP

▪ Subsurface Hot Spots in Basin result in higher than normal bottom hole temperatures (“BHT”) & pressures (“BHP”), thus resulting in higher IP30’s and Resource potential from over-pressured formations.

▪ Samson’s position is located in the deepest, hottest portion of PRB.

▪ Geological parameters, including T-Max, Ro, TOC, as well as BHT/BHP all contribute to greater Resource potential along deeper Powder River Basin geologic hotspots.

Samson Leasehold

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◼ Net Acres: ~50,000 (58% HBP)

◼ Current Prod: 3,700 Boe/d (49% liquids)

◼ Op Producing: 38 gross

◼ Locations: 845 gross

◼ Current Drilling Program (1):

Average GWI 88%

Average NRI 73%

8/8th NRI 82% - 85%

◼ Highly consolidated liquids-rich gas play with strong recent results and highly economic inventory at current prices.

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Green River Basin

(1) Samson continues to add bolt-on acquisitions, which will increase our GWI and NRI.

Greater Green River Fort Union – Play TypeType Log

Lance

Fox Hills

Lewis

Mesaverde

Fort Union

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❖ 900-1,200’ of gross interval❖ Interbedded and reservoir adjacent hydrocarbon

source (shales and coals)❖ Permeability: 0.01-0.05md❖ Porosity: 6-10%❖ Condensate Yield: 10-150 Bbls/MMcf❖ TVD: 9,000-11,000 feet

❖ Pervasive, liquids-rich targets exist within stacked, compartmentalized and over-pressured fluvial packages

❖ Reservoir resolution and predictability are enhanced by proprietary 3D seismic modelling.

❖ Play is ideally positioned within peak-liquids window❖ Multiple wells are necessary at individual locations to

effectively drain these compartmentalized and discontinuous reservoirs.

Greater Green RiverOverview

▪ Samson has moved to multi-well development in NW Sec 32 Pad

– Conducting down spacing test at ~20 acres

– Exploit Pad development efficiencies

▪ Conducting multivariant analysis to high grade acreage

▪ Implementing Gen-2 stimulation design

▪ Finalizing the Samson operated Milagro Federal Unit

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NW SEC 32 PadSRC 2017/18 DrilledMilagro Federal Unit Boundary

Phase 1 Area

Phase 2 Area

Proposed Samson Operated - Milagro

Federal Unit 21

Samson’s Fort UnionGeneration 2 Outperformance

▪ Samson drilled vertical wells during the 2008 – 2015 utilizing Generation 1 completion designs

• Average 3 stages and 400,000 lbs of sand

• Average EUR was 580 MBoe

▪ In early 2018, Samson drilled 2 wells utilizing new Generation 2 completion design

• 12 stages and 1.4 MM lbs of sand

• New wells have an average EUR of 780 – 1,250 MBoe

▪ Employing new drilling practices to continue to drive down costs below $4 MM per well and establish a highly repeatable and economic drilling program

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0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

0 50 100 150 200

Cu

mu

lati

ve M

Mcf

e

Days

P50 Gen-1

11V Gen-2

16V Gen-2

Gen 1: 15 legacy wells averaged 3 stages and 400K lbs sand per well Gen 2: 10 – 12 stages and 1.3 MM lbs sand per well

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Endurance 1595-S32 NW Pad Overview

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Samson Ownership

WI 87.8%NRI 73.4%

(83.5% net)

Estimated Total 7-Well Capital

Gross $27.7 MMNet $24.3 MM

Average CWC / Well

Drilling $2.12 MMComp/Fac $1.83 MMTotal $3.95 MM

Projected EUR from Pad Development

734 MBo24,584 MMcf

Drilling 7 vertical Fort Union wells from a common pad:

– To test 27 acre spacingassumptions

– To exploit pad efficiencies to reduce drilling and completion costs

– Anticipate adding 6 PUDS per pad drilled

Planning to drill Lance and Lewis formation tests in 2019

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Investor Contact: [email protected] 918.591.1449

The Future…➢ Drilling program will delineate Samson’s acreage position in the PRB and GGR.

➢ Focused on maintaining a strong balance sheet while delivering production growth at top tier returns to investors.

➢ Excellent asset base in the Powder River Basin and Green River Basin that will generate a premium valuation. ➢ Continue to evaluate strategic options to enhance shareholder value.

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samson resources ii, llc · (2) sec price for 6/30/2018 is $57.67 per bbl and $2.917 per mmbtu. (3)...

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