Cleansing Materials September 2019
Forward Looking Statements FORWARD-LOOKING STATEMENTS Non-GAAP and Other Financial Information This presentation includes "forward-looking statements" within the meaning of Section 27A This presentation includes (i) 2019-2021 estimated pre-hedge and pre-general and of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange administrative expense EBITDA of Alta Mesa Holdings, which represents a current Act of 1934, as amended. All statements, other than statements of historical fact, including estimate of Alta Mesa Holding’s net income, adjusted to exclude interest expense, income but not limited to, Alta Mesa Resources’ fourth quarter and year-end financial and taxes, depreciation and amortization, hedge gains/losses, general and administrative operating results, Alta Mesa Resources’ and Alta Mesa Holdings’ budget forecasts for expense, as well as other adjustments and
(ii) 2019-2020 Estimated Adjusted Midstream 2019-2021, 2019 outlook and guidance, including estimates with respect to capital budget, EBITDA, which represents a current estimate of Kingfisher Midstream’s 2019 net income drilling plans, timing and amount of future production, throughput and produced water adjusted to exclude interest expense, income taxes, depreciation and amortization, as well volumes, estimated recoverable oil, rates of return, cash flow projections, expenses, as other adjustments. These are forward-looking financial measures that are not presented inventory, general and administrative guidance, type curves, drilling locations, cost in accordance with generally accepted accounting principles (“GAAP”). These non-GAAP reductions, overhead and EBITDA, strategy, future operations, financial position, financial measures are numerical measures of financial performance that exclude or prospects, plans and objectives of
management are forward-looking statements. When include amounts so as to be different than the most directly comparable measure that used in this presentation, the words “could”, “should”, “will”, “plan”, “believe”, “anticipate”, would be presented in accordance with GAAP in the relevant income statements. Non- “intend”, “estimate”, “expect”, “project” and similar expressions are intended to identify GAAP financial measures should not be considered in isolation or as a substitute for the forward-looking statements, although not all forward-looking statements contain such most directly comparable GAAP measures. Our non-GAAP financial measures may be identifying words. These forward-looking statements are based on Alta Mesa Resources' different from non-GAAP financial measures used by other companies. These forward- current expectations and assumptions about future
events and are based on currently looking non-GAAP financial measures are intended to provide additional information to available information as to the outcome and timing of future events. Alta Mesa Resources investors regarding our current expectations surrounding the future outlook of the cautions you that these forward-looking statements are subject to all of the risks and business. We do not attempt to reconcile these measures with the most directly uncertainties, most of which are difficult to predict and many of which are beyond its comparable GAAP financial measures because of the inherent difficulty in forecasting and control, incident to the exploration for and development and production of oil and gas. quantifying certain amounts that are necessary for such reconciliations, including These risks include, but are not limited to, commodity price volatility, low prices for oil adjustments identified above, the amounts of
which could be material. and/or gas, global economic conditions, inflation, increased operating cost, lack of availability of drilling and production equipment and services, operating results, Historic and future upstream production and reserves are reported assuming full ethane environmental risks, weather risks, drilling and other operating risks, regulatory changes, recovery of barrels. Actual NGL barrels recovered may vary based on optimization of the uncertainty inherent in estimating oil and gas reserves and in projecting future rates of economic recovery. production, cash flow and access to capital, the timing of development expenditures, and other risks. Information concerning these and other factors can be found in Alta Mesa Resources' filings with the SEC, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC's web
site at http://www.sec.gov. Should one or more of the risks or uncertainties described in this presentation occur, or should underlying assumptions prove incorrect, Alta Mesa Resources’ actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this presentation are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we may issue. Except as otherwise required by applicable law, Alta Mesa Resources disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the
date of this presentation. 2
1 Rig Plan 3
AMH Forecast 1 Rig Scenario | $55 WTI / $2.50 HHUB | Budget Forecast Gross Operated Rig Count Net Production (MBoe/d) 34.5 26.2 1.7 23.3 1.0 1.0 2019E 2020E 2021E 2019E 2020E 2021E Pre-Hedge, Pre-G&A EBITDA ($MM) Capital Expenditures ($MM)(1) Unlevered Free Cash Flow ($MM)(2) $236 $152 $160 $126 $94 $87 $10 $2 $0 2019E 2020E 2021E 2019E 2020E 2021E 2019E 2020E 2021E _____________________________________ Note: 2019 includes full year contribution. Note: Projections do not reflect AMH borrow ing base redetermination announced 8/15/2019. (1) Includes upstream portion of KFM w ell connect capex, lift/production optimization capex, land expense, and 4 exploration expense. Budget Forecast and Database Forecast assume D&C of $3.2mm/w ell. (2) Defined as pre-hedge, pre-G&A EBITDA – cash G&A + hedge gains/(losses) – capex.
KFM Forecast 1 Rig Scenario | Budget Forecast Average Gas Volumes (MMcf/d) Average Water Volumes (MBw/d) 129.7 115.2 111.5 68.9 40.5 31.7 2019E 2020E 2021E 2019E 2020E 2021E Pre-G&A EBITDA ($MM) Capital Expenditures ($MM) Unlevered Free Cash Flow ($MM) $80 $56 $48 $47 $26 $20 $19 $18 $14 2019E 2020E 2021E 2019E 2020E 2021E 2019E 2020E 2021E 5 _____________________________________ Note: 2019 includes full year contribution.
AMR Forecast Consolidated | 1 Rig Scenario | $55 WTI / $2.50 HHUB | Budget Forecast Gross Operated Rig Count Net Production (MBoe/d) 34.5 26.2 1.7 23.3 1.0 1.0 2019E 2020E 2021E 2019E 2020E 2021E Pre-Hedge, Pre-G&A EBITDA ($MM) Capital Expenditures ($MM)(1) Unlevered Free Cash Flow ($MM)(2) AMH KFM AMH KFM AMR $315 $80 $36 $208 $207 $174 $56 $47 $48 $19 $114 $16 $236 $106 $20 $19 $152 $160 $126 $94 $87 2019E 2020E 2021E 2019E 2020E 2021E 2019E 2020E 2021E _____________________________________ Note: 2019 includes full year contribution. Note: Projections do not reflect AMH borrow ing base redetermination announced 8/15/2019. (1) Includes upstream portion of KFM w ell connect capex, lift/production optimization capex, land expense, and 6 exploration expense. Budget Forecast and Database Forecast assume D&C of $3.2mm/w ell. (2) Defined as pre-hedge, pre-G&A
EBITDA – cash G&A + hedge gains/(losses) – capex.
Detailed AMH Budget Forecast 1 Rig Long-Term Case | $55 WTI / $2.50 HHUB (USD in millions, unless otherwise stated) Quarterly Annual 1Q'19E 2Q'19E 3Q'19E 4Q'19E 1Q'20E 2Q'20E 3Q'20E 4Q'20E 1Q'21E 2Q'21E 3Q'21E 4Q'21E 2019E 2020E 2021E Upstream Net Oil (mbbl) 1,619 1,545 1,360 1,276 1,105 1,036 1,006 964 901 892 851 894 5,801 4,112 3,539 Net Natural Gas (mmcf) 5,831 6,283 5,235 5,021 4,673 4,504 4,366 4,287 4,058 4,057 4,003 3,977 22,370 17,831 16,095 Net NGLs (mbbl) 795 819 733 705 657 634 614 604 572 573 565 562 3,052 2,509 2,272 Net Total Production (MBOE) 3,386 3,412 2,966 2,818 2,541 2,420 2,348 2,283 2,150 2,141 2,084 2,119 12,582 9,592 8,494 Net Total Production (MBOE/d) 37.6 37.5 32.2 30.6 27.9 26.6 25.5 24.8 23.9 23.5 22.7 23.0 34.4 26.3 23.3 % oil 48% 45% 46% 45% 44% 43% 43% 42% 42% 42% 41% 42% 46% 43% 42% Realized
Price ($/BOE) (1) $34.54 $33.47 $32.82 $32.40 $31.66 $31.08 $31.11 $30.95 $30.77 $30.38 $30.05 $30.59 $33.36 $31.21 $30.45 Field EBITDAX $68 $70 $55 $51 $43 $39 $38 $36 $33 $32 $30 $32 $244 $155 $126 Strategic Costs ($6) (3) (11) (12) (6) (6) - - - - - - (32) (12) - G&A (12) (11) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (43) (39) (39) EBITDAX $50 $56 $34 $29 $27 $23 $28 $26 $23 $22 $20 $22 $169 $104 $87 EBITDAX $/BOE - Pre G&A $20.21 $20.53 $18.46 $18.13 $16.99 $16.11 $15.98 $15.59 $15.34 $14.87 $14.29 $14.97 $19.42 $16.19 $14.87 EBITDAX $/BOE $14.77 $16.33 $11.59 $10.41 $10.79 $9.60 $11.82 $11.32 $10.80 $10.31 $9.61 $10.36 $13.47 $10.87 $10.28 Capex ($51) ($45) ($40) ($23) ($24) ($23) ($25) ($22) ($19) ($18) ($27) ($23) ($160) ($94) ($87) Unlevered FCF ($1) $10 ($6) $6 $4 $0 $3 $4 $4 $4 ($7) ($1) $10 $10 $0 Other - - - - - - - - - - - - - - - Interest
Expense (Cash) (2) (23) (5) (25) (5) (25) (5) (25) (5) (25) (5) (25) (55) (60) (60) Upstream Levered FCF ($3) ($13) ($11) ($19) ($1) ($24) ($2) ($21) ($1) ($21) ($12) ($25) ($45) ($49) ($59) _____________________________________ Note: Upstream capex at $3.2mm/well. Projections do not reflect AMH borrowing base 7 redetermination announced 8/15/2019. (1) Realized price includes the impact of hedges.
Detailed AMR Budget Forecast 1 Rig Long-Term Case | $55 WTI / $2.50 HHUB (USD in millions, unless otherwise stated) Quarterly Annual 1Q'19E 2Q'19E 3Q'19E 4Q'19E 1Q'20E 2Q'20E 3Q'20E 4Q'20E 1Q'21E 2Q'21E 3Q'21E 4Q'21E 2019E 2020E 2021E Upstream Net Oil (mbbl) 1,619 1,545 1,360 1,276 1,105 1,036 1,006 964 901 892 851 894 5,801 4,112 3,539 Net Natural Gas (mmcf) 5,831 6,283 5,235 5,021 4,673 4,504 4,366 4,287 4,058 4,057 4,003 3,977 22,370 17,831 16,095 Net NGLs (mbbl) 795 819 733 705 657 634 614 604 572 573 565 562 3,052 2,509 2,272 Net Total Production (MBOE) 3,386 3,412 2,966 2,818 2,541 2,420 2,348 2,283 2,150 2,141 2,084 2,119 12,582 9,592 8,494 Net Total Production (MBOE/d) 37.6 37.5 32.2 30.6 27.9 26.6 25.5 24.8 23.9 23.5 22.7 23.0 34.4 26.3 23.3 % oil 48% 45% 46% 45% 44% 43% 43% 42% 42% 42% 41% 42% 46% 43% 42% Realized
Price ($/BOE) (1) $34.54 $33.47 $32.82 $32.40 $31.66 $31.08 $31.11 $30.95 $30.77 $30.38 $30.05 $30.59 $33.36 $31.21 $30.45 Field EBITDAX $68 $70 $55 $51 $43 $39 $38 $36 $33 $32 $30 $32 $244 $155 $126 Strategic Costs ($6) (3) (11) (12) (6) (6) - - - - - - (32) (12) - G&A (12) (11) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (43) (39) (39) EBITDAX $50 $56 $34 $29 $27 $23 $28 $26 $23 $22 $20 $22 $169 $104 $87 EBITDAX $/BOE - Pre G&A $20.21 $20.53 $18.46 $18.13 $16.99 $16.11 $15.98 $15.59 $15.34 $14.87 $14.29 $14.97 $19.42 $16.19 $14.87 EBITDAX $/BOE $14.77 $16.33 $11.59 $10.41 $10.79 $9.60 $11.82 $11.32 $10.80 $10.31 $9.61 $10.36 $13.47 $10.87 $10.28 Capex ($51) ($45) ($40) ($23) ($24) ($23) ($25) ($22) ($19) ($18) ($27) ($23) ($160) ($94) ($87) Unlevered FCF ($1) $10 ($6) $6 $4 $0 $3 $4 $4 $4 ($7) ($1) $10 $10 $0 Other - - - - - - - - - - - - - - - Interest
Expense (Cash) (2) (23) (5) (25) (5) (25) (5) (25) (5) (25) (5) (25) (55) (60) (60) Upstream Levered FCF ($3) ($13) ($11) ($19) ($1) ($24) ($2) ($21) ($1) ($21) ($12) ($25) ($45) ($49) ($59) Midstream EBITDA (Post-G&A) $16 $17 $14 $14 $12 $12 $11 $10 $9 $9 $9 $9 $61 $45 $37 Interest Expense (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (11) (13) (14) Midstream Capex (16) (16) (10) (5) (5) (5) (6) (3) (5) (5) (6) (3) (47) (20) (19) Midstream Levered FCF ($2) ($2) $1 $6 $4 $3 $1 $4 $1 $1 $0 $2 $3 $12 $4 Consolidated AMR EBITDAX $66 $72 $49 $43 $40 $35 $39 $36 $33 $32 $29 $31 $231 $150 $125 Unlevered FCF ($0) $11 ($1) $15 $11 $7 $7 $11 $8 $9 ($4) $5 $24 $36 $19 Levered FCF ($5) ($15) ($10) ($13) $2 ($21) ($1) ($17) ($0) ($20) ($12) ($23) ($42) ($37) ($55) _____________________________________ Note: Upstream capex at $3.2mm/well.
Projections do not reflect AMH borrowing base 8 redetermination announced 8/15/2019. (1) Realized price includes the impact of hedges.
2 Rig Plan 9
AMH Forecast 2 Rig Scenario | $55 WTI / $2.50 HHUB | Budget Forecast Gross Operated Rig Count Net Production (MBoe/d) 34.5 29.0 29.2 2.0 2.0 1.9 2019E 2020E 2021E 2019E 2020E 2021E Pre-Hedge, Pre-G&A EBITDA ($MM) Capital Expenditures ($MM)(1) Unlevered Free Cash Flow ($MM)(2) $235 $184 $183 $175 $161 $146 ($2) ($13) ($25) 2019E 2020E 2021E 2019E 2020E 2021E 2019E 2020E 2021E _____________________________________ Note: 2019 includes full year contribution. Note: Projections do not reflect AMH borrow ing base redetermination announced 8/15/2019. (1) Includes upstream portion of KFM w ell connect capex, lift/production optimization capex, land expense, and 10 exploration expense. Budget Forecast and Database Forecast assume D&C of $3.2mm/w ell. (2) Defined as pre-hedge, pre-G&A EBITDA – cash G&A + hedge gains/(losses) – capex.
KFM Forecast 2 Rig Scenario | Budget Forecast Average Gas Volumes (MMcf/d) Average Water Volumes (MBw/d) 129.7 127.8 121.2 68.9 44.3 37.7 2019E 2020E 2021E 2019E 2020E 2021E Pre-G&A EBITDA ($MM) Capital Expenditures ($MM) Unlevered Free Cash Flow ($MM) $79 $61 $61 $49 $30 $26 $23 $21 $12 2019E 2020E 2021E 2019E 2020E 2021E 2019E 2020E 2021E 11 _____________________________________ Note: 2019 includes full year contribution.
AMR Forecast Consolidated | 2 Rig Scenario | $55 WTI / $2.50 HH | Budget Forecast Gross Operated Rig Count Net Production (MBoe/d) 34.5 29.0 29.2 2.0 2.0 1.9 2019E 2020E 2021E 2019E 2020E 2021E Pre-Hedge, Pre-G&A EBITDA ($MM) Capital Expenditures ($MM)(1) Unlevered Free Cash Flow ($MM)(2) AMH KFM AMH KFM AMR $315 $79 $245 $243 $224 $61 $61 $191 $22 $49 $172 $30 $26 $235 $184 $183 $175 $161 $146 ($1) ($4) 2019E 2020E 2021E 2019E 2020E 2021E 2019E 2020E 2021E _____________________________________ Note: 2019 includes full year contribution. Note: Projections do not reflect AMH borrow ing base redetermination announced 8/15/2019. (1) Includes upstream portion of KFM w ell connect capex, lift/production optimization capex, land expense, and 12 exploration expense. Budget Forecast and Database Forecast assume D&C of $3.2mm/w ell. (2) Defined as pre-hedge, pre-G&A
EBITDA – cash G&A + hedge gains/(losses) – capex.
Detailed AMH Budget Forecast 2 Rig Long-Term Case | $55 WTI / $2.50 HHUB (USD in millions, unless otherwise stated) Quarterly Annual 1Q'19E 2Q'19E 3Q'19E 4Q'19E 1Q'20E 2Q'20E 3Q'20E 4Q'20E 1Q'21E 2Q'21E 3Q'21E 4Q'21E 2019E 2020E 2021E Upstream Net Oil (mbbl) 1,619 1,545 1,360 1,270 1,194 1,236 1,185 1,162 1,194 1,189 1,198 1,155 5,794 4,778 4,736 Net Natural Gas (mmcf) 5,831 6,283 5,236 5,008 4,694 4,766 4,810 4,734 4,652 4,809 4,863 4,910 22,358 19,004 19,233 Net NGLs (mbbl) 795 819 733 703 660 672 680 670 659 683 691 699 3,050 2,681 2,732 Net Total Production (MBOE) 3,386 3,412 2,966 2,807 2,636 2,702 2,666 2,621 2,629 2,673 2,700 2,672 12,571 10,626 10,674 Net Total Production (MBOE/d) 37.6 37.5 32.2 30.5 29.0 29.7 29.0 28.5 29.2 29.4 29.3 29.0 34.4 29.1 29.2 % oil 48% 45% 46% 45% 45% 46% 44% 44% 45% 44% 44% 43% 46% 45% 44% Realized
Price ($/BOE) (1) $34.54 $33.47 $32.82 $32.38 $32.37 $32.24 $31.72 $31.76 $32.13 $31.51 $31.47 $31.01 $33.36 $32.02 $31.53 Field EBITDAX $68 $70 $55 $51 $47 $49 $46 $45 $47 $46 $46 $44 $244 $187 $183 Strategic Costs ($6) (3) (11) (12) (6) (6) - - - - - - (32) (12) - G&A (12) (11) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (43) (39) (39) EBITDAX $50 $56 $34 $29 $32 $33 $36 $35 $37 $36 $36 $34 $169 $136 $144 EBITDAX $/BOE - Pre G&A $20.21 $20.53 $18.45 $18.09 $17.97 $17.98 $17.32 $17.13 $17.88 $17.22 $17.11 $16.46 $19.41 $17.60 $17.17 EBITDAX $/BOE $14.77 $16.33 $11.58 $10.34 $12.00 $12.15 $13.66 $13.41 $14.17 $13.57 $13.50 $12.81 $13.45 $12.80 $13.51 Capex ($51) ($45) ($38) ($41) ($45) ($34) ($40) ($43) ($36) ($41) ($36) ($33) ($175) ($161) ($146) Unlevered FCF ($1) $10 ($4) ($12) ($13) ($1) ($3) ($8) $1 ($5) $1 $1 ($6) ($25) ($2) Other - - - - - - - - - - - - - - - Interest
Expense (Cash) (2) (23) (5) (25) (5) (25) (5) (25) (5) (25) (5) (25) (55) (60) (60) Upstream Levered FCF ($3) ($13) ($9) ($36) ($18) ($25) ($8) ($32) ($4) ($30) ($5) ($24) ($61) ($84) ($62) _____________________________________ Note: Upstream capex at $3.2mm/well. Projections do not reflect AMH borrowing base 13 redetermination announced 8/15/2019. (1) Realized price includes the impact of hedges.
Detailed AMR Budget Forecast 2-Rig Long-Term Case | $55 WTI / $2.50 HH | Consolidated (USD in millions, unless otherwise stated) Quarterly Annual 1Q'19E 2Q'19E 3Q'19E 4Q'19E 1Q'20E 2Q'20E 3Q'20E 4Q'20E 1Q'21E 2Q'21E 3Q'21E 4Q'21E 2019E 2020E 2021E Upstream Net Oil (mbbl) 1,619 1,545 1,360 1,270 1,194 1,236 1,185 1,162 1,194 1,189 1,198 1,155 5,794 4,778 4,736 Net Natural Gas (mmcf) 5,831 6,283 5,236 5,008 4,694 4,766 4,810 4,734 4,652 4,809 4,863 4,910 22,358 19,004 19,233 Net NGLs (mbbl) 795 819 733 703 660 672 680 670 659 683 691 699 3,050 2,681 2,732 Net Total Production (MBOE) 3,386 3,412 2,966 2,807 2,636 2,702 2,666 2,621 2,629 2,673 2,700 2,672 12,571 10,626 10,674 Net Total Production (MBOE/d) 37.6 37.5 32.2 30.5 29.0 29.7 29.0 28.5 29.2 29.4 29.3 29.0 34.4 29.1 29.2 % oil 48% 45% 46% 45% 45% 46% 44% 44% 45% 44% 44% 43% 46% 45% 44% Realized
Price ($/BOE) (1) $34.54 $33.47 $32.82 $32.38 $32.37 $32.24 $31.72 $31.76 $32.13 $31.51 $31.47 $31.01 $33.36 $32.02 $31.53 Field EBITDAX $68 $70 $55 $51 $47 $49 $46 $45 $47 $46 $46 $44 $244 $187 $183 Strategic Costs ($6) (3) (11) (12) (6) (6) - - - - - - (32) (12) - G&A (12) (11) (10) (10) (10) (10) (10) (10) (10) (10) (10) (10) (43) (39) (39) EBITDAX $50 $56 $34 $29 $32 $33 $36 $35 $37 $36 $36 $34 $169 $136 $144 EBITDAX $/BOE - Pre G&A $20.21 $20.53 $18.45 $18.09 $17.97 $17.98 $17.32 $17.13 $17.88 $17.22 $17.11 $16.46 $19.41 $17.60 $17.17 EBITDAX $/BOE $14.77 $16.33 $11.58 $10.34 $12.00 $12.15 $13.66 $13.41 $14.17 $13.57 $13.50 $12.81 $13.45 $12.80 $13.51 Capex ($51) ($45) ($38) ($41) ($45) ($34) ($40) ($43) ($36) ($41) ($36) ($33) ($175) ($161) ($146) Unlevered FCF ($1) $10 ($4) ($12) ($13) ($1) ($3) ($8) $1 ($5) $1 $1 ($6) ($25) ($2) Other - - - - - - - - - - - - - - - Interest
Expense (Cash) (2) (23) (5) (25) (5) (25) (5) (25) (5) (25) (5) (25) (55) (60) (60) Upstream Levered FCF ($3) ($13) ($9) ($36) ($18) ($25) ($8) ($32) ($4) ($30) ($5) ($24) ($61) ($84) ($62) Midstream EBITDA (Post-G&A) $16 $17 $14 $14 $13 $13 $13 $13 $12 $12 $13 $13 $61 $51 $50 Interest Expense (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (11) (13) (13) Midstream Capex (16) (16) (11) (6) (7) (7) (8) (8) (7) (7) (7) (5) (49) (30) (26) Midstream Levered FCF ($2) ($2) $0 $4 $2 $3 $2 $1 $1 $2 $2 $4 $1 $8 $10 Consolidated AMR EBITDAX $66 $72 $49 $43 $44 $45 $49 $48 $49 $49 $49 $47 $230 $187 $194 Unlevered FCF ($0) $11 ($0) ($4) ($8) $5 $2 ($3) $6 $1 $6 $9 $6 ($4) $22 Levered FCF ($5) ($15) ($8) ($32) ($16) ($23) ($7) ($31) ($3) ($27) ($2) ($19) ($60) ($77) ($52) _____________________________________ Note: Upstream capex at
$3.2mm/well. Projections do not reflect AMH borrowing base 14 redetermination announced 8/15/2019. (1) Realized price includes the impact of hedges.
Reserves Summary 15
NYMEX Strip @ 8/23/2019 Commodity 2019E 2020E 2021E 2022E 2023E 2024E AMH Reserves Summary WTI ($/bbl) $54.57 $52.13 $50.69 $50.47 $51.01 $52.01 HHub ($MMBtu) $2.21 $2.37 $2.42 $2.46 $2.56 $2.64 7/1 Effective Date | Upstream Only | 175 MBO Case | NYMEX Strip | 2 Rig Gross Economic Net Resource Present Value @ 10% Locations(1) Oil (MMBbls) Gas (Bcf) NGL (MMBbls) Equivalent (MMBoe) Discount Rate Proved Developed Mississippian 496 17.9 112.4 15.4 52.0 $359 Oswego 60 1.2 1.7 0.2 1.7 $24 Other 25 0.1 0.7 0.1 0.3 ($4) Total 581 19.2 114.8 15.6 54.0 $379 PDNP 10 1.1 5.3 0.8 2.7 $16 Operated Undeveloped Proved Undeveloped Mississippian 85 9.8 47.4 6.8 24.6 $18 Oswego 1 0.2 0.2 0.0 0.2 $1 Other - - - - - - Total Proved Undeveloped 86 10.0 47.7 6.9 24.8 $19 Probable Undeveloped Mississippian 54 7.4 29.1 4.2 16.4 $8 Oswego 60 9.1 13.5 1.9 13.3 $27 Other - - - - - - Total
Probable Undeveloped 114 16.5 42.6 6.1 29.7 $35 Possible Undeveloped Mississippian 85 9.9 41.7 6.0 22.8 $7 Oswego 46 7.5 11.3 1.6 11.0 $9 Other 2 0.2 0.8 0.1 0.5 $0 Total Possible Undeveloped 133 17.6 53.8 7.7 34.3 $16 Non-Operated Undeveloped 481 12.9 61.9 5.4 28.6 $52 Total Upstream Value 1,405 77.3 326.1 42.5 174.1 $517 _____________________________________ (1) Locations defined as economic if PV-10 > $0. Note 1: Based on company’s internal database with 7/1/2019 effective date. Note 2: Rig Assumptions per Company’s budget schedule through YE 2019, followed by 2 16 rigs flat in 2020+. Note 3: Assumes D&C of $3.2mm / well.
NYMEX Strip @ 8/23/2019 Commodity 2019E 2020E 2021E 2022E 2023E 2024E AMH Reserves Summary WTI ($/bbl) $54.57 $52.13 $50.69 $50.47 $51.01 $52.01 HHub ($MMBtu) $2.21 $2.37 $2.42 $2.46 $2.56 $2.64 7/1 Effective Date | Corporate Scenario | 175 MBO Case | NYMEX Strip | 2 Rig Gross Economic Net Resource Present Value @ 10% Locations(1) Oil (MMBbls) Gas (Bcf) NGL (MMBbls) Equivalent (MMBoe) Discount Rate Proved Developed Mississippian 507 20.1 136.0 18.8 61.6 $562 Oswego 61 1.2 1.7 0.2 1.7 $25 Other 25 0.1 0.7 0.1 0.3 ($4) Total 593 21.5 138.3 19.0 63.6 $583 PDNP 10 1.2 6.2 0.9 3.1 $29 Operated Undeveloped Proved Undeveloped Mississippian 292 31.5 154.2 22.2 79.3 $223 Oswego 1 0.2 0.2 0.0 0.2 $1 Other - - - - - - Total Proved Undeveloped 293 31.6 154.4 22.2 79.6 $224 Probable Undeveloped Mississippian 58 8.1 33.5 4.8 18.5 $42 Oswego 60 9.1 13.5 1.9 13.3 $38 Other - - - - - - Total
Probable Undeveloped 118 17.2 47.1 6.8 31.8 $80 Possible Undeveloped Mississippian 133 21.3 87.8 12.6 48.6 $59 Oswego 46 7.5 11.3 1.6 11.0 $15 Other 2 0.2 0.8 0.1 0.5 $1 Total Possible Undeveloped 181 29.1 99.9 14.4 60.1 $75 Non-Operated Undeveloped 509 19.5 88.8 9.3 43.6 $118 Total Upstream Value 1,704 120.1 534.7 72.5 281.7 $1,108 _____________________________________ (1) Locations defined as economic if PV-10 > $0. Note 1: Based on company’s internal database with 7/1/2019 effective date. Note 2: Rig Assumptions per Company’s budget schedule through YE 2019, followed by 2 17 rigs flat in 2020+. Note 3: Assumes D&C of $3.2mm / well.
13 Week Cash Flow 18
AMH 13 Week Cash Flow Forecast (1 Rig) As of August 23, 2019 Alta Mesa Cash Forecast - Summary USD'000 Actuals Through: Forecast Week Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Total for 13 WK Period Week Ending 8/23/2019 8/30/2019 9/6/2019 9/13/2019 9/20/2019 9/27/2019 10/4/2019 10/11/2019 10/18/2019 10/25/2019 11/1/2019 11/8/2019 11/15/2019 Operating Receipts: Total Operating Receipts 39,016 4,500 535 1,605 37,008 3,943 402 846 714 40,420 448 - 1,487 130,925 Operating Disbursements: Transportation, Processing and Marketing (600) - - - (600) - - - - (600) - - - (1,800) LOE/Workover (1,111) (1,360) (901) (145) - - (1,433) (1,440) (1,947) (2,132) (1,064) (1,785) (868) (14,185) Taxes (60) (40) - - - (60) - - - (710) - - - (870) Royalty / Working
Interests (3,322) - - - - (18,766) - - - (17,491) - - - (39,579) Capex (2,775) (1,921) (2,472) (462) - 2,000 (2,017) (2,356) (1,737) (2,426) (1,537) (1,484) (958) (18,145) G&A (269) (183) (139) (37) - - (298) (373) (307) (697) (187) (370) (266) (3,127) Hedge Payments - (238) - - - (345) - - - (29) - - - (612) Payroll (403) (950) (2,700) (950) (403) (950) - (950) (403) (950) - (950) - (9,609) Other Disbursements (500) (4,875) (500) - (4,500) (4,000) (5,000) (4,000) (4,500) - (500) - (500) (28,875) Total Operating Disbursements (9,040) (9,567) (6,712) (1,594) (5,503) (22,121) (8,748) (9,119) (8,894) (25,034) (3,287) (4,589) (2,592) (116,801) Total Operating Cash Flow 29,975 (5,067) (6,177) 11 31,505 (18,178) (8,345) (8,273) (8,180) 15,386 (2,839) (4,589) (1,105) 14,124 Non-Operating Disbursements Total Non-Operating Disbursements (10) (8,478) (10) (5,625) (10) (10) (5,169) (10) (610) (10) (2,289) (10) (485) (22,729) Net
Cash Flow 29,965 (13,545) (6,187) (5,614) 31,495 (18,189) (13,515) (8,283) (8,791) 15,376 (5,128) (4,599) (1,590) (8,605) Change in Cash Beginning Cash Balance (Book) 32,903 62,868 49,323 43,136 37,522 69,017 50,828 37,313 29,030 20,240 35,615 30,487 25,888 32,903 Net Cash Flow 29,965 (13,545) (6,187) (5,614) 31,495 (18,189) (13,515) (8,283) (8,791) 15,376 (5,128) (4,599) (1,590) (8,605) Drawdown/Paydown (+/-) - - - - - - - - - - - - - - Ending Cash Balance (Book) 62,868 49,323 43,136 37,522 69,017 50,828 37,313 29,030 20,240 35,615 30,487 25,888 24,298 24,298 RBL Beginning Balance 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 Drawdown/Paydown (+/-) - - - - - - - - - - - - - - RBL Redetermination Paydown - - - - - - - - - - - - - - Ending Balance 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 344,500 Total
Facility+ 362,416 362,416 362,416 362,416 362,416 362,416 362,416 362,416 362,416 362,416 362,416 362,416 362,416 362,416 Remaining Availability on Facility 17,916 17,916 17,916 17,916 17,916 17,916 17,916 17,916 17,916 17,916 17,916 17,916 17,916 17,916 LCs Outstanding (17,656) (17,656) (17,656) (17,656) (17,656) (17,656) (17,656) (17,656) (17,656) (17,656) (17,656) (17,656) (17,656) (17,656) Remaining Availability Under RBL 260 260 260 260 260 260 260 260 260 260 260 260 260 260 Total Liquidity (Book Cash + Availability) 63,128 49,583 43,396 37,782 69,277 51,088 37,573 29,290 20,500 35,875 30,747 26,148 24,558 24,558 _____________________________________ Notes: Based on 1 rig drilling program and strip pricing as of 8/16/2019. Average WTI price of $55.61 and average HH price of $2.21 over July to September 19 2019 (corresponding production months)
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