r Sized by Peak IP30 boe/d Austin Chalk Wells Since 2015 · GPOR 21% Ascent 12% AR 7% MR 4% CNX 3%...
Transcript of r Sized by Peak IP30 boe/d Austin Chalk Wells Since 2015 · GPOR 21% Ascent 12% AR 7% MR 4% CNX 3%...
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Virginia
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Indiana
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Randolph
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Grant
Preston
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Mercer
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Cambria
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Ohio
Pocahontas
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Kanawha
Vinton
Geauga
Pleasants
Hocking
Brooke
Blair
CabellHighland
Nicholas
Forest
Legend
Hancock
Austin Chalk Wells Since 2015Sized by Peak IP30 boe/d
Siltstone Footprint
Drilling Rigs
PENNSYLVANIA
WEST VIRGINIA
OHIO
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Elk
Erie
York
Tioga
Erie
Potter
Steuben
Centre
Oneida
Berks
Butler
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Lycoming
Bedford
Clinton
McKeanWarren
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Indiana
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Herkimer
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Frederick
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Noble
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Carroll
Louisa
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Lewis
Wayne
Forest
Niagara
Webster
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Dauphin
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Belmont
Mason
Wyoming
Wood
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Portage
Baltimore
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Hampshire
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Medina
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Bucks
Summit
Washington
Guernsey
Genesee
Juniata
Union
Tyler
Carbon
Coshocton
Wetzel
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Columbia
Tompkins
Lehigh
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Geauga
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Orleans
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Salem
Lake
Tuscarawas
Highland
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Frederick
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Mineral
Wyoming
Cameron
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Centre
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Lycoming
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McKean
Clearfield
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Luzerne
Cattaraugus
Blair
Wayne
Perry
Tioga
Broome
Ontario
Chenango
Schuylkill
Cayuga
Madison
Otsego
Monroe
Onondaga
Mifflin
Indiana
Cambria
Yates
Wayne
Monroe
WyomingLivingston
Susquehanna
Cortland
Dauphin
Sullivan
Jefferson
Genesee
Delaware
Juniata
Union
Carbon
Huntingdon
Columbia
Tompkins
Niagara
Lehigh
Seneca
Oneida
Snyder
Wyoming
Cameron
Chemung
Lebanon
Schuyler
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Northumberland
Orleans
Warren
Pike
Herkimer
Montgomery
Northampton
Bucks
Montour
Forest
Lancaster
Erie
Chester
PENNSYLVANIA
Opportunity to acquire a substantial portfolio of mineral and royalty assets in the core of the Utica, Marcellus, and Upper Devonian
52,406 net royalty acres(1), 1,771 ORRI acres(1), and 1,930 additional leased working interest acres
Low concentration risk, with interest in >625 currently producing wells across 20 counties in OH, PA, and WV
March 2019 production of 16.2 net mmcfe/d (90% gas) with drilling inventory consisting of >5,000 locations
LTM cash flow of ~$30 million
Well-distributed acreage provides high-confidence upside exposure across the tri-state region
Seller has exposure to >50% of the future development locations in core Utica
Asset Overview
Siltstone 2019 Appalachia Divestiture
Siltstone Resources and its affiliates (collectively, “Seller”) are offering for sale certain mineral and royalty interests in Appalachia (the
“Properties”). BMO Capital Markets has been retained as exclusive financial advisor to Seller.
Asset Map
OH29,173 PA
13,785
WV9,448
1. Net royalty acres normalized to 1/8th royalty.
2. March 2019 daily production. Upper Devonian production represents <1% of total production.
Key InformationNet Royalty Acres
by State(1)
Production by Formation
TBU
52% in
Belmont and
Jefferson, OH
42% in
Washington and
Greene, PA
Annual On-Acreage Wells TIL
TBU
OH86%
PA9%
WV5%
EQT23%
Encino22%
GPOR22%
Ascent12%
AR7%
CNX3%
MR3%
SWN2%
Other6%
Production
by Formation(2)
Production
by Operator(2)
Production
by State(2)
TBU
Utica87%
Marcellus13%
Strong Historical Activity
0
20
40
60
80
100
120
140
2014 2015 2016 2017 2018
Including Asset
Sales
$
27,085,019
Concentrated in most
economic and actively
developed areas
EQT23%
Encino22%
GPOR21%
Ascent12%
AR7%
MR4%
CNX3% SWN
2%
Other6%
Utica Marcellus Other
Pad / Well Name OperatorAvg. Peak
(mmcfe/d)
Jack Hamilton E SMF JF Ascent 29.1
Bounty Hunter EQT 21.7
Cosgray EQT 22.0
Quarto Mining Co. CNX 20.9
Coastal Forest Res. Co. Antero 22.3
My TB Investments 25H Shell 16.3
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Key Investment Highlights
Process Overview
VDR available Mid August 2019
Data Room presentations begin in Late August 2019
Contact Sandra Ramsey at
[email protected] or 713-518-1187 for a
Confidentiality Agreement, access to the VDR, and/or to
request a data room presentation
NOTE: All or part of the Siltstone 2019 Appalachia Divestiture is subject to prior sale at any time and any dates are subject to revisions at any time, at the sole discretion of Seller and BMO Capital
Markets Corp. (“BMOCMC”). Please do not contact Seller directly. Direct all inquiries to the BMO Capital Markets Corp. (“BMOCMC”) personnel listed above.
DISCLAIMER: No representation or warranty, express; statutory; or implied, is given as to the achievement, completeness, accuracy or reasonableness of any information, data, projection, forecast, or other forward-looking
statement (including, but not limited to, with respect to future production and the cash flows to be derived therefrom) contained in this presentation or otherwise, all of which (i) reflect various assumptions made by, and
significant elements of judgment of, Seller and its management and (ii) are subject to business, economic and competitive uncertainties and contingencies. Neither Seller, nor any of its directors, officers, employees,
affiliates, consultants, representatives or agents, including, but not limited to, BMOCMC, (i) assumes any responsibility or duty to update or revise this information, or to inform any prospective purchaser(s) of any matter of
which any of them becomes aware that may affect any matter referred to in this information, (ii) accepts responsibility for any errors and omissions which may be contained herein or in any materials, statements, or
information otherwise provided by such persons or (iii) accepts any liability whatsoever for any loss (whether direct or consequential) arising from any use of or reliance on this information. In all cases, interested parties
should conduct their own investigation and analysis of the Properties, in consultation with their own legal, technical, financial, accounting and other advisors. The presentation of this information does not constitute an offer
that can be accepted to form a binding contract or deemed a basis for contract by estoppel or otherwise, and no prospective purchaser may rely on this information as a basis for incurring any costs, undertaking any
obligation or foregoing any opportunity. Seller reserves the right, at any time, to terminate any ongoing discussions with any prospective purchaser and to modify any procedures without giving advance notice or providing
any reason therefor to such prospective purchasers, and the act of providing this information shall not be construed, interpreted or implied to obligate Seller to furnish any additional information or to compel Seller to
negotiate or consummate a transaction with respect to all or any portion of the Properties described herein. No legal relationship shall be created between Seller and the recipient by virtue of the provision of this information
by Seller or by virtue of any discussion or communications in connection herewith. Seller further reserves the right to take any action with respect to the Properties, whether within or outside the ordinary course of business.
This document is not to be construed as an offer or solicitation to buy or sell any security.
BMO Capital Markets | 700 Louisiana Street | Suite 2100 | Houston, Texas 77002 | http://datarooms.bmo.com
Acreage concentrated in the core of the play
Exposure to premier acreage within portfolios of major Appalachian operators including Antero, Ascent, Encino, EQT, and
Gulfport, plus well-capitalized operators including Chevron, ExxonMobil, and Shell
Increasing development activity due to unrestricted market access following recent midstream de-bottlenecking efforts
Substantial free cash flow generation
LTM cash flow of ~$30 million
Lease extensions and renewals provide additional revenue source
Significant potential upside
Portfolio contains repeatable drilling inventory of highly economic locations with line of sight to >175 DUCs/PUDs
Wells spud on Seller acreage increasing annually
Comprehensive land and title documentation (both digital and hard copy)
1. Peer group includes Antero, Ascent, Chevron, CNX, Encino, EQT, ExxonMobil, Gulfport, and Montage.
Rob Priske MD / Transaction Mgr.
713-546-9727 [email protected]
Michael Hackett Commercial Manager
Bob Maurer Geoscientist
Emrys McMahon, PE Engineer
Jonathan Kalkan Engineering Tech.
Marian Yu Associate
Robust Production Growth
Contacts
(1)
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1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19
Uti
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Peer Group Siltstone