Jefferies Energy Conference Permian Basin Technical Overview

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1 Jefferies Eergy Coferece Permia Basi Techical Overview

Permia Basi Activity Map with Type Curve Areas Key Poits Permia Basi Play Outlies The Permia Basi is oe of the most prolific oil ad gas basis i the oshore U.S.

2 Permia Basi Activity Map with Type Curve Areas Key Poits Permia Basi Play Outlies The Permia Basi is oe of the most prolific oil ad gas basis i the oshore U.S. Several thousads of feet of horizotal targets 20+ target itervals ecoomic at today s commodity pricig The Midlad Basi has 1,500+ horizotal shale wells completed i Spraberry ad Wolfcamp beches Completio optimizatio has advaced rapidly compared to other basis OOIP up to 300+ MMBo / sectio The Delaware Basi has 4,500+ horizotal shale wells, with highly ecoomical results i the Avalo, Boe Sprig, Delaware Sads, Wolfcamp, ad Yeso horizos OOIP up to 500+ MMBo / sectio Util recetly, completio evolutio has lagged the Midlad Basi Horizotal targets ca have more geologic complexity tha the Midlad Basi Wolfcamp Boe Sprig Middle Spraberry Lower Spraberry Avalo Delaware Basi Avalo Wolfcamp Boe Sprig Cetral Basi Platform Midlad Basi Middle Spraberry Lower Spraberry NM Wolfcamp TX 3

$Evolutio of Permia Hydraulic Fracturig Key Poits Permia Completio Evolutio The ability to create complexity ad reservoir cotact area through a fracture system depeds o the well completio ad the$

3 Evolutio of Permia Hydraulic Fracturig Key Poits Permia Completio Evolutio The ability to create complexity ad reservoir cotact area through a fracture system depeds o the well completio ad the fracture treatmet desig Permia productivity ehacemet is highly correlated towards operators adaptatio of highly-propped slickwater fracs MODERATE IP LOW EUR LOW RF FRAC INTENSITY / COMPLEXITY HIGHER IP HIGHER EUR HIGHER RF Tighteig spacig while maitaiig as complex a fracture as possible earwellbore will provide the most efficiet ad ecoomic developmet Illustrative Stimulatio Optimizatio Reaga Couty 1,000 WH Daily Productio (Bo/d) Moths 589 MBo, 1,705 lbs / ft 447 MBo, 1,191 lbs / ft 345 MBo, 795 lbs / ft Low Rate, Small Volume Gel, Slidig Sleeves Levers to Pull o Frac Slickwater frac efficacy is tied to may key factors, icludig: Pump rate Fluid type Fluid vol Sad vol Sad type Low Rate, Small Volume Gel, Plug & Perf Prop coc / ramp Pad size Stage spacig Cluster spacig Perforated hole size Higher Rate, Large Volume Slickwater, Plug & Perf Limited etry Perforatig schedule Diversio (iduced or material) Nao-surfactats 4

4 Midlad Basi Techical Review 5

Midlad Basi Overview Midlad Basi Core area is i the deeper part of the basi ad is the most oil-rich with highest deliverability reservoirs Movig updip to Irio Couty, the Wolfcamp becomes gassier as

5 Midlad Basi Overview Midlad Basi Core area is i the deeper part of the basi ad is the most oil-rich with highest deliverability reservoirs Movig updip to Irio Couty, the Wolfcamp becomes gassier as type III keroge is more prevalet Horizotal developmet program Horizotal drillig / stimulatio has bee employed successfully sice 2009 Souther Reaga / Irio Couty area has bee a great icubator for Wolfcamp / Spraberry GOR stimulatio advaces as completios evolved from gel to slickwater with higher proppat cocetratios to improve ecoomics 2,000'+ colum of stacked oil plays ecompassig 300+ MMBo / sectio, icludig: Clearfork Spraberry (Upper & Lower) Wolfcamp A,B,C & D Clie Straw ad Deeper Midlad Basi Structure top of Wolfcamp (Subsea Datum) GOR (Mcf/Bbl) Source: DrilligIfo. 6

Midlad Basi Activity Map Peak IP Rates Rage Up to 3,000+ Boe/d Key Poits Rig pace moderatig with lower crude price 99 rigs ruig i the Midlad Basi Core of play is expected to remai active Dowspacig

6 Midlad Basi Activity Map Peak IP Rates Rage Up to 3,000+ Boe/d Key Poits Rig pace moderatig with lower crude price 99 rigs ruig i the Midlad Basi Core of play is expected to remai active Dowspacig activity uderway i the south Wells Permitted Sice 2010 Eerge - Wolfcamp A Joes-Holto #1-01H 30-Day IP: 1,171 Boe/d Lat Legth: 6,675 ft Diamodback - Wolfcamp B Mabee Breedlove #22-1H IP: 1,029 Boe/d Lat Legth: 8,296 ft Pioeer Spraberry Uiversity 7-43 #16H IP: 1,660 Boe/d Lat Legth: 7,502 ft Pioeer - Wolfcamp D/Clie Uiversity H IP: 3,605 Boe/d Lat Legth: 7,382 ft RSP - Wolfcamp B Cross Bar Rach 1811H 30-Day IP: 650 Boe/d Lat Legth: 6,967 ft Athlo - Wolfcamp B Davidso 27C #12H IP: 2,078 Boe/d Lat Legth: 7,426 ft SM Eergy - Wolfcamp B Dorcus 3035H 30-Day IP: 1,226 Boe/d Lat Legth: 4,960 ft Parsley - Spraberry Texas Te Y #17H 30-Day IP: 1,650 Boe/d Lat Legth: 7,500 ft AEP - Wolfcamp A Lofti Hughes H IP: 1,549 Boe/d (82% oil) Lat Legth: 5,123 ft Elemet - Spraberry Wright Uit H IP: 776 Boe/d (90% oil) Lat Legth: 6,776 ft Apache- Wolfcamp A Eastlad 15 #2WH IP: 1,124 Boe/d Lat Legth: 4,700 Big Star- Wolfcamp A Ryder Uit #A2H IP30: 1,417 Boe/d Lat Legth: 7,500 Eerge Wolfcamp B Wilbaks SN H IP: 970 Boe/d Lat Legth: 6,930 Pioeer - Wolfcamp D Scharbauer Rach #201H IP: 1,509 Boe/d Lat Legth: 7,862 ft Athlo Wolfcamp A Tubb 39 #5H 30 Day IP: 1,594 Boe/d Lat Legth: 6,705 Pioeer - Spraberry Scharbauer Rach #5-01H IP: 691 Boe/d Lat Legth: 7,052 ft Laredo - Wolfcamp D Glass-Glass H IP: 1,886 Boe/d Lat Legth: 6,933 ft Pioeer - Wolfcamp B ET O Daiel #1H IP: 2,801 Boe/d Lat Legth: 9,229 ft (1) Source: DrilligIfo. (2) Normalized. Pioeer - Wolfcamp B Uiversity 2-20 #12 IP: 3,176 Boe/d Lat Legth: 9,542 ft Devo - Wolfcamp B Harris Rach BB2-8 1H Day IP: 1,437 Boe/d Lat Legth: 6,902 ft Parsley - Wolfcamp B Char-Hughes 2H IP24: 1,107 Boe/d Lat Legth: 7,500 ft (2) EP Eergy Wolfcamp B Uiversity E AH IP: 1,560 Boe/d Lat Legth: 7,168 ft Forelad Wolfcamp A Elmira 34 1H IP: 500+ Boe/d Lat Legth: 7,016 ft 7

Stratigraphic Colum ad Type Log Key Poits Stratigraphic Colum ad Type Log World-class source rock 50 BBoe of recoverable resource-i-place (1) Foud at depths of 5,300 10,000 Gross thickess of Wolfcamp

$further ehaced value Well ad completio desigs have treded toward 10,000+ foot laterals with 50+ fracture stimulatio stages Additioal upside resource i Straw, Atoka, Mississippi Lime, ad Woodford C D$

7 Stratigraphic Colum ad Type Log Key Poits Stratigraphic Colum ad Type Log World-class source rock 50 BBoe of recoverable resource-i-place (1) Foud at depths of 5,300 10,000 Gross thickess of Wolfcamp A+B+C is up to 1,100 Regioal pressure gradiets rage from psi/ft (1) The Wolfcamp, Spraberry, ad Clie Shales are highly ecoomic plays with multiple de-risked target zoes Predomiatly oil-bearig High BTU gas (1,300 1,400) with attractive NGL cotet for further ehaced value Well ad completio desigs have treded toward 10,000+ foot laterals with 50+ fracture stimulatio stages Additioal upside resource i Straw, Atoka, Mississippi Lime, ad Woodford C D Pe/Clie Shale Type Log Midlad Basi Idustry s Curret Primary Midlad Basi Horizotal Targets Clearfork Spraberry Clastic U. Spraberry Jo Mill L. Spraberry Target Upper / Middle Spraberry Lower Spraberry Wolfcamp A Wolfcamp B OOIP MMBo / Sectio MMBo / Sectio MMBo / Sectio MMBo / Sectio Dea Wolfcamp A Wolfcamp B Wolfcamp C Wolfcamp D Wolfcamp C Wolfcamp D / Clie MMBo / Sectio MMBo / Sectio Wolfcamp /Clie Straw (1) Pioeer Natural Resources, November 2013 Ivestor Presetatio. 8

Heat Map of Proppat/Ft Over the Midlad Basi Key Poits More mature basi relative to completios progressio tha the Delaware Basi 13% of Wolfcamp or Spraberry horizotal / directioal wells with proppat

where operators have eeded larger stimulatios to deliver ecoomic results i more challegig reservoirs May operators i the deeper parts of the basi have ot yet tested the larger completios that were

8 Heat Map of Proppat/Ft Over the Midlad Basi Key Poits More mature basi relative to completios progressio tha the Delaware Basi 13% of Wolfcamp or Spraberry horizotal / directioal wells with proppat data have over 1,500 lbs / ft proppat These wells have show defiitive evidece of sustaied productivity treds versus more lightly propped wells Most completio progressio has take place i the south where operators have eeded larger stimulatios to deliver ecoomic results i more challegig reservoirs May operators i the deeper parts of the basi have ot yet tested the larger completios that were effective i the south Proppat Cocetratio (lbs) per Lateral Foot Operator Well Cout (Horizotal Wells) (1) Well Cout PXD DVN APA EOG EPE LPI AREX FANG HUNT CXO CPE EGN OXY END PE CVX XOM ECA RSPP (1) Source: IHS 9

$hybrid frac ad 857 lbs/ft proppat Completed: 9/12/2012 EUR: 31 Bo/ft 348 +152% 501 876 Well #2 was stimulated with$ slickwater ad 1,715 lbs/ft proppat 1 2 3 Completed: 7/25/2012 EUR: 69 Bo/ft Well #3 was stimulated with slickwater

slickwater ad 1,715 lbs/ft proppat 1 2 3 Completed: 7/25/2012 EUR: 69 Bo/ft Well #3 was stimulated with slickwater

$Complexity of slickwater fracs is drivig higher early-time productio ad higher EURs 2 Geeratio 2 1 2 3 1 Geeratio 1$

9 Case Study: Completio Optimizatio, Reaga Couty, TX Key Poits 30-Day IP (Bo/d) (1) Well #1 was stimulated with gel / hybrid frac ad 857 lbs/ft proppat Completed: 9/12/2012 EUR: 31 Bo/ft % Well #2 was stimulated with slickwater ad 1,715 lbs/ft proppat Completed: 7/25/2012 EUR: 69 Bo/ft Well #3 was stimulated with slickwater ad 1,900 lbs/ft proppat 3 Best Practice Lateral Legth (Bo / Ft) +174% Completed: 7/16/2014 EUR: 85 Bo/ft 31 Complexity of slickwater fracs is drivig higher early-time productio ad higher EURs 2 Geeratio Geeratio 1 Proppat (Pouds / Ft) +122% 1,715 1, Source: Compay ivestor presetatios. (1) Normalized to 7,500 lateral. 10

10 Case Study: Optimized Completio Aalysis i Sugg Area, Irio Couty Key Assumptios O average, high-proppat wells exhibited substatially lower iitial declie rates High-proppat wells average 61% more proppat ad are estimated to have a approximately 60% higher EUR tha low-proppat wells High-proppat wells (>1,500 lbs/ft): Average proppat: 1,840 lbs/ft 24hr IP: 600 Bo/d 30-day IP: 505 Bo/d Di: 75% B-factor: 1.60 EUR: 507 MBo (5,000 ) Low-proppat wells (<1,500 lbs/ft): Average proppat: 1,145 lbs/ft 24hr IP: 600 Bo/d 30-day IP: 428 Bo/d Di: 85% B-factor: 1.60 EUR: 304 Mbo (5,000 ) Type Curve Compariso 100,000 10,000 Oil, Bbl/Mo 1,000 Low Pr oppat Type Cur ve High Proppat Type Curve Low Pr oppat Avg High Proppat Avg Moths 11

11 Midlad Basi Illustrative Wolfcamp A / B Type Curve Key Assumptios Type curve derived by fittig to the average oil productio curve of 30 aalog wellbores ormalized to 7,500 lateral legths Type curve EUR (50-year life): 709 MBoe Techical parameters: 30-day IP: 979 Bo/d D iit : 87% B-Factor: 1.45 D fial : 6% GOR: Mcf/Bbl Oil Type Curve Tred Plot Normalized to 7,500 Peak Moth 30-day IP (per day) 1st-day IP (per day) Di (%) Df (%) b GOR (Mcf/Bbl) Shrik NGL (bbl/mmcf) Oil (bbl) 29, Gas (Mcf) 44, % 0 100,000 "All Wells" Type Curve 1,000 "All Wells" Average Well Cout 10, Oil, Bbl/Mo Well Cout 1, Moths EUR Gas (Mmcf) EUR Oil (Mbbl) EUR Sales EUR NGL Expoetial EUR Mboe EUR Bcfe Gas (Bcf) (Mbbl) Switch (Yrs)

12 Midlad Basi Illustrative Lower Spraberry Type Curve Key Poits Type curve derived by fittig to the average oil productio curve of 14 aalog wellbores ormalized to 7,500 lateral legths Type curve EUR (50-year life): 1,230 MBoe Techical parameters: 30-day IP: 1,221 Bo/d D iit : 82% B-Factor: 1.60 D fial : 6% GOR: Mcf/Bbl Oil Type Curve Tred Plot Normalized to 7,500 Peak Moth 30-day IP (per day) 1st-day IP (per day) Di (%) Df (%) b GOR (Mcf/Bbl) Shrik NGL (bbl/mmcf) Oil (bbl) 37, % 0 Gas (Mcf) 59, , Oil, Bbl/Mo 10, Well Cout 1, Moths EUR Sales Gas EUR NGL Expoet ial Swit ch EUR Gas (M mcf) EUR Oil (M bbl) EUR M boe EUR Bcfe (Bcf) (Mbbl) (Yrs) 1, ,

13 Delaware Basi Techical Review 14

Delaware Basi Overview Delaware Basi Basi is oilier i the deeper easter portio of the basi ad gassier i the shallow west Combiatio of depth, pressure, rock

$has bee employed successfully o a broad scale sice 2012 i the Avalo, Boe Sprig ad Wolfcamp Recetly, highly-propped slick water / thi fluid fracs have$ ecompassig 10+ potetial target horizos with up to 500+ MMBo per sectio, icludig: Delaware Sads Avalo Shale (Upper ad Lower) 1 st / 2 d / 3 rd Boe Sprig Sads

ecompassig 10+ potetial target horizos with up to 500+ MMBo per sectio, icludig: Delaware Sads Avalo Shale (Upper ad Lower) 1 st / 2 d / 3 rd Boe Sprig Sads

14 Delaware Basi Overview Delaware Basi Basi is oilier i the deeper easter portio of the basi ad gassier i the shallow west Combiatio of depth, pressure, rock quality, thickess / umber of targets, ad hydrocarbo mix makes this oe of the highest-performig resource plays Horizotal developmet progressio Horizotal drillig has bee employed successfully o a broad scale sice 2012 i the Avalo, Boe Sprig ad Wolfcamp Recetly, highly-propped slick water / thi fluid fracs have dramatically improved well results Targetig specific facies has also improved results ad exposed ew areas to develop 3,500 + colum of stacked oil pays ecompassig 10+ potetial target horizos with up to 500+ MMBo per sectio, icludig: Delaware Sads Avalo Shale (Upper ad Lower) 1 st / 2 d / 3 rd Boe Sprig Sads Wolfcamp A / B / C / D (multiple potetial targets i each) Straw ad deeper Wolfcamp / Boe Sprig GOR Delaware Basi Structure top of Wolfcamp (Subsea Datum) GOR (Mcf/Bbl) Source: DrilligIfo. 15

Delaware Basi Poised for Play Expasio ad Optimizatio Key Poits Most of the basi has coverted from a vertical commigled play to a horizotal play (80% of curret activity is horizotal) Plays such as the

15 Delaware Basi Poised for Play Expasio ad Optimizatio Key Poits Most of the basi has coverted from a vertical commigled play to a horizotal play (80% of curret activity is horizotal) Plays such as the Wolfcamp ad Boe Sprig appear to be pervasive across basi, while Yeso ad Avalo plays are more discrete Cocho, Cimarex, Devo, Aadarko, EOG, Oxy, ad others have led horizotal developmet i the basi Completio optimizatio ad targetig of specific facies has yielded some of the highestperformig wells of ay basi Slickwater ad icreased proppat cocetratios have bee effective by icreasig frac complexity Multiple stacked targets ragig from black shale to sadstoes Activity Map Macho Grade State 1H 1,290 Boe/d IP24 1 st Boe Sprig Nadel ad Gussma Guitar #202H 1,273 Boe/d IP24 Wolfcamp A Matador Tiger #224H 1,525 Boe/d IP24 Wolfcamp B Matador Ava State 770 Bo/d IP24 Wolfcamp A Capita Eergy Cout Fleet 48 State 2H 1,416 Boe/d IP30 Wolfcamp D Cimarex Eergy Lagley 2-36 #1H (B Bech) 1,813 Boe/d IP30 Wolfcamp B Eerge o Completio Optimizatio o Hz Target Optimizatio Hears H 2,465 Bo/d IP24 Wolfcamp A EOG Resources State Mercury IOH 2,123 Boe/d IP24 1 st Boe Sprig EOG Resources State Pathfider #1H 1,832 Boe/d IP24 Avalo Upper EOG Resources State Galileo #6H 3,160 Boe/d Peak IP 2 d Boe Sprig EOG Resources Dorothy White 1H 991 Boe/d IP Wolfcamp A X-Sad Matador Resources Harriso H 1,650 Boe/d IP24 Wolfcamp A Lower Aadarko Miami Beach H 1,500 Bo/d IP30 3 rd Boe Sprig Cimarex Formatio Targets Wolfcamp 7+ Boe Sprig 3+ Avalo 2 Brushy Cayo 1 Straw & Deeper NA Big Timber State 3309 Boe/d IP30 49% Oil Wolfcamp A Cimarex Apache St H 2,002 Boe/d Peak IP Wolfcamp B EOG Resources Coopperhead 23-1H 837 Bo/d IP30 Wolfcamp B Red Willow Productio Copperhead 34 2H 1,247 Boe/d IP 24 Hr Wolfcamp Debris Flow J. Cleo Thompso Big Chief 4802H 848 Boe/d IP 24 Hr 2 d Boe Sprig Cocho Johy Rigo 2H 1,000 Bo/d IP 24 Hr 3 rd Boe Sprig Rosetta Triity H 1,271 Boe/d IP Peak Wolfcamp A Jagged Peak Eergy Calamity Jae 22 1H 1,687 Boe/d IP30 Wolfcamp A Rosetta Resources Osprey State U #200H 1161 Boe/d IP24 56% Oil Upper 3 rd Boe Sprig Apache Neal Lethco Boe/d IP 24 Hr Wolfcamp A / Debris Flow Brigham Resources Source: Publicly available iformatio. 16

16 Stratigraphic Colum ad Type Log Stratigraphic Colum ad Type Log Type Log Brackeridge Type Log Brackeridge Idustry s Curret Primary Delaware Basi Horizotal Targets 175

17 Delaware Basi Wolfcamp Ladig Zoe Aalysis GOR by Ladig Zoe ad Depth 18

$oly 3% of wells were pumped with over 1,500 lbs / ft proppat May Midlad Basi operators have bee pumpig 1,500 lbs/ft fracs sice 2012 Wide spatial distributio of highly-propped best practice completios$

18 Proppat / Ft for Hz Wells i Delaware Basi Key Poits The Delaware Basi is i the early stages of completio evolutio Of over 2,700 horizotal / directioal Wolfcamp or Boe Sprig wells with proppat data, oly 3% of wells were pumped with over 1,500 lbs / ft proppat May Midlad Basi operators have bee pumpig 1,500 lbs/ft fracs sice 2012 Wide spatial distributio of highly-propped best practice completios show that oly a small areal extet of the Delaware Basi has bee optimally stimulated ad the correspodig productio data is i its early days Eve less optimizatio has occurred whe multiple targets are take ito accout Wide variace i how top operators completios have evolved Proppat Cocetratio (lbs) per Lateral Foot (1) Operator Well Cout (Horizotal Wells) Well Cout CXO XEC DVN APC MEW RDS EOG YAT OXY BOP EGN LGCY RKI CVX BHP END (1) Source: IHS. 19

$Delaware Basi Completios Chroology Key Poits The bulk of wells were treated with <1,000 lbs/ft fracs before 2014 Boe Sprig wells geerally treated with less sad Recetly fracs have icreased to over$

19 Delaware Basi Completios Chroology Key Poits The bulk of wells were treated with <1,000 lbs/ft fracs before 2014 Boe Sprig wells geerally treated with less sad Recetly fracs have icreased to over 1,400 lbs/ft ad well performace has improved accordigly Other critical factors for success iclude employig slick water ad thi-fluid fracs Additioal optimizatio ca iclude adjustig other parameters, such as: Pump rate ad proppat cocetratio (ppg) Cluster spacig Ladig zoe Early-time flowback maagemet Operators such as EOG, Aadarko, Cimarex, ad Cocho have led the charge i optimizig completios Proppat / Ft. Versus Time (1) Completios Evolutio By Operator APC APA CVX XEC CXO DVN EGN EOG MTDR MEW OXY ROSE RDS YATE Key Operators Cocho Matador Cimarex Devo EOG Eerge Aadarko Shell (1) Select Operators completios chroology (show: horizotal wells at least 2,000 log sice 01/2009). 20

$with gel / hybrid frac ad 1,213 #/ft proppat +195% 867 1,028 Completed: 9/9/2013 EUR: 51 Bo/ft 349 Well #2 was$ stimulated with slickwater ad 1,747 #/ft proppat 1 2 3 Completed: 2/2/2014 EUR: 79 Bo/ft Well #3 was stimulated

stimulated with slickwater ad 1,747 #/ft proppat 1 2 3 Completed: 2/2/2014 EUR: 79 Bo/ft Well #3 was stimulated

$132 EUR: 132 Bo/ft Complexity of slickwater fracs is drivig higher early-time productio ad higher EURs 2$

20 Case Study: Completio Optimizatio, Reeves / Pecos Couty, TX Key Poits 30-Day IP (Bo/d) Well #1 was stimulated with gel / hybrid frac ad 1,213 #/ft proppat +195% 867 1,028 Completed: 9/9/2013 EUR: 51 Bo/ft 349 Well #2 was stimulated with slickwater ad 1,747 #/ft proppat Completed: 2/2/2014 EUR: 79 Bo/ft Well #3 was stimulated with slickwater ad 2,143 #/ft proppat Completed: 7/26/ Curret Desig Normalized EUR (Bo / Ft) % EUR: 132 Bo/ft Complexity of slickwater fracs is drivig higher early-time productio ad higher EURs 2 Geeratio Geeratio 1 Proppat (Pouds / Ft) +77% 1,747 2,143 1,213 1 Mile Source: Compay ivestor presetatios. 21

21 Delaware Basi Illustrative Wolfcamp Type Curve Key Poits High-proppat type curve parameters (5,000 lateral): Wellhead EUR of 1,007 Mbo ad 1.6 Bcf Iitial rate (30-day) oil productio of 1,031 Bbls/d B factor of 1.50 Iitial declie rate of 74% Well life of 50 years Peak Moth 30-day IP (per day) 1st-day IP (per day) Di (%) Df (%) b GOR (Mcf/Bbl) Shrik NGL (bbl/mmcf) Oil (bbl) 31, % 0 Gas (Mcf) 50, ,000 1,000 High Prop Average High Prop Type Curve Low Prop Average Low Prop Type Curve Well Cout 10, Oil, Bbl/Mo Well Cout Parameter Avg. Proppat Coc. (lbs / ft) Low Prop High Prop %Δ 702 1, % 1, day IP Rate (bopd) 537 1, % B-factor N/A Iitial Declie (%) EUR (MBBL) 74% 74% N/A 778 1, % Moths EUR Gas (Mmcf) EUR Oil (Mbbl) EUR Sales EUR NGL Expoetial EUR Mboe EUR Bcfe Gas (Bcf) (Mbbl) Switch (Yrs) 1, , ,

22 Delaware Basi Illustrative 2 d Boe Sprig Type Curve Key Poits High proppat type curve parameters (5,000 lateral): Wellhead EUR of 734 Mbo ad 1.1 Bcf Iitial rate (30-day) oil productio of 1,253 Bbls/d B factor of 1.30 Iitial declie rate of 84% Well life of 50 years Peak Moth 30-day IP (per day) 1st-day IP (per day) Di (%) Df (%) b GOR (Mcf/Bbl) Shrik NGL (bbl/mmcf) Oil (bbl) 38, Gas (Mcf) 57,181 1,880 2, % 0 100,000 Low Prop Type Curve 1,000 Low Prop Average Optimized Type Curve Optimized Average Well Cout 10, Oil, Bbl/Mo Well Cout Parameter Low Prop High Prop %Δ 1, Avg. Proppat Coc. (lbs / ft) 696 1, % 30-day IP Rate (bopd) 692 1, % B-factor N/A Iitial Declie (%) EUR (MBBL) 84% 84% N/A % Moths EUR Sales EUR NGL Expoetial EUR Gas (Mmcf) EUR Oil (Mbbl) EUR Mboe EUR Bcfe Gas (Bcf) (Mbbl) Switch (Yrs) 1,

Operations and Technical Update October 23, NYSE American LLEX. Joe Daches, President and CFO

Operations and Technical Update October 23, 2018 NYSE American LLEX Joe Daches, President and CFO Operations Recent Well Results and Upcoming Well Status Third Quarter 2018 Well Results Location Map Well