South Texas Eagle Ford

Our operational strategy is focused on acquiring and developing assets in the Eagle Ford Shale located in South Texas. Being a committed and long-term operator in South Texas, the Company possesses a significant understanding of the reservoir characteristics, geology, landowners, and competitive landscape in the region. We leverage this in-depth knowledge to continue to assemble high quality drilling inventory while continuously enhancing our operations to maximize returns on capital invested.

We have built a balanced portfolio of properties with a significant base of current production and reserves coupled with low-risk development drilling opportunities and meaningful upside from newer areas. Our core acreage positions are blocky and contiguous in nature which allows for optimal and efficient horizontal well development. Additionally, our concentrated acreage blocks allow us to continue to lower per unit costs through drilling longer laterals, utilizing pad drilling, consolidating in-field infrastructure, and efficiently sourcing materials through our rigorous procurement strategies.

We have developed a significant inventory of future drilling locations, primarily in our gas position in the Eagle Ford. As of December 31, 2018, we had over 100,000 net acres in the Eagle Ford and roughly 677 gross horizontal drilling locations. Approximately 59% of our estimated proved reserves at December 31, 2018 were undeveloped. We operate essentially all of our proved reserves and have an average working interest of approximately 85% across our identified locations.

We produced an average 227 MMcfe per day during the fourth quarter of 2018 and had proved reserves of 1,345 MMcfe (81% natural gas) with a PV-10 of $1.1 billion as of December 31, 2018.

We have a proven track record of increasing Eagle Ford production while consistently lowering drilling and completion costs and improving well economics and safety metrics.