Roan Resources Investment Update July 2018
Important Disclosures Forward-Looking Statements and Risk Factors Statements made in this presentation that are not historical facts are “ forward-looking statements. ” These statements are based on certain assumptions and expectations made by Linn Energy, Inc. ( “ LNGG ” ) which reflect management ’ s experience, estimates and perception of historical trends, current conditions, and anticipated future developments. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of LNGG, which may cause actual results to differ materially from those implied or anticipated in the forward-looking statements. These include risks relating to financial and operational performance and results of LNGG, timing of and ability to execute planned separation transactions and asset sales, continued low or further declining commodity prices and demand for oil, natural gas and natural gas liquids, ability to hedge future production, ability to replace reserves and efficiently develop current reserves, the capacity and utilization of midstream facilities, the regulatory environment, the uncertainty inherent in estimating reserves and in projecting future rates of production, the production potential of our undeveloped acreage, cash flow and access to capital and the timing of development expenditures. These and other important factors could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Please read “ Risk Factors ” in LNGG ’ s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other public filings. LNGG undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information or future events. No Offer or Solicitation This communication is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities of LNGG or Riviera Resources, LLC ( “ RVRA ” ) or otherwise, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Important Additional Information In connection with the proposed spinoff transaction between LNGG and RVRA, RVRA has filed a registration statement on Form S-1 containing a prospectus with the SEC. This communication is not a substitute for any documents that LNGG may file with the SEC or send to LNGG shareholders in connection with the spinoff transaction. SHAREHOLDERS OF LNGG ARE URGED TO READ ALL RELEVANT DOCUMENTS FILED WITH THE SEC, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. When available, investors and security holders will be able to obtain copies of the documents that may be filed with the SEC with respect to the proposed transaction free of charge at the SEC ’ s website, http://www.sec.gov, or as described in the following paragraph. The documents filed with the SEC by LNGG may be obtained free of charge at the applicable website (www.linnenergy.com) or by requesting them by mail at Linn Energy, Inc., 600 Travis, Suite 1400, Houston, TX 77002, Attention: Investor Relations, or by telephone at (281) 840-4110. 1
Important Disclosures Reserve Estimates The 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 for such terms. LNGG 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 their nature more speculative than estimates of proved, probable and possible reserves as used in SEC filings and, accordingly, are subject to substantially greater uncertainty of being actually realized. These estimates have not been fully risked by management. Actual quantities that may be ultimately recovered will likely differ substantially from these estimates. Factors affecting ultimate recovery include the scope of Roan Resources LLC ’ s ( “ Roan ” ) actual drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, lease expirations, transportation constraints, regulatory approvals, field spacing rules, actual drilling results and recoveries of oil and natural gas in place, and other factors. These estimates may change significantly as the development of properties provides additional data. Non-GAAP Measures Adjusted EBITDAX and Net Debt are financial measures not presented in accordance with generally accepted accounting principles in the United States ( “ GAAP ” ). Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures can be found in the appendix to this presentation. Industry and Market Data This presentation has been prepared by LNGG and includes market data and other statistical information from sources believed by LNGG to be reliable, including independent industry publications, government publications or other published independent sources. Some data is also based on LNGG ’ s good faith estimates, which are derived from its review of internal sources as well as the independent sources described above. Although LNGG believes these sources are reliable, they have not independently verified the information and cannot guarantee its accuracy and completeness. 2
Spin Transaction Update Anticipated Separation Into Two Public Companies August 7 th LNGG is separating into two stand-alone, publicly traded companies: • LNGG, which will initially hold 50% of Roan • RVRA will hold mature low decline producing assets in Hugoton, Michigan, and • Drunkards Wash, emerging high growth assets in Arkoma, East Texas, North Louisiana, and NW STACK, in addition to significant midstream assets with Blue Mountain Midstream LLC, a rapidly expanding midstream business centered in the core of the Merge LNGG shareholders on record date will receive 1 share of RVRA common stock for each • share of LNGG common stock Working closely with our 50% ownership partner, Roan Holdings LLC, on definitive • documentation to consolidate 100% of Roan ’ s equity interest under LNGG Post consolidation, LNGG intends to uplist its common stock to NASDAQ or NYSE in • 2018 and change from LNGG to ticker “ ROAN ” 3
Separation Overview LNGG shareholders on record date will receive 1 share of RVRA common stock for each share of LNGG common stock Distribution of 1 share of RVRA for each share of LNGG Immediately following Spinoff Transaction LNGG LNGG shareholders shareholders Distribution of Riviera Resources stock LNGG RVRA Share Share Roan LINN Energy, Inc. Holdings, Roan LLC Riviera LINN Energy, Inc. Holdings, Resources, Inc. LLC 50% equity Riviera 50% equity Riviera Upstream interest Resources, Inc. interest Assets 50% equity 50% equity interest interest Riviera Upstream Blue Mountain Assets Roan Midstream LLC Resources Roan Blue Mountain LLC Resources Midstream LLC LLC 4
Roan ’ s Investment Thesis Strong Offset Activity and Well Results Demonstrates Asset Quality Only pure play operator with large scale, contiguous acreage • position in the oil window of the Merge/SCOOP/STACK - Second most active basin in lower 48 based on rig count Multiple decades of inventory of high rate-of-return locations • Alta Mesa STACK Oil - Development opportunities with: Window - Rate of return (ROR) (1) of ~75% to +100% Meramec / Osage - Present value index (PVI) (1) of over 2.0x MRO STACK / Meramec - 13 to 18 month payback period (1) per well “ Consistent EOG - 4.9x recycle ratio (2) outperformance Eastern Anadarko of STACK volatile Woodford Oil - Competitive with Tier 1 Permian plays oil wells ” Window “ High-Return Strong historic well results with expectation of substantial • XEC Premium Play in rate-of-change improvements driven by experienced Lone Rock Play Crude Oil Window ” management team Merge “ Best Results to Date ” WTI pricing and ample processing and takeaway capacity • Robust production growth plus line of sight to free cash flow CLR • generation SCOOP Springer Well-capitalized balance sheet with significant financial CLR SCOOP • GPOR flexibility Woodford/Sycamore SCOOP Woodford / Acreage Position Deeply analytical and experienced operations team with • Sycamore / (Net Acres) significant history running large scale assets in the Mid- Springer Merge 117,000 Continent SCOOP 29,000 STACK 8,000 Roan acreage Total 154,000 1) PVI, ROR, and payback period are based on $65 WTI and $2.75 HH; please see slide 20 for information on the related type curves 5 2) Please see slide 13 for recycle ratio calculation
Roan Production Production History and Guidance: 120 65% 62% 61% 55% 94.0 100 56% 54% 50% 45% 80 46% 44% 35% 61.0 MBoe/d 60 % Liquids 45.0 25% 37.7 40 15% 25.7 22.9 20.1 20 5% 0 -5% » » 2Q'17 3Q'17 4Q'17 1Q'18 Current rate Exit rate Exit rate (1) (1) 2018 2019 Net Production % Liquids ~365% projected growth from 2Q ’ 17 to Dec ’ 19 1) Based on the midpoint of guidance 6
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