Montage Resources122 W. John Carpenter Fwy , Suite 300 , Irving, Texas, United States

FOCUS AND STRATEGY

Montage Resources is built on the premise that operational efficiency is a constantly evolving process leading to a significant competitive advantage.  We continually strive to maximize asset and shareholder value through economic and low cost development, relentlessly focusing on creating superior operating margins and responsibly managing of our resources, while still maintaining financial and operational flexibility.

FINANCIAL FLEXIBILITY

• Balanced midstream and downstream obligations allow for the opportunity to dynamically manage assets to maximize returns
• No near term debt maturities; $510 million of high yield notes mature in 2023
• No long term service or rig contracts
• Net debt to LTM EBITDAX of approximately 2.0x
• Per unit G&A tops among Appalachian peers
• Potential of free cash flow generation provides opportunity to reduce interest expense, lower debt outstanding, or return capital to shareholders while maintaining moderate growth

OPERATIONAL ADAPTABILITY

• Minimal drilling commitments and production in excess of downstream commitments provides flexibility to ramp up or down in dependent upon the commodity price environment
• Business plan with approximately 2 rigs achieves double digit YoY production growth in 2019
• Reduced cycle times and optimized well pad capital spend provides attractive return on
  investment
• Repeatable well designs limit need for additional contract labor and specialized tools

EXCELLENCE AND INNOVATION

We have assembled a team of technical specialists, individually selected as the best in their respective fields, and have implemented an organizational structure that emphasizes a systematic, process-driven approach to developing our asset base. Utilizing the expertise of our employees, consultants and top level service companies, allows us to complete the drilling process quickly and efficiently, while keeping operating costs to a minimum. The company will drive value creation by maintaining an Appalachian focused resource position wile effectively and safely developing those resources for the benefit of all stakeholders.

• Heightened focus on drilling and completion optimization, cycle times and cost control to enhance returns

• Peer leading well costs

• Pioneered fracture completion methods, while optimizing stage spacing, proppant loading and overall resource development plans that facilitate superior well returns,hydrocarbon recoveries and improved corporate capital efficiencies

• Development of fit for purpose friction reducers

• Pioneering production technologies and techniques to maximize well recovery