Rosehill Resources

Rosehill Resources is an independent oil and natural gas company focused on growing production and reserves in the core of the Delaware Basin, through drilling and bolt-on acquisitions. Rosehill has over 13,000 net acres with over 50 drilling locations across multiple stacked horizons. Rosehill is a pure play Delaware Basin operator and is headquartered in Houston, Texas.

Growth and Strategy

Rosehill’s strategy for its premier Delaware Basin portfolio is to build a solid foundation of highly economic production and reserves growth through operational excellence and acquisitions.

Company History

Rosehill Resources was formed in 2017 through the combination of Tema Oil and Gas Company and KLR Energy Acquisition Corp.  Tema Oil and Gas Company was formed in 1999 as a wholly owned subsidiary of Rosemore, Inc., with assets in Texas and New Mexico. The Rosenberg family, which owns Rosemore, and are direct descendants of Louis Blaustein, the 1920 founder of the American Oil Company, or Amoco.   KLR Energy was a blank check company, also commonly referred to as a Special Purpose Acquisition Company, or SPAC, formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities. KLR Energy was sponsored by KLR Energy Sponsor, LLC, an affiliate of KLR Group Holdings, LLC and KLR Group, LLC.

Company Highlights

• Over 13,000 total net acres in the Northern and Southern Delaware Basin
• Average working interest of ~86% across operated acreage
• Over 500 gross undrilled locations on current leasehold
• Approximately 20 rig years of drilling inventory
• 2019 guidance of 20,000 - 21,500 BOEPD
• High oil and liquids weighted production, recent average of 70% oil and 15% NGLs
• 2018 proved reserves increased 55% to 48.4 MMBOE and PV-10 increased 102% to $743 million compared to 2017 year-end
• Substantial hedge positions in place to protect capital plan and provide exposure to upside price movements

Optimize Operations

• Continue improvements to drilling and completion techniques to improve EUR, minimize costs and improve returns
• Drive down cash operating costs and improve margins to grow cash flow and returns

Expand Delaware Footprint

• Aggregate small to moderate acreage positions that are strategic and accretive
• Strong balance sheet allows for this aggregation

Maintain Financial Discipline

• Capital expenditures focused on highest return horizons and funded by cash on hand, operational cash flow, available funding and credit
• Opportunistically add hedges to minimize downside exposure