WildHorse Resource Development Corporation Announces Second Quarter Results

HOUSTON–(BUSINESS WIRE)–WildHorse Resource Development Corporation (NYSE: WRD) announced today
its operating and financial results for the three months ended June 30,
2017.

Operational highlights from the second quarter 2017 include:

• Increased average daily production by 55% to 22.6 Mboe/d for the
  second quarter 2017 compared to 14.6 Mboe/d for the second quarter 2016
• Brought online 18 gross (17.4 net) Eagle Ford wells, 1 gross (1.0 net)
  Austin Chalk well, and 2 gross (1.1 net) North Louisiana wells in the
  second quarter of 2017
  • Total of 41 gross Gen 3 Eagle Ford wells are now online averaging
    a 101 boe per foot EUR⁽¹⁾ which is 11% above WRD’s
    Eagle Ford type curve of 91 boe per foot
  • Brought online 9 gross Eagle Ford wells on the Clayton Williams
    acquisition acreage with the average of the wells exceeding our 91
    boe per foot type curve⁽²⁾
  • Brought online WRD’s first Austin Chalk well in Washington County
    at an IP-30⁽³⁾ of 2,387 boe/d (26% oil, 38% natural
    gas, and 36% natural gas liquids (“NGLs”))
  • Brought online 6 gross Eagle Ford wells adjacent to the recently
    acquired Anadarko/KKR acreage with the average of the wells
    exceeding our 91 boe per foot type curve
  • Brought online 2 gross Eagle Ford wells on acreage without
    assigned locations
• Achieved an average drilling time of 13.2 days from spud to rig
  release on all Eagle Ford rigs in the second quarter with the fastest
  well to date drilled in 8.9 days
• Continued success testing Eagle Ford refracs with three additional
  tests online
• Reduced lease operating expense (“LOE”) in the second quarter to $3.33
  per boe compared to $4.37 per boe in the first quarter of 2017

Financial highlights from second quarter 2017 include:

• Reported Net Income available to common stockholders of $25.9 million
  or $0.28 per share for the second quarter 2017. Reported Adjusted Net
  Income available to common stockholders⁽⁴⁾ of
  $5.5 million or $0.06 per share for the second quarter 2017
• Reported Adjusted EBITDAX⁽⁴⁾ of $52.4 million for the
  second quarter 2017 compared to $21.7 million for the second quarter
  2016

Other significant highlights and recent events include:

• Closed $594 million acquisition of 111,000 net acres in the Eagle Ford
• Closed financing of $435 million Series A Perpetual Convertible
  Preferred Stock
• Increased the borrowing base on WRD’s revolving credit facility to
  $650 million from $450 million
• Added approximately 8.6 million barrels of crude oil hedges
  distributed across 2017 to 2020 during the second quarter and early
  third quarter of 2017

“With 41 Gen 3 wells online tracking an average 101 boe per foot EUR, we
believe this critical mass of wells provides further confidence in our
extensive acreage position. We have also brought online our first Austin
Chalk well in Washington County with an outstanding initial production
rate,” said Jay Graham, Chairman and Chief Executive Officer of WRD. “In
addition, our efficiency improvements are continuing to outpace our
expectations with all five of our Eagle Ford rigs now drilling wells in
less than 14 days on average from spud to rig release. Our fastest well
to date was drilled in 8.9 days. We believe that WRD is primed for
growth with a solid balance sheet and a peer-leading hedge book. We
expect the second half of the year to be as exciting as the first as we
bring online approximately 60 additional Eagle Ford wells at the
midpoint of our guidance.”

Second Quarter 2017 Results

Net Income available to common stockholders was $25.9 million or $0.28
per share for the second quarter 2017. WRD also reported Adjusted Net
Income available to common stockholders⁽⁴⁾ of $5.5 million or
$0.06 per share for the second quarter 2017. WRD reported Adjusted
EBITDAX⁽⁴⁾ for the second quarter 2017 of $52.4 million
compared to $21.7 million for the second quarter 2016.

Net production increased by 55% year-over-year to 22.6 Mboe/d for the
second quarter 2017 compared to 14.6 Mboe/d for the second quarter 2016.
Second quarter 2017 net production consisted of 55% oil, 35% natural
gas, and 10% NGLs.

Total revenues for the second quarter 2017, excluding the impact of
realized hedges, were $70.2 million compared to $29.7 million for the
second quarter 2016. Total revenues were primarily higher as a result of
increased production, acquisitions, and higher commodity prices.

Average realized prices for the quarter ending June 30, 2017 and 2016,
before the effect of commodity derivatives, are presented below:

												Percent
				Q2’17				Q2’16				Change
Oil (per Bbl)				$	46.77			$	43.07			9	%
Natural Gas (per Mcf)				$	3.09			$	1.95			59	%
NGL (per BbL)				$	16.59			$	11.74			41	%
Total (per Boe)				$	33.90			$	21.94			54	%

Average realized prices for the quarter ending June 30, 2017 and 2016,
after the effect of commodity derivatives, are presented below:

												Percent
				Q2’17				Q2’16				Change
Oil (per Bbl)				$	49.80			$	43.49			15	%
Natural Gas (per Mcf)				$	3.07			$	2.40			28	%
NGL (per BbL)				$	16.59			$	11.74			41	%
Total (per Boe)				$	35.54			$	23.68			50	%

LOE for the second quarter 2017 was $6.8 million, or $3.33 per boe,
compared to $2.3 million, or $1.73 per boe, for the second quarter 2016.
The year over year difference is attributable to higher LOE on
production acquired with the Clayton Williams acquisition in December
2016. LOE declined 24% from $4.37 per boe in the first quarter 2017
reflecting continued efficiencies since the Clayton Williams acquisition
as well as greater produced volumes with lower cost LOE. In the third
quarter of 2017, LOE will be impacted by the inclusion of the
Anadarko/KKR acquisition, which comes with higher cost legacy production
between $6 and $7 per boe. WRD expects to capture future efficiencies on
the Anadarko/KKR acreage as it is consolidated into the existing asset
base. LOE is expected to be within its full year guidance of $3.25 to
$3.75 per boe.

Gathering, processing and transportation expense (“GP&T”) for the second
quarter 2017 was $1.9 million, or $0.95 per boe, compared to $1.6
million, or $1.19 per boe in the second quarter 2016. The decrease in
GP&T expenses on a per unit basis is primarily attributable to lower fee
gas purchasing and processing contracts associated with the Clayton
Williams acquisition properties. In the third quarter of 2017, GP&T will
be impacted by the inclusion of the Anadarko/KKR acreage which has
higher fee gas purchasing and processing contracts.

Taxes other than income were $4.5 million for the second quarter 2017,
or $2.20 per boe, compared to $1.8 million, or $1.34 per boe, for the
second quarter 2016. Second quarter 2017 taxes other than income
increased compared to second quarter 2016 as a result of higher price
realizations, higher ad valorem taxes associated with higher property
valuations, and Louisiana franchise taxes incurred as a result of WRD’s
corporate reorganization at the IPO.

General and administrative (“G&A”) expense for the second quarter 2017
was $10.0 million, or $4.89 per boe, compared to $4.7 million, or $3.53
per boe for the second quarter 2016. During the second quarter 2017, G&A
expense included $1.3 million, or $0.63 per Boe, of stock-based
compensation G&A expense and $2.2 million, or $1.07 per Boe, of
acquisition related costs. Cash G&A expense excluding acquisition
related costs for the second quarter 2017 was $6.5 million or $3.19 per
boe.

Exploration expense was $11.5 million for the second quarter 2017
compared to $0.1 million for the second quarter 2016. During the second
quarter of 2017, exploration expense was higher primarily due to an
increase in undeveloped leasehold impairments of $9.9 million as a
result of expiring acreage leases as well as a $1.5 million increase in
seismic acquisitions.

Net interest expense during the second quarter 2017 was $6.6 million,
including amortization of deferred financing fees of approximately $0.4
million. This compares to net interest expense during the second quarter
2016 of $1.8 million, including amortization of deferred financing fees
of approximately $0.1 million. The increase in net interest expense is
primarily the result of higher levels of indebtedness and the issuance
of senior notes in the first quarter 2017.

Drilling and completion (“D&C”) capital expenditures totaled $182.2
million in the second quarter 2017. During the first half 2017, WRD’s
D&C capital expenditures were approximately $267.6 million. In the first
half, WRD allocated approximately 90% of its D&C capex to the Eagle Ford
and 10% to North Louisiana.

	(1)			Excludes six wells brought online late in the second quarter without enough data to estimate an EUR.
	(2)			Excludes three wells brought online late in the second quarter without enough data to estimate an EUR.
	(3)			The initial production rates represent the peak average of the initial production rates for the applicable consecutive days of production.
	(4)			Adjusted EBITDAX, Adjusted Net Income (Loss) available to common stockholders, Pro-Forma unaudited measures, and net debt are financial measures not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Please see the reconciliation to the most comparable measures calculated in accordance with GAAP in the “Use of Non-GAAP Financial Measures” section of this press release.

Operational Update

WRD reported second quarter average daily production of 22.6 Mboe/d
consisting of 55% oil, 35% natural gas, and 10% NGLs. WRD brought online
a total of 21 gross (19.6 net) wells including 18 gross (17.4 net) Eagle
Ford wells, 1 gross (1.0 net) Austin Chalk well, and 2 gross (1.1 net)
North Louisiana Upper Red wells in the second quarter 2017. These new
wells bring the total number of Gen 3 Eagle Ford completions to 41 gross
wells. With the exclusion of six wells early in production, WRD’s Gen 3
wells are averaging a 101 boe per foot EUR, compared to WRD’s Eagle Ford
type curve of 91 boe per foot.

During the second quarter of 2017, WRD brought online 9 gross Eagle Ford
wells on the Clayton Williams acquisition acreage bringing the total to
10 wells including the Paul 134 #2H which was brought online in the
first quarter. With the exclusion of three wells early in production,
these wells are on average exceeding our 91 boe per foot type curve. Two
of the Eagle Ford wells on the Clayton Williams acquisition acreage, the
Farmers North #1H and the Miman #1H, were drilled in an area without
assigned Gen 3 locations. As a result, we expect the success of these
wells to increase our reserves and location inventory at year end. The
Farmers North #1H and the Miman #1H are located 7 miles southwest of the
Paul 134 #2H.

In addition, 6 of the 18 gross Eagle Ford wells brought online were
adjacent to the recently closed Anadarko/KKR acquisition and are on
average outperforming our 91 boe per foot type curve. In the third
quarter of 2017, WRD plans to drill 8 gross wells directly on the
recently acquired acreage along with several wells adjacent to the
position.

WRD also brought online its first Austin Chalk well in Washington
County, the Winkelmann #1H, with an IP-30⁽³⁾ of 2,387 boe/d
(26% oil, 38% natural gas, and 36% NGLs). As a result of this success,
WRD plans to continue delineating its Austin Chalk position with
additional wells in the second half of 2017.

WRD also brought online 3 additional Eagle Ford refracs bringing the
total to 4 refracs. Results are very encouraging on all four wells, and
WRD intends to continue evaluating performance.

For the second half of 2017, WRD expects to bring online approximately
60 Eagle Ford wells split evenly between the third and fourth quarter
based on the midpoint of guidance. Eagle Ford wells for the remainder of
2017 are expected to have an average working interest of approximately
93%.

In North Louisiana, WRD brought online the 2-well Harrison pad on a
restricted choke at a combined 30-day rate of 22.0 mmcfe/d⁽³⁾,
adjusted for 7,500’ laterals, which is on average in line with the WRD
Upper Red type curve IP-30 of 11.5 mmcfe/d. A second rig was added in
North Louisiana during the second quarter of 2017. Both rigs are
currently in the process of drilling two separate 3-well pads which are
expected to be online in the fourth quarter of 2017. In addition, one
more well is expected to come online bringing the total to 7 wells
online in the fourth quarter. North Louisiana wells for the remainder of
2017 are expected to have an average working interest of approximately
66%.

Previously Announced Full-Year 2017 Operational and Financial Guidance

The guidance included in this press release is subject to the cautionary
statements and limitations described under the “Cautionary Statements
and Additional Disclosures” caption at the end of this press release.
WRD’s 2017 guidance is based on, among other things, its current
expectations regarding capital expenditure levels and the assumption
that market demand and prices for oil, natural gas and NGLs will
continue at a level that allows for economic production of these
products.

WRD reiterated its full year 2017 operational and financial guidance
provided on May 11, 2017 with a D&C capex guidance range of $550 million
to $675 million. WRD expects 2017 production to range from 27 to 31
Mboe/d, which implies a 100% year-over-year production growth rate from
14.5 Mboe/d in 2016 (using the mid-point of 2017 guidance range).

The table below presents our guidance as of May 11, 2017:

			Low			High
Net Average Daily Production (Mboe/d)			27 – 31
Oil (% of Production)			57% – 61%
Natural Gas (% of Production)			29% – 33%
NGLs (% of Production)			9% – 11%
Average Costs (per Boe)
Lease Operating Expense			$3.25 – $3.75
Gathering, Processing, and Transportation			$0.95 – $1.15
Taxes Other than Income			$2.00 – $2.25
Cash General and Administrative(5)			$2.50 – $3.00
Commodity Price Realizations (Unhedged)(6)
Crude Oil Realized Price (% of WTI NYMEX)			95% – 100%
Natural Gas Realized Price (% of NYMEX to Henry Hub)			95% – 100%
NGL Realized Price (% of WTI NYMEX)			27% – 32%
Drilling Program
Wells Spud (Gross)			100 – 120
Wells Completed (Gross)			85 – 105
D&C Capital Expenditure ($MM)			$550 – $675

Note: Guidance as of May 11, 2017.
	(5)			Excludes non-cash compensation charges associated with grants under our LTIP and incentive units issued to certain of our officers and employees. WRD does not guide to anticipated average non-cash general and administrative costs. Please see “Cautionary Statements and Additional Disclosures” for additional disclosures because such compensation charges are based in part on the price of our common stock and are too speculative to predict.
	(6)			Based on strip pricing as of May 11, 2017.

Financial Update

Total debt outstanding as of June 30, 2017 was $496.0 million, including
$146.0 million of debt outstanding under WRD’s revolving credit facility
and $350.0 million of senior notes due 2025. As of June 30, 2017, WRD’s
liquidity of $516.7 million consisted of $14.6 million of cash and cash
equivalents and $502.1 million of availability under its revolving
credit facility. On June 30, 2017, in connection with closing the
Anadarko/KKR acquisition, the borrowing base on WRD’s revolving credit
facility was increased from $450 million to $650 million. The next
redetermination of the borrowing base utilizing mid-year 2017 reserves
is scheduled to occur in October 2017.

Hedging Update

WRD utilizes its hedging program to mitigate financial risks and the
effects of commodity price volatility. Total hedged production in the
second quarter of 2017 was approximately 1.5 MMboe, or 73% of second
quarter production of 2.1 MMboe. As of August 9, 2017, WRD has hedged
approximately 75% of its expected remaining 2017 production on a boe
equivalent basis (using the mid-point of WRD’s guidance range).

In the second quarter 2017, WRD entered into additional commodity
derivative contracts for certain crude oil volumes. Specifically, WRD
added swaps and deferred premium put contracts of two million barrels of
oil in 2018 and an additional two million barrels of oil in 2019. In
addition, during the third quarter, WRD has hedged approximately 4.6
million barrels of crude oil distributed across 2017 to 2020 at
approximately $50 per barrel.

The following table reflects WRD’s hedged volumes and corresponding
weighted-average price, as of August 9, 2017.

			Remaining
			2017(9)			2018			2019			2020
Crude Oil Hedge Contracts:
Total crude oil volumes hedged (Bbl)			3,599,787			6,859,584			4,537,693			342,620
Volumes hedged (Bbl/d)			19,564			18,793			12,432			936
Total weighted-average price (7)			$52.58			$52.35			$52.64			$50.15
Expected crude production hedged (8)			83%			–			–			–
Natural Gas Hedge Contracts:
Total natural gas volumes hedged (MMBtu)			9,731,708			11,565,800			9,877,900			–
Volumes hedged (MMbtu/d)			52,890			31,687			27,063			–
Total weighted-average price (7)			$3.22			$3.03			$2.81			–
Expected gas production hedged (8)			84%			–			–			–
Total Hedge Contracts:
Total hedged production (boe)			5,221,738			8,787,217			6,184,010			342,620
Volumes hedged (Boe/d)			28,379			24,075			16,942			936
Total weighted-average price ($/boe) (7)			$42.25			$44.85			$43.12			$50.15
Expected total production hedged (8)			75%			–			–			–

	(7)			Utilizing the mid-point for collars.
	(8)			Using the mid-point of WRD’s 2017 guidance ranges.
	(9)			Represents July 1 – December 31, 2017.

Upcoming Conferences

Members of WRD’s management team intend to participate in the following
upcoming investment conferences:

• August 14 – 15, 2017 – EnerCom Oil & Gas Conference (Denver, CO)
• September 6 – 7, 2017 – Barclays Energy-Power Conference (New York, NY)
• September 26 – 27, 2017 – Johnson Rice Energy Conference (New Orleans,
  LA)

Presentation materials for all conferences mentioned above will be
available on WRD’s website at www.wildhorserd.com on or prior to the day
of the respective presentation.

Quarterly Report on Form 10-Q

WRD’s financial statements and related footnotes will be available in
its Quarterly Report on Form 10-Q for the quarter ended June 30, 2017,
which will be filed with the U.S. Securities and Exchange Commission
(“SEC”) on or before August 14, 2017.

Conference Call and Webcast

WRD will host an investor conference call tomorrow morning, August 10,
2017 at 8 a.m. Central (9 a.m. Eastern) to discuss these operating and
financial results. Interested parties are invited to participate on the
call by dialing (877) 883-0383 (Conference ID: 6395084), or (412)
902-6506 for international calls, (Conference ID: 6395084) at least 15
minutes prior to the start of the call or via the internet at
www.wildhorserd.com. A replay of the call will be available on WRD’s
website or by phone at (877) 344-7529 (Conference ID: 10110019) for a
seven-day period following the call.

About WildHorse Resource Development Corporation

WildHorse Resource Development Corporation is an independent oil and
natural gas company focused on the acquisition, exploration, development
and production of oil, natural gas and NGL properties primarily in the
Eagle Ford Shale in East Texas and the Over-Pressured Cotton Valley in
North Louisiana. For more information, please visit our website at
www.wildhorserd.com.

Cautionary Statements and Additional Disclosures

This press release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements can be identified by words such as
“anticipates,” “intends,” “will,” “plans,” “seeks,” “believes,”
“estimates,” “could,” “expects” and similar references to future
periods. Such forward-looking statements are subject to a number of
risks and uncertainties, many of which are beyond WRD’s control. All
statements, other than historical facts included in this press release,
that address activities, events or developments that WRD expects or
anticipates will or may occur in the future, including such things as
WRD’s future capital expenditures (including the amount and nature
thereof), business strategy and measures to implement strategy, future
drilling locations and inventory, competitive strengths, goals,
expansion and growth of WRD’s business and operations, plans, successful
consummation and integration of acquisitions and other transactions,
market conditions, references to future success, references to
intentions as to future matters and other such matters are
forward-looking statements. All forward-looking statements speak only as
of the date of this press release. Although WRD believes that the plans,
intentions and expectations reflected in or suggested by the
forward-looking statements are reasonable, there is no assurance that
these plans, intentions or expectations will be achieved. Therefore,
actual outcomes and results could materially differ from what is
expressed, implied or forecast in such statements.

WRD cautions you that these forward-looking statements are subject to
risks and uncertainties, most of which are difficult to predict and many
of which are beyond WRD’s control, incident to the exploration for and
development, production, gathering and sale of natural gas and oil.
These risks include, but are not limited to: commodity price volatility;
inflation; lack of availability of drilling and production equipment and
services; environmental risks; drilling and other operating risks;
regulatory changes; the uncertainty inherent in estimating natural gas
and oil reserves and in projecting future rates of production, cash flow
and access to capital; and the timing of development expenditures.
Information concerning these and other factors can be found in WRD’s
filings with the SEC, including its Forms 10-K, 10-Q and 8-K.
Consequently, all of the forward-looking statements made in this press
release are qualified by these cautionary statements and there can be no
assurances that the actual results or developments anticipated by WRD
will be realized, or even if realized, that they will have the expected
consequences to or effects on WRD, its business or operations. WRD has
no intention, and disclaims any obligation, to update or revise any
forward-looking statements, whether as a result of new information,
future results or otherwise.

Initial production rates are subject to decline over time and should not
be regarded as reflective of sustained production levels.

Some of the above results are preliminary. Such preliminary results are
based on the most current information available to management. As a
result, WRD’s final results may vary from these preliminary estimates.
Such variances may be material; accordingly, you should not place undue
reliance on these preliminary estimates.

Cash General and Administrative Expenses per Boe

Our presentation of cash G&A expenses per boe is a non-GAAP measure. We
define cash G&A per boe as total G&A determined in accordance with GAAP
less non-cash equity compensation expenses, expressed on a per boe
basis. We report and provide guidance on cash G&A per boe because we
believe this measure is commonly used by management, analysts and
investors as an indicator of cost management and operating efficiency on
a comparable basis from period to period. In addition, management
believes cash G&A per boe is used by analysts and others in valuation,
comparison and investment recommendations of companies in the oil and
natural gas industry to allow for analysis of G&A spend without regard
to stock-based compensation programs which can vary substantially from
company to company. Cash G&A per boe should not be considered as an
alternative to, or more meaningful than, total G&A per boe as determined
in accordance with GAAP and may not be comparable to other similarly
titled measures of other companies.

Use of Non-GAAP Financial Measures

This press release and accompanying schedules include the non-GAAP
financial measures of Adjusted EBITDAX, Adjusted Net Income (Loss)
available to common stockholders, and Net Debt.

Contacts

WildHorse Resource Development Corporation
Pearce Hammond, CFA
713-255-7094
Vice President, Investor Relations
[email protected]

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