Moss Creek Resources Holdings Inc.

Overview Key strengths Key risks Production is heavily weighted toward liquids, which improves its overall profitability. High percentage of proven undeveloped reserves, which require higher capital expenditure (capex) to bring to production. Historical maintenance of modest credit metrics. Small and geographically concentrated asset base. More limited transparency than peers given its international ownership. Moss Creek has a relatively small and geographically concentrated reserve base. The company had a proved reserve base of about 315 million barrels of oil equivalent (mmboe) as of Dec. 31, 2021, which was entirely focused in the Permian basin. Of these reserves, about 70% were oil and 48% were classified as proved undeveloped (PUD). We view Moss Creek's relatively high percentage of PUD reserves as a

...Moss Creek has a relatively small and geographically concentrated reserve base. The company had a proved reserve base of about 315 million barrels of oil equivalent (mmboe) as of Dec. 31, 2021, which was entirely focused in the Permian basin. Of these reserves, about 70% were oil and 48% were classified as proved undeveloped (PUD). We view Moss Creek's relatively high percentage of PUD reserves as a risk because they require substantial development spending to bring to production. The company's production base is also small with daily production averaging about 46,000 barrels of oil equivalent (boe) in 2021. The company currently has a three-rig program, which we expect will enable it to expand its production to the low 50,000 boe per day (/d) range in 2022....

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