June 16, 2016 1
Pacific Exploration & Production Corporation
DIP Budget – Initial Cash Flow
Projection
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE TERMS
OF THE UNDERTAKING OF PACIFIC
EXPLORATION & PRODUCTION
CORPORATION DATED JUNE 16, 2016
Table of Contents
2
I. DIP Budget Assumptions
II. DIP Budget Detail
III. Financial Covenants
IV. Sensitivity Analysis
3
9
15
21
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
3
DIP Budget - Initial Cash Flow
Projection
Assumptions
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
DIP Budget AssumptionsThe key assumptions related to the DIP Budget outlined in this package are the
following :
4
Consolidation The Cash Flow Projection contained herein (the « DIP Budget ») for Pacific Exploration & Production
Corporation (« Pacific » or the « Company ») has been prepared on a consolidated basis and does not
reflect intercompany transfers between and among Pacific and its subsidiaries.
The DIP Budget does not identify receipts and disbursements of individual entities.
Timing The DIP Budget is a weekly forecast spanning 30 weeks, from week ending June 4, 2016 through week
ending December 24, 2016 (27 weeks after initial DIP loan funding).
A plan is confirmed and Pacific exits from CCAA proceedings in the week ending November 5, 2016,
approximately 27 weeks after filing.
Forecast Basis The DIP Budget considered cash, accounts receivable & accounts payable balances as of May 28, 2016
(opening balance sheet).
Receipts and disbursements as of week 6/4 until 8/13 of the DIP Budget are substantively similar to the
Company’s 13-week projection.
After 11 weeks, the DIP Budget applies production, operating expenses, and capital expenditures
assumptions substantively similar to the Business Plan’s ‘Strip + Consensus Reduced Capex OBC 48”
scenario.
Development drilling and facility capital expenditures are based on the 2016 requirements, excluding
capital expenditures in Colombia on which the Company expect to receive a moratorium from ANH for
2016.
Exploration capital commitments and/ or applicable penalties were included for a total cost of $103.61
million for 2016. The assumptions are as follows:
All Colombia penalties will be deferred as a result of negotiations with the ANH.
Capitalized G&A for Colombia exploration activities will be reduced to $15 million.
Drilling capital committed for Blocks Llanos-25 and Sabanero (totaling $8.7MM) is going to be
incurred over the DIP Budget period.
All Peru commitments/ penalties for 2016 will be incurred over the DIP Budget period, totaling $10
million over the DIP Budget period.
Exploration commitments for Brazil will be included at a cost of $69.9MM over the DIP Budget
Period.
Volumes, operating expenses, and capital expenditures use projections from the Company’s
optimization models.
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
DIP Budget Assumptions (cont’)
5
Pricing The ICE Brent benchmark price is based on the following assumptions:
The actual average ICE BRENT was applied for the month of May 2016, and held constant in June
and July.
Futures prices were used for August through December 2016 based on futures as published by ICE
at market close May 31, 2016.
Realized price differentials:
A $6/boe differential was applied for the months of May, June and July on the basis of contracts
made available by the Company.
Thereafter, the DIP model employs increased differentials ($7.00-$8.00/boe range) to reflect
uncertainty surrounding macro-economic factors which may impact realized pricing
No hedging is assumed during the DIP Budget forecast period.
DIP Facility Company will have access to $480 million in DIP proceeds in week ending June 25, 2016, less minimum
cash requirements of $200 million (which include $50M reserve in PwC account).
Annual interest rate of 12.0% for $500 million loan value, paid monthly in the last week of each month
Covenants include minimum cash requirement of $200 million and the following disbursement restrictions,
which are tested every four weeks on a cumulative basis:
Disbursements to Company professionals not to exceed 125% of this DIP Budget
Disbursements for JV Funding not to exceed 130% of this DIP Budget (to be reforecast at a later date
for periods after week 11)
Net disbursements (total disbursements less all professional disbursements and JV funding
disbursements) not to exceed 125% of this DIP Budget
LC Facility & Treatment Company will have access to $134 million LC facility in week ending June 25, 2016
Annual fees of 5.0%, paid monthly in the last week of each month
Letters of credit with institutions in the revolving facility will be addressed through the $134 million LC
facility, and no cash collateralization associated with such letters of credit will be necessary after filing
Exit Facility After exit in week ending November 5, 2016, the DIP Facility outlined above will convert to $250 million
exit facility
No additional funding pursuant to such facility is assumed
Annual interest rate of 10.0% on $250 million face value, paid monthly in the last week of each month
It is assumed that there is no minimum cash requirement or covenants associated with this facility
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
DIP Budget Assumptions (cont’)
6
Accounts Receivable During the Dip Budget’s first 11 weeks (as of week 6/4 until 8/13), receipts are substantively consistent
with the Company’s 13-week forecast and based on a 22 days sales outstanding.
After 11 weeks (i.e. after August 13th), production collections are based on a 28 days sales outstanding.
Accounts Payable The DIP Budget splits accounts payable balances between pre-2016 payables and new payables
generated in 2016. Based on Company ledger, the DIP Budget considers that total accounts payable as
of May 28, 2016 is $333 million (numbers are on net basis).
New 2016 payables are assumed to be paid as follows:
Production, operating and SG&A costs – all such expenses are paid in approximately 3 months; 8% is
paid in each of the 12 weeks following the week of incurrence, with the exception of the fourth week in
which 12% is paid
Capital expenditures (excluding exploration costs for Brazil & Peru) – all such expenses are paid in
approximately 5 months; 8% is paid in each of weeks 9 through 20 following the week of incurrence,
with the exception of the week 12 in which 12% is paid
Exploration capital commitments for Brazil and Peru assets were assumed to be payable within 30
days of the week of incurrence (through cash calls from JV partners).
Tax As of December 31, 2015, the Company’s VAT receivables totaled $109 million. None of this is expected
to be collected during the DIP Budget forecast period
The Company continues to pay VAT on operating costs, SG&A and capital expenditures. The DIP Budget
assumes VAT payments equal to 14.0% of production and operating costs and 1.9% of SG&A are
recoverable, totaling $25 million from week ending June 25, 2016 to week ending December 24, 2016. No
recovery is projected during the DIP Budget forecast period
As of December 31, 2015, the Company’s income tax receivable totaled $207 million. None of this is
expected to be collected during the DIP Budget period.
It is assumed that the Company pays withholding tax on 3.3% of Colombian production revenues monthly.
Such payments total approximately $21 million from week ending June 25, 2016 to week ending
December 17, 2016.
The Company will pay $13 million for the Wealth Tax from week ending June 25, 2016 to week ending
December 17, 2016.
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
DIP Budget Assumptions (cont’)
7
Asset Sales The DIP Budget reflects the following asset sales:
The sale of the “oil terminal” portion of Pacific Infrastructure Ventures Inc., which will net the Company
approximately $110 million in week ending November 5, 2016.
The sale of the “dry cargo” portion of Pacific Infrastructure Ventures Inc., which will net the Company
approximately $60 million in week ending December 3, 2016.
The sale of land owned by Major Oil to the Rubiales Joint Venture in week ending July 9, 2016.
Negotiations between the Company and Ecopetrol are ongoing and price has not been finalized. DIP
Budget reflects an estimate of $17.9 million in proceeds.
Sale of pipe materials is assumed to net $6 million in week ending November 5, 2016, with additional
proceeds of $6 million occurring in week ending December 3, 2016.
There are no assumed sales of tax refunds or credits (including Títulos de Devolución de Impuestos
Nacionales) during the DIP budget period.
Rubiales Termination
Assumptions
$33 million funded into Joint Venture account over June and July primarily for funding of Meta Petroleum’s
portion of environmental clean-up obligations, severance of property-level employees and the land
purchase from Major Oil, in week ending July 9, 2016.
$10.3 million as holdback refunds, in week ending July 9, 2016.
$17.9 million in proceeds received from the sale of the land owned by Major Oil in week ending July 9,
2016.
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
DIP Budget Assumptions (cont’)
8
Professional Fees Professional fees are based on best estimates and the guidance provided by each professional
Payments to professionals continue to be made in the ordinary course through the bankruptcy period, with
disbursements primarily occurring on the 10th day of each month for the work performed during the prior
month
Success fees are paid at emergence from bankruptcy with the exception of a portion of Lazard’s success
fee.
The DIP Budget for professional fees does not include fees for legal counsel of certain local jurisdictions,
including British Columbia, Bermuda, Barbados and the British Virgin Islands. We estimate the monthly
fees in respect of such external counsel to be $400,000 per month in the aggregate.
The DIP Budget does not include fees incurred by the Company in respect of day-to-day legal matters and
is only with respect to professional fees incurred as a result of the restructuring transaction.
Dividends Includes $19 million in dividends from Pacific Midstream in week ending September 24, 2016.
KERP The DIP Budget includes a $14 million KERP
The KERP is paid 25% in the week of bankruptcy filing and 75% upon bankruptcy emergence
LNG Project Continued payment of $1 million per month during the forecast period for settlement with Ex Mar
Cash Balances Assumes the free flow of cash across borders, jurisdictions and between the local branches
Unrestricted cash balance of $107 million at May 28, 2016
Available cash does not include JVA and other restricted cash
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
9
DIP Budget Initial Cash Flow
Projection
Detail
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
DIP Budget - June 4 to July 9
10
Period Ending 6/4/16 6/11/16 6/18/16 6/25/16 7/2/16 7/9/16
Week # 1 2 3 4 5 6
(all figures in USD thousands, unless otherwise stated)
Aggregate Cash Flows
Operating Receipts 16.376 62.790 26.624 22.267 29.659 47.284
Asset Sales - - - - - 17.900
Other - - - - - -
Total Receipts 16.376 62.790 26.624 22.267 29.659 65.184
Net Disbursements (26.824) (19.571) (27.709) (52.684) (44.329) (32.344)
Joint Venture Funding (4.060) (22.616) (3.810) (10.880) (2.023) (60.926)
Company Professional Fees (488) (5.688) - (12.250) - (1.458)
Banks', Bondholders' and Other Professional Fees - (5.487) - - - (2.097)
Total Disbursements (31.372) (53.362) (31.519) (75.814) (46.351) (96.825)
Aggregate Cash Flow (14.997) 9.428 (4.894) (53.547) (16.692) (31.641)
Cash Balances
Starting Unrestricted Operating Cash 107.000 92.003 101.431 96.537 522.990 506.297
Aggregate Cash Flow (14.997) 9.428 (4.894) (53.547) (16.692) (31.641)
DIP Loan Funding - - - 480.000 - -
Ending Unrestricted Operating Cash [1] 92.003 101.431 96.537 522.990 506.297 474.656
Minimum Unrestricted Cash Covenant - - - (200.000) (200.000) (200.000)
Cash Cushion Above Min Cash Covenant 92.003 101.431 96.537 322.990 306.297 274.656
Starting Cash in Cash Collateral Cash [2] - - - - 480.000 422.990
DIP Loan Funding - - - 480.000 - -
Transfers to / (from) Cash Collateral Accounts - - - - (57.010) (16.692)
Ending Cash in Cash Collateral Accounts - - - 480.000 422.990 406.297
Cumulative Transfers to / (from) CCAs - - - - (57.010) (73.703)
Ending Cash in Operating Accounts 92.003 101.431 96.537 42.990 83.308 68.359
[1] Between weeks 4 and Exit (assumed to be week 23) Unrestricted Operating Cash includes $50m in relation to the Colombian Recognition Order Cash (as defined in the DIP Indenture dated June 22, 2016).
[2] Includes Colombian Recognition Order Cash
CASH FLOW PROJECTION DELIVERED
SUBJECT TO THE TERMS OF THE
UNDERTAKING OF PACIFIC
EXPLORATION & PRODUCTION
CORPORATION DATED JUNE 16, 2016
DIP Budget - July 16 to August 20
11
Period Ending 7/16/16 7/23/16 7/30/16 8/6/16 8/13/16 8/20/16
Week # 7 8 9 10 11 12
(all figures in USD thousands, unless otherwise stated)
Aggregate Cash Flows
Operating Receipts 3.726 46.732 50.750 3.493 2.704 46.848
Asset Sales - - - - - -
Other - - - - - 5.272
Total Receipts 3.726 46.732 50.750 3.493 2.704 52.121
Net Disbursements (18.425) (42.262) (25.726) (30.995) (16.649) (36.103)
Joint Venture Funding (7.954) (14.129) (17.699) (25.285) (9.662) (590)
Company Professional Fees - - - (3.075) - -
Banks', Bondholders' and Other Professional Fees - - - (3.842) - -
Total Disbursements (26.378) (56.390) (43.425) (63.197) (26.311) (36.693)
Aggregate Cash Flow (22.653) (9.659) 7.325 (59.703) (23.608) 15.428
Cash Balances
Starting Unrestricted Operating Cash 474.656 452.004 442.345 449.670 389.967 366.359
Aggregate Cash Flow (22.653) (9.659) 7.325 (59.703) (23.608) 15.428
DIP Loan Funding - - - - - -
Ending Unrestricted Operating Cash [1] 452.004 442.345 449.670 389.967 366.359 381.787
Minimum Unrestricted Cash Covenant (200.000) (200.000) (200.000) (200.000) (200.000) (200.000)
Cash Cushion Above Min Cash Covenant 252.004 242.345 249.670 189.967 166.359 181.787
Starting Cash in Cash Collateral Cash [2] 406.297 374.656 352.004 342.345 349.670 289.967
DIP Loan Funding - - - - - -
Transfers to / (from) Cash Collateral Accounts (31.641) (22.653) (9.659) 7.325 (59.703) (23.608)
Ending Cash in Cash Collateral Accounts 374.656 352.004 342.345 349.670 289.967 266.359
Cumulative Transfers to / (from) CCAs (105.344) (127.996) (137.655) (130.330) (190.033) (213.641)
Ending Cash in Operating Accounts 77.347 90.341 107.325 40.297 76.392 115.428
[1] Between weeks 4 and Exit (assumed to be week 23) Unrestricted Operating Cash includes $50m in relation to the Colombian Recognition Order Cash (as defined in the DIP Indenture dated June 22, 2016).
[2] Includes Colombian Recognition Order Cash
CASH FLOW PROJECTION DELIVERED
SUBJECT TO THE TERMS OF THE
UNDERTAKING OF PACIFIC
EXPLORATION & PRODUCTION
CORPORATION DATED JUNE 16, 2016
DIP Budget - August 27 to October 1
12
Period Ending 8/27/16 9/3/16 9/10/16 9/17/16 9/24/16 10/1/16
Week # 13 14 15 16 17 18
(all figures in USD thousands, unless otherwise stated)
Aggregate Cash Flows
Operating Receipts 24.409 24.936 24.941 24.009 24.009 24.092
Asset Sales - - - - - -
Other - 152 203 - 19.086 78
Total Receipts 24.409 25.088 25.143 24.009 43.095 24.170
Net Disbursements (41.398) (51.938) (32.893) (26.294) (30.226) (30.723)
Joint Venture Funding (590) (1.744) (1.744) (1.744) (1.744) (1.744)
Company Professional Fees - - (2.744) - - -
Banks', Bondholders' and Other Professional Fees - - (3.742) - - -
Total Disbursements (41.988) (53.682) (41.122) (28.038) (31.970) (32.467)
Aggregate Cash Flow (17.580) (28.594) (15.978) (4.029) 11.126 (8.297)
Cash Balances
Starting Unrestricted Operating Cash 381.787 364.207 335.613 319.635 315.606 326.731
Aggregate Cash Flow (17.580) (28.594) (15.978) (4.029) 11.126 (8.297)
DIP Loan Funding - - - - - -
Ending Unrestricted Operating Cash [1] 364.207 335.613 319.635 315.606 326.731 318.434
Minimum Unrestricted Cash Covenant (200.000) (200.000) (200.000) (200.000) (200.000) (200.000)
Cash Cushion Above Min Cash Covenant 164.207 135.613 119.635 115.606 126.731 118.434
Starting Cash in Cash Collateral Cash [2] 266.359 281.787 264.207 235.613 219.635 215.606
DIP Loan Funding - - - - - -
Transfers to / (from) Cash Collateral Accounts 15.428 (17.580) (28.594) (15.978) (4.029) 11.126
Ending Cash in Cash Collateral Accounts 281.787 264.207 235.613 219.635 215.606 226.731
Cumulative Transfers to / (from) CCAs (198.213) (215.793) (244.387) (260.365) (264.394) (253.269)
Ending Cash in Operating Accounts 82.420 71.406 84.022 95.971 111.126 91.703
[1] Between weeks 4 and Exit (assumed to be week 23) Unrestricted Operating Cash includes $50m in relation to the Colombian Recognition Order Cash (as defined in the DIP Indenture dated June 22, 2016).
[2] Includes Colombian Recognition Order Cash
CASH FLOW PROJECTION DELIVERED
SUBJECT TO THE TERMS OF THE
UNDERTAKING OF PACIFIC
EXPLORATION & PRODUCTION
CORPORATION DATED JUNE 16, 2016
DIP Budget - Oct 8 to Nov 12
13
Period Ending 10/8/16 10/15/16 10/22/16 10/29/16 11/5/16 11/12/16
Week # 19 20 21 22 23 24
(all figures in USD thousands, unless otherwise stated)
Aggregate Cash Flows
Operating Receipts 24.481 23.825 23.825 23.825 24.886 23.902
Asset Sales - - - - 116.000 -
Other 468 - - - (1.240) (496)
Total Receipts 24.949 23.825 23.825 23.825 139.646 23.406
Net Disbursements (25.310) (23.500) (28.146) (27.524) (40.523) (24.111)
Joint Venture Funding (1.913) (1.913) (1.913) (1.913) (3.845) (3.845)
Company Professional Fees (2.835) - - - (9.390) -
Banks', Bondholders' and Other Professional Fees (4.062) - - - (15.029) -
Total Disbursements (34.119) (25.413) (30.058) (29.436) (68.787) (27.956)
Aggregate Cash Flow (9.170) (1.588) (6.233) (5.611) 70.859 (4.550)
Cash Balances
Starting Unrestricted Operating Cash 318.434 309.264 307.676 301.443 295.832 366.690
Aggregate Cash Flow (9.170) (1.588) (6.233) (5.611) 70.859 (4.550)
DIP Loan Funding - - - - - -
Ending Unrestricted Operating Cash [1] 309.264 307.676 301.443 295.832 366.690 362.140
Minimum Unrestricted Cash Covenant (200.000) (200.000) (200.000) (200.000) - -
Cash Cushion Above Min Cash Covenant 109.264 107.676 101.443 95.832 366.690 362.140
Starting Cash in Cash Collateral Cash [2] 226.731 218.434 209.264 207.676 201.443 -
DIP Loan Funding - - - - - -
Transfers to / (from) Cash Collateral Accounts (8.297) (9.170) (1.588) (6.233) - -
Ending Cash in Cash Collateral Accounts 218.434 209.264 207.676 201.443 - -
Cumulative Transfers to / (from) CCAs (261.566) (270.736) (272.324) (278.557) (278.557) (278.557)
Ending Cash in Operating Accounts 90.830 98.412 93.767 94.389 366.690 362.140
[1] Between weeks 4 and Exit (assumed to be week 23) Unrestricted Operating Cash includes $50m in relation to the Colombian Recognition Order Cash (as defined in the DIP Indenture dated June 22, 2016).
[2] Includes Colombian Recognition Order Cash
CASH FLOW PROJECTION DELIVERED
SUBJECT TO THE TERMS OF THE
UNDERTAKING OF PACIFIC
EXPLORATION & PRODUCTION
CORPORATION DATED JUNE 16, 2016
DIP Budget - Nov 19 to Dec 24
14
Period Ending 11/19/16 11/26/16 12/3/16 12/10/16 12/17/16 12/24/16
Week # 25 26 27 28 29 30
(all figures in USD thousands, unless otherwise stated)
Aggregate Cash Flows
Operating Receipts 23.338 23.338 23.916 23.919 22.898 22.898
Asset Sales - - 66.000 - - -
Other - - (382) (509) - -
Total Receipts 23.338 23.338 89.534 23.410 22.898 22.898
Net Disbursements (24.152) (28.092) (29.710) (27.082) (27.276) (27.107)
Joint Venture Funding (3.845) (3.845) - - - -
Company Professional Fees - - - (2.000) - -
Banks', Bondholders' and Other Professional Fees - - - (563) - -
Total Disbursements (27.997) (31.937) (29.710) (29.645) (27.276) (27.107)
Aggregate Cash Flow (4.659) (8.598) 59.823 (6.235) (4.378) (4.209)
Cash Balances
Starting Unrestricted Operating Cash 362.140 357.481 348.883 408.706 402.472 398.094
Aggregate Cash Flow (4.659) (8.598) 59.823 (6.235) (4.378) (4.209)
DIP Loan Funding - - - - - -
Ending Unrestricted Operating Cash [1] 357.481 348.883 408.706 402.472 398.094 393.885
Minimum Unrestricted Cash Covenant - - - - - -
Cash Cushion Above Min Cash Covenant 357.481 348.883 408.706 402.472 398.094 393.885
Starting Cash in Cash Collateral Cash [2] - - - - - -
DIP Loan Funding - - - - - -
Transfers to / (from) Cash Collateral Accounts - - - - - -
Ending Cash in Cash Collateral Accounts - - - - - -
Cumulative Transfers to / (from) CCAs (278.557) (278.557) (278.557) (278.557) (278.557) (278.557)
Ending Cash in Operating Accounts 357.481 348.883 408.706 402.472 398.094 393.885
[1] Between weeks 4 and Exit (assumed to be week 23) Unrestricted Operating Cash includes $50m in relation to the Colombian Recognition Order Cash (as defined in the DIP Indenture dated June 22, 2016).
[2] Includes Colombian Recognition Order Cash
CASH FLOW PROJECTION DELIVERED
SUBJECT TO THE TERMS OF THE
UNDERTAKING OF PACIFIC
EXPLORATION & PRODUCTION
CORPORATION DATED JUNE 16, 2016
15
DIP Budget Initial Cash Flow
Projection
Financial Covenants
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
Financial covenants
June 25 to July 16
16
Period Ending 6/25/16 7/2/16 7/9/16 7/16/16
Week # 4 5 6 7
(all figures in USD thousands, unless otherwise stated)
Covenants
Professional Fees Covenant
Weekly Proj. Company Professional Fees Disbursements 12.250 - 1.458 -
Cumulative Proj. Company Professional Fees Disbursements 12.250 12.250 13.708 13.708
Covenant 125,0%
Maximum Allowable Company Professional Fee Disbursements 17.134
Joint Venture Funding Covenant
Weekly Proj. Joint Venture Funding Disbursements [1] 10.880 2.023 60.926 7.954
Cumulative Proj. Joint Venture Funding Disbursements 10.880 12.903 73.829 81.782
Covenant 130,0%
Maximum Allowable Joint Venture Funding Disbursements 106.317
Net Disbursements Covenant
Weekly Projected Total Disbursements 75.814 46.351 96.825 26.378
Less: Weekly Professional Fees Disbursements (12.250) - (3.555) -
Less: Weekly Joint Venture Funding Disbursements [1] (10.880) (2.023) (60.926) (7.954)
Net Disbursements 52.684 44.329 32.344 18.425
Cumulative Net Disbursements 52.684 97.013 129.357 147.782
Covenant 125,0%
Maximum Allowable Net Disbursements 184.727
[1] To be updated for the August Cash Flow Projection
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
Financial covenants
July 23 to August 13
17
Period Ending 7/23/16 7/30/16 8/6/16 8/13/16
Week # 8 9 10 11
(all figures in USD thousands, unless otherwise stated)
Covenants
Professional Fees Covenant
Weekly Proj. Company Professional Fees Disbursements - - 3.075 -
Cumulative Proj. Company Professional Fees Disbursements 13.708 13.708 16.783 16.783
Covenant 125,0%
Maximum Allowable Company Professional Fee Disbursements 20.978
Joint Venture Funding Covenant
Weekly Proj. Joint Venture Funding Disbursements [1] 14.129 17.699 25.285 9.662
Cumulative Proj. Joint Venture Funding Disbursements 95.911 113.610 138.895 148.557
Covenant 130,0%
Maximum Allowable Joint Venture Funding Disbursements 193.124
Net Disbursements Covenant
Weekly Projected Total Disbursements 56.390 43.425 63.197 26.311
Less: Weekly Professional Fees Disbursements - - (6.917) -
Less: Weekly Joint Venture Funding Disbursements [1] (14.129) (17.699) (25.285) (9.662)
Net Disbursements 42.262 25.726 30.995 16.649
Cumulative Net Disbursements 190.043 215.769 246.764 263.413
Covenant 125,0%
Maximum Allowable Net Disbursements 329.267
[1] To be updated for the August Cash Flow Projection
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
Financial covenants
August 20 to Sept 10
18
Period Ending 8/20/16 8/27/16 9/3/16 9/10/16
Week # 12 13 14 15
(all figures in USD thousands, unless otherwise stated)
Covenants
Professional Fees Covenant
Weekly Proj. Company Professional Fees Disbursements - - - 2.744
Cumulative Proj. Company Professional Fees Disbursements 16.783 16.783 16.783 19.526
Covenant 125,0%
Maximum Allowable Company Professional Fee Disbursements 24.408
Joint Venture Funding Covenant
Weekly Proj. Joint Venture Funding Disbursements [1]
Cumulative Proj. Joint Venture Funding Disbursements
Covenant
Maximum Allowable Joint Venture Funding Disbursements
Net Disbursements Covenant
Weekly Projected Total Disbursements 36.693 41.988 53.682 41.122
Less: Weekly Professional Fees Disbursements - - - (6.485)
Less: Weekly Joint Venture Funding Disbursements [1] - - - -
Net Disbursements 36.693 41.988 53.682 34.637
Cumulative Net Disbursements 300.107 342.095 395.777 430.414
Covenant 125,0%
Maximum Allowable Net Disbursements 538.017
[1] To be updated for the August Cash Flow Projection
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
Financial covenants
Sept 17 to Oct 8
19
Period Ending 9/17/16 9/24/16 10/1/16 10/8/16
Week # 16 17 18 19
(all figures in USD thousands, unless otherwise stated)
Covenants
Professional Fees Covenant
Weekly Proj. Company Professional Fees Disbursements - - - 2.835
Cumulative Proj. Company Professional Fees Disbursements 19.526 19.526 19.526 22.361
Covenant 125,0%
Maximum Allowable Company Professional Fee Disbursements 27.951
Joint Venture Funding Covenant
Weekly Proj. Joint Venture Funding Disbursements [1]
Cumulative Proj. Joint Venture Funding Disbursements
Covenant
Maximum Allowable Joint Venture Funding Disbursements
Net Disbursements Covenant
Weekly Projected Total Disbursements 28.038 31.970 32.467 34.119
Less: Weekly Professional Fees Disbursements - - - (6.896)
Less: Weekly Joint Venture Funding Disbursements [1] - - - -
Net Disbursements 28.038 31.970 32.467 27.222
Cumulative Net Disbursements 458.451 490.421 522.888 550.111
Covenant 125,0%
Maximum Allowable Net Disbursements 687.638
[1] To be updated for the August Cash Flow Projection
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
Financial covenants
Oct 15 to Oct 29
20
Period Ending 10/15/16 10/22/16 10/29/16
Week # 20 21 22
(all figures in USD thousands, unless otherwise stated)
Covenants
Professional Fees Covenant
Weekly Proj. Company Professional Fees Disbursements - - -
Cumulative Proj. Company Professional Fees Disbursements 22.361 22.361 22.361
Covenant
Maximum Allowable Company Professional Fee Disbursements
Joint Venture Funding Covenant
Weekly Proj. Joint Venture Funding Disbursements [1]
Cumulative Proj. Joint Venture Funding Disbursements
Covenant
Maximum Allowable Joint Venture Funding Disbursements
Net Disbursements Covenant
Weekly Projected Total Disbursements 25.413 30.058 29.436
Less: Weekly Professional Fees Disbursements - - -
Less: Weekly Joint Venture Funding Disbursements [1] - - -
Net Disbursements 25.413 30.058 29.436
Cumulative Net Disbursements 575.524 605.582 635.018
Covenant
Maximum Allowable Net Disbursements
[1] To be updated for the August Cash Flow Projection
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
21
DIP Budget Initial Cash Flow
Projection
Sensitivity analysis
CASH FLOW PROJECTION
DELIVERED SUBJECT TO THE
TERMS OF THE UNDERTAKING
OF PACIFIC EXPLORATION &
PRODUCTION CORPORATION
DATED JUNE 16, 2016
Sensitivity analysisFinancial covenants
22
Period Ending 11/5/16 11/12/16 11/19/16 11/26/16 12/3/16 12/10/16 12/17/16
Week # 23 24 25 26 27 28 29
(all figures in USD thousands, unless otherwise stated)
Covenants
Professional Fees Covenant
Weekly Proj. Company Professional Fees Disbursements 2,835 - - - 2,790 - -
Cumulative Proj. Company Professional Fees Disbursements 25,196 25,196 25,196 25,196 27,986 27,986 27,986
Covenant 125.0% 125.0%
Maximum Allowable Company Professional Fee Disbursements 31,495 34,982
Joint Venture Funding Covenant
Weekly Proj. Joint Venture Funding Disbursements [1]
Cumulative Proj. Joint Venture Funding Disbursements
Covenant
Maximum Allowable Joint Venture Funding Disbursements
Net Disbursements Covenant
Weekly Projected Total Disbursements 51,264 27,956 27,997 31,937 41,296 27,082 27,276
Less: Weekly Professional Fees Disbursements (6,896) - - - (8,669) - -
Less: Weekly Joint Venture Funding Disbursements [1] - - - - - - -
Net Disbursements 44,368 27,956 27,997 31,937 32,627 27,082 27,276
Cumulative Net Disbursements 679,386 707,342 735,339 767,276 799,903 826,985 854,261
Covenant 125.0% 125.0%
Maximum Allowable Net Disbursements 849,233 999,879
[1] To be updated for the August Cash Flow Projection
The following section of this presentation constitute a sensitivity analysis in order to foreseen what
would be the required financial covenants of the Company, as per the DIP Indenture dated June 22, 2016,
if the DIP Budget exit date of November 5, 2016 is delayed to the end of the 26 weeks after initial DIP loan
funding (December 22, 2016).
CASH FLOW PROJECTION DELIVERED
SUBJECT TO THE TERMS OF THE
UNDERTAKING OF PACIFIC
EXPLORATION & PRODUCTION
CORPORATION DATED JUNE 16, 2016