RSP Permian, Inc. Announces Second Quarter 2016 Financial and Operating Results and Updates 2016 Annual Guidance

DALLAS, Aug. 8, 2016

Second Quarter 2016 Highlights

• Production increased by 33% to 26.4 MBoe/d as compared to 2Q15 and increased by 7% as compared to 1Q16
• Net loss of $9.8 million, or ($0.10) per diluted share.  Adjusted Net Loss, which does not include impairment, non-cash loss on derivatives, and non-recurring, non-cash compensation among other items, was $3.8 million, or ($0.04) per diluted share
• Adjusted EBITDAX increased by 64% to $58.5 million as compared to 1Q16
• Cash operating expenses were $9.99 per Boe, consistent with 1Q16
• Completed 11 operated horizontal wells (10 Lower Spraberry and one Wolfcamp A) and one operated vertical well
  • Completed four Lower Spraberry wells in the Johnson Ranch lease in Martin County with combined initial production rates exceeding 4,700 Boe/d (average lateral length of ~7,100)
  • RSP's previously announced first four horizontal wells completed in western Glasscock County, which had RSP record initial production rates, continue to significantly outperform the Company's type curves.  The two Calverley area long laterals (~10,000') exceed peer 1 MMBoe type curve and the two Woody area short laterals (~5,000'), unadjusted for lateral length, are also performing in-line with peer 1 MMBoe type curve with average cumulative production after 210 days of 228 MBoe for the long laterals and 133 MBoe for the short laterals
• Updated annual guidance: Expected 2016 average daily production increased by 10% at the mid-point to 26,500 - 28,500 Boe/d, primarily due to increased well productivity, and development capital expenditure budget increased to $285 - $315 million.  The incremental investment will primarily impact the Company's 2017 production profile
• Enhanced oil hedge position to mitigate downside pricing risk in 2H 2016 while leaving upside intact, with 67% of expected 2H 2016 oil production protected with $45.00 deferred premium puts
• Continued to block up core leasehold position, closing an additional $14 million of bolt-on acquisitions during the second quarter, bringing total year-to-date acquisitions to $55 million through July
• Maintained strong liquidity position, including $33 million of cash and an undrawn $600 million revolving credit facility at quarter-end

Steve Gray, Chief Executive Officer, stated, "Even with a moderated capex pace in the second quarter, RSP increased production while maintaining a lean cost structure and strong capital efficiency, and we generated more in Adjusted EBITDAX than we spent in development capital.  Due to better than expected results and continuing improvement in well productivity, we increased our annual production outlook for 2016 and raised our development capital budget for the remainder of the year.  The increased investment during the second half of 2016 will position us for a higher growth profile in 2017.  While we have substantial organic growth potential, with a deep inventory of horizontal drilling locations targeting a tremendous resource base, we are focused on generating economic returns over growth and have flexibility to alter our operating plans to match the prevailing commodity price environment."

Quarterly Operational Results
	Three Months Ended June 30,
	2016 ARIVA.DE Börsen-Geflüster Kurse RSP Permian -   0,00%		2015
Production data:
Oil (MBbls)	1,760		1,377
Natural gas (MMcf)	1,725		1,029
NGLs (MBbls)	355		260
Total (MBoe)	2,403		1,809
Average net daily production (Boe/d)	26,407		19,879
Average prices before effects of hedges (1) (2):
Oil (per Bbl)	$42.50		$53.68
Natural gas (per Mcf)	1.47		1.97
NGLs (per Bbl)	11.69		9.69
Total (per Boe)	$33.91		$43.37
Average realized prices after effects of hedges (1) (2):
Oil (per Bbl)	$43.05		$67.22
Natural gas (per Mcf)	1.47		1.97
NGLs (per Bbl)	11.69		9.69
Total (per Boe)	$34.32		$53.68
Average costs (per Boe):
Lease operating expenses (excluding gathering and transportation)	$5.37		$7.63
Gathering and transportation	0.49		0.49
Production and ad valorem taxes	2.06		2.99
Depreciation, depletion and amortization	19.68		21.90
General and administrative - recurring cash component	2.06		2.47
General and administrative - recurring stock comp (3)	1.46		1.14
General and administrative - non-recurring stock comp (4)	0.28		0.19

Production volumes for the quarter ended June 30, 2016 averaged 26,407 Boe/d or a total of 2,403 MBoe, an increase of 33% over prior year's second quarter of 19,879 Boe/d.  Production for the second quarter of 2016 was comprised of 73% crude oil, 12% natural gas and 15% NGLs.  RSP's average realized commodity price per barrel of oil equivalents for the second quarter of 2016, before the effects of hedges, was $33.91.  RSP's average realized oil price for the second quarter of 2016, before the effects of hedges, was $42.50 per barrel, a negative $3.09 differential compared to average NYMEX WTI pricing of $45.59 per barrel for the same period, or 93% of NYMEX WTI pricing. RSP's average realized natural gas price for the second quarter of 2016, before the effects of hedges, was $1.47 per Mcf, a negative $0.48 differential compared to average NYMEX Henry Hub pricing of $1.95 per MMBtu for the same period, or 75% of NYMEX Henry Hub pricing.  RSP's average realized NGL price for the second quarter of 2016, before the effects of hedges, was $11.69 per Bbl, or 26% of NYMEX WTI pricing for the same time period.  Per unit cash operating expenses excluding interest expense but including lease operating expense, gathering and transportation expense, production and ad valorem taxes and recurring cash general and administrative expenses were $9.99 per Boe, a 26% decrease from prior year's comparable quarter.

Operational Update

The Company operated two horizontal drilling rigs during the second quarter and one full-time completion crew.  RSP drilled 10 operated horizontal wells and completed 11 operated horizontal wells (10 Lower Spraberry and one Wolfcamp A).  The Company began the quarter with 20 operated horizontal drilled but uncompleted wells ("DUCs") and exited the quarter with a total of 19 operated horizontal DUCs.  On a non-operated basis, the Company began the quarter with 20 non-operated horizontal DUCs and exited the quarter with a total of 24 non-operated horizontal DUCs.

		2Q16 Wells
		Drilled			Completed			Drilled but Uncompleted Wells (DUCs)
Operated Wells
Horizontal		10			11			19
Vertical		—			1			—
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