WildHorse Resource Development Corporation Announces First Quarter 2017 Results

WildHorse Resource Development Corporation (NYSE: WRD) announced today
its operating and financial results for the three months ended March 31,
2017. First quarter 2017 highlights include:

• Increased average daily production by 18% to 17.6 MBoe/d for the first
  quarter 2017 compared to 14.9 MBoe/d for the first quarter 2016
• Increased Net Income to $20.3 million for the first quarter 2017
  compared to a Net Loss of $14.2 million for the first quarter 2016.
  Increased Adjusted Net Income⁽¹⁾ to $0.1 million for the
  first quarter 2017 compared to a Net Loss of $13.7 million for the
  first quarter 2016
• Increased Adjusted EBITDAX⁽¹⁾ by 95% to $34.6 million for
  the first quarter 2017 compared to $17.7 million for the first quarter
  2016
• Issued $350 million in senior notes due 2025 at 6.875% in February 2017
• In early March 2017, WRD brought online its first Burleson North well
  and one of the strongest wells to date in the East Texas Eagle Ford,
  the Paul 134 #2H, with an IP-30⁽²⁾ of 1,035 Boe/d (93% oil)
  on a 5,363’ lateral. When normalized for downtime and a 6,500’
  lateral, the IP-30 is 1,321 Boe/d
• In late March 2017, WRD brought online the Altimore #1H with an IP-30⁽²⁾
  of 1,048 Boe/d (84% oil) on a 6,435’ lateral and the Jackson #1H with
  an IP-30⁽²⁾ of 958 Boe/d (85% oil) on a 6,297’ lateral

Other recent highlights include:

• Agreed to acquire approximately 111,000 net acres (95% held by
  production) for cash and stock consideration of $625 million in
  Burleson, Brazos, Lee, Milam, Robertson, and Washington Counties
  adjacent to WRD’s existing acreage (expected to close on or about June
  30, 2017)
• Announced acquisition includes fourth quarter 2016 net production of
  approximately 7.6 MBoe/d consisting of approximately 72% oil from 68
  Eagle Ford, 299 Austin Chalk, and 19 Buda/Georgetown operated wells
• Raised estimated full-year 2017 production guidance range to 27.0 –
  31.0 MBoe/d from 23.0 – 27.0 MBoe/d with 1.0 MBoe/d of the increase as
  a result of WRD well performance and 3.0 MBoe/d of the increase as a
  result of the acquired production
• Revolving credit facility borrowing base increased from $362.5 million
  to $450 million in April 2017 in connection with the semi-annual
  redetermination
• Agreed to issue $435 million in Series A Perpetual Convertible
  Preferred Stock with a dividend of 6% to fund the announced acquisition

“While early 2017 has been very exciting for WildHorse with a sizeable
acquisition announced, we are just getting started as our production
ramps over the next few months. In the second quarter of 2017, we expect
to bring online 16 to 20 wells that will increase our total of Gen 3
completions to approximately 40 wells. Some of those wells will be
immediately adjacent to our acquisition acreage,” said Jay Graham,
Chairman and Chief Executive Officer of WRD. “Since the beginning of the
year, we have brought online some incredible wells such as the Paul,
Altimore, and Jackson. In 2017, as we expect to bring online a total of
approximately 85 to 95 Eagle Ford wells and 9 wells in North Louisiana,
we look forward to building on these results and demonstrating the
consistency of our acreage,” added Jay Graham.

First Quarter 2017 Results

Net production increased 18% year-over-year to 17.6 MBoe/d for the first
quarter 2017 compared to 14.9 MBoe/d for the first quarter 2016. First
quarter 2017 net production consisted of 49% oil, 41% natural gas, and
10% natural gas liquids (“NGLs”) in comparison to 33% oil, 59% natural
gas, and 8% NGLs in first quarter 2016. Production was up slightly over
pro-forma⁽³⁾ fourth quarter 2016 production of 17.5 MBoe/d.

WRD reported Net Income of $20.3 million for the first quarter 2017
compared to a Net Loss of $14.2 million for the first quarter 2016. WRD
reported Adjusted Net Income⁽¹⁾ for the first quarter 2017 of
$0.1 million compared to a Net Loss of $13.7 million for the first
quarter 2016. WRD also reported Adjusted EBITDAX⁽¹⁾ for the
first quarter 2017 of $34.6 million compared to $17.7 million for the
first quarter 2016.

As previously announced, the first quarter of 2017 was impacted by a
slower drilling pace from newly added rigs which were previously
cold-stacked. As a result of the delays, certain wells such as the
Altimore and Jackson were brought online in the last few days of the
first quarter 2017. Since the initial wells, the rigs are averaging
drilling times of approximately 14 days from spud to rig release.

Total revenues for the first quarter 2017 were $54.3 million compared to
$25.1 million for the first quarter 2016. Revenues were higher primarily
due to greater production as a result of the Burleson North acquisition,
higher commodity prices, and a higher percentage of liquids in WRD’s
commodity mix. The average realized sales price increased $16.03 per Boe
or 89% largely due to higher commodity prices. The volume variances were
responsible for an approximate $8.4 million increase in revenue, and
pricing variances were responsible for an approximate $21.1 million
increase in revenue. Total revenues do not include the impact of
realized hedges.

Average realized prices for the quarter ended March 31, 2017 and 2016,
before the effect of commodity derivatives, are presented below:

Average realized prices for the quarter ended March 31, 2017 and 2016,
after the effect of commodity derivatives, are presented below:

Lease operating expense ("LOE") for the first quarter 2017 was $6.9
million, or $4.37 per Boe, compared to $2.8 million, or $2.03 per Boe,
for the first quarter 2016. The increase in LOE on a per unit basis is
largely attributable to the Burleson North acquisition which came with
less efficient legacy production. However, as a result of significant
efficiency improvements, LOE has decreased from fourth quarter 2016 at
$4.93 per Boe, pro-forma⁽³⁾ for the Burleson North
acquisition. WRD secured lower compression costs and chemical costs and
reduced overhead expenses which contributed to a decline in lease
operating expense over last quarter on a pro-forma basis. Including the
recently announced acquisition, WRD expects updated LOE to range from
$3.25 to $3.75 per Boe for the full year 2017.

Gathering, processing and transportation (“GP&T”) expense for the first
quarter 2017 was $1.7 million, or $1.07 per Boe, versus $1.9 million, or
$1.39 per Boe, in the first quarter 2016. The decrease in GP&T expenses
is primarily attributable to lower fee gas purchasing and processing
contracts associated with the Burleson North properties.

Taxes other than income were $3.9 million for the first quarter 2017, or
$2.46 per Boe, compared to $1.5 million, or $1.08 per Boe for the first
quarter 2016. Pro-forma⁽³⁾ fourth quarter 2016 taxes other
than income were $2.6 million or $1.59 per Boe. First quarter 2017 taxes
other than income increased compared to first quarter 2016 as a result
of higher price realizations, higher ad valorem taxes, and Louisiana
franchise taxes incurred as a result of WRD’s corporate reorganization
at the IPO.

General and administrative ("G&A") expense for the first quarter 2017
was $7.5 million, or $4.72 per Boe, compared to $4.4 million, or $3.28
per Boe, for the first quarter 2016. During the first quarter 2017,
recurring cash G&A was $6.2 million or $3.91 per Boe, and non-cash,
stock-based compensation and transaction related costs were $1.3
million, or $0.81 per Boe. G&A expense increased largely as the result
of additional staff hired since the first quarter of 2016 and increased
costs associated with being a public company. WRD expects updated cash
G&A to range from $2.50 to $3.00 per Boe for the full year 2017.

Net interest expense during the first quarter 2017 was $5.6 million,
including amortization of deferred financing fees of approximately $0.8
million. This compares to net interest expense during the first quarter
2016 of $2.0 million, including amortization of deferred financing fees
of approximately $0.1 million. The increase in net interest expense is
primarily due to the issuance of senior notes in first quarter 2017.

Drilling and completion (“D&C”) capital expenditures, including
facilities and capital workovers, were approximately $87.2 million in
the first quarter 2017, which represents 14% of WRD’s expected full-year
2017 D&C capital expenditures assuming the mid-point of the updated full
year 2017 guidance. Of the total D&C capital expenditure, $80.9 million
was allocated to the Eagle Ford.

Operational Update

During the first quarter 2017, WRD brought online a total of 7 gross (7
net) Eagle Ford wells with four of the wells coming online in March.
These wells include WRD’s first Burleson North well brought online in
early March. In late March and early April 2017, WRD drilled an
additional 6 wells within the vicinity of the first Burleson North well
and expects additional wells in the 2017 program in this area.

In addition, WRD brought online its first Eagle Ford refrac test in
March and completed a second refrac in mid-April with encouraging
results. WRD also expects to bring online an Austin Chalk well in the
second quarter of 2017.

At the end of first quarter 2017, WRD had a total of 23 Gen 3 wells
online on average tracking a 101 Boe per foot EUR above the current 91
Boe per foot type curve. In the second quarter of 2017, WRD expects to
bring online a total of 16 to 20 wells.

WRD continues to see improvements in its drilling rigs coming out of
cold-stack. The first three rigs are drilling wells at 14 days from spud
to rig release with one of those rigs averaging between 13 and 14 days.
WRD’s fifth rig recently finished drilling an Austin Chalk well 3 days
ahead of schedule and has since moved on to drilling Eagle Ford wells.
Note that Austin Chalk wells have longer drilling times than the Eagle
Ford. During the first quarter 2017, WRD also drilled two wells in North
Louisiana in 50 days meeting our target drilling estimate. This 2-well
pad has been completed and began flowing back in early May with results
expected later in the year.

Financial Update

In the first quarter 2017, WRD issued $350 million in aggregate
principal amount of 6.875% senior unsecured notes due 2025. Total debt
outstanding as of March 31, 2017 was $350 million, comprised solely of
the senior notes due 2025. As of March 31, 2017, WRD’s liquidity was
$455.8 million consisting of $93.3 million of cash and cash equivalents
and an undrawn revolving credit facility availability of $362.5 million.
WRD’s net debt to annualized first quarter 2017 Adjusted EBITDAX ratio
was 1.9 times at quarter-end 2017.

In April 2017, WRD’s 15 lender bank group increased its borrowing base
under WRD’s revolving credit facility to $450 million from $362.5
million following its fiscal year-end reserves review and regularly
scheduled semi-annual redetermination. Based on early indications from
its bank group, WRD expects an increase to its borrowing base by
approximately $200 million in conjunction with the closing of the
recently announced acquisition. After giving effect to the borrowing
base increase to $450 million, the additional expected borrowing base
increase of $200 million in connection with the announced acquisition,
and the funding of the announced acquisition with $121 million under the
revolving credit facility, liquidity would be approximately $622 million.

WRD continues to target a net debt to annualized Adjusted EBITDAX ratio
of 2.0x times based on the mid-point of guidance. WRD expects the
available borrowings under its revolving credit facility to provide
sufficient liquidity to finance anticipated working capital and capital
expenditure requirements.

Updated Full-Year 2017 Guidance

The following updated 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 as of May 11, 2017 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.

Full year 2017 production guidance increased by approximately 4.0 MBoe/d
to 27.0 – 31.0 MBoe/d comprised of 1.0 MBoe/d as a result of well
performance and 3.0 MBoe/d as a result of the acquisition expected to
close on June 30, 2017. Pre-acquisition production guidance increased by
4% due to well performance.

WRD’s updated 2017 capex guidance has been increased to $550 – $675
million. The drilling program has also increased by 10 gross wells to
between 100 – 120 gross spuds in 2017. In addition, the number of gross
wells brought online has increased by 5 wells to between 85 and 105
gross wells in 2017. A summary of updated full year 2017 guidance is
presented below:

Hedging Update

WRD utilizes its hedging program to mitigate financial risks and the
effects of commodity price volatility. Total hedged production in the
first quarter of 2017 was 1,370 MBoe, or 86% of first quarter production
of 1,584 MBoe. As of May 11, 2017, WRD has hedged approximately 62% of
its expected production for the last 9 months of 2017 (using WRD’s 2017
updated guidance range). The following table reflects WRD’s hedged
volumes and corresponding weighted-average price, as of May 11, 2017.

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 March 31, 2017,
which will be filed with the U.S. Securities and Exchange Commission
(“SEC”) on or before May 15, 2017.

Conference Call and Webcast

WRD will host an investor conference call this morning, May 11, 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: 1960634), or (412) 902-6506 for
international calls, (Conference ID: 1960634) 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: 10105576) 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, our 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 general and administrative ("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 U.S. 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 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 U.S.
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), Net
Debt, and Pro-Forma measures. The accompanying appendix and schedules
provide a reconciliation of these non-GAAP financial measures to their
most directly comparable financial measure calculated and presented in
accordance with GAAP. WRD's non-GAAP financial measures should not be
considered as alternatives to GAAP measures such as Net Income,
operating income, net cash flows provided by operating activities or any
other measure of financial performance calculated and presented in
accordance with GAAP. WRD's non-GAAP financial measures may not be
comparable to similarly-titled measures of other companies because they
may not calculate such measures in the same manner as WRD does.

Calculation of Adjusted EBITDAX:

We evaluate performance based on Adjusted EBITDAX. Adjusted EBITDAX is
defined as Net Income (loss), plus interest expense; debt extinguishment
costs; income tax expense; depreciation, depletion and amortization;
impairment of goodwill and long-lived properties; accretion of asset
retirement obligations; losses on commodity derivative contracts and
cash settlements received; losses on sale of properties; stock-based
compensation; incentive-based compensation expenses; exploration costs;
provision for environmental remediation; transaction related costs; IPO
related expenses; and other non-routine items, less interest income;
income tax benefit; gains on commodity derivative contracts and cash
settlements paid; gains on sale of assets and other non-routine items.
The following table presents WRD’s information for the periods indicated:

Calculation of Adjusted Net Income (Loss):

Adjusted Net Income (Loss) is a supplemental non-GAAP financial measure
that is used by external users of WRD’s financial statements. We define
Adjusted Net Income (Loss) as Net Income (Loss) excluding the impact of
certain items including gains or losses on commodity derivative
instruments not yet settled, gains or losses on sales of properties,
debt extinguishment costs, stock-based compensation, incentive-unit
compensation expense, and the tax effects related to these adjustments.
We believe Adjusted Net Income (Loss) is useful to investors because it
provides readers with a more meaningful measure of our profitability
before recording certain items for which the timing or amount cannot be
reasonably determined. However, this measure is provided in addition to,
not as an alternative for, and should be read in conjunction with, the
information contained in our financial statements prepared in accordance
with GAAP. The following table provides a reconciliation of Net Income
(Loss) as determined in accordance with GAAP to Adjusted Net Income
(Loss) for the periods indicated:

Pro-forma Fourth Quarter 2016 Results

In this press release, WRD discusses fourth quarter 2016 results
pro-forma for the Burleson North acquisition which closed on December
19, 2016. Our calculations for the pro-forma fourth quarter 2016 were
calculated with unaudited lease operating statements provided by CWEI
during the acquisition process. As a result, the pro-forma calculations
leave out expenses associated with corporate overhead items such as
CWEI’s G&A expense as well as the impact of CWEI’s commodity hedges.
Reported GAAP fourth quarter 2016 results are also provided in this
press release.

Calculation of Net Debt:

Net Debt is a supplemental non-GAAP financial measure that is used by
external users of WRD’s financial statements. We define Net Debt as
total debt minus cash and cash equivalents. We believe Net Debt is
useful to investors because it provides readers with a more meaningful
measure of our outstanding indebtedness. However, this measure is
provided in addition to, not as an alternative for, and should be read
in conjunction with, the information contained in our financial
statements prepared in accordance with GAAP.

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