Economics : Rates of Return/ IRR

Showing 3 Results


High Quality Acreage Position Southwest Appalachia PA Longer laterals and existing pads in 2017 provide low-risk efficiency gains OH Increased optionality due to quality of acreage position, gathering system, Over 200 WV available locations and existing pads Existing Pads Majority of existing pads are in the liquids- rich areas (map to the right) Southwest Marcellus Economics Dry Wet Super-Rich EUR 22.3 Bcf 24.6 Bcfe 20.4 Bcfe EUR/1,000 2.5 Bcf 3.0 Bcfe 2.4 Bcfe ft. lateral Well Cost 6.1 MM 6.8 MM 7.3 MM Cost/1,000 690 K 820 K 856 K ft. lateral Lateral 8,850 ft. 8,300 ft. 8,500 ft. Length IRR* - 3.00 75% 55% 52% Wet and Super-Rich economics are greater than or equal to Dry gas economics when developed on IRR at Strip existing pads utilizing existing gathering infrastructure as of 100+% 56% 51% 12/30/2016 * For flat pricing natural gas case, oil price assumed to be 50/bbl for 2017, 60/bbl for 2018 then 65/bbl to life with no escalation 9
Range Resources Corp
June 2017

Improving Economics - Marcellus SW PA laterals extend from 8,000 to 12,000 dramatically increasing returns 160% 3.00 137% 140% 2.50 120% 2.00 101% 100% ATAX IRR 75% 80% 68% 70% 60% 52% 39% 35% 40% 28% 21% 13% 15% 20% 0% 5 Well Pad 6 Well Pad 8 Well Pad 12 Well Pad 5,500' Lateral 6,000' Lateral 8,000' Lateral 12,000' Lateral IRR returns wellhead price (NYMEX minus 0.50 basis) 9
EQT Corp
June 2017

Marcellus Economics(1) Marcellus Economics (55% Ethane Recovery)(2) Butler Legacy Moraine East Moraine East 8,000 10 YE2016 Estimated 2017 Program 9 All-in Well Cost 4.8 million 5.0 million 5.5 million 7,000 Lateral Length 5,000 ft 6,000 ft 7,500 ft. 8 6,000 EUR (Bcfe) 80% / 55% C2 15.6 14.4 16.4 15.1 18.5 17.1 7 Cum Gross Prod (Bcfe) 5,000 F&D Cost (/Mcfe) 0.31 0.33 0.32 0.35 0.30 0.32 6 Gross Rate (Mcfe/d) 4,000 5 3.00 NYMEX 26% 32% 32% Oil Price: 2017+: 55 4 3,000 3.00 NYMEX 23% 27% 28% 3 Oil Price: 2017+: 50 IRR (3,4,5) 2,000 2 3.25 NYMEX 32% 37% 37% 1,000 Oil Price: 2017+: 55 1 0 - Strip Pricing 26% 32% 32% 0 10 20 30 40 50 60 Production Month Avg. 30-day sales rate (MMcfe/d) 5.0 8.0 5.0 8.0 6.0 9.0 Moraine East - 2017 Program Butler Legacy YE2016 Moraine East-Estimated (1) See note on Hydrocarbon Volumes and disclaimers at beginning of presentation. (2) Economics reflect 55% ethane recovery. (3) Average C3+ differential approx. 50% of Oil, C2 differential approx. is 13% of Oil. (4) Historical price differentials applied to Condensate. Gas price differential dependent on future development plans and futures price differentials to Rex markets. (5) Strip Pricing as of 02.13.2017 Oil: 2017: 54.4, 2018: 55.17, 2019: 54.94, 2020: 54.89, 2021: 55.05// Gas: 2017: 3.2, 2018: 3.06, 2019: 2.87, 2020: 2.85, 2021: 2.85 20
Rex Energy Corp
May 2017

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