Economics : Break-Even

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Focus on the Most Economic Plays Reduces Commodity Risk Oil Breakevens by Basin (30% BTAX IRR)(1) Diamondback Core 71.89 66.90 66.36 Permian 61.16 60.33 Development Areas 58.11 57.30 55.50 55.12 55.04 75 51.24 50.57 49.43 48.77 48.61 48.41 48.26 48.01 47.52 46.95 45.86 45.14 44.31 43.24 43.10 42.74 40.47 40.27 39.24 38.78 38.24 38.24 37.57 37.38 37.26 60 36.73 33.32 31.92 45 30 15 0 FANG has extensive inventory in 6 of the top Lower 48 oil plays US Total Hz Rig Count Top Oil Counties(2) Midland Delaware SCOOP / STACK Williston Niobrara Eagle Ford Top 5 Oil Basins Hz Rigs Delaware 193 Midland 141 SCOOP / STACK 95 Eagle Ford 72 65 Williston 53 45 28 28 26 23 22 20 20 19 18 17 17 15 15 Kingfisher Reeves Lea Eddy McKenzie Loving Martin Grady Howard Blaine Karnes Upton Midland Weld Pecos FANG has a development portfolio significantly weighted to the most active counties in the US Source: Wall Street Research, Baker Hughes. 27 (1) (2) Per Wall Street research as of 6/26/2017. Rig count data per Baker Hughes as of 7/28/2017.
Diamondback Energy, Inc.
August 2017

Niobrara Formation Type Curve Economics Type Curve Core/Tier 1 Total Well Cost 2.2 MM Gross 289 Mboe EUR Oil Only 217 Mbo Net 243 Mboe F&D Cost 9.05 / Boe IRR 146% 75 Oil NPV 3.2 MM IRR 103% IRR 65 Oil NPV 2.3 MM & IRR 46% NPV (1) 55 Oil NPV 1.4 MM IRR 21% 45 Oil NPV 0.6 MM NYMEX NPV10 Breakeven 39.25 (1) Economics based on NYMEX prices and include Daily Production, BOPD Cum Production, MBO 2/Bbl deduct for oil, 3.00/Mcf NYMEX gas, NGL pricing 19% of NYMEX oil price. (2) Total well cost includes 315K for allocated infrastructure and artificial lift. 24 CRZO
Carrizo Oil & Gas Inc.
June 2017

Greeley Crescent Development Area Blended GC MRL Well Economics Blended GC Mid-Length Type Curve vs Bestway & Break-Even Cost (/bbl) Comparison Fagerberg Pads 40 30 37.24 37.07 34.38 33.57 33.26 33.10 31.55 500.0 20 28.17 700 MBOE Type Curve 800 MBOE Type Curve 10 450.0 900 MBOE Type Curve - Bestway Pad (Avg./Well) Cumulative Production (MBOE) 400.0 Fagerberg Pad (Avg./Well) 350.0 300.0 250.0 IRR Comparison 800 MBOE ML Well Economics 200.0 60% Well Cost 3.75mm 150.0 40% Months to Payout 17 53% 44% 38% 38% 35% 32% 32% 31% 20% 100.0 NPV- 10 3.9mm Break-Even Cost 28.52/bbl 0% 50.0 IRR 64% 0.0 0 50 Month Note: Strip Price Deck: 2017 = 50.43 / 2018 = 50.37 / 2019 = 50.11 / 2020 = 50.37 / 50.11 flat starting 2021 Assumed differentials: oil = 9.00 / gas = 0.25. Well Cost estimates include all drilling and completions costs, as well as all surface and production facilities, but do not include leasehold or corporate overhead. Estimated EURs may not correspond to estimates of reserves as defined under SEC rules. Rate of return and payout estimates do not reflect lease acquisition costs or corporate, general and administrative expenses. Payout estimates calculated from first month of production and utilize strip pricing. Production volumes converted to 3-stream equivalent Break-even analysis assumes a 15% IRR on a pre-tax basis Basin comparable figures are based on J.P. Morgan E&P Shale Economics report disseminated March 17, 2017. SRC estimates are internally generated, all other figures are J.P. Morgan estimates. www.srcenergy.com 7
SRC Energy Inc
June 2017

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