Latest News and Analysis
Deals and Transactions
Track Drilling (Rigs by operator) | Completions (Frac Spreads)

  Economics : Rates of Return/ IRR

Showing 3 Results


Assumptions Louisiana 4,600' Lateral Type Curve 100,000 Avg Daily Production (Mcfpd) EUR 12.6 Bcf (2.7 Bcf/1,000) 10,000 Sales Gas BTU Price 1.020 Adjustment 1,000 Pricing Average - NYMEX less 0.25 / MMBtu Differentials/ Transportation: 0.30 / Mcf Transportation 100 Fixed Opex Fixed Opex: 3,290 / month 0 20 40 60 80 100 120 Months Variable Opex 0.07 / Mcf 4,600' Lateral Severance Tax Payout or 24 month tax holiday; IRR Sensitivity Analysis Estimates (IRR Sensitivity to EURs and Capex) thereafter 0.09 / Mcf IRRs Based on Composite Curve from Actual Results EUR Capex Ad Val Tax 0.03 / Mcf (Mmcfe) (M) 90% 100% 110% 90% 100% 110% Royalty Burden 27.0% 2.50 25.0% 37.8% 52.6% 2.50 53.0% 37.8% 27.0% 2.75 43.3% 61.3% 81.9% 2.75 82.8% 61.3% 45.9% Gas Price Gas Price D&C Capex 7.2 MM 3.00 65.0% 89.2% 117.1% 3.00 118.5% 89.2% 68.3% Facilities/Tubing 3.25 90.5% 122.1% 158.9% 3.25 161.0% 122.1% 94.6% Capex 0.381 MM, included in D&C Capex 3.50 120.0% 160.6% 208.4% 3.50 211.4% 160.6% 125.1% Ownership: WI 100% - NRI 73% Spud to 1st Sale 60 Days Pricing: Flat Pricing PV10 (M) AFE: Two well pad. 7,047 (Post Capex) (3.00/Mcf Pricing) Economic EURs vary depending on gas price assumptions. 20
Goodrich Petroleum Corp.
August 2021

Increasing FCF. Enhancing scale. Delivering RSG to premium markets. Returning cash to shareholders. CHK acquires VEI at Pro forma net debt-to-EBITDAX(1) zero premium 0.6x in 2022 using 8% cash, 92% equity Preserving balance sheet strength 1.20 plus 0.2486 shares of CHK common stock per VEI share of common stock Consolidates Haynesville CHK to become the largest Immediately Cash flow/share producer in the Haynesville FCF/share(1) 1.6 net bcf per day (2Q21) accretive to: FCF yield(1) GHG emissions profile Adding 370 premium 6B in 5-yr FCF (1)(2) Haynesville/Bossier locations Increasing base dividend by 27% and initiating variable return program 50% ROR at 2.50 gas 100% of PF Haynesville/Bossier production will be Responsibly Sourced Gas (RSG) certified by YE 2021 (1) A non-GAAP measure as defined in the appendix. (2) Based on 7/30/21 strip prices and 8/06/21 CHK stock price. Vine Energy Inc. Acquisition August 2021 3
Chesapeake Energy Corp
August 2021

Haynesville vs. Appalachia Favorable differentials Lower midstream costs Superior full-cycle economics 2021 Q1 Differentials vs. Henry Hub 2021 Q1 Gathering & Transportation 2020 EBITDAX Margin / 3-Year F&D (/mcfe) (/mcfe) Higher IRRs (1) Faster payouts Ample in-basin demand Basin Average Payback (Years) IRR (%) Haynesville Appalachia Basin Under- Over-supplied Demand supplied Access to Open, More Nearly Full ex Premium Capacity in MVP / ACP Markets Process Source: RSEG, Public filings. Appalachia includes AR, CNX, COG, EQT and RRC (1) Based on RSEG type curves at 2.75 per Mcf. 8
Comstock Resources Inc.
July 2021

   Want More Data?
Subscribe and Get immediate Access

Already a subscriber?Log In here