Economics : Rates of Return/ IRR

Showing 3 Results


Haynesville Well Economics Gen 2 Completion Design - Refrac 4,500' L 7,500' L 10,000' L Estimated Well Costs ( millions) 4.5 6.8 10.3 12.7 24 Hr. IP (Mmcf per day) 12 17 22 26 Decline B Factor 0.99 0.99 0.99 0.99 Initial Decline (%) 72 72 65 61 Proppant (Pounds per lateral ft.) 3,800 3,800 3,800 3,800 EUR (Bcf) 7.8 11.2 18.6 24.8 Rate of Return Net Present Value at 10% (%) (Million ) 160% 30 28 140% 26 NPV 10 (in millions) 24 120% 22 20 100% 18 % ROR 16 80% 14 12 60% 10 40% 8 6 20% 4 2 0% 0 2.00 2.50 3.00 3.50 4.00 2.00 2.50 3.00 3.50 4.00 /MCF /MCF Refrac 4,500 ft. 7,500 ft. 10,000 ft. 19
Comstock Resources Inc.
May 2018

Assumptions Louisiana Type Curve 4,600' Lateral Type Curve 100,000 Avg Daily Production (Mcfpd) EUR 11.5 Bcf (2.5 Bcf/1,000) 10,000 Sales Gas BTU Price 1.022 Adjustment 1,000 Pricing Average - NYMEX less 0.60 / MMBtu Differentials (includes transportation) 100 0 20 40 60 80 100 120 Fixed Opex Fixed Opex: 3,676 / month Months Variable Opex 0.05 / Mcf 4,600' Lateral IRR Sensitivity Analysis (IRR sensitivity to EURs and Capex) 24 month tax holiday; Severance Tax thereafter, 0.11 / Mcf EUR Capex (Mmcfe) (M) Ad Val Tax 0.03 / Mcf 90% 100% 110% 90% 100% 110% 2.50 15.2% 22.9% 33.9% 2.50 31.7% 22.9% 16.0% Gas Price Gas Price Royalty Burden 27.0% 2.75 25.4% 36.3% 49.2% 2.75 49.0% 36.3% 26.5% D&C Capex 8.3 MM 3.00 37.8% 52.7% 70.4% 3.00 70.2% 52.7% 39.2% 3.50 70.3% 96.2% 127.5% 3.50 127.3% 96.2% 72.6% Facilities Capex 0.17 MM, included in D&C Capex Spud to 1st Sale 60 Days Ownership:WI 100% - NRI 73% PV10 (M) Pricing: Flat Pricing 5,002 (3.00/Mcf Pricing) Economic EURs vary depending on gas price assumptions. May 2018 21
Goodrich Petroleum Corp.
May 2018

GAS ASSETS IN OUR PORTFOLIO Competitive returns Marcellus is strongest investment in portfolio, 75% ROR at 2.75/mcf 40% ROR at 2.75/mcf for Haynesville and Utica Well-hedged at 3.10/mcf in 2018 2018 Plan Maximize value of every dollar Production from Gas Assets Optimize drilling and Equivalent Net Volume (mboe/d) 450 400 completions 350 300 250 200 90% gas, 10% liquids 150 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2017 2017 2017 2018E 2018E 2018E 2018E Scotia Howard Weil 2018 Energy Conference 10
Chesapeake Energy Corp
March 2018

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