Economics : Rates of Return/ IRR
Showing 3 Results
Marcellus Shale Advantaged Economics
Low Breakeven Provides Attractive Returns in Most Commodity Environments
Gas Shale Play Breakeven Prices
(/MMBtu)
6.00
Acreage by Window
Marcellus
SWPA
(Dry)
9%
5.00
CPA
South (Dry)
29%
Marcellus
(Wet)
34%
4.00
Breakeven to Achieve a 15% IRR
WV
North (Dry)
28%
3.00
2.00
1.00
0.00
Utica (Wet) Marcellus Marcellus Granite Cana- Marcellus WV CPA Barnett Fayetteville Horn River Piceance Eagle Ford Huron Arkoma- Haynesville Granite
SWPA (Wet) Wash Woodford NE North South Valley (Dry) Woodford Wash
(Dry) (Wet) (Dry) (Dry) (Dry)
Note: Assumes 90.00 / Bbl WTI Reflects breakeven to achieve 15% after tax rate-of-return
Source: CONSOL and Noble Energy Estimates, Credit Suisse Research Report dated February 2014
12
Cone Midstream Partners Lp
June 2015
Rockies Basins Well Positioned
Natural Gas Prices Required for
10% Single Well IRR
Basins in which TLLP operates
Marcellus WV Tier 2 5.67
San Juan CBM 5.37
Eagle Ford- Dry Gas 5.24
Natural Buttes - Mesaverde 5.03
Bernett Core Dry 4.25
Vermillion - Almond 4.12
Vermillion - Mesaverde 4.01
Barnett Core Wet 3.76
Haynesville- Tier 1 3.65 2020 NYMEX
Moxa Arch - Frontier 3.53 3.71 Latest producer
Red Wash - Mesaverde 3.27 comments
Jonah - Lance 3.13 indicate
Pinedale - Lance 2.84 2.45/MMbtu
Haynesville - Core 2.60 2015 NYMEX
for Pinedale and
Horn River 2.33 2.68 2.60/MMbtu
SW Marcellus Wet 2.05
for Mesaverde
Natural gas business in primarily low-cost basins
Source: MHA Petroleum Consultants 15
Tesoro Logistics Lp
May 2015
Why Invest in Quicksilver
Developed Asset Substantial Upside Improved
Base Potential Financial Flexibility
Barnett Shale and Horn River represents upside Reaffirmed 325MM
Horseshoe Canyon provide of 14 Tcf resource potential borrowing base in Fall
baseline cash flow Oil exposure in West Texas 2014 with favorable
Operating efficiencies and with full capital carry covenant amendment
lower midstream rates in Two wells drilled in 2014: Extended near term senior
the Barnett Shale have Mitchell 1H produced debt maturities through
improved economics of initially at 700 BOED on 2019 (1st Lien matures
recently drilled wells choke; Stallings 1H 2016)
produced at initial rate at
30-35% IRRs on recent Issued 1.1B of new debt
750 BOED (83-day average
Alliance wells at WACD of 8.15% to
= 535 BOED);
Current price environment is Farm-out on 7,500 acres in refinance higher coupon
supportive of activity Pecos County bonds in 2013
High-quality, low risk asset JV with Eni on 52,500 acres Deferred capital spending
base in Pecos County; full D&C obligations in Horn River
Long reserve life and carry Basin
predictable well production Farm-out in Upton & JVs reduce debt and
profiles Crockett counties future capital spending
Asset size and quality ideal Multiple drivers (including Focus on liquidity
for joint ventures LNG) for commodity price enhancements: cost
improvement containment, non-core
Proven track record in shale
development; 50-year Deleveraging strategy with asset divestitures, and
corporate history proceeds from asset sales other initiatives
Derivative portfolio provides Effective S-3 shelf up to
stable cash flow 1.75B to provide flexibility
to accomplish goals over
the 3-year term
30% Insider Ownership = Superior Shareholder Alignment
11
Quicksilver Resources Inc.
November 2014