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CORPORATE PRESENTATION – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Jan 1, 2013 · 50 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION Corporate Presentation January 2013
  2. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 2
    Overview of Magnum Hunter Overview Production Growth (Boe/d) Magnum Hunter Resources is an exploration and Oil / Liquids Natural Gas 18.0 20.0 Mboe production company focused on the most prolific (1) 14,145 unconventional resource…
  3. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 3
    Concentrated Asset Base in Largest Shale Plays 180,000 Net Acres 85,500 Net Marcellus Acres 81,800 Net Utica Shale Acres 300,000 Net Southern Appalachia Acres Year-End 2012 Proved Reserves % Oil/ 26,000 Net Acres…
  4. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 4
    Highest IRR North American Shale Plays 80% 75-100% MHR active resource plays 70% 60% 55% 52% 51% 49% 50% 42% 40% 40% IRR 35% 34% 33% 30% 30% 30% 27% 26% 23% 21% 20% 20% 19% 20% 17% 17% 17% 14% 14% 13% 11% 11%…
  5. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 5
    Proved Reserves Summary Proved Reserves up 63% in One Year Proved Reserves Summary Net Proved Reserves as of Year-End 2012 (SEC PRICING) Liquids Gas Total Category (MMBbls) (Bcf) (MMBoe) % PDP 20.8 102.9 38.0 52.0% PDNP 1.8 22.7…
  6. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 6
    Proved Reserve Growth Consistency Robust track record of proved reserve growth since inception Approximately 73.1 MMBoe at December 31, 2012 Anticipate continuing to consistently add proven reserves with an equal mix of oil/liquids…
  7. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 7
    Operational Efficiency Improvements (/Boe) 61.18 4.85 34.43 30.54 3.72 20.52 13.36 3.37 6.83 21.90 13.46 10.32 2010 2011 Nine Months 2012 LOE Recurring Cash G&A Production Taxes 6
  8. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 8
    Projected Cash Flow and Margin Growth Unhedged Debt Adjusted Cash Flow Growth (2011 -2015e CAGR) Unhedged Cash Margin Growth (2011 -2015e CAGR) MHR, 50% MHR, 21% OAS, 22% DVN, 13% CXO, 17% CHK, 12% GDP, 15% GDP, 11% NBL, 13% ECA,…
  9. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 9
    Eagle Ford 8
  10. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 10
    Eagle Ford Hunter Overview Total proved reserves of 12.6 MMBoe as of December 31, 2012 Proved Reserves Proved producing reserves of 4.0 MMBoe as of December 31, 2012 90% crude oil, with high BTU gas (+1350) Production 42 gross…
  11. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 11
    Eagle Ford Map MHR EOG Hilcorp/Marathon Weber Conoco Phillips Hess / ZaZa Magnum Hunter Penn Virginia Wells GeoSouthern Leopard Hunter 1H Southern Bay 24hr IP 1,333 Boe/d Bertha 1H Penn Virginia 24hr IP 1,591 Boe/d…
  12. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 12
    Eagle Ford Flares From Space The Eagle Ford Shale Garners More Capital than any Other Play Throughout the World Picture Source: Scientific American on December 27, 2012 11
  13. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 13
    Eagle Ford Well Results 2,289 2,218 Average 20+ Stage 24-hour IP = 1,606 Boepd 2,145 2,044 2,033 1,798 1,819 Average 20+ Stage 30-day IP = 868 Boepd 1,590 1,545 1,651 1,591 1,491 1,321 1,333 1,336 1,275 1,250* 1,039 1,203…
  14. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 14
    Eagle Ford Historical Production vs. Type Curve Furrh 1H Furrh 2H Geo Hunter 1H Gonzo N 1H Gonzo N 2H Kudu Hunter 1H Leopard Hunter 1H Oryx Hunter 1H Sable Hunter 1H Southern Hunter 1H Gonzo Hunter 1H Hawg Hunter 1H Snipe Hunter 1H…
  15. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 15
    Economic Sensitivity of Eagle Ford Gonzales County CAPEX: 8.5MM + 0.3MM (ESP) + .02MM PU 30-Day IP: 900 Boe/d EUR: 450 MBoe 11.0 10.0 9.0 IRR: 75% 8.0 Single Well NPV-10 ( MM) IRR: 66% IRR: 58% 7.0 IRR: 52% 6.0 IRR:…
  16. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 16
    Pearsall Shale Pearsall Shale Located about 2500 beneath the Eagle Ford at depths of 7,000-12,000 and is approximately 500-600 in thickness Similar composition to the Eagle Ford Shale, composed of interbedded organic shale, silica and…
  17. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 17
    Williston Basin 16
  18. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 18
    Williston Hunter Overview Areas of Operation Overview Proved Reserves Total proved reserves of 24.0 MMBoe as of 12/31/12 Proved producing reserves of 9.9 100% Avg. WI MMBoe as of 12/31/12 Acreage 48% Avg. WI (Samson operated)…
  19. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 19
    Williston Hunter Recent North Dakota Well Results Williston (North Dakota) MHR results IP 24-hr avg. rate (bbl/d) IP 30-day avg. rate (bbl/d) Frac stages () 2,036 1,525 1,212 1,203 1,139 1,188 1,047 988 1,005 998 953…
  20. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 20
    Recent ND Average Results vs. Type Curve 700 Type Curve - 335 Mbo Average 600 500 400 Bopd 300 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Month * Type curve and historical…
  21. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 21
    Recent Tableland Well Results Williston (Tableland) MHR results 893 810 749 704 605 576 543 552 542 491 467 425 354 357 342 333 319 288 301 286 254 236 244 33 34 33 193 183 200 184 28 26 169 26 27 27 26 27 24 24 24…
  22. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 22
    Recent Tableland Average Results vs. Type Curve Average Type Curve - 185 Mbo 300 250 200 Bopd 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 Month * Type curve and historical production data does not include…
  23. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 23
    Williston Basin Economics Sensitivity North Dakota (2 mile lateral) Saskatchewan (1 mile lateral) CAPEX: 7.0 Million North Dakota (2 mile lateral) CAPEX: 3.4 Million 30-Day IP: 440 bbl/d 30-Day IP: 180 bbl/d EUR: 400 MBO Saskatchewan…
  24. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 24
    Williston Basin Acquisition Overview On December 27, 2012, Magnum Hunter closed on the agreement to acquire approximately 20,000 net Williston Basin lease acres from Samson Resources Company for 30 million Consideration for the…
  25. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 25
    Appalachia 24
  26. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 26
    Appalachia Overview Overview Areas of Operation Proved Reserves MHR areas of operations Total proved reserves of 36.5 MMBoe as of 12/31/12 Proved producing reserves of 24.1 MMBoe as of 12/31/12 Acreage 467,000 net acres in the…
  27. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 27
    Marcellus Historical Production vs. Type Curve R Weese 1001 R Weese 1003 R Weese 1110 WVDNR 1102 WVDNR 1103 WVDNR 1104 E Weese 1107 E Weese 1108 E Weese 1109 Type Curve (6.7 Bcf) 8,000 7,000 6,000 5,000 Mcf/d 4,000…
  28. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 28
    Economic Sensitivity of Marcellus CAPEX: 6.5MM 30-Day IP: 7 MMcfe/d EUR: 9.2 Bcfe (includes natural gas liquids) 14.0 13.0 12.0 11.0 10.0 IRR: 72% 9.0 NPV-10 ( MM) IRR: 64% 8.0 IRR: 56% 7.0 6.0 IRR: 48% 5.0…
  29. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 29
    Utica Shale Overview Extends approximately 170,000 square miles Utica Shale Permit and Rig Activity throughout the Appalachia Basin in the United States and Canada Ordovician-aged organic rich black shale with interbedded limestone…
  30. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 30
    Utica/Point Pleasant Stratigraphic Overview Stratigraphic Column Appalachian Basin West-East Cross-Section Schematic Source: Enervest 2012 29
  31. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 31
    Type Log and General Parameters Type Log for Utica & Point Pleasant Formations Utica Shale and underlying Point Pleasant Formation are members of the Ordovician Trenton Group and are older than the Marcellus Shale Organic-rich dark…
  32. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 32
    Structure Map Top of Trenton Lime The Utica interval thickens and becomes deeper Regional Structure Map of Top of Lexington/Trenton Lime as you move eastward into the basin from central Ohio into Pennsylvania The northern and…
  33. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 33
    Gross Thickness Utica + Point Pleasant Isopach Map of Point Pleasant + Utica Formations MHR has created a proprietary isopach map of the Utica/Point Pleasant interval The MHR interpretation confirms that the shales exhibit good…
  34. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 34
    Total Organic Carbon (TOC) Map of Maximum TOC (%) in Utica-Logana Interval TOC is a measure of organic content and is indicative of the quantity of kerogen in the rock, which is the source material for oil and gas TOC is typically…
  35. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 35
    Point Pleasant Porosity- Feet Utica / Point Pleasant Porosity-Feet MHR has also created a proprietary map showing Porosity-feet (product of net feet time average porosity) for the Utica/Point Pleasant interval The porosity-feet…
  36. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 36
    Utica Shale Recent Well Results CHESAPEAKE Neider 3H* Oil Window 3.8 MMcf/d; 980 Bbls/d Wet Gas Window (Peak rate) CHESAPEAKE Dry Gas Window Harvey 8H REX 3.8 MMcf/d; 603 Bbls/d Cheeseman 1H (Peak rate) 9.2 MMcf/d CHESAPEAKE…
  37. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 37
    Risked Acreage Value by Operator 36
  38. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 38
    Eureka Hunter Midstream 37
  39. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 39
    Eureka Hunter Midstream Overview Strategically Positioned Assets Pipeline in strategic geographical location in heart of Marcellus wet gas corridor of WV 70 miles of 20 1135 MAOP gathering system in the ground to-date 350+ MMcf per…
  40. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 40
    Eureka Hunter Pipeline Geographical Map Constructed Line Proposed Ohio River Crossing Under Construction 39
  41. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 41
    Mobley Processing Plant Processing complex initially consist of two trains: 200 Mmcf/d + 120 Mmcf/d April 2013 200 Mmcf/d plant came online during November 2012 Equitrans feed Eureka Hunter began deliveries December 20, 2012 40
  42. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 42
    Eureka Hunter Carbide Facility Large facility (233 acres) Broadening Services Offered by Eureka Hunter Low pressure gathering and centralized compression just outside Louis Wetzel Wildlife Refuge Gathering system for wellhead…
  43. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 43
    Eureka Hunter Pipeline Three pipe solution at Carbide Challenging West Virginia Terrain Ohio River Bore into Ohio (McCormick & Evans) 42
  44. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 44
    TransTex Hunter On April 2, 2012, Magnum Hunters wholly owned unrestricted subsidiary, Eureka Hunter, acquired the assets of TransTex Gas Services, LLC (TransTex) for 58.5 million The 58.5 million purchase price consisted of 46.8…
  45. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 45
    Financial Overview 44
  46. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 46
    Financial Strategy Capital spending driven by rates of return across all operating areas Focused on development of existing acreage 2013 capital budget will focus on high return oil/liquids areas Margins and EBITDA projected to…
  47. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 47
    Capitalization March 31, June 30, September 30, ( in millions) 2012 2012 2012 Cash 31.5 24.8 22.0 Debt: Revolving Credit Facility due 2016 205.0 100.0 175.0 Term Loan 100.0 0.0 0.0 Senior Unsecured Notes due 2020 0.0 444.0 444.1…
  48. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 48
    Summary of Commodity Hedges in Place Magnum Hunter Resources - Hedge Summary As of 1/7/2013 2013 2014 2015 NATURAL GAS HEDGES: Swaps Volume (mmbtu/d) 15,500 0 0 Price - /mmbtu 3.52 N/A N/A Collars Volume (mmbtu/d) 12,500 0 0 Floor…
  49. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 49
    Summary of Key Investment Highlights Focused, Liquids-Driven Drilling Factory to Generate Strong Cash Flow Large, Diversified Asset Base in Highest Return Resource Plays Increased Operational Efficiency and Net Margins…
  50. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 50
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets KLR Group Canaccord Genuity MLV Partners Capital One Southcoast, Inc. RBC Capital Markets…

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