Skip to main content March 2012 Operations Update – EP Energy Corp Investor Presentation | Shale Experts
Loading...
Pm

March 2012 Operations Update – EP Energy Corp

EP Energy Corp · Mar 28, 2012 · 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. March 2012 Operations Update – EP Energy Corp – slide 1
    EP Energy Operations Update March 28, 2012
  2. March 2012 Operations Update – EP Energy Corp – slide 2
    Performance Update 4
  3. March 2012 Operations Update – EP Energy Corp – slide 3
    Large, Diverse, High-Quality Asset Base 2011 Proved Reserves Western Eagle Ford 16% 2011 Reserves (Bcfe): 1,110 4Q 211 Production (MMcfe/d): 153 Other Assets 42% Haynesville 23% ALTAMONT Central 2011 Reserves (Bcfe): 1,492…
  4. March 2012 Operations Update – EP Energy Corp – slide 4
    Drilling Inventory Growth Significant oil and natural gas inventory with high ownership and control Net Risked Resources Excluding PDP and PDNP (Tcfe) 2009 2010 2011 Liquids 6:1 34% 48% 59% 9.7 0.0 8.0 1.6 0.2 Domestic 82% 90%…
  5. March 2012 Operations Update – EP Energy Corp – slide 5
    Core Programs Provide Multi-Year Drilling Opportunity CORE DRILLING PROGRAMS LOCATIONS1 Haynesville 673 Eagle Ford 1,246 Wolfcamp 983 Altamont 1,336 ALTAMONT Wilcox 260 Total 4,498 HAYNESVILLE WOLFCAMP Oil Resources Gas…
  6. March 2012 Operations Update – EP Energy Corp – slide 6
    Drilling InventoryLow Breakeven Prices 10% IRR After-tax Return Threshold Gas Directed Drilling Inventory Oil Directed Drilling Inventory 8.00 100 7.00 90 80 6.00 70 (/MMBTU) 5.00 (/BBL) 60 4.00 50 3.00 40 30…
  7. March 2012 Operations Update – EP Energy Corp – slide 7
    Proven Track Record Total Estimate 0911 Proved Reserves (Bcfe) 2009 2010 2011 Chg. Total RRC 30% (/Mcfe)1 2.04 1.40 1.43 3,987 3,362 Domestic RRC 2,750 (/Mcfe)2 1.59 1.58 1.41 11% 70% 78% Reserve 89% Replacement Ratio 212%…
  8. March 2012 Operations Update – EP Energy Corp – slide 8
    Relatively Large Reserve Base 2011 Year-End Proved Reserves (Tcfe) 7 49% Proved Undeveloped1 6 60% of proved value is liquids2 5 Reserves up 57% from YE 2008 to YE 2011 4.03 4 3 2 1 0 XCO FST QEP NFX KWK…
  9. March 2012 Operations Update – EP Energy Corp – slide 9
    Better Growth at Lower Cost Total Reserve Replacement Cost 3-Year Average RRC as of 12/31/2011 (/Mcfe) 4 3 2 1.55 1 0 XCO FST QEP NFX KWK PXD SD LINE PXP RRC WPX Note: RRC calculation…
  10. March 2012 Operations Update – EP Energy Corp – slide 10
    Delivering Improved Capital Performance CAPITAL COSTS CYCLE TIME ( MM) Spud to Rig Release + Stimulation2 First 3 Wells Average 20111 Best Well 2011 First 3 Wells Average 20111 Best Well 2011 10.8 66 9.7 9.5 8.9 52 7.7 47 6.8…
  11. March 2012 Operations Update – EP Energy Corp – slide 11
    Reducing Operating Costs Total Domestic Total Cost (MM) 245 237 28% reduction in unit 175 156 176 lifting costs Reduced subsurface, 2007 2008 2009 2010 2011 compression and disposal costs Unit Cost (/Mcfe) 0.86 0.89 Divested…
  12. March 2012 Operations Update – EP Energy Corp – slide 12
    Oil Impact is Growing Liquids as % of Total Production1 Liquids as % of Total Revenue2 100% 100% 90% 90% 80% 80% 53% 70% 70% 64% 64% 68% 66% 67% 76% 72% 60% 86% 84% 85% 85% 86% 86% 84% 82% 60% 50% 50% 3% 40% 40% 3% 4% 30%…
  13. March 2012 Operations Update – EP Energy Corp – slide 13
    Premium Pricing in Key Resource Areas EAGLE FORD ALTAMONT WOLFCAMP WILCOX HAYNESVILLE Natural Gas South Texas Indices NW Rocky WAHA and EPNG Henry Hub Henry Hub Mountains Permian NGLs Mt. Belvieu Mt. Belvieu and Mt. Belvieu Mt.…
  14. March 2012 Operations Update – EP Energy Corp – slide 14
    Robust Hedge Position Natural Gas Hedges 2012 2013 2014 (TBTU) Volume Average Price(1) Volume Average Price(1) Volume Average Price(1) Economic - EPEP Avg Floor 181 4.68 79 3.58 52 3.92 Crude Oil Hedges 2012 2013 2014 2015…
  15. March 2012 Operations Update – EP Energy Corp – slide 15
    Historical Financials 17
  16. March 2012 Operations Update – EP Energy Corp – slide 16
    Summary Historical Financials ( in millions, unless otherwise stated) FY 2009 FY 2010 FY 2011 Production Natural Gas (MMcfe) 238,101 242,776 257,964 Oil/Condensate (MBbls) 4,497 5,111 6,340 NGL (MBbls) 2,248 1,996 1,624 Combined…
  17. March 2012 Operations Update – EP Energy Corp – slide 17
    Segment Adjusted EBITDA Reconciliation ( in millions) FY 2009 FY 2010 FY 2011 Reported Net (Loss) Income (911 ) 443 262 Income tax (benefit) expense (462 ) 263 220 Interest expense 24 21 12 Segment EBIT (1,349) 727 494 Net…
  18. March 2012 Operations Update – EP Energy Corp – slide 18
    Asset Overview 20
  19. March 2012 Operations Update – EP Energy Corp – slide 19
    Asset Overview 2011 Proved Reserves Eagle Ford 16% Other Assets 42% Haynesville 23% Altamont Wilcox 14% Wolfcamp 1% 4% Total: 4.0 Tcfe 12/31/2011 PV-10: 7.0 billion1 4Q 2011 Production Eagle Ford 8% Other Assets…
  20. March 2012 Operations Update – EP Energy Corp – slide 20
    Planned Capital Allocation 2012 1.5 Billion Capital Program2 Founded on deep and ( in millions) diverse inventory Eagle Ford 77 All projects compared on 126 Haynesville the same basis Wolfcamp 155 Hurdle rate PVR1 1.15 with…
  21. March 2012 Operations Update – EP Energy Corp – slide 21
    Eagle Ford Shale Highlights Highest value asset in portfolio Premier acreage position in oil / volatile oil portion of play 45 rigs per year through 2014 in Central Eagle Ford holds acreage Over 400 MMBoe of resources and over 1,200…
  22. March 2012 Operations Update – EP Energy Corp – slide 22
    Eagle Ford Shale Overview 2012 Program Resource Profile As of 12/31/2011 2012 Capital899 million Total Proved Reserves (MMBoe) 107 88 gross wells expected to spud in 2012 Net Acres1 157,000 Operated Producing Wells 64 Operating 4…
  23. March 2012 Operations Update – EP Energy Corp – slide 23
    Eagle Ford IP Improvement EAGLE FORD CENTRAL AREA 1,400 1,200 Daily Production (Boe/d) 1,000 800 600 11 wells 10 10 5 18 400 13 wells wells wells wells 200 wells 0 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012* Avg.…
  24. March 2012 Operations Update – EP Energy Corp – slide 24
    Eagle Ford Operational Efficiency Leveraged experience from Haynesville Establish consistent supplies and services shale to establish baseline Optimize completion design to maximize Employ different technology and value and recovery…
  25. March 2012 Operations Update – EP Energy Corp – slide 25
    Eagle Ford Oil & Gas Infrastructure OIL LA SALLE In-field Gathering Gardendale Rail Facility Owned and operated by EP Energy Hilcorp Gardendale Wellhead gathering to 8 central batteries currently; Hilcorp Cotulla additional…
  26. March 2012 Operations Update – EP Energy Corp – slide 26
    Eagle Ford Economics Northern Acreage Central Acreage Southern Acreage (Oil) (Oil) (Dry Gas) Operational Metrics Depth (ft) 6,000 7,000 7,000 9,800 10,000 13,000 Lateral Length (ft) 4,500 6,500 4,500 6,500 4,500 6,500 Capital Costs…
  27. March 2012 Operations Update – EP Energy Corp – slide 27
    Eagle Ford Decline Profiles TYPE CURVECENTRAL AREA TYPE CURVENORTH AREA (75% Oil) (90% Oil) 800 200 700 600 150 Boe/d Boe/d 500 400 100 300 200 50 100 0 0 0 6 12 18 24 30 36 42 48 54 60 0 6 12 18 24 30 36 42 48 54…
  28. March 2012 Operations Update – EP Energy Corp – slide 28
    Altamont Highlights Applying new technologies Multi-billion barrel oilfield located within the Uinta basin (approximately 10% recovered to-date) Continuing to improve drilling and vertical well completion efficiencies Significant…
  29. March 2012 Operations Update – EP Energy Corp – slide 29
    Altamont Overview 2012 Program Resource Profile 2012 Capital155 million As of 12/31/2011 Total Proved Reserves (MMBoe) 92 21 gross wells expected to spud in 2012 Net Acres 176,000 Plan to maintain active oil drilling program with 2…
  30. March 2012 Operations Update – EP Energy Corp – slide 30
    Altamont Operational Efficiency Focused drilling delivering Centralized engineering in Houston lower costs to leverage best practices Simplified design and execution Established strategic supplier Enhanced site supervision…
  31. March 2012 Operations Update – EP Energy Corp – slide 31
    Altamont Program Statistics Economics TYPE CURVE DEEP/SHALLOW AVERAGE Operational Metrics Depth (ft) 9,000 16,500 500 Capital Costs (MM) 4.6 7.7 400 EUR (Gross MBoe) 300 450 Boe/d 300 IP (Boe/d) 400 600 200 IP (30) (Boe/d)…
  32. March 2012 Operations Update – EP Energy Corp – slide 32
    Wolfcamp Shale Highlights Early mover with excellent position in highly competitive oil play High level of industry activity surrounding EP units Thickest section with superior porosity and organic content High oil in place 138,000…
  33. March 2012 Operations Update – EP Energy Corp – slide 33
    Wolfcamp Shale Overview 2012 Program Resource Profile (Upper Wolfcamp) 2012 Capital183 million As of 12/31/2011 13 gross wells expected to spud in 2012 Total Proved Reserves (Mmboe) 25 Plan to operate 1 rig for remainder of 2012 Net…
  34. March 2012 Operations Update – EP Energy Corp – slide 34
    Wolfcamp Activity Heating Up REAGAN IRION Pioneer EOG/ Devon Apache EOG/ Devon EOG/Devon ConocoPhillips Samson Forest Oil CROCKETT Highmount EOG Petrohawk Wells Wells Drilled Drilled El El Paso Paso +7000'…
  35. March 2012 Operations Update – EP Energy Corp – slide 35
    Upper Wolfcamp IP Improvement Core, log, drilling and performance analysis has led to clear target in 900 Upper Wolfcamp 800 Long and short lateral completions 700 increasing IPs over time 600 (Average IP24 (Boe/d) Fracture…
  36. March 2012 Operations Update – EP Energy Corp – slide 36
    Wolfcamp Operational Efficiency Leveraged best practices from Reducing total well costs Haynesville and Eagle Ford Expect continued improvement as Early problems with hole stability play advances into full scale have been addressed…
  37. March 2012 Operations Update – EP Energy Corp – slide 37
    Wolfcamp Program Statistics Economics Type Curve Operational Metrics 600 Depth (ft) 5,000 8,000 500 Lateral Length (ft) 7,000 8,000 400 Capital Costs (MM) 8.0 8.4 Boe/d 300 EUR (Gross MBoe) 465 510 200 IP (Boe/d) 575 675…
  38. March 2012 Operations Update – EP Energy Corp – slide 38
    South Louisiana Wilcox Highlights Leveraged Texas Wilcox experience in South Louisiana Tight sands on conventional oily structures 177,000 acres leased or optioned, premier position in Beauregard Parish 1/3 leased either in primary…
  39. March 2012 Operations Update – EP Energy Corp – slide 39
    South Louisiana Wilcox Overview 2012 Program Resource Profile 2012 Capital126 million As of 12/31/2011 12 gross wells expected to spud in 2012 Total Proved Reserves (MMBoe) 6 Plan to operate 1 rig for remainder of 2012 Net Acres…
  40. March 2012 Operations Update – EP Energy Corp – slide 40
    South Louisiana Wilcox Operational Efficiency Rapidly improved drilling Lower total costs delivering performance improved value Improved petrophysics reducing number of completions Wilcox Operational Success DRILLING DAYS…
  41. March 2012 Operations Update – EP Energy Corp – slide 41
    South Louisiana Wilcox Program Statistics Economics TYPE CURVE Operational Metrics 700 Depth (ft) 13,000' 15,000' 600 Capital Costs (MM) 6.0 7.0 500 EUR (Gross MBoe) 320440 Boe/d 400 300 IP (Boe/d) 500900 200 IP (30)…
  42. March 2012 Operations Update – EP Energy Corp – slide 42
    Haynesville Shale Highlights Premier acreage position in the heart of the play, predominantly HBP Significant production growth, 4Q 2011 rate over 300 MMcfe/d net Drilling results among the best in industry Efficient plan of…
  43. March 2012 Operations Update – EP Energy Corp – slide 43
    Haynesville Shale Overview 2012 Program Resource Profile (Bcfe) 2012 Capital97 million As of 12/31/2011 Haynesville Bossier 4 gross wells spud in 2012 Total Proved Reserves (Bcfe) 886 17 Net Acres 41,000 24,500 Expected to complete…
  44. March 2012 Operations Update – EP Energy Corp – slide 44
    Haynesville Operational Efficiency Industry leading execution Rapid transfer of knowledge to other shale programs Consistent program aligned with strategic suppliers Retain critical skills to restart with higher gas prices…
  45. March 2012 Operations Update – EP Energy Corp – slide 45
    Haynesville Program Statistics Holly Non-Holly Middle Bossier Operational Metrics Depth (ft) 11,000 12,500 11,000 12,500 10,700 12,200 Lateral Length (ft) 4,300 4,600 4,300 4,600 4,300 4,600 Capital Costs (MM) 7.9 8.3 7.9 8.3 7.9…
  46. March 2012 Operations Update – EP Energy Corp – slide 46
    Haynesville Decline Profiles TYPE CURVEHOLLY TYPE CURVENON-HOLLY 16 16 14 14 12 12 MMcfe/d 10 MMcfe/d 10 8 8 6 6 4 4 2 2 0 0 0 6 12 18 24 30 36 42 48 54 60 0 6 12 18 24 30 36 42 48 54 60 Month Month TYPE CURVE -…
  47. March 2012 Operations Update – EP Energy Corp – slide 47
    Appendix 49
  48. March 2012 Operations Update – EP Energy Corp – slide 48
    METRICS PVR (PRESENT VALUE RATIO) Present Value Ratio = (Total Discounted Capital + NPV)/ Total Discounted Capital NPV & Total Capital discounted at 12% Minimum ratio is 1.15: Every 1.00 invested returns 1.15 on an after-tax,…
  49. March 2012 Operations Update – EP Energy Corp – slide 49
    Unproved Resources Unconventional: Unconventional resources primarily consist of the Companys Haynesville, Eagle Ford, and Wolfcamp shale plays and coal bed methane operations in the Raton, Black Warrior and Arkoma Basins.…
  50. March 2012 Operations Update – EP Energy Corp – slide 50
    Additional Non-GAAP Information EP Energy uses the non-GAAP financial measure of Segment EBIT. Segment EBIT is defined as net income (loss) adjusted for interest and debt expense and income taxes. We believe that Segment EBIT is useful…

From the store

Browse maps, data & reports in the Shale Experts store