MAGNUM HUNTER RESOURCES CORPORATION Corporate Presentation February 2011
Additional Information In connection with the NuLoch transaction, the Company will file a preliminary proxy statement and definitive proxy statement with the SEC. The information contained in the preliminary filing will not be complete…
Executive Summary Magnum Hunter Resources has been repositioned over the past eighteen months by new management to acquire, own, and operate properties within three of the most prolific resource plays in the United States: South Texas…
Current Portfolio Regions Williston Basin / Bakken / Three Forks Sanish / Madison Appalachian Basin / Marcellus / Huron / Weir Oil Producing Gas Producing South Texas / Eagle Ford Magnum Hunter is focused exclusively on…
2011 CAPEX of 150 million Appalachia Midstream (Pipeline/Processing) Eagle Ford 25.0 mm 65.1 mm 17% 43% 40% Appalachia 59.9 mm 6
Business Strategy MHR will employ business strategies similar to those successfully executed in the past by Senior Management at the Old Magnum Hunter Balanced program of opportunistic acquisitions and low-risk development (exclusively…
Production Growth by Quarter (1Q07 4Q10) 3000 2800 2600 2400 2200 2000 1800 BOE / DAY 1600 1400 1200 Annual Increase of 78% 1000 800 600 400 200 0 Q3'07A Q4'07A Q1'08A Q2'08A Q3'08A Q4'08A Q1'09A Q2'09A Q3'09A…
Magnum Hunter Existing Property Portfolio 9
South Texas Eagle Ford Shale The Eagle Ford Shale continues to be one of the countrys hottest new shale plays with 110 drilling rigs currently running. To date, over 1,030 wells have been permitted and/or drilled in twenty different…
South Texas Eagle Ford Shale TREND HIGHLIGHTS Multiple Industry Acreage Expansion Opportunities Potential EUR of 200,000 to 500,000 BO/well Completed horizontal well cost of 5.5 to 8.8MM Focus leasing activity in Oil Window…
South Texas Eagle Ford Shale Magnum Hunters 2010 Drilling Activity Gonzo Hunter 1H Gonzales County (50% WI Operated) 4,365 lateral with 9 out of 11 stages fraced Flowing (Produced 27,000 BO to date) Lagunillas Camp 1H Atascosa…
South Texas Eagle Ford Shale PEACH CREEK PROSPECT GONZALES CO. TX 34,876 Gross Acres / MHR 50% WI JV 60 Possible Well Locations Estimated Typical Well: Cost: 5.5 to 8.8 MM EUR: 350 to 520 Mboe IP: 300 to 1,000 Bopd 13
Economic Sensitivity of Eagle Ford High Case: Gonzales County, Eagle Ford Low Case: IP: 1,000 Bbl/D Price Sensitivity IP: 350 Bbl/D Initial Decline: 99% Current CAPEX 6.2 Million Initial Decline: 90% Hyperbolic Factor b: 1.3…
Triad Hunter General Overview The new assets of Triad Hunter were from a 23 year-old oil & gas exploration and production company with operations focused in the Appalachian Basin (Ohio, Kentucky, and West Virginia) including Marcellus…
Appalachia Current Areas of Operation Pittsburgh Ohio Triad Hunter Headquarters West Virginia Kentucky 16
Key Marcellus Trends The Marcellus is one of the most attractive shale plays in the United States The Marcellus has one of the lowest break-even price levels of all the shale plays and will remain attractive throughout the commodity…
Triad Hunter Weese Hunter 1 / 3 Triad Hunter, LLC 42,000 Marcellus acres New Eureka Hunter Gathering system with interconnections into Dominion and Columbia Triad Hunter, LLC Weese Hunter 1 / 3 (100% WI) First Horizontal…
Economic Sensitivity of Marcellus Economic Sensitivity of Marcellus Gas Price, /MMBtu Completed Well Cost - 3.5MM High Case: (Magnum Hunter) Middle Case: (Range, Cabot) Low Case: (Trans Energy) IP: 7 Mmcf/D IP: 5 MMcf/D IP:…
Areas of Operation (Including Pipeline) Recently Acquired Properties (PostRock 40MM Acquisition) Eureka Hunter Pipeline (Existing and Proposed) Dominion Transmission Columbia Gas Transmission Triad Hunter Acreage Acquired…
Eureka Hunter Pipeline Triad originally acquired the Eureka Pipeline and associated rights of way in August 2003 182 miles of rights of way Separated in two areas: Northern West Virginia (approximately 114 miles) and Central West…
Eureka Hunter Groundbreaking Ceremony Gary C. Evans Dottie Underwood Roger and Sandra Weese Jim Denny Chairman and CEO Governor's Representative Land Owners Executive Vice President of Operations Magnum Hunter Resources Corporation…
New 20 Pipeline Under Construction 23
North Dakota - Williston Basin Acreage: 15,000 gross acres MHR Interest: 43% Description Primary: Eden Valley, Flaxton, Lake Darling, Lake View, Portal, SW Glenburn, Upper Deslacs, Wheaton, Woburn Secondary: North Grano, Mohall,…
Secondary Recovery Program Unitize Drill New Wells Re-pressurize Secondary Recovery Tertiary Recovery Field North Grano East Flaxton Mohall Lake Darling Capital Invested by MHR Glenburn West Greene Since December 2006 Pratt…
Recently Announced Acquisitions NuLoch Resources - 327 million NGAS - 98 million 26
NuLoch Resources, Inc. Acquisition Public Company (TSX-V: NLR) (OTCQX: NULCF) On January 19, 2011, Magnum Hunter announced that it entered into a definitive agreement to acquire Williston Basin focused NuLoch Resources, Inc. in an all…
NuLoch Areas of Operation Williston Basin Properties: 267 net unrisked drilling locations 23 booked, 244 unbooked Peace River Arch 231 Three Forks Sanish, 36 Bakken Operated Light Oil 31.4 Mmboe Risked, 80 Mmboe unrisked Net…
NuLoch Williston Basin Acreage Map 72% Avg. NRI 38,700 net acres 9.5% Avg. NRI 23% Avg. NRI 24,500 net acres 6,700 net acres 29
Summary Terms of NuLoch Acquisition Total transaction value of approximately 327 million Magnum Hunter has agreed to acquire NuLoch for 2.50 (Canadian) per share with a fixed exchange ratio of 0.3304, which was based on the seven-day…
Transaction Highlights Seasoned professional management team with long histories in creating substantial shareholder value Strategically focused on developing large in-place light oil resource plays in the Williston Basin Multi-year…
NuLoch Capital Expenditure Schedule ( in millions) 2010 CAPEX 2011E CAPEX 63.1 MM 80.3 MM Other 1.5 Other 1.5 North Dakota North Dakota Saskatchewan 35.5 Saskatchewan 29.6 32.0 43.3 Note: The Saskatchewan CAPEX is…
MHR Pro Forma Upon completion of the NGAS and NuLoch acquisitions, Magnum Hunter will have the following: Over 1 Billion Market Capitalization Debt-to-Total Capitalization less than 20% Current daily production in excess of 6,000 boe/d…
Pro Forma Proved Reserves Pro Forma Proved Reserves Gas Oil Total Bcf MMBbl MMBoe MHR(i) 39.5 6.8 13.4 % PDP 34% 53% 44% NuLoch(ii) 7.8 4.6 5.9 % PDP 41% 34% 35% NGAS(iii) 58.0 3.4 13.1 % PDP 63% 59% 62% Total Pro Forma…
NGAS Acquisition (Public Company Traded on NASDAQ) On December 27, 2010, Magnum Hunter announced the execution of a definitive agreement to acquire Appalachian Basin focused NGAS Resources, Inc. for approximately 98 million in common…
Summary Terms of NGAS Acquisition Total transaction value of approximately 98 million, including: MHR Shares to be Issued 4.2 million MHR common shares, or approximately 27.3 million, issued to NGAS shareholders 2.4 million MHR common…
Areas of Operation 98% drilling success rate Multiple, low-risk opportunities Long-lived asset Ohio 1,200 Btu gas Extensive infrastructure Large undeveloped areas due Kentucky to coal mining activities New horizontal drilling…
Addition Information - NGAS Additional Information about the Proposed Transaction This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there by any sale of securities…
Financial Overview 39
Recent Financing Highlights Capital Markets Raised approximately 55 million of new common equity since September 2009 Insider participation by Chairman and CEO, Vice Chairman, EVP/CFO, and five directors New 150 million three-year…
Capitalization Magnum Hunter Resources Corporation ( in thousands) 9/30/2010 Cash and Equivalents 837 Long-term Debt Revolving Credit Facility 50,000 Equipment Loan 2,689 Total Long-term Debt 52,689 Series C Preferred Stock…
Proved Reserves As of December 31, 2010 SEC Pricing, 12/31/10 (1) Strip Pricing, 12/31/10 (2) Oil/NGL Gas Equivalent Oil/NGL Gas Equivalent MMbbls MMcf MMboe MMbbls MMcf MMboe PDP 3.609 13.401 5.843 3.861 14.350 6.253 PDNP…
MHR Reserves and Production December 31, 2010 December 31, 2010 Proved Reserves: 13.4 Mmboe; Daily Production Exit Rate 44% PDP; 51% Oil / Liquids 2,732 boe per day; 55% Oil / Liquids Louisiana Louisiana North Dakota Appalachia…
Pro Forma 2011 Production Growth Magnum Hunter NGAS NuLoch 12,000 10,600 10,200 10,000 8,650 8,000 BOE/D 6,400 6,000 4,000 2,900 2,700 1,600 2,000 0 2010 Avg Daily 2010 Exit Rate 1Q11 2Q11 3Q11 4Q11…
Summary of Commodity Hedges in Place As of January 2011 1Q11 2011 2012 Natural gas Hedges Swaps Volume (MMbtu/d) 113 112 99 Price per MCF 5.98 5.98 6.15 Collars Volume (MMbtu/d) 2,142 2,113 1,884 Floor Price per MCF 5.37 5.37…
IRRs of Top U.S. Shale Plays 60% 57% MHR Active Resource Plays 50% 47% 40% 35% 35% 34% 33% 31% 30% 25% 25% 24% 23% 20% 19% 20% 17% 16% 15% 13% 13% 13% 12% 10% 8% 6% 6% 4% 3% 0% Year: 1 2 3 4 5 6 7 8+ WTI Oil:…
Recent Key Events 9.00 Announcement of PostRock and NGAS Acquisition 8.00 Announcement of Triad Acq. and New Credit Facility 7.00 Announcement of FYE 2009 Operating Redeemed Announcement of 6.00 Sharon Resources and Financial…
Share Price Performance vs. Peers North American E&P - Share Price Performance 5/26/2009* - 1/18/2011 Magnum Hunter Resources Corporation Energy XXI (Bermuda) Limited Clayton Williams Energy, Inc. Pioneer Natural Resources Cimarex…
Summary Experienced and Seasoned Management Team and Board Well Positioned in the Three Top Resources Plays in the US Diversified, Balanced Portfolio with Long Reserve Life 71% Crude Oil Production Mix Multi-year Drilling Inventory…
Appendix 52
Management Team Gary C. Evans Chairman and Chief Executive Officer Jim Denny Executive Vice President of Operations Hershal (Kip) Ferguson III Executive Vice President of Exploration Ron Ormand Executive Vice President and Chief…
Management Bios Gary C. Evans serves as Chairman of the Board and Chief Executive Officer. Mr. Evans founded and served as Chairman and Chief Executive Officer of Magnum Hunter Resources (MHRI), a NYSE listed company, for 20 years before…
Management Bios Hershal (Kip) Ferguson, III serves as Executive Vice President of Exploration. Mr. Ferguson is a Houston, Texas native and a third generation geologist. Graduating from the University of Texas in Austin, he has 22 years of…
Management Bios Richard S. Farrell serves as Senior Vice President of Business Development and Land for our wholly-owned subsidiary Triad Hunter, LLC. Prior to joining the Company, Mr. Farrell served as President of JR Farrell…
Management Bios Brian Burgher serves as Vice President of Land. Mr. Burgher brings more than 25 years of continuous experience in land related areas to Magnum Hunter Resources Corporation. Mr. Burgher is a fourth generation oil and gas…
Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets Canaccord Adams Capital One Southcoast, Inc. Global Hunter Securities, LLC Jefferies & Company, Inc. Johnson Rice &…
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