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INVESTOR PRESENTATION – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Apr 1, 2012 · 49 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. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION Corporate Presentation April 2012
  2. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 2
    Corporate Overview Market Capitalization 800 MM Enterprise Value 1,200 MM Net Debt/Total Cap 28% YE 2011 Exit Rate 12,500 BOE/D YE 2012 Exit Rate (Est.) 17,000 BOE/D Proved Reserves 50.7 MMBOE Resource Potential 538 MMBOE…
  3. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 3
    Executive Summary Magnum Hunter Resources is focused exclusively on three of the most prolific unconventional resource plays in the United States: South Texas Eagle Ford Shale Appalachia Marcellus Shale / Utica / Huron / Weir North…
  4. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 4
    Current Portfolio Overview Focused exclusively on three unconventional resource plays 76,739 Net Acres 58,426 Net Marcellus Acres 61,151 Net Utica Shale Acres 313,000 Net Southern Appalachia Acres 24,000 Net Acres…
  5. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 5
    IRRs of Top U.S. Shale Plays MHR Active Resource Plays 60% 51% 50% 47% 40% 34% 34% 30% 25% 25% 23% 22% 20% 19% 20% 18% 16% 16% 14% 14% 13% 11% 10% 8% 7% 7% 5% 2% 0% Year: 1 2 3 4 5 6 7 8+ WTI Oil: 93.18 87.55…
  6. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 6
    2012 Capital Expenditure Budget 2012 Capital Budget - 200 Million (Preliminary) Appalachia Williston Basin 50 mm 50 mm 25% 25% 50 mm 50 mm 25% 25% (i) Eagle Ford Eureka Hunter Note: Magnum Hunter currently operates over…
  7. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 7
    Projected Production Growth 18,000 Natural Gas Oil / Liquids Shut-in 17,000 16,000 14,000 12,600 12,000 10,000 Boe/d 9,124 8,000 6,020 6,000 5,747 (2) (1) 5,270 4,947 4,000 2,629 2,000 0 1Q11A…
  8. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 8
    Platform for Continued Growth March 31, 2012* March 31, 2012* Proved Reserves: 50.7 Mmboe Proved Reserves by Region 54% Oil / Liquids Eagle Ford PDP PUD 16% 49% 49% 60% 24% Appalachia Williston Basin 2% PDNP 13%…
  9. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 9
    Annual Proved Reserve Growth Proved Reserves Proved Reserves / Share (1) 50.0 0.45 44.9 0.40 0.40 Proved Reserves (Boe) / Share Proved Reserves (MMBoe) 40.0 0.35 0.30 30.0 0.25 0.21 0.20 0.16 20.0 13.4 0.15 0.10…
  10. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 10
    Williston Basin 11
  11. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 11
    Williston Hunter Overview (1) Total proved reserves of 11.9 MMBoe as of March 31, 2012 Proved Reserves Proved producing reserves of 5.6 MMBoe as of March 31, 2012 90% crude oil Production 90% from the Williston Basin Over 260…
  12. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 12
    Williston Hunter Areas of Operation 100% Avg. WI 10% Avg. WI 30% Avg. WI 95% Avg. WI Acquired NuLoch MHR Existing Assets Assets 13
  13. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 13
    Williston Hunter Recent Well Results IP7 IP30 7 Day 30 Day MHR Lateral Frac Producing IP24hr Average Average First Production County W.I.% Length Stages Formation boepd boepd boepd Date North Dakota Blue Jay 32-29-163-95 Divide…
  14. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 14
    Recent Tableland Results vs. Type Curve 1 mile HZ SK Type Curve 1-14-1-10 13-16-1-10 13-10-1-10 700 TFSanish 1 Mile Type Curve - 185 MBOE 600 500 Boe/d 400 300 200 100 0 Cumulative Production (Bbls) *Only…
  15. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 15
    Williston Basin Economics Sensitivity North Dakota (2 mile lateral) Saskatchewan (1 mile lateral) North Dakota (2 mile lateral) CAPEX: 6.9 Million CAPEX: 3.4 Million IP-24 Hour: 550 Bbl/D IP-24 Hour: 250 Bbl/D Saskatchewan (1 mile…
  16. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 16
    Eagle Ford Shale 17
  17. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 17
    Eagle Ford Hunter Overview (1) Total proved reserves of 8.2 MMBoe as of March 31, 2012 Proved Reserves Proved producing reserves of 2.1 MMBoe as of March 31, 2012 85% crude oil, with high btu gas (+1350) Production 21 gross…
  18. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 18
    Eagle Ford Shale Oil Window MHR currently holds 24,500 net acres in the Eagle Ford Shale core Majority of the acreage position is in the Gonzales County oil window Strong well results by offset Fayette and Lee Counties…
  19. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 19
    Eagle Ford Acreage Map 20
  20. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 20
    Eagle Ford Hunter - Operations MHR Lateral Stages IP Rate (Boe/d) First Well County Operator Interest Length Fraced 24-hour 7-day Avg 30-day Avg Production MHR Operated (Gonzales/Lavaca County): Gonzo Hunter 1H Gonzales MHR 50% 4,365 9…
  21. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 21
    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 433 MBOE Type Curve 1,200 1,000 800 600…
  22. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 22
    Economic Sensitivity of Eagle Ford Gonzales County High Case: Mid Case: Low Case: Capex: 8.8MM + 0.3MM (ESP) + .02MM PU Capex: 8.5MM + 0.3MM (ESP) + .02MM PU Capex: 8.0MM + .03MM PU IP-24 Hour: 1,750 Boepd IP-24 Hour: 1,250 Boepd IP-24…
  23. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 23
    Appalachia 24
  24. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 24
    Appalachia Overview Magnum Hunters Appalachia assets are a combination of multiple acquisitions Magnum Hunter has completed over the past year and a half including Triad, NGAS, PostRock, and Windsor. (1) Total proved reserves of…
  25. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 25
    Appalachia Areas of Operation Primary focus on liquids rich Marcellus gas in northwest West Virginia Triad Hunter NGAS Hunter The Marcellus is one of the most attractive shale plays in the United States Ohio The Marcellus has one…
  26. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 26
    Triad Hunter Liquids Rich Marcellus Shale Pennsylvania Ohio Marcellus Properties / Operations: 58,426 Net Marcellus Acres To-date fourteen wells have been drilled and completed Eight wells in Tyler County, WV Five wells in Wetzel…
  27. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 27
    Marcellus Operations MHR Lateral Frac IP Rate (mcfe/d) First Well County Operator Interest Length Stages 24 Hour 7-day Avg 30-day Avg Production Weese 1H Tyler MHR 100% 3,550 12 7,210 4,559 4,205 12/31/2010 Weese 3H Tyler MHR 100%…
  28. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 28
    Historical Production vs. Type Curve Weese 1001 Weese 1003 Weese 1110 WVDNR 1102 WVDNR 1103 WVDNR 1104 WVDNR 1107 WVDNR 1108 WVDNR 1109 Type Curve - 6.0 Bcfe 8,000 7,000 6,000 5,000 Mcfe/d 4,000 3,000 2,000…
  29. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 29
    Economic Sensitivity of Marcellus Economic Sensitivity of Marcellus Completed Well Cost - 6.5 MM High Case - Type Curve Middle Case -Type Curve Low Case - Type Curve IP: 7 Mmcf/D IP: 5 MMcf/D IP: 4 MMcf/D High Case Initial Decline:…
  30. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 30
    Utica Shale Overview On February 17, 2012, MHR closed on the acquisition of 12,186 net Utica Shale acres for approximately 25 million (2,037/acre) The acreage is predominantly located in Noble County, OH Wet The majority of the…
  31. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 31
    Southern Appalachia Overview Operations: Current Drilling/Completing Operations: Drilling one well in Harlan County, Arch Field, Kentucky targeting the Weir Sand Since Completion of the NGAS Acquisition MHR has: Restructured…
  32. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 32
    Weir Sand Kentucky Liquids Play 38,000 PROSPECTIVE ACRES HORIZONTAL WELLS TO DATE Well 1 5645 of Production Casing Ran 10 Stage Slick Water Frac Well 2 6193 of Production Casing Ran 12 Stage 65 Quality Foam Frac Well 3 6035 of…
  33. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 33
    Appalachia Shale Has Best Gas Economics Estimated Gas Price Required for 10% IRR 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Source: Morgan Stanley Research Report (January 2011) 34
  34. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 34
    Eureka Hunter 35
  35. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 35
    Eureka Hunter Pipeline Overview 20 inch high pressure gathering system / 300 mmcfd design 54 miles of pipe in ground Full processing services via MarkWest Mobley site 320 mmcf / day Laterals planned into Richie, Doddridge and…
  36. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 36
    Eureka Hunter Pipeline Geographical Map OHIO WEST VIRGINIA 37
  37. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 37
    Utica Shale Overview The Utica Shale: The Utica extent extends for 170,000 sq miles (Nearly twice the size of the Marcellus Shale extent) Big players are attracted to Utica including CHK, Range, Consol, Devon, Anadarko, and Shell…
  38. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 38
    TransTex Gas Services, LP Acquisition On April 2, 2012, Magnum Hunters wholly owned unrestricted subsidiary, Eureka Hunter, acquired the assets of TransTex Gas Services, LP (TransTex) for 58.5 million The 58.5 million purchase price…
  39. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 39
    Eureka - TransTex Combination Blends Two Diversified Revenue Streams Eureka Hunter: Revenues from static gathering pipeline assets in Marcellus TransTex: Revenues from dynamic skid-mounted plants moved to demand Significant Business…
  40. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 40
    Financial Overview 41
  41. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 41
    Financing Highlights Senior Credit Facilities of 350 million provided by Amegy Bank, BMO, Capital One, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, KeyBanc, SunTrust Bank, UBS and Union Bank Revolving Credit Facility of up to…
  42. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 42
    Additional Equity Issued NuLoch Acquisition (VWAP of 7.40/share) 314 Million NGAS Acquisition (VWAP of 7.99/share) 56 Million PostRock Acquisition (VWAP of 7.92/share) 8 Million Total Equity Capital Issued in Acquisitions of 378…
  43. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 43
    Capitalization December 31, December 31, December 31, 2009 2010 2011 Cash and Cash Equivalents 2,281 554 14,851 (1) Notes Payable, Less Current Portion 13,000 33,151 255,064 Series C Preferred Stock 5,373 70,236 100,000…
  44. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 44
    Summary of Commodity Hedges in Place As of 2/17/2012 2012 2013 NATURAL GAS HEDGES: Swaps Volume (mmbtu/d) 14,459 15,500 Price - /mmbtu 3.57 3.52 Collars Volume (mmbtu/d) 11,879 12,500 Floor Price - /mmbtu 4.58 4.50 High Price -…
  45. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 45
    Historical Lifting Costs 40.00 35.00 30.00 26.48 25.00 21.90 /Boe 20.00 15.00 13.46 10.00 5.00 - 2009 2010 2011 46
  46. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 46
    Equity Value Creation CAGR Equity Growth (2007-2011) CAGR Equity Growth (2010-2011) NOG MHR MHR VOG CXO KOG OAS AREX AREX MMR CLR CXO MMR OAS KOG NOG WLL ROSE COG SM MCF CWEI RRC PETD ROSE GPOR SM WTI CWEI PXD PXD COG…
  47. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 47
    Summary Experienced and Seasoned Management Team and Board Significant Insider Ownership 15% Well Positioned in the Three Top Resources Plays in the US Ability to Shift Capital Away from Gas to Oil/Liquids Projects Demonstrating…
  48. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 48
    Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets Pritchard Capital Canaccord Genuity Robert W. Baird & Co. Capital One Southcoast, Inc. Rodman & Renshaw. Caris & Company…
  49. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 49
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