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41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp

Halcon Resources Corp · Mar 19, 2013 · 43 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. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 1
    41st Annual Howard Weil Energy Conference March 19, 2013 1
  2. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 2
    Core Plays Established Liquids-Rich Asset Base Significant Drilling Inventory Other Exploratory Plays Not Shown Bakken/Three Forks 130,000 Net Acres Woodbine Utica/Point Pleasant 235,000 Net Acres 140,000 Net Acres…
  3. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 3
    Bakken/Three Forks Land Overview 130,000 Net Acres Lease Expirations By Year 120,000 12% 100,000 7% 2% 1% 80,000 Net Acres 60,000 40,000 77% 20,000 0 2013 2014 2015 2016-2021 HBP 75% of acreage HBP = flexibility…
  4. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 4
    Bakken/Three Forks Asset Overview Planned Activities 81% operated Focus on higher IRR areas Avg. WI in acreage: 72% Implement operational Avg. WI in 13 operated wells: 63% improvements Avg. NRI in 13 operated wells: 52% 6-8 operated…
  5. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 5
    Drilling Improvements 80% pad drilling in 2013 Preset surface casing o Eliminate activities from the critical path Average surface drill & case operations 4-5 days/well Wellheads installed & casing tested before move in Implement…
  6. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 6
    Batch Drilling Increases Well Efficiency Single Well Drill vs. 4 Well Batch Drill on Pad Site Efficiencies Single Well Drill 4 Well Batch Drill Time Costs Skid time between wells 7.5 Days Total 3.0 Days 4.5 Days 292,500 P/U and L/D…
  7. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 7
    Completion Improvements Fort Berthold Increase proppant/stage: 120,000 lbs vs. 100,000 lbs (325 lbs/lat-ft minimum) Change fluid design to 35 XL gels vs. 28 XL gels Incorporate 4- frac strings Previous higher priced long-term…
  8. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 8
    Facilities/Infrastructure Improvements Focus on redesigning surface facilities in all areas Improving gathering systems in all areas N. Fort Berthold o Currently no liquids gathering systems in place (higher costs and reduced runtime…
  9. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 9
    Reservoir and Geoscience Improvements Petrophysical Data Utilizing core and log analysis in all areas to develop an integrated petrophysical, geomechanics and reservoir simulation model to design and optimize completion techniques…
  10. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 10
    Woodbine Land Overview 235,000 Net Acres Lease Expirations By Year 140,000 1% 5% 120,000 8% 6% 100,000 22% Net Acres 80,000 52% 6% 60,000 40,000 20,000 0 2013 2014 2015 2016 2017 2018 HBP 2013 2014 2015 2016 2017 2018…
  11. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 11
    Woodbine Asset Overview Planned Activities 100% operated Focus on acreage in Leon, N. Avg. WI in 13 operated wells: 90% Madison, W. Grimes and Brazos Counties Avg. NRI in 13 operated wells: 69% 330 sq. mile 3D seismic shoot PF…
  12. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 12
    HK Woodbine Lease Area Halliday Field 14
  13. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 13
    Halliday Field Hydrocarbon Pore Volume (HCPV) Leon County, TX Mamie Wakefield 3A 3H Mamie Wakefield 1H 30 Day IP: 228 Boe/d 30 Day IP: 267 Boe/d Operated Well Summary (Gross) Mamie Wakefield 1 2H 30 Day IP: 344 Boe/d Wells on…
  14. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 14
    Halliday Field Sand - HCPV Cross Section Leon County, TX A A Depth GR ResD DPHI Depth 0 150 0.2 200030 0 GR ResD DPHI 0 150 0.2 200030 0 Depth Depth Depth GR ResD DPHI GR ResD DPHI GR ResD DPHI 0 150 0.2 200030 0…
  15. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 15
    Halliday Field - HCPV vs. EUR/Lateral Length 140 Wells completed since Feb. 2012 seeing increased recovery Horizontal EUR/Lateral Length 120 efficiency with improved 100 completion design 80 Wells drilled to date have avg.…
  16. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 16
    Utica/Point Pleasant Land Overview 140,000 Net Acres Lease Expirations By Year 70,000 60,000 10% 8% 50,000 43% Net Acres 40,000 30,000 39% 20,000 10,000 0 2013-2016 2017-2020 2021-2023 HBP 2013-2016 2017-2020…
  17. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 17
    Utica/Point Pleasant Asset Overview Planned Activities 100% operated Drilling 10 wells by mid-year to Avg. WI in 13 operated wells: 91% delineate acreage Avg. NRI in 13 operated wells: 74% 2-3 operated rigs in 2013 Expect first…
  18. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 18
    Utica/Point Pleasant: Regional Overview Structure on top of Trenton Lime OHIO CHK ACTIVITY PENNSYLVANIA GPOR ACTIVITY UTICA PLAY STATISTICS AS OF 3.12.13: 102 Horizontal Wells Producing 215 Horizontal Wells Drilled 40…
  19. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 19
    Utica/Point Pleasant: Northeast Extension Point Pleasant Not Present Staab 1H Currently Drilling Range Resources Shell BP Stevenson 1H Range Resources Gallagher 2H Phillips 1H Completed & Soaking Allam 1H Brugler 1H…
  20. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 20
    Utica/Point Pleasant: HK Yoder 2H Yoder 2H Dry Gas Yoder 2H Condensate Oil Mass spec analysis of drill cuttings indicates production in gas condensate (wet gas) window Pixlers Hydrocarbon Ratios Completion operations…
  21. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 21
    Utica/Point Pleasant: HK Brugler 1H Brugler 1H GR (scale 0-150) Mass spec analysis of drill Top Point Pleasant Top Utica cuttings indicates production in high GOR oil window and gas Methane (red-scale 10-20) Propane…
  22. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 22
    Utica/Point Pleasant Cross Section Indicator Map A A 24
  23. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 23
    Utica/Point Pleasant: Petrophysical Comparison Southwest Northeast A 136 miles A Top Utica washout Top Pt. Pleasant Top Trenton Gross Interval-259 Gross Interval-286 Gross Interval-289 Gross Interval-304 Gross…
  24. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 24
    Halcn Field Services (HFS) Infrastructure Challenges = Opportunity Support Halcn drilling operations Control time to market by installing, owning and operating midstream assets Minimize environmental impact Experienced leadership…
  25. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 25
    Pro Forma Capitalization and Liquidity Pro Forma Capitalization ( in millions) HK HY Add-On Offering HK As Adjusted 12.31.2012 Adjustments 12.31.2012 Cash and Cash Equivalents 2.5 321.5 324.0 Revolving Credit Facility 298.0 (298.0)…
  26. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 26
    2013 D&C Capex Budget 2013 D&C Capex by Area Bakken/Three Forks 38% Woodbine 39% Utica/Point Pleasant 16% Other 7% Total 1.2 Billion Capex by Area 7% 16% 38% 39% Bakken/Three Forks Woodbine Utica/Point Pleasant…
  27. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 27
    Derivative Summary as of 3.14.13 PROTECT CASH FLOW Actively hedging with target to hedge up to 80% of expected production over next 18-24 months Avg. Floor Price 90.60 88.44 Avg. Floor Price 3.89 3.85 29
  28. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 28
    Halcn Today Entering a high-growth phase for production, reserves and cash flow Focused on core liquids-rich resource plays Simple capital structure with long-term focus Sufficient liquidity to execute on growth initiatives…
  29. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 29
    Appendix
  30. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 30
    HK Ownership (in thousands) Basic Dilutive Securities Fully Diluted Net Diluted (3) Owner Shares Percent Conv. Debt (1) Warrants (2) Options Shares Percent Shares Percent HALRES LLC (4) - - 64,371 36,667 - 101,038 21% 78,589 18%…
  31. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 31
    Pro Forma Production and Reserves Detail Avg. Net Daily Production (Boe/d) (1) Proved Reserves (2) 3Q12 4Q12 Variance Oil MBbls Gas MMcf NGL MBbls Equiv. % Oil/NGLs % PD % Total PV10 (2) % Total Q/Q Mboe Reserves (MM) PV10 CORE…
  32. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 32
    Derivative Detail as of 3.14.13 Oil Hedge Summary FY 2013 FY 2014 Volume Ceiling / Floor Volume Ceiling / Floor (1) (1) (1) (1) (Bbls) Swap Price Purchased Floor Sold (Bbls) Swap Price Purchased (1) Floor Sold (1) Three-Way Collars…
  33. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 33
    HK 4Q12 Oil & Gas Differentials Oil Differentials By Area Total 4Q '12 Bakken/Three Forks 94.9% Eagle Ford (Fayette/Gonazles Counties) 109.2% Mississippi Lime 98.3% Woodbine 114.0% Other - Conventional 102.8% Total Company 102.3%…
  34. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 34
    Bakken/Three Forks Competitive Landscape Renville Divide Burke Sheridan Ward…
  35. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 35
    Bakken/Three Forks Fort Berthold - Antelope Type Curve (1st 24 Months) 500 600 400 500 Oil / NGL (Bbl/d) 400 Gas (Mcf/d) 300 300 200 200 100 100 0 0 1 4 7 10 13 16 19 22 (Months) B Oil (Bbl/d) TF Oil (Bbl/d) B Gas…
  36. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 36
    Bakken/Three Forks Fort Berthold McGregory Buttes Type Curve (1st 24 Months) 400 400 300 300 Oil / NGL (Bbl/d) Gas (Mcf/d) 200 200 100 100 0 0 1 4 7 10 13 16 19 22 (Months) B Oil (Bbl/d) TF Oil (Bbl/d) B Gas (Mcf/d)…
  37. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 37
    Woodbine Competitive Landscape 39
  38. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 38
    Woodbine North Leon County, TX Type Curve (1st 24 Months) 600 300 500 Oil/NGL (Bbl/d) 400 200 Gas (Mcf/d) 300 200 100 100 0 0 1 4 7 10 13 16 19 22 (Months) Oil (Bbl/d) NGL (Bbl/d) Gas (Mcf/d) Capital Costs /…
  39. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 39
    Utica/Point Pleasant Wet Gas Type Curve (1st 24 Months) 400 4,000 300 3,000 Oil/NGL (Bbl/d) Gas (Mcf/d) 200 2,000 100 1,000 0 0 1 4 7 10 13 16 19 22 (Months) Oil (Bbl/d) NGL (Bbl/d) Gas (Mcf/d) Capital Costs /…
  40. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 40
    Utica/Point Pleasant Volatile Oil Type Curve (1st 24 Months) 300 3,000 Oil/NGL (Bbl/d) 200 2,000 Gas (Mcf/d) 100 1,000 0 0 1 4 7 10 13 16 19 22 (Months) Oil (Bbl/d) NGL (Bbl/d) Gas (Mcf/d) Capital Costs / Well (MM)…
  41. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 41
    Utica/Point Pleasant Black Oil Type Curve (1st 24 Months) 500 500 400 400 Oil/NGL (Bbl/d) Gas (Mcf/d) 300 300 200 200 100 100 0 0 1 4 7 10 13 16 19 22 (Months) Oil (Bbl/d) NGL (Bbl/d) Gas (Mcf/d) Capital Costs /…
  42. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 42
    Halcn History Closed the Williston Basin Assets acquisition Recapitalized RAM Energy Resources, Inc.(1) Funded with 756 million of cash and Funded with 550 million investment by EnCap, 108.8 million shares of equity Liberty Energy…
  43. 41ST ANNUAL HOWARD WEIL ENERGY CONFERENCE – Halcon Resources Corp – slide 43
    Contact: Scott M. Zuehlke, VP Investor Relations 1000 Louisiana St., Suite 6700 Houston, TX 77002 832-538-0314 szuehlkehalconresources.com www.halconresources.com 45

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