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IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Sep 26, 2012 · 41 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. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION OGIS San Francisco September 2012
  2. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – 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 18,000 production company focused on the most prolific unconventional resource plays in the U.S.…
  3. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 3
    Concentrated Asset Base in Largest Shale Plays 132,000 Net Acres 58,000 Net Marcellus Acres 61,000 Net Utica Shale Acres 313,000 Net Southern Appalachia Acres 6/30/2012 Proved Reserves of Potential 26,000 Net Acres %…
  4. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 4
    Highest IRR North American Shale Plays MHR Active Resource Plays 60% 54% 53% 51% 50% 39% 38% 40% 35% 30% 29% IRR 30% 21% 20% 17% 14% 14% 13% 12% 11% 10% 10% 9% 10% 8% 8% 7% 7% 5% 2% 2% 2% MHR active…
  5. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 5
    Liquids Driven Capital Plan 2012 upstream capital budget heavily weighted to liquids targets Williston Basin: 34 net wells budgeted to be drilled in 2012 Eagle Ford: 14 net wells budgeted to be drilled in 2012 Marcellus: 5 net wells…
  6. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 6
    Proved Reserves Summary Proved Reserves up 51% since year-end 2011 Proved Reserves Summary Net Proved Reserves as of 6/30/2012 (SEC PRICING) Liquids Gas Total Category (MMBbls) (Bcf) (MMBoe) % PDP 13.0 82.3 26.7 39.4% PDNP 1.2…
  7. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 7
    Proved Reserve Growth Consistency Robust track record of proved reserve growth since inception Approximately 68 MMBoe at June 30, 2012 Expect to continue consistently adding reserves with mix becoming more dominated by oil / liquids…
  8. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 8
    Operational Efficiency Improvements (/Boe) 61.18 4.85 34.43 30.54 3.72 13.36 19.30 3.19 6.14 21.90 13.46 9.97 2010 2011 Six Months 2012 LOE Recurring Cash G&A Production Taxes 7
  9. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 9
    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,…
  10. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 10
    Williston Basin 9
  11. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 11
    Williston Hunter Overview Overview Areas of Operation Proved Reserves Total proved reserves of 27.0 MMBoe as of 6/30/12 Proved producing reserves of 7.3 MMBoe as of 6/30/12 100% Avg. WI Acreage 132,000 net acres in the Williston…
  12. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 12
    Williston Hunter Recent North Dakota Well Results Williston (North Dakota) MHR results 1,525 1,212 1,203 1,139 1,188 988 1,005 998 953 897 900 852 869 842 835 818 802 790 684 636 621 622 598 607 591 546 529 513…
  13. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 13
    Recent North Dakota Results vs. Type Curve Lampert Torgeson 1-15 Riede 4-14 Bonneville Hauge 13-21 Thomte Nomad Titan Bel Aire Marauder Dorado Type Curve (400 Mbo) 1,200 1,000 800 Bopd 600 400 200 0 1 2…
  14. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 14
    Recent Tableland Well Results Williston (Tableland) MHR results 810 749 704 605 576 543 552 491 354 357 333 319 288 301 254 236 169 27 27 26 24 24 24 26 25 21 W2M (10/19/11) W2M (12/16/11) W2M (1/6/12) W2M…
  15. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 15
    Recent Tableland Results vs. Type Curve 1-14-1-10 13-16-1-10 13-10-1-10 12-10-1-10 8-14-1-10 5-15-1-10 5-10-1-10 Type Curve (185 Mbo) 400 350 300 250 Bopd 200 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 Month…
  16. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 16
    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…
  17. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 17
    Eagle Ford 16
  18. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 18
    Eagle Ford Hunter Overview Total proved reserves of 10.0 MMBoe as of June 30, 2012 Proved Reserves Proved producing reserves of 2.6 MMBoe as of June 30, 2012 85% crude oil, with high BTU gas (+1350) Production 30 gross wells on…
  19. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 19
    Eagle Ford Map MHR EOG Hilcorp/Marathon Weber Conoco Phillips Hess / ZaZa Penn Virginia GeoSouthern Leopard Hunter 1H Southern Bay 24hr IP 1,333 Boe/d Penn Virginia Gardner 1H IP 1,247 Boe/d Hawn Holt 9H IP 1,877 Boe/d…
  20. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 20
    Eagle Ford Hunter Operations Eagle Ford MHR results 2,289 2,044 2,033 1,798 1,819 1,590 1,545 1,491 1,321 1,333 1,336 1,275 1,250 1,203 1,039 1,017 1,031 1,019 1,024 909 882 902 910 883 886 908 854 839 841 698 690…
  21. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 21
    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…
  22. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 22
    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:…
  23. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 23
    Pearsall Shale Pearsall Shale Located about 2500 beneath the Eagle Ford Shale and is approximately 500-600 in thickness Similar composition to the Eagle Ford Shale, composed of interbedded organic shale, silica and limestone Magnum…
  24. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 24
    Appalachia 23
  25. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 25
    Appalachia Overview Overview Areas of Operation Proved Reserves MHR areas of operations Total proved reserves of 30.7 MMBoe as of 6/30/12 Proved producing reserves of 16.7 MMBoe as of 6/30/12 Acreage 400,000 net acres in the…
  26. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 26
    Marcellus Operations Marcellus MHR results 10,500 10,400 10,000 9,700 9,600 9,400 9,500 8,340 7,078 6,689 6,450 6,273 5,800 5,618 5,040 4,716 16 16 18 18 16 16 16 16 WVDNR 1102 WVDNR 1103 WVDNR 1104 Roger…
  27. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – 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…
  28. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – 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. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – 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. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 30
    Utica Shale Recent Well Results CHESAPEAKE Neider 3H* 3.8 MMcf/d; 980 Bbls/d (Peak rate) Wet Gas Window CHESAPEAKE Conglio 6H 5 MMcf/d; 290 Bbls/d CHESAPEAKE Mangun 8H* (Peak rate) CHESAPEAKE Thompson 3H Dry Gas Window 3.1…
  31. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 31
    Eureka Hunter Midstream 30
  32. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 32
    Eureka Hunter Midstream Overview Strategically Positioned Assets Pipeline in strategic geographical location in heart of Marcellus wet gas corridor of WV 54 miles of 20 1135 MAOP gathering system in the ground to-date 350+ MMcf per…
  33. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 33
    Eureka Hunter Pipeline Geographical Map Constructed Line Proposed Ohio River Crossing Under Construction 32
  34. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 34
    Eureka Hunter Pipeline - 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,…
  35. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 35
    Mobley Processing Plant MarkWests Mobley Processing Complex will initially consist of two trains, a 200 Mmcf/d plant and a 120 Mmcf/d plant The 200 Mmcf/d Cryogenic Processing Plant is expected to be in service November 2012 Eureka…
  36. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 36
    Financial Overview 35
  37. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 37
    Financial Strategy Capital spending driven by rates of return across all operating areas Focused on development of existing acreage 2012 capital budget focused on high return, oil / liquids areas Margins and EBITDA projected to…
  38. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 38
    Capitalization March 31, June 30, ( in millions) 2012 2012 Cash 31.4 24.8 Debt: Revolving Credit Facility due 2016 205.0 100.0 Second Lien Term Loan 100.0 - Senior Unsecured Notes due 2020 - 444.0 Equipment and Real Estate…
  39. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 39
    Summary of Commodity Hedges in Place As of 8/1/2012 3rd Qtr 2012 4th Qtr 2012 2013 2014 2015 NATURAL GAS HEDGES: Swaps Volume (mmbtu/d) 16,098 16,098 15,500 0 0 Price - /mmbtu 3.53 3.53 3.52 0.00 N/A Collars Volume (mmbtu/d)…
  40. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 40
    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 Margins Attractive…
  41. IPAA OIL GAS INVESTMENT SYMPOSIUM SAN FRANCISCO – Magnum Hunter Resources Corp. – slide 41
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets KeyBanc Capital Markets Canaccord Genuity KLR Group Capital One Southcoast, Inc. MLV Partners…

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