Purpose, Vision, and Values At EP Energy, we have a passion for finding and producing the oil and natural gas that enriches peoples lives Extraordinary People We are committed to being the industry leader known for:…
Investment Thesis Large Portfolio Focused on 3 key oil programs - Eagle Ford, Wolfcamp, and Altamont of Premier Growing oil impact volumes up 39% (CAGR 2010-2012) E&P Assets Operating control over 98%1 of key oil program drilling…
EP Energy 2012 Proved Reserves ALTAMONT Other Eagle Ford Central Central 33% 33% 2011 2012 Reserves Reserves:(Bcfe): 1,110 298 MMBoe 4Q 2011 Production 95 MBoe/d3 Production: 153 (MMcfe/d): Haynesville Altamont 11% 16%…
Transforming To a Higher Value Company 1.3 billion sales proceeds More concentrated 909 Bcfe proved reserves More oily portfolio 215 MMcfe/d 1Q 13 production Higher top line production growth 40 million 1Q13 EBITDAX Higher…
Key Programs Provide Multi-Year Drilling Opportunity KEY DRILLING ALTAMONT PROGRAMS LOCATIONS Eagle Ford 1,176 Wolfcamp 1,292 Altamont 1,386 HAYNESVILLE Haynesville 434 WOLFCAMP Total 4,288 EAGLE FORD 7 Note: As of…
Investments Generating High Returns Average Capital EUR IP 30 Working (MM) 1 (Mboe) 1 (Boe/d)1,2 IRR3 Interest Eagle Ford, Central 7.8 8.8 550 800 550 750 40 50% 89% Wolfcamp, Upper (B) 6.2 7.2 460 505 425 500 25 40% 100% Altamont…
Eagle Ford Key Strengths Northern Highest value program generating leading returns in portfolio Located in heart of the oil window Significant inventory of oil opportunities Well cost reduction and completion optimization…
Eagle Ford Generating Exceptional Growth Mboe/d Oil NGL Natural Gas Northern Area 30 350% CAGR Oil Volumes Central Area 25 (2Q10 -1Q13) 20 15 10 5 0 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q…
Wolfcamp Key Strengths Largest oil inventory in portfolio Development plan on 140 acre1 spacing in Wolfcamp B Encouraging well results from Wolfcamp C pilot 330 sq. mi. 3D seismic acquired/processing Added 3rd rig in January…
Wolfcamp: Continued Improvement 12 8,000 Optimizing completions and cost 10 7,000 savings from shared infrastructure 8 6,000 MM Feet 6 5,000 Continued reduction in well cost 4 4,000 2 3,000 Days spud to TD continue…
Multiple Horizons in the Midland Basin Wolfcamp A Dean (60 MMBO/Section) Gross Thickness Wolfcamp A 300400 Feet Wolfcamp B Largely Untested (51 MMBO/Section) Upper Gross Thickness Wolfcamp C Wolfcamp B Landing Zone 300+ Feet (48…
Wolfcamp (East): Efficient Development Illustration Existing central production facilities (CPF) Irion Existing frac ponds Reagan Existing water wells EP Energy pipelines EPE Pipelines to be completed in 2013 Third party…
Altamont Key Strengths Long-term oil asset with significant inventory Vertical development in Uinta Basin Evaluating horizontal opportunities (Uteland Butte and other areas) Improving capital efficiencies Expanding 3-D seismic…
Altamont: Significant Opportunities in Deep Thick Areas A A North South Uinta Altamont Monument Butte Mnts. Uinta Foothills Uinta Basin Peters Point A 6000 TD Oil Oil Natural Nat Gas Gas 10000 TD A Black Wax Source…
Altamont Production Growth MBoe/d, net 10 Oil Gas 10,000 8 8,000 6,0006 4,0004 2,0002 0 2005 2006 2007 2008 2009 2010 2011 2012 1Q 2013 Steady oil growth 17
Operating Efficiencies Higher activity while 2013 capex 3000 Total Well Per Foot Lateral Per Feet remaining at 1.7 billion - 1.8 billion 2500 2000 Now expecting an incremental 1500 10-15 completed wells in 2013 1000 500 Will…
1Q13 Highlights Oil production averaged 33 MBbls/d Up 41% from prior year Liquids represented 30% of production and 65% of revenue1 Adjusted EBITDAX of 330 MM Enhanced hedge position and liquidity 12 rigs running during quarter…
Financial Gearing Returns focused capital allocation Expanding margins and reserve value Business generating strong cash flow and earnings Oil production EBITDAX growth and margin expansion Built strong liquidity position Upsized…
Favorable Crude Oil Hedges Percentage of hedged volumes for 2013, 2014, and 2015 are based on 2013 expected domestic liquids volumes 18 90% 16 100.88 99.47 100 14 60% 100.01 12 97.41 96.18 MMBOE 10 95.85 95.42 /Bbl…
Natural Gas Hedges Protect Cash Flow Percentage of hedged volumes for 2013, 2014, and 2015 are based on 2013 expected domestic volumes 30 95% 5 4.28 4.25 4.10 25 4 4.03 4.23 20 3.57 70% 3 /MMBtu MMBOE 15 2 10 20%…
Building Premium Valuation Execution Capital program Cost control Oil production Profitability Strong investment returns Expanding margins Growing cash flows Running room Delivering on a Repeatable, multi-year inventory…
Investor Update June 2013
Appendix 26
2013 Outlook Production 125 135 Mboe/d Oil production growth rate 30% 50% increase from 2012 Base natural gas production decline rate 25% 30% decrease from 2012 Capital budget 1.7 - 1.8 billion Wells completed Eagle Ford 100+…
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