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ANALYST DAY – Resolute Energy Corp

Resolute Energy Corp · Jun 19, 2013 · 65 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. ANALYST DAY – Resolute Energy Corp – slide 1
    Energy Corporation Resolute Energy is a regionally diversified growth oriented E&P company focused on long-lived Analyst day domestic oil producing assets June 19, 2013
  2. ANALYST DAY – Resolute Energy Corp – slide 2
    Resolute analyst day Conference call information Resolute Energy Corporation will hold a webcast June 19, at 3:00 p.m. Eastern Time, to allow analysts and shareholders the opportunity to hear management provide a comprehensive…
  3. ANALYST DAY – Resolute Energy Corp – slide 3
    Resolute overview Company history Market capitalization1 642.9 million SEC PV102 1.26 billion 2004 Resolute formed Long term debt3 792 million Aneth Field: Assets Shares outstanding4 76.9 million acquired from Chevron…
  4. ANALYST DAY – Resolute Energy Corp – slide 4
    Our operating areas Pro forma proved reserves are 89% liquids Areas of operation Proved reserves by area1 Bakken properties Wyoming properties Aneth Field Denver headquarters properties 2013 capital expenditures by…
  5. ANALYST DAY – Resolute Energy Corp – slide 5
    Company overview In Aneth Field Resolute continues to increase production by expanding and optimizing water and CO2 floods In the Powder River Basin Resolute is targeting exploration plays in the Turner, Mowry and Minnelusa In the…
  6. ANALYST DAY – Resolute Energy Corp – slide 6
    Agenda Wednesday, June 19, 2013 11:30 pm to 12:00 pm Registration and reception 12:00 pm to 1:00 pm Lunch 1:00 pm to 1:15 pm Company overview 1:15 pm to 2:30 pm Aneth Field 2:30 pm to 2:45 pm Break 2:45 pm to 4:00 pm Permian…
  7. ANALYST DAY – Resolute Energy Corp – slide 7
    2013 production and cost guidance 50% production growth, improved cash margin Improvement 2012 actual 2013 range vs. 20121 Projected total production (MBoe) 3,409 4,750 5,500 50% Boe/day 9,313 13,000 15,000 50% Projected costs LOE (…
  8. ANALYST DAY – Resolute Energy Corp – slide 8
    Aneth Field
  9. ANALYST DAY – Resolute Energy Corp – slide 9
    Aneth Field introduction Foundation asset Aneth Field gross oil production forecast Fields like Aneth are rare: 16,000 Excellent current economics 14,000 and cash flow 2013 12,000 Large OOIP, presenting ongoing opportunities to…
  10. ANALYST DAY – Resolute Energy Corp – slide 10
    Aneth Field introduction Foundation asset Aneth Field 1.5 billion barrels OOIP 43,000 gross acres 719 wells 391 producers 328 injectors Produced 430 MMBbl of oil through 2012 Net proved reserves of 56.3 MMBoe1 Q1 2013 production…
  11. ANALYST DAY – Resolute Energy Corp – slide 11
    Aneth Field geology Giant conventional oil field PhiH: Lower Ismay and Desert Creek Lower Ismay Gothic shale Zone I A B Desert Zone II Creek Carbonate stratigraphic trap C Conventional oil productive reservoir Porosity…
  12. ANALYST DAY – Resolute Energy Corp – slide 12
    Aneth Field economics Strong netbacks per barrel of production 2012 actual 1 / Boe Category 2012 Operating income 47.06 Overhead 1.58 Operating income = 47.06 Severance taxes 5.13 Ad valorem taxes 7.43 Workover 8.50 Equipment…
  13. ANALYST DAY – Resolute Energy Corp – slide 13
    Aneth Field cash flow Free cash flow from Aneth funds growth Net production for 2013 is expected to be 6,400 to 6,700 Boe/day This reflects the sale of working interest to Navajo Nation Oil and Gas Company in January 2013 Assuming…
  14. ANALYST DAY – Resolute Energy Corp – slide 14
    Historical CO2 response by unit 25 years of CO2 response at Aneth Field McElmo Creek Unit CO2 flood initiated in McElmo Creek Unit in in 1985. Oil production increased by 30% over a 13-year period1 Production returned to a state of…
  15. ANALYST DAY – Resolute Energy Corp – slide 15
    Aneth Unit CO2 flood Continuing production growth Aneth Unit PhiH map Aneth Unit encompasses 17,000 gross acres with OOIP of 534 MMBbl Texaco initiated a successful CO2 pilot in 1998 in the northeast corner of the unit, but it…
  16. ANALYST DAY – Resolute Energy Corp – slide 16
    Aneth Unit CO2 project area performance Production increase of 123% CO2 project area oil production (gross) 4,000 3,500 From inception of the CO2 project area flood, production has increased 123% 3,000 Oil production…
  17. ANALYST DAY – Resolute Energy Corp – slide 17
    Aneth Unit CO2 economics Attractive project economics Aneth costs ( million gross) Type Spent to date Future discounted1 Total CO2 99 189 288 Facilities 224 107 331 Total 323 296 619 Total incremental recovery2 45 MMBoe…
  18. ANALYST DAY – Resolute Energy Corp – slide 18
    McElmo Creek Desert Creek IIC project Bypassed zone within active CO2 flood area Lower Ismay DC IIC was a prolific producing zone under waterflood starting in the 1960s Zone was abandoned in the 1970s due Gothic shale to high…
  19. ANALYST DAY – Resolute Energy Corp – slide 19
    DC IIC project area waterflood Exceptional results from waterflood reinitiation DC IIC waterflood pair (gross) Total capital per well pair 1.8 million Initial incremental production 110 Bbl/day Total reserves 60.1 MBO Finding…
  20. ANALYST DAY – Resolute Energy Corp – slide 20
    McElmo Creek DC IIC development Project background and PhiH map McElmo Creek Unit Production is 100% oil CO2 pilot project commenced in 2012 Incremental production expected to grow 29% per year between 2014 and 2019; consistent…
  21. ANALYST DAY – Resolute Energy Corp – slide 21
    McElmo Creek DC IIC economics Significant resource in bypassed zone McElmo Creek DC IIC costs ( million gross) Type Spent to date Future discounted1 Total CO2 - 51 51 Facilities 34 137 171 Total 34 188 222 Total incremental…
  22. ANALYST DAY – Resolute Energy Corp – slide 22
    Ratherford Unit introduction Significant unbooked upside Ratherford Unit Significant opportunity exists to enhance production in Ratherford Unit through waterflood optimization and future CO2 flood Optimize existing waterflood by…
  23. ANALYST DAY – Resolute Energy Corp – slide 23
    Ratherford CO2 flood development projects Two project areas sum of DC IIC and DC I PhiH Ratherford Unit DC IIC project area Resource potential is not currently included in our engineering Resource potential of 11 MMBbl net to…
  24. ANALYST DAY – Resolute Energy Corp – slide 24
    Aneth Field other opportunity inventory High rate of return projects Infill laterals (gross) New drills (gross) Gross capital 0.8 1.2 million per project Gross capital 1.8 2.3 million per project 30 day IP 30 65 Bbl/day 30 day IP 65…
  25. ANALYST DAY – Resolute Energy Corp – slide 25
    B-414 case study B-414 PhiH map B-414 -960 DC-IIA -960 DC-IIB Completed well cost 2.0 million Cumulative production 111 MBbl through Q1 2013 Peak daily rate 832 Bbl/day C-123 Injector Project rate of return 30% Producer…
  26. ANALYST DAY – Resolute Energy Corp – slide 26
    Membrane plant Membrane plant Current recycled gas stream in Aneth and McElmo Creek Units contains high quantities of hydrocarbons Membrane plant designed to separate methane and NGL from re-injected CO2 stream Peak input of 100…
  27. ANALYST DAY – Resolute Energy Corp – slide 27
    CO2 supply Long term contract in place McElmo Dome CO2 field Long term contract with Kinder-Morgan Resolute pipeline connects field to McElmo Dome Current capacity: 68 MMcf/day with existing pump at McElmo Creek Unit Plan to…
  28. ANALYST DAY – Resolute Energy Corp – slide 28
    Aneth Field potential Reserve upside from identified projects Total proved Area Resource potential reserves Inventory (Average WI% / NRI%) (MMBoe) (MMBoe)1 Aneth Unit (62% WI / 54% NRI) Vertical wells and CO2 projects 29 -…
  29. ANALYST DAY – Resolute Energy Corp – slide 29
    Permian Basin
  30. ANALYST DAY – Resolute Energy Corp – slide 30
    Permian Basin introduction In Q2 2011 Resolute acquired acreage and began drilling in Reeves County in the Delaware Basin (Reeves County) Resolute subsequently acquired a small producing asset in the Midland Basin (OTB) Resolute…
  31. ANALYST DAY – Resolute Energy Corp – slide 31
    Permian Basin Transformational asset base 41,100 gross (20,300 net) acres Permian Basin map 67% HBP; 90% operated 70% oil (based on Q1 production) Denton 55% proved developed Northwest Midland Q1 pro forma net production 5,030…
  32. ANALYST DAY – Resolute Energy Corp – slide 32
    Gardendale overview Assumed operating control on April 1st Gardendale 4,600 gross and net acres Q1 pro forma net production was 3,140 Boe/day1 2013 drilling objectives: Three horizontal wells targeting the Wolfcamp B Twenty…
  33. ANALYST DAY – Resolute Energy Corp – slide 33
    Gardendale stratigraphic column Horizontal and vertical potential Midkiff 1818H Lower Clearfork Planning three Wolfcamp horizontals in 2013 Primary horizontal target is the Wolfcamp B 1st Spraberry Positive offset results Positive…
  34. ANALYST DAY – Resolute Energy Corp – slide 34
    Gardendale well activity Wolfcamp B horizontal results Gardendale Nearby Wolfcamp B activity1 24 hr IP rate 30 day IP rate Resolute (Boe/day) (Boe/day) horizontal locations 1 Diamondback ST NW 2501H 1,054 655 2 Diamondback ST…
  35. ANALYST DAY – Resolute Energy Corp – slide 35
    Gardendale horizontal Midkiff 1818H Anticipate spud in early July Drilling Targeting Wolfcamp B horizon at 9,800 feet TVD Approximately 4,300 feet of cased and cemented lateral Drill and case cost: 3.1 million Completion…
  36. ANALYST DAY – Resolute Energy Corp – slide 36
    Gardendale horizontal Type curve and economics1 Gardendale horizontal wells Gross capital 7.1 million per well 30 day IP 400 1,000 Boe/day EUR (gross) 300 600 MBoe Btu per Mcf 1,300 Rate of return 25% 45% Locations 22…
  37. ANALYST DAY – Resolute Energy Corp – slide 37
    Gardendale vertical development overview Halfway through 2013 vertical drilling plan Gardendale Resolutes current plan is to drill twenty vertical wells in 2013 Ten wells have been spud to date We anticipate completing three to…
  38. ANALYST DAY – Resolute Energy Corp – slide 38
    Gardendale vertical Type curve and economics 160 Gardendale vertical wells 140 Gross capital 2.1 million per well 30 day IP 60 200 Boe/day 120 EUR (gross) 125 MBoe Bbl/day, Mcf/day and Boe/day 100 Btu per Mcf 1,300 Rate…
  39. ANALYST DAY – Resolute Energy Corp – slide 39
    Reeves County overview Potential horizontal development Reeves County Acreage acquired in 2011 and 2012 24,000 gross (8,200 net) acres Appaloosa Vertical drilling program commenced in Q2 2011 21 gross (10.6 net) wells Two…
  40. ANALYST DAY – Resolute Energy Corp – slide 40
    Reeves stratigraphic column Horizontal and vertical potential 3rd Bone Spring 1,250 feet of stacked potential in the Wolfcamp Upper Wolfcamp Organic rich shales and carbonates with encouraging log characteristics Resolutes…
  41. ANALYST DAY – Resolute Energy Corp – slide 41
    Reeves County horizontal activity Resolute potential horizontal locations Delaware Basin Horizontal location Apache permit 11/12 Cimarex BHP spud 1/13 spud 4/13 Apache spud 2/13 Cimarex 6 spud 3/13 EOG spud 3/13…
  42. ANALYST DAY – Resolute Energy Corp – slide 42
    Nearby horizontal activity Offset results1 Well name Zone Reported production rates Lateral length One day IP: 1 EOG Oil: 635 Bbl/day Wolfcamp A HR 56-1001H NGL: 480 Bbl/day 4,100 Gas: 3,100 Mcf/day One day IP: EOG Oil: 377…
  43. ANALYST DAY – Resolute Energy Corp – slide 43
    Delaware Basin horizontal wells Type curve and economics1 Delaware Basin horizontal wells Gross capital 7.0 8.0 million per well 30 day IP 250 700 Boe/day EUR (gross) 500 1,000 MBoe Btu per Mcf 1,230 Rate of return 20% 40%…
  44. ANALYST DAY – Resolute Energy Corp – slide 44
    OTB and Big Spring Area overview OTB and Big Spring 4,400 gross (2,200 net) acres Howard More than 90% HBP OTB Vertical Wolfberry asset Martin Big Spring 42 gross (25.4 net) producing wells Q1 pro forma production 800…
  45. ANALYST DAY – Resolute Energy Corp – slide 45
    OTB and Big Spring vertical Wolfberry Midland Basin Wolfberry development Targeting Mississippian at 10,500 feet through Wolfcamp at 8,500 feet Spraberry Typically a seven stage completion not including the Spraberry Drill and…
  46. ANALYST DAY – Resolute Energy Corp – slide 46
    Broader Big Spring area opportunity inventory Inventory of high rate of return projects Behind pipe Spraberry at 7,000 to 8,000 feet Anticipate completing the Spraberry after de-pressuring deeper zones approximately eighteen months…
  47. ANALYST DAY – Resolute Energy Corp – slide 47
    Denton Field overview Acquired producing asset in 2012 Denton Field Siluro-Devonian carbonate field discovered in 1949 Highly faulted and fractured anticline Cumulative production through December 2012: 110 MMBbl of oil 100 Bcf…
  48. ANALYST DAY – Resolute Energy Corp – slide 48
    Denton Field opportunities Legacy field with significant upside Improving field economics by lowering operating costs and Woodford increasing reliability Enhance the field through capital projects Infill drilling down to 20…
  49. ANALYST DAY – Resolute Energy Corp – slide 49
    Permian Basin potential Significant growth from horizontal activity Total proved Resource potential Area Inventory (MMBoe)1 (MMBoe) Gardendale (100% WI / 75% NRI) Vertical 14 40 locations 2.3 3.8 22 locations with Horizontal -…
  50. ANALYST DAY – Resolute Energy Corp – slide 50
    Wyoming 51
  51. ANALYST DAY – Resolute Energy Corp – slide 51
    Wyoming introduction Established operations with the 2008 acquisition of Hilight Field Our PDP production provides excellent free cash flow Powder River Basin Our acreage position is well situated and provides a base from which…
  52. ANALYST DAY – Resolute Energy Corp – slide 52
    Hilight Field Excellent cash flow and exploration upside Hilight Field 49,600 gross (45,400 net) acres 100% HBP T46N-R72W T46N-R71W T46N-R70W RESOLUTE JAYSON UNIT T46N-R69W 100% operated RESOLUTE GRADY UNIT W 15% oil…
  53. ANALYST DAY – Resolute Energy Corp – slide 53
    Hilight Unit stratigraphic column Stacked prospective horizons GR R_DEEP Horizontal targets 0 200 2 200 Niobrara Niobrara C Current focus is on horizontal 8500 Turner potential and vertical Mowry Niobrara E recompletes…
  54. ANALYST DAY – Resolute Energy Corp – slide 54
    Turner prospect area Plan one horizontal test in 2013 Turner prospect area T45N-R72W T45N-R71W T45N-R70W 12,000 gross acres in the southwestern portion of Hilight Field RESOLUTE Plan CENTRAL HILIGHT UNITto drill one horizontal…
  55. ANALYST DAY – Resolute Energy Corp – slide 55
    Nearby Turner well activity Commencing horizontal program in 2013 Turner prospect area T45N-R72W T45N-R71W T45N-R70W Prospects supported by 3D seismic and subsurface well control RESOLUTE CENTRAL HILIGHT UNIT 46 horizontal…
  56. ANALYST DAY – Resolute Energy Corp – slide 56
    Turner well activity Porosity-thickness map correlates offset results Turner prospect area Distribution of offset well EUR with PhiH similar to southern Hilight acreage supports type curve projections Extended production results…
  57. ANALYST DAY – Resolute Energy Corp – slide 57
    Turner horizontal Type curve and economics Turner horizontal well Gross capital 5.8 7.3 million per well 30 day IP 320 660 Boe/day EUR (gross) 230 350 MBoe Rate of return 14% 60% Locations 40 Resource potential (gross)1 9 14…
  58. ANALYST DAY – Resolute Energy Corp – slide 58
    Turner development overview Commencing horizontal program in 2013 Turner prospect area Full development on 320 acre spacing 40 gross well locations Additional downspacing in the Turner untested in adjacent areas Castle…
  59. ANALYST DAY – Resolute Energy Corp – slide 59
    Mowry overview The Mowry is the black shale source rock for the Muddy formation oil and gas reserves and production Few offsets drilled to date Recent advances in the industrys understanding of source shales suggest that resource…
  60. ANALYST DAY – Resolute Energy Corp – slide 60
    Mowry prospect area Plan completions in three existing vertical wells Mowry prospect area T47N-R70W T47N-R69W 9,600 gross acres within a T47N-R71W Arco Bishop vertical well seismically defined project area EUR - 200 MBoe Mowry…
  61. ANALYST DAY – Resolute Energy Corp – slide 61
    Big Horn Basin exploration Exploration potential Big Horn Basin lease map MT WY Resolute leasehold 74,000 net acres Federal leases, ten year term; average three years remaining Other operators in area include Mo Big…
  62. ANALYST DAY – Resolute Energy Corp – slide 62
    Bakken 63
  63. ANALYST DAY – Resolute Energy Corp – slide 63
    Williston divestiture status Bakken BMO Capital Markets providing advisory services Multiple bids received Purchase and sale agreements being negotiated Other Due diligence is ongoing Anticipate July/August closings ND 64
  64. ANALYST DAY – Resolute Energy Corp – slide 64
    Resolute potential Reserve upside from identified projects Total proved Resource Total Area reserves potential (MMBoe) (MMBoe)1 (MMBoe) Aneth Field 56 10 17 66 73 Permian Basin 24 46 204 70 228 Northern Rockies 7 7 12 15 19…
  65. ANALYST DAY – Resolute Energy Corp – slide 65
    Key investment highlights Well-positioned to execute growth plan High quality base of long-lived oil producing properties Portfolio of significant organic development opportunities Exploration projects poised to provide…

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