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ROADSHOW PRESENTATION – Resolute Energy Corp

Resolute Energy Corp · Sep 9, 2009 · 39 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. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 1
    Hilight Wyoming Colorado Roadshow Presentation Aneth New Mexico
  2. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 2
    Management Presenters Management team Resolute Nicholas J. Sutton Chairman and Chief Executive Officer James M. Piccone President, General Counsel and Secretary Theodore Gazulis Vice President and Chief Financial Officer Richard F.…
  3. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 3
    Investment Themes y Resolute is a fast-growing, oil-weighted exploration and production company focused on domestic onshore properties y Founded in 2004 by the founder of HS Resources and other key senior managers; Resolute has an…
  4. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 4
    Proven Management Team y Experienced, cohesive management team Long history of working together to build HS Resources as a public company y HS Resources IPO in 1992 at 14.00 per share (155 million firm value) Sold to Kerr-McGee in 2001…
  5. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 5
    Asset Overview y Proved reserves: 49.3 MMBoe Mowry Shale/Frontier Big Horn Basin Hilight Field y 1H 2009 net production: 7,578 Boe per day 70,800 Net Acres Powder River Basin y Proved R/P: 18 years - PD R/P: 11 years y Long lived…
  6. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 6
    Hilight Wyoming Colorado Property Overview Aneth New Mexico
  7. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 7
    Resolute Aneth Field Properties Reserves by product Reserves by category Gas NGL 0% 1% PDP PUD 32% 40% Oil PDNP 99% 28% Location Map Proved reserves: 43.9 MMBoe Utah 1H 2009 production: 5,437 Boe per day 2 miles PDNP…
  8. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 8
    Stabilized Production Base Since Acquisition Aneth Field Average daily gross oil production 18,000 16,000 November 2004 14,000 Chevron Acquisition Oil Production (Bbl per day) April 2006 12,000 ExxonMobil Acquisition…
  9. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 9
    Existing and New CO2 Flood Projects Aneth Unit Pilot CO2 flooded since 1998 Aneth Phases 1, 2, 3 All construction capital has been invested McElmo Creek Unit First injection Jul 2007 CO2 flooded since 1985 Oil response Jul 2008…
  10. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 10
    McElmo Creek Unit Historical Performance 10,000,000 Primary Secondary Recovery Waterflood Enhance Recovery Enhanced RecoveryCO CO22Flood Flood Depletion 1,000,000 Monthly Volume Incr 100,000 eme ntal prod u ctio n…
  11. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 11
    CO2 Projects Costs and Rates of Return 18.00 16.35 / Boe CO2 Facilities CO2 Costs 15.47 / Boe 14% IRR 16.00 27% IRR 14.00 7.52 12.00 10.72 / Boe 7.05 45% IRR Cost ( / Boe) 10.00 8.43 / Boe 23% IRR 8.00 5.65 5.32 /…
  12. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 12
    Significant Organic Upside Resolute Aneth net production and capital expenditure forecast 5,000 % CAGR: 16.3 4,000 Annual Production 3,000 (MBoe) 2,000 1,000 0 2010 2011 2012 2013 2014 PDP PDNP PUD Net capital -…
  13. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 13
    Upside From Improved Recovery Incremental 1% recovery results in 16% increase to Resolute proved reserves (8.1 MMBbl net) Cumulative Gross Estimated Original Oil Current Proved Ultimate Ultimate Oil-in-Place Production Recovery…
  14. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 14
    Overview of Resolute CO2 Operations Close to largest US CO2 source y Proven technology Miscible CO2 flood first successfully implemented in 1972 by Chevron 105 active miscible CO2 floods in the US, producing Natural Source 250…
  15. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 15
    Wyoming - Hilight Field Reserves by product Reserves by category PUD 1% Oil 22% PDNP 38% Gas 52% PDP 61% NGL 26% Location Map Wyoming 20 miles Total net reserves: 5.4 MMBoe y Acquired Hilight Field in July 2008 1H…
  16. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 16
    Wyoming - Hilight Field Growth Opportunities y Muddy B horizontal drilling Prior operator drilled three horizontal wells; results pending y Niobrara / Turner sandstones Termo 820 MBbl and 397 MMcf produced from 10 wells in Hilight…
  17. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 17
    Big Horn Basin y 70,800 net acres y Mowry Shale emerging play y Play attributes y Major regional source rock y Oil prone y 300-500 feet thick y Naturally fractured y AMI with industry partner y Mowry activity y Big Horn Basin, WY…
  18. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 18
    Black Warrior Basin y 41,200 net acres APPALACHIAN y Chattanooga Shale THRUST emerging play y CBM established play y Drilled and tested a vertical well y Participation Agreement with industry partner y Acreage earned by reentering…
  19. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 19
    Hilight Wyoming Colorado Financial Overview Aneth New Mexico
  20. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 20
    Summary Financials ( in millions, except as noted) 2006 2007 2008 1H 2008 1H 2009 Sales volumes Oil and NGL (MBbl) 1,796 2,240 2,151 1,089 1,033 Gas (MMcf) 3,042 3,120 4,030 1,598 2,029 Total equivalent (MBoe) 2,303 2,760 2,823…
  21. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 21
    Margins/Cost Structure ( per Boe) 2006 2007 2008 1H 2008 1H 2009 Revenues 56.66 61.91 72.99 76.43 48.52 Expenses Operating expenses * 16.87 16.69 20.06 19.22 17.82 Taxes 6.85 7.42 10.42 11.02 5.21 G&A ** 2.66 2.15 3.29 2.41 1.41…
  22. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 22
    Hedge Portfolio y Significant portion of forecast oil production Crude oil hedges hedged through 2013 Swap Collar Volumes Swap Volumes Floor Ceiling Year (Bbl/d) Price (Bbl/d) Price Price 76% of second half of 2009 hedged at Rem…
  23. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 23
    Hilight Wyoming Colorado Transaction Summary Aneth New Mexico
  24. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 24
    Transaction Overview Resolute Holdings to go public through a business combination with Hicks Acquisition Company I, Inc. (AMEX: TOH) Transaction Company will be renamed Resolute Energy Corporation Resolute will apply for listing on…
  25. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 25
    Transaction Valuation and Ownership ( in millions, except per share data) Pro forma valuation Pro forma equity ownership (1) Implied Firm Value 582 Pro forma net debt 69 HACI founder 8.8% Pro Forma Fully Diluted Equity Value 513…
  26. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 26
    2009 2010 Estimates 2009 2010 Production estimates (MBoe) 2,655 2,642 Daily rate (Boe/day) 7,274 7,238 Commodity prices NYMEX (1) Realized (2) NYMEX Realized Oil (/Bbl) 63.43 50.63 69.03 62.71 Gas (/MMBtu) 3.85 3.61 5.58 5.48 Hedge…
  27. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 27
    Peer Group Comparison Valuation Firm value / Boe Firm value / 2010E EBITDA Median 12.0x Median 30.00 27.01 Core Peer Group: 24.81 Core Peer Group: 7.6x 24.81 All Peers: 17.31 All Peers: 6.2 25.00 9.0 8.3x 7.6x 7.4x 20.00 18.52…
  28. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 28
    Peer Group Comparison Financial Metrics Net debt / 2010E EBITDA Net debt / Proved reserves ( per Boe) 5.0x Median Median Core Peer Group: 1.8x 10.00 Core Peer Group: 5.37 All Peers: 1.6 All Peers: 4.79 4.0 3.5x 8.00 7.11 3.1x 3.0…
  29. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 29
    Hilight Wyoming Colorado Conclusion and Q&A Aneth New Mexico
  30. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 30
    Investment Themes y Resolute is a fast-growing, oil-weighted exploration and production company focused on domestic onshore properties y Founded in 2004 by the founder of HS Resources and other key senior managers; Resolute has an…
  31. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 31
    Question and Answer 32
  32. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 32
    Hilight Wyoming Colorado Appendix Aneth New Mexico
  33. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 33
    Resolute Management Biographies Name Title Summary Nicholas J. Sutton Chairman and Chief Executive Officer Founder; assumed current position at inception January 2004; Board member Director of Kerr-McGee from 2001 to 2004 Co-founder and…
  34. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 34
    Blue Chip Sponsorship Hicks Acquisition Company y Formed in 2007 for the purpose of acquiring an operating company October 2007 IPO raised over 550 million y Led by Thomas O. Hicks, Chairman of the Board 35+ years of private equity…
  35. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 35
    Resolute Core Comp Universe Denbury Resources Encore Acquisition Company Concho Resources Company focused on tertiary Rockies focus 56% developed (similar to Resolute) recovery through CO2 floods More than 65% oil reserves More than 60%…
  36. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 36
    2010 Financial Projection 2010 2010 Production Q1 Q2 Q3 Q4 Full Year P&L Q1 Q2 Q3 Q4 Full Year Utah Production Oil and Gas Revenue 35 36 39 40 150 Oil (MBbl) 488 496 503 509 1,996 Hedge Gains/(Losses) 2 2 1 1 5 Gas 29 29 29 28 115…
  37. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 37
    Pro Forma Capitalization y Pro forma capital structure strengthens Resolutes balance sheet and cash flows Allows for future growth opportunities Creates opportunity to invest organically and seek acquisitions Pro forma capitalization…
  38. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 38
    Positive Long-term Oil Price Outlook Global oil dependence is projected to continue Strong forward curve 110 150 Global Consumption (MMBbl/d) 105 125 WTI Price (/Bbl) 100 100 94.00 85.50 71.75 95 75 90 50 85 25 80…
  39. ROADSHOW PRESENTATION – Resolute Energy Corp – slide 39
    Leveraged to Oil REN DNR WLL OXY CLR EAC PLLL CXO PXP VQ SFY BRY PXD APA ME APC NBL SM DVN BEXP NFX KWK FST CRZO XEC PVA RRC EOG XTO SD CRK XCO DPTR CHK HK ROSE UPL BBG GDP COG SWN CXG 0% 10% 20%…

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