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IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc.

Warren Resources Inc. · Apr 20, 2015 · 30 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 OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 1
    Tunkhannock, Pennsylvania Wilmington Field, California Atlantic Rim, Wyoming IPAA OGIS New York April 2015 April 20, 2015
  2. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 2
    Areas of Operations Marcellus Properties 5,289 net acres in Northeast PA 75% working interest California Properties WY PA Core-of-the-core Marcellus Wilmington Field in the Los Angeles Basin 100% HBP or held by operations with CA…
  3. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 3
    2014 Reserve Summary Net Oil Net Gas Net Total PV-0 PV-10 Reserve Category (MMBbls) (Bcf) (Bcfe) (MM) (MM) PDP 8 153 204 574 396 PDNP 0 50 51 117 64 PUD 8 124 173 461 149 Total Proved 16 327 428 1,152 609 PROB 4 53 75 227 77 POSS…
  4. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 4
    Business Strategy 1. Right-size Capital Spending Cut 2015 budget from initial plan Reduced G&A with further reduction proposals if necessary 2. Optimize Current Assets and Protect Production Against Commodity Risk Targeting LOE…
  5. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 5
    2015 Guidance 2015 Capex Budget (MM) 2015 Production Guidance Full Year ending WTU December 31, 2015 3 Oil (MBbl) 900 1,000 Marcellus NWU 13 5 Gas (MMcf) 28,000 30,000 Total - Oil Equivalent (Mboe) 5,567 6,000 Total - Gas…
  6. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 6
    Operational Efficiency Targets Key Points Marcellus Drilling Performance Continually capturing operational efficiencies Days vs. Depth Drilling Days while remaining focused on additional tangible 0 5 10 15 20 25 30 35 0…
  7. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 7
    Marcellus Operations Investing in the Future of Energy NASDAQ (WRES) 8
  8. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 8
    2015 Marcellus Operational Plan Key Points 2015 Development: Upper Marcellus GIP Map 2015 Capex: 13 million Drilling Plan Selected two high quality locations to test Upper Marcellus Both locations drilled and pipe cemented…
  9. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 9
    Field Infrastructure and Marketing Key Points Pipeline and Gathering System Map Operational infrastructure system in place to support full field development All volumes gathered by Regency (formerly PVR) Two planned compressor…
  10. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 10
    Upside in the Marcellus 3 Ways to Win Upside Initiatives Resource Potential Upside(1) 600 1. Increase EURs booked in proved reserves by proving-up greater 500 recovery factor of OGIP 400 200 Bcf of Natural Gas 2. Prove…
  11. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 11
    Proving-up greater recovery factor of OGIP Key Points Example of Marcellus Production Performance Actual production continues to Proved - 50% RF POSS - 65% RF Actual Production outperform NSAI proved estimates 100,000 Decline from…
  12. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 12
    Upper Marcellus Potential Overview Upper Marcellus Opportunity to significantly increase reserves through targeting of the Upper Marcellus Cabot Oil & Gas, an offset operator to Warren, has reported highly encouraging preliminary…
  13. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 13
    Northeast Takeaway Expansion Projects 6 PennEast: 1 Bcf/d 5 Atlantic Sunrise: 1.7 Bcf/d DTI Iroquois (NIMO East): 0.3 Bcf/d 4 Algonquin AIM: 0.3 Bcf/d Takeaway (Bcf/d) Constitution Pipeline: 0.7 Bcf/d 3 Transco Leidy…
  14. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 14
    Lower NE PA Well Backlog (wells drilled but not producing) 1200 Rose Lake (230) 1000 Transco NE connector (100) Constitution (650) 800 TCO East Side (310) TGP Niagara (158) Transco Leidy SE (525) Wells 600 AGT AIM…
  15. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 15
    California Operations Investing in the Future of Energy NASDAQ (WRES) 16
  16. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 16
    California: Wilmington Field Overview Wilmington Townlot Unit (WTU) Beverly Hills Salt Lake Los Angeles Operated by Warren with 99% WI / 81% NRI Chevice Hills Montebello 1,440 gross (1,424 net) acres Englewood Bandin Brea-Olenda…
  17. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 17
    California: Wilmington Development Horizontal / sinusoidal development Producing Zones SW Tar NE Drill highly targeted wells in 5 stacked pay Ranger - 3000' Terminal zones from 2,600 to 6,000 containing 14 Union Pacific…
  18. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 18
    Wilmington Operational Efficiency Targets Key Points Wilmington Drilling Performance Team has been very successful in Days vs. Depth WTU Days vs. Depth WTU Tar Days vs. Depth NWU capturing efficiency gains during Ranger Ranger…
  19. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 19
    Wyoming Operations Investing in the Future of Energy NASDAQ (WRES) 20
  20. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 20
    Wyoming: Atlantic Rim Operations Overview Atlantic Rim Project Commercial CBM production established by Warren in 2002, Anadarko operator through end of 2012 Warren approved as operator of the Spyglass Hill Unit in the Atlantic…
  21. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 21
    Wyoming: Atlantic Rim - Sub-unit Detail Doty Mountain Area Summary as of Dec. 31, 2014 Catalina Unit 4Q 2014 (ESCR operated) Avg. Net Proved Current Producing Production Reserves Sun Dog Area Operator WI (%) Wells (MMcf/d) (Bcf)…
  22. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 22
    Wyoming Deep Potential: Producing Zones Atlantic Rim Zones Owns certain deep rights in a portion of the Atlantic Rim area CBM current 60,000 net acres potentially Warren CBM production current Warren production prospective for oil…
  23. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 23
    5. Financial Overview Investing in the Future of Energy NASDAQ (WRES) 24
  24. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 24
    Historical Financial Results Production (MMcfe/d) Revenue (MM) Oil Production (MMcfe/d) Gas Production (MMcfe/d) 160.0 150 80 129 122 62.5 120.0 60 103 45% 48% 88 40% 44% 48% 33.3 35.2 80.0 40 44.1 63 26.3 28.7 28.7 15.1…
  25. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 25
    Financial Hedges Oil Hedges(1) Natural Gas Hedges(1) 2,000 60,000 50,000 1,500 40,000 1,000 30,000 20,000 500 10,000 0 0 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q15 2Q15 3Q15 4Q15 1Q16 Derivatives Quantity(2) Period…
  26. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 26
    Sales Agreements - Marcellus 60 50 40 Volumes (MMcf/d) 30 20 10 0 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 P&G Contract NYMEX less 1.10/Mcf: 24.4 MMcf/d P&G Contract NYMEX plus 0.03/Mcf: 24.4 MMcf/d Physical…
  27. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 27
    Appendix Investing in the Future of Energy NASDAQ (WRES) 28
  28. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 28
    Proved Reserves: YE 2014 Asset Summary Natural Gas Reserves 500 Estimated Proved Reserves of 428 Bcfe 375 76% gas, 60% proved developed (PDP/PDNP) Bcf 250 124.1 125 203.3 - Gas PDP/PDNP Gas PUD Estimated Proved…
  29. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 29
    Non-GAAP Reconciliation: EBITDA Year Ended December 31, (M M ) 2011 2012 2013 2014 Net Income 21.6 15.5 30.4 24.0 Interest Expense 3.2 3.3 3.0 9.6 Income Taxes (0.1) - 0.1 (0.0) DD&A 30.5 47.2 44.8 56.5 EBITDA 55.2 66.0 78.3…
  30. IPAA OGIS NEW YORK APRIL 2015 – Warren Resources Inc. – slide 30
    Non-GAAP Reconciliation: Year-end 2014 SEC PV-10 PV-10 Reconciliation1 December 31, 2014 (in 000s) Proved developed 395,682 Proved developed non-producing 64,377 Proved undeveloped 149,067 PV-10 Value 609,126 Less: future…

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