2013 BARCLAYS CEO ENERGY/POWER CONFERENCE SEPTEMBER 2013
Company Overview 2.3 billion enterprise value 1.1 billion market cap Proved reserves: 1.04 Tcfe 29% oil; 59% proved developed Risked resources: 2.9 Tcfe Established long-term inventory 4,000 gross drilling locations Nearly…
Value Creation Strategy: Exploit large, existing drilling inventory focus on two core oil programs Allocate capital to highest return assets Strive toward operational excellence Uphold high-level standards for health, safety and…
BBG Strengths Our people and portfolio People SAFETY AND ENVIRONMENT are key priorities in conducting our operations LOW-COST, EFFICIENT OPERATOR with excellent track record REGIONAL EXPERTISE in permitting, geology, marketing,…
First Half 2013 Successes Driving value from core programs Northeast Wattenberg Delineation underway Technology refinements leading to better results Uinta Oil Program 80-acre pilot program in Blacktail Ridge area showing…
2013 Guidance: 30-35% Growth in Oil Production Capital program 100% directed at oil growth Total capital of 465-485 million Finance through discretionary 2013 Capex % by Area cash flow and asset divestiture 5% Committed to keeping…
Oil Growth: Successfully Rebalancing Portfolio Achieving excellent growth in oil reserves and production % of Production Proved Oil Reserves (MMBbls) 50.8 2013e 94% 30.6 25% 13.0 Year-end 2012 Gross 7.8 2013 Risked Oil…
Financial Strength & Flexibility Balance sheet provides substantial liquidity 825 million credit facility 80 million drawn/26 million letter of credit as of 6/30/13 Redemption of 9.875% senior notes in July through credit facility…
Hedging Provides Price Predictability Solid 2013 hedge positions, 2H13 70% of production hedged 75% of oil hedged at 97.62/Bbl 75% of natural gas hedged at 3.72/MMBtu 2014 hedges: 44.9 Bcfe hedged at weighted average 8.61/Mcfe…
PROPERTY DESCRIPTIONS: CORE OIL DEVELOPMENT PROGRAMS
Core Oil Development Programs Uinta Basin, Uinta Oil Program DJ Basin, Northeast Wattenberg Focus 2012 year-end reserves: 47 MMBoe 2012 year-end reserves:12.5 MMBoe Year-over-year exit rate oil production Year-over-year exit rate…
DJ Basin: Lots Of Running Room Niobrara Formation Prime land position: 76,000 net acres Silo Field Northeast Wattenberg: 39,920 net acres Chalk Bluffs Wattenberg interior: 13,635 net acres Chalk Bluffs/Wyoming border: 22,580 net…
DJ Basin: Supportive Resistivity and Thermal Mapping Extensive geologic work and mapping done SPC_DATA_ITEMS - MAX_NBRR_RES_COMBINED [SPC] - combined 99% NBRR ILD and max resi Resistivity 20 120 20 100 80 60 40 20 0…
DJ Basin Niobrara Acreage Quality B bench of the Niobrara is the primary target and is present in and surrounding BBG leasehold B bench appears to have good hydrocarbon saturation across all acreage with additional accumulation in…
DJ Basin: Northeast Wattenberg Focus High growth potential in prime location Niobrara Formation One rig 1Q to four rigs 3Q Three recent wells completed with larger fracs and placed on artificial lift early have higher IP rates:…
DJ Basin: Trending in the Right Direction Rapidly increasing activity and moving on the learning curve Net Acreage Horizontal Wells Spud 80,000 50 40 60,000 30 40,000 20 20,000 10 0 0 YE11 1H12 YE12 1H13 2H11 1H12 2H12 1H13…
DJ Basin Timeline: Rapidly Building a Core Oil Program Value Creation 2011 2012 1H3 2H13 Build Position Implement Technology Delineate Position Average of 3 4-well pads: 30-day IP: 412 Boe/d Delineate Northeast Wattenberg; Drill…
Uinta Oil Program: Driving Substantial Oil Growth Expanded acreage in key areas Wasatch, Green River Formations Sizable 150,000 net acres Core positions added in South Altamont N and East Bluebell area Altamont/Bluebell Roosevelt…
Uinta Oil Program: Reducing Costs and Delivering Efficiencies BTR/LC Average Drilling Days BTR/LC Average Cost per Well Average Drilling Days Average Cost per Well 30 5.0 4.6 25.1 4.2 4.1 4.1 25 4.0 3.6 Dollars (Millions)…
Uinta Oil Program: Production Growth Uinta Oil Program growth Net Production (Boe/d) 9,000 6,841 7,500 6,000 4,500 3,320 3,000 1,500 0 2H11 1H12 2H12 1H13 105% increase over past 8 quarters Driving continued…
Uinta Oil Program: East Bluebell Execution Expanded acreage offers consistent geology and improved returns East Bluebell Lower Green River target 35,685 gross/21,070 net acres Planned development on 80-acre spacing Matrix…
Powder River Deep Program: New Program, Exciting Results Stacked oil play providing early positive test results BBG 2013 Drilling Program 161,605 gross/68,120 net acres 5 Shannon Wells Peer Results*: Avg. 30-day IP: 516 Boe/d (30-day…
Value Creation Opportunity Execution, Execution, Execution Deliver 30-35% growth in oil production 2013 over 2012 Realize value of DJ asset: Delineate 40,000 net acreage position in Northeast Wattenberg Test upside concepts in…
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