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Contango and Crimson Merger Overview – Contango Oil & Gas Co.

Contango Oil & Gas Co. · Apr 30, 2013 · 23 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. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 1
    Contango / Crimson Merger Overview Enhancing the Value, Expanding the Opportunity Joe Romano Chairman, President & CEO, Contango Allan Keel President & CEO, Crimson Exploration Joe Grady - SVP & CFO, Crimson Exploration
  2. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 2
    Transaction Summary Stock merger whereby Crimson becomes wholly-owned subsidiary of Contango Transaction 390 MM Transaction Value including 244 MM of Crimson debt Overview 900 MM pro forma Enterprise Value Each Crimson share to…
  3. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 3
    Combined Senior Management Name / Experience Title Chairman CEO Over 35 years of industry experience CFO Joseph J. Romano Former Senior Vice President and CFO of Zilkha Energy and CFO of Texas Chairman Joe Romano Allan Keel Joe…
  4. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 4
    A Win-Win Combination Strategic Combination Achieves Objectives Many of These Objectives Grow reserves and Transaction strongly accretive to Contango cash flow and reserves per share value per share Over 1 Tcfe of identified…
  5. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 5
    Strategic Rationale Matches Contangos liquidity with Crimsons low-risk, operated resource upside Provides critical mass Strategic Fit Optimizes capital structure / financial strength to accelerate development Strong combined…
  6. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 6
    Substantial Increase in Proved Reserves and Production Proved Reserves at 3/31/13 (Bcfe) (1) 1Q13 Production (MMcfepd) (2) Gas 360 120 NGL Oil 312 101 270 90 (MMcfepd) 196 65 216 (Bcfe) 69 180 60 116 36 154 49…
  7. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 7
    Accelerated Drilling Program Development Strategy Capital Outlook (1) Fund exploration and development with cash flow 2013 2014 Focus on oily areas Advance high-return opportunities with 2.0 meaningful scale 1.5 1.0 2 Operated…
  8. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 8
    Combined Company Areas of Operations Proved Reserves at 3/31/13 (Bcfe) (1) CO Oil 2% E. TX Duvernay Shale 16% Contango 1% NGL SE. TX Gas 15% Alta Energy JV 16% 69% (minority interest) 312 Crimson Bcfe Jonah Field Exaro…
  9. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 9
    Contango Asset Overview Proved Reserves at 3/31/13 (1) Dutch and Mary Rose A World Class Discovery FC F P V10% - 2007 Discovery C ate g o ry Bcfe (MM) (MM) - 1 Tcf OGIP - 150 MMcfpd Gross Prod PDP 115 506 387 PNP 81 306 185 To…
  10. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 10
    Crimson Asset Overview Proved Reserves at 3/31/13 (Bcfe) (1) Colorado & Other Colorado 6% East 6.3 Bcfe Proved Reserves Texas 0.6 MMcfepd Avg. Daily Production 3% 116 Upside: Niobrara CO South Bcfe Texas TX 49% Proved…
  11. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 11
    Complementary Asset Bases Asset Comparison Crimson Identified Resources (1) 1,200 Contango Crimson Offshore Onshore Unproved Parameter Conventional Unconventional 1,000 PUD Geologic Risk Yes Limited 800 1.1 Tcfe / 190 MMBoe of…
  12. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 12
    Crimson Woodbine Area Grace Hall 1H Madison Grace Hall C IP: 1,080 Boepd (Allocation) Unit 1H County Drilling Mosley B 1H 1,143 Boepd Mosley 1H IP: 1,203 Boepd Nevill-Mosley 1H IP: 1,164 Boepd WAC Gatlin 1H IP: 1,370…
  13. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 13
    Crimson Buda /Eagle Ford Area TX CXPO Areas of Operation Houston, TX 13
  14. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 14
    Financial Highlights Over 25% accretive to Contango 2013E cash flow per share Combined company will have strong liquidity position to develop Crimson resource plays Strong credit profile Repay Crimson second lien at closing, with…
  15. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 15
    Pro Forma Balance Sheet Strength to Grow Pro Forma Financial Strategy Repay revolver debt with cash Increase borrowing base to 250 MM, or more Refinance second lien debt with first lien Annual interest expense reduction from 21 MM…
  16. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 16
    Conservative Pro Forma Debt Profile Net Debt / Proved Reserves ( / Mcfe) Net Debt / PD Reserves ( / Mcfe) 2.00 4.00 3.58 1.70 1.48 1.52 1.53 1.50 1.35 3.00 2.79 2.90 2.33 2.36 1.00 1.95 1.98 1.00 0.82 2.00 1.33 0.54 0.60 0.50…
  17. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 17
    Conclusions Matches Contangos liquidity with Crimsons low-risk, operated resource upside Provides critical mass Strategic Fit Optimizes capital structure / financial strength to accelerate development Strong combined Management and…
  18. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 18
    Appendix 18
  19. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 19
    Crimson Drilling Inventory Unproved Resource Potential Locations (MMBoe) NPV10% (MM) % Oil Capex (MM) First Tier Opportunities Force (Woodbine) 30 7.4 203 94% 210 Iola / Grimes (Woodbine) 60 24.3 212 40% 280 Booth-Tortuga Area…
  20. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 20
    Contango FY 2Q13 Results Condensed Consolidated Balance Sheet (unaudited) Asse ts De c. 31, Jun. 30, MM 2012 2012 Cash and Equivalents 79.5 130.0 Other Current Assets 54.1 45.2 Net PP&E 380.0 396.3 Long Term Assets 47.6 53.1…
  21. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 21
    Contango FY 2Q13 Results Consolidated Statement of Operations (unaudited) 3 Months Ende d 6 Months Ende d MM except per share figures De c. 31, 2012 De c. 31, 2011 De c. 31, 2012 De c. 31, 2011 Total Ope rating Re ve nue s 34.9…
  22. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 22
    Crimson 2012 Results Condensed Consolidated Balance Sheet Asse ts De ce mbe r 31, MM 2012 2011 Cash and Equivalents - - Other Current Assets 24.8 21.1 Net PP&E 300.8 396.8 Long Term Assets 43.0 18.5 Total Asse ts 368.6 436.3…
  23. Contango and Crimson Merger Overview – Contango Oil & Gas Co. – slide 23
    Crimson 2012 Results Consolidated Statement of Operations 12 Months Ende d MM except per share figures De c. 31, 2012 De c. 31, 2011 De c. 31, 2010 Ope rating Re ve nue s Crude Oil Sales 78.6 36.8 22.0 Natural Gas Sales 26.5 56.7…

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