CLAYTON WILLIAMS ENERGY, INC. UBS Leveraged Finance Conference May 18, 2011 1
Experienced Management Team Clayton W. Williams, Jr. Ron D. Gasser President & CEO Engineering Manager 53 years with Clayton Williams Energy 8 years with Clayton Williams Energy Mel G. Riggs Sam Lyssy Executive Vice President &…
Company Overview CWEI/NASDAQ Oil focused strategy Regionally focused on Permian Basin and Austin Chalk areas Substantial net acreage position in Permian Basin and Austin Chalk Own and operate 14 drilling rigs Experienced team…
Key Company Developments Clayton Williams legacy assets from the Giddings area continue to play prominent role in CWEI success Acquired significant position in Permian Basin through Southwest Royalties, Inc. in 2004 Acquired…
CWEI Core Resources Significant holdings in prime oil-producing regions Permian Basin Giddings Area 1Q 2011 Avg Daily Net 1Q 2011 Avg Daily Net Production 9,115 BOE Production 4,371 BOE 2010 Proved Reserves Permian Basin 2010…
Proved Reserves (SEC Case) at 12/31/2010 Reserve replacement of 425% Trend is towards higher concentration in oil By Location Proved Reserves (MMBOE) 51.1 100% 4% 18% 15% 80% 22% 38.1 23% 26% 33.6 60% 40% 59% 20% 59% 74%…
PV-10 Reserve Value By Case December 31, 2010 ( in millions) 1,290 1,250 325 992 1,000 225 750 500 964 767 250 0 SEC Case Futures Pricing Case Proved Developed Proved Undeveloped Benchmark Oil 79.43 93.09…
Exploration and Development Expenditures Actual for 2010 Planned for 2011 292.1 million 409.9 million Giddings Area, 75.2 Giddings Area, 64.0 S. Louisiana, Permian 8.7 Basin, 337.9 S. Louisiana, Permian Other, 8.6 4.2…
Average Daily Production (BOE) 20,000 17,817 16,283 14,824 15,375 15,000 14,281 13,651 10,000 Oil Gas 5,000 0 2009* 2010* 1Q 2011 2Q 2011E 3Q 2011E 4Q 2011E * Excludes production related to the sale of North…
Desta Drilling 14 Rigs 6 1300 HP Rigs Drills vertical & horizontal wells Can drill up to 13,500 wells 8 1000 HP Rigs Drills vertical & horizontal wells Can drill up to 10,000 wells Benefits from Rig Fleet: 100% utilization in…
Permian Basin - Oil Highlights Clayton Williams, Jr. has roots in West Texas Significant success in 70s & 80s in Coyanosa, Vermejo, Rhoda Walker & Mi Vida fields Management has vast experience in both upstream & downstream…
Permian Basin Properties Developing Areas Andrews County Fuhrman-Mascho San Andres Andrews County Loco Hills Wolfberry Yeso Warwink Bone Springs Glasscock/Sterling County Wolfberry Reeves/Loving County Amacker Tippett…
Permian Basin - Oil Andrews County Wolfberry Formation: Wolfcamp/Spraberry Well Economics: Payout: 2.4 years; ROR: 38% (based on 90 oil and 4.50 gas) Gross Reserves: 150 MBOE AFE Costs: 1.9 MM 60% to 100% Working Interest Avg.…
Permian Basin - Oil Delaware Basin Oil Play Acreage acquired through leasing and Farm-In with CHK in the emerging Avalon Shale, Wolfcamp and Bone Springs plays CWEI Net acreage leased: Reeves County 18,000 Loving & Ward 3,000…
Permian Basin - Oil Andrews County Fuhrman- Fuhrman-Mascho Formation: San Andres Well Economics: Payout: 1 year; ROR: 100% (based on 90 oil and 4.50 gas) Gross Reserves: 44 MBOE AFE Costs: 1.1 MM 83% Working Interest Avg.…
Permian Basin - Oil Future Exploitation Opportunities Flying M Field Lea County, NM East & South CWEI controls operations Huntley Fields Garza County, TX Yates, Queen, Grayburg & San Andres Formations Cover approximately 21,000…
Giddings Area - Oil Highlights Exploitation success; drilling vertical wells in 70s & horizontal wells in the 90s Pioneer and leader in horizontal drilling; more than 325 gross horizontal wells to date in Austin Chalk Proven…
Giddings Area - Oil Austin Chalk Well Economics: Payout: 1.6 years; ROR: 55% (based on 90 oil and 4.50 gas) Gross Reserves: 100 MBOE AFE Costs: 1.9 MM 100% WI in most locations Avg. NRI: 80% 1Q 2011 avg. net daily production:…
Giddings Area - Oil Water Frac Program Description: Secondary and tertiary water fracs available to add production and reserves to existing wells Economics: Payout: 4 months, ROR: 100% (based on 90 oil and 4.50 gas) Gross…
Giddings Area - Oil Eagle Ford Shale Update Primarily oil Horizontal wells 100% working interest Smalley-Robinson 4 Wells Drilled & Producing Unit 1 Broesche Unit 1 (Burleson County) Smalley-Robinson Unit 1 (Burleson Loebau…
Giddings Area - Gas Deep Bossier Trend Update Conoco-Phillips Encana/Leor Discovered Tall City field in 2001 Savell Field Amoruso Field Big Bill Simpson No. 1 3 wells drilled (non-commercial) Hamill Foundation No. 1 CWEI…
Key Takeaways Focused on growing oil production and reserves Significant acreage position in our core areas Major acreage position in emerging Delaware Basin oil play Large development drilling inventory in Permian Basin and…
Financial Overview 27
Strong Results from Targeted Capital Spending Exploration & Development Spending ( millions) Focus on development in the Permian Basin over last 3 years 400 373 94% of 2010 capital budget targeted oily 292 Permian Basin and Giddings…
Historical Production & Operating Metrics Year ended December 31, 2008 2009 2010 Production: Oil and NGL (MBbls) 3,134 3,105 3,667 Natural Gas (MMcf) 18,553 15,949 10,750 Total Production (MBoe) 6,226 5,763 5,459 Operating…
Historical Financial Summary Year ended December 31, ( thousands, except per unit statistics) 2008 2009 2010 Average Realized Prices: Oil (/Bbl) 97.35 57.37 76.44 Gas (/Mcf) 9.02 4.35 5.17 NGL (/Bbl) 54.45 30.83 42.47 Price After…
EBITDAX Reconciliation to Net Income Year ended December 31, ( thousands) 2008 2009 2010 Net income (loss) 141,242 (115,960) 36,938 Interest expense 24,994 23,758 24,402 Income tax expense (benefit) 77,327 (64,096) 20,634…
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