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Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp

Penn Virginia Corp · Dec 12, 2013 · 41 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. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 1
    Capital One Southcoast Energy Conference Investor Presentation December 12, 2013 NYSE: PVA
  2. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 2
    Penn Virginia Today Eagle Ford Shale will Drive the Growth Contiguous and highquality acreage position in the Eagle Ford Shale 72,200 net acres with greater than 890 remaining drilling locations and growing Approximately a 10year…
  3. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 3
    Operating Areas Emerging Oil and LiquidsRich Plays Plus Optionality in Significant Gas Plays Eagle Ford Shale and Other Play Types Appalachian Region MidContinent Cotton Valley Marcellus/Other MY13 proved reserves: 10.8 MMBOE MY13…
  4. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 4
    2013 Year to Date Accomplishments Made a transformational Eagle Ford Shale acquisition Have increased our acreage position 38% since the acquisition closed Have increased 3P Eagle Ford reserves from 140 MMBOE pro forma to 170 MMBOE…
  5. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 5
    Strategy Focused on execution of the drilling program and further expansion in the Eagle Ford Up to six drilling rigs assumed in 2014 and 2015 (with zero to one nonoperated rig) Could opportunistically increase the rig count further…
  6. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 6
    PVA is an Eagle Ford Shale Oil Growth Story PVAs Positioning Among Oil Producers is Expected to Increase We have significantly increased our oil production over the past three years and we expect that trend to continue Other plays,…
  7. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 7
    Overview of the Eagle Ford Shale Eastern Volatile Oil and Condensate Rich Gas Windows(1) Volatile Oil Condensate Rich Gas EFS Operators Gonzales PVA Hunt San Antonio BHP Wilson CHK Bexar COG Lavaca COP CRK Atascosa CRZO…
  8. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 8
    Overview of PVAs Eagle Ford Shale Position Emerging Presence in Leading U.S. Oil Shale Play 112,000 gross (72,200 net) acres in Gonzales and Lavaca Counties, TX Gonzales Operator of 98,700 (65,700 net) acres 67% WI Nonoperator of…
  9. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 9
    PVAs Eagle Ford Shale Evolution As of MidOctober 2013 Acreage Acquisition History Fayette Leasing in 2013 Gonzales Magnum Hunter (2013) Hunt / MHR (2013) Bozka (2012) Shiner AMI (2012) Kona (2011) Rock Creek Ranch (2011)…
  10. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 10
    Eagle Ford Shale Operational Update Recent Eagle Ford Shale Well Activity and Results BongoNorthHunter 3WellPad IP3,342BOE/D Stag/PlatypusHunter 3WellPad IP6,100BOE/D GonzoHunter 3WellPad IP1,847BOE/D RhinoHunter…
  11. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 11
    Growing Our Eagle Ford Shale Position Increases in Producing Wells, Production, Reserves and Revenues 11
  12. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 12
    Well Results Are Improving Quarterly Trend in Average IPs Avg. IP & 30Day Average IP 1,400 1,200 1,000 800 BOEPD 600 400 200 0 3Q12 4Q12 1Q13 2Q13 3Q13 IP / Equiv (BOE/D) 30Day IP / Equiv (BOE/D) 12
  13. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 13
    Well Costs are Declining South Texas Eagle Ford Drilling & Completion Costs Average Capital Expenditures Cost by Quarter 12 11 10 9 8 7 MM 6 5 4 3 7 wells 8 wells 11 wells 6 wells 8 wells 16 wells 2 17.4…
  14. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 14
    Increased Frac Intensity Driving Better Results Further Increases Expected Going Forward 14
  15. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 15
    Eagle Ford Shale Drilling Inventory Due to acquisitions and leasing efforts, our acreage position is now 112,000 gross (72,200 net) acres (1) We now have a 10year inventory of up to 890 additional gross drilling locations Successful…
  16. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 16
    Eagle Ford Well Economics Pretax IRR Sensitivities Excellent Returns in Peach Creek and Shiner Peach Creek Field (Gonzales and Lavaca Counties)(1) Shiner Field (primarily Lavaca County)(1) Assumptions Assumptions Longer lateral…
  17. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 17
    Time Zero Wellhead Oil Production Excellent Returns in Peach Creek and Shiner 430 Mboe) 520 Mboe) 17
  18. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 18
    Exploitation Upside Upper Eagle Ford / Marl Exploitation Fairway Upper Eagle Ford / Marl - 80 - 115 0 103 Rosher - 0 Caldwell 50 0 -10 10 14 1 - SYMBOL 0 0 00 0 MARL WELL LOG CONTROL 0…
  19. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 19
    Exploitation Upside Upper Eagle Ford / Marl Estimated Upside Potential Upper Eagle Ford / Marl Upside Based on current acreage holdings Gross locations: 249 locations, including infills Gross EUR: 350 450 MBOE per well Gross…
  20. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 20
    Financial Strategy Focus on a Strong Balance Sheet and Value Creation Maintain at least 200 MM of financial liquidity 330 MM at quarter end, pro forma for borrowing base increase Lower debttoAdjusted EBITDAX…
  21. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 21
    Capitalization and Credit Stats Levered Up to Make Acquisition but worth it Capitalization ( millions) 12/31/2012 9/30/13 Cash 17.7 38.3 Debt Credit Facility - 128.0 7.25% senior notes due 2019 300.0 300.0 8.50% senior notes due…
  22. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 22
    Debt Maturities No debt maturities until 2017 Credit facility matures in 2017 300 MM 7 % senior notes mature in 2019 775 MM 8 % senior notes mature in 2020 22
  23. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 23
    Hedging Strategy Protect Cash Flow Maintain an active hedging program to help support capital spending program and ensure strong coverage metrics Hedges in place to protect cash flow Latest oil hedges: 9,400 BOPD (79% of volume)…
  24. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 24
    2014E Capital Expenditures and Guidance Five Operated Rigs, One Outside Operated Rig 90 gross (52 net) wells to be spud with 5 operated rigs and 1 outside operated rig millions Range 93% drilling and completion; 97% Eagle Ford…
  25. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 25
    Capital Program and Cash flow CAPEX and Outspend (millions) 600 Cash for Reinvestment CAPEX 500 400 300 200 100 0 2012 2012 2013 2013 2014 2014 2015 2015 Outspend for 2013 is expected to be approximately 110 MM…
  26. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 26
    Key Takeaways We have an excellent team in place We have an attractive Eagle Ford asset base that we can continue to grow We are drilling very economical wells that will provide production and financial growth and shareholder…
  27. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 27
    Appendix 27
  28. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 28
    Volume Growth Focused on Oil Production Growth 35% 51% 64% 68% Oil production grows 65 to 85% in 2014 5.8 to 6.5 MMBO Total production of 9 to 10 MMBOE Oil production grows 20% in 2015 7.3 MMBO and 10.7 MMBOE (total) Oil…
  29. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 29
    Table of Recent EFS Operated Completions Late March 2013 Through Late November 2013 Initial Potential 30-Day Average Cumu- Cumu- PVOG BOEPD BOEPD 30-Day No. Total Lateral Proppant Proppant Cumulative Production lative Days lative WI…
  30. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 30
    Liquidity Liquidity and Capacity 900 Unused Capacity 2.6x 800 Liquidity 2.9x 700 600 3.3x 500 400 300 200 100 0 2012 2012 2013 2013 2014 2014 2015 2015 Our current borrowing base is 425 MM, and we expect a 50 MM…
  31. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 31
    NonCore Asset Sales Selma Chalk: Jefferson Davis, Lamar, and Forrest Counties, Mississippi 73 Bcfe of proved reserves, 100% developed, 100% natural gas Proved PV10 of 53 MM at mid year Probable and possible reserves of 115 Bcfe; 104…
  32. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 32
    Marketing PVA GonzalesLavaca Pipeline 32
  33. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 33
    MidYear 2013 Reserves (MMBOE) Eagle Ford Represents 45% of Proved Reserves at MidYear Increased Eagle Ford proved reserves to 51 MMBOE (96% increase over YE12) MHR acquisition 11 MMBOE Drillbit 13 MMBOE Upward revisions 2 MMBOE…
  34. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 34
    Eagle Ford Reserve Growth Proved Reserves Increased 96% at MidYear 2013 180 Total 3P Reserves 170 160 140 120 Net Reserves - MMboe 100 Unproven Reserves 80 71 Proved Reserves Total Proved Reserves 60 51 40…
  35. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 35
    YearEnd 2013 Reserve Report Impact Items Downspacing in the Eagle Ford Only 137 PUD locations were booked at midyear 2013 (1,000 1,200 spacing) Downspacing to 400 effectively doubles the number of bookable PUDs Allocation Well…
  36. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 36
    2013 Capital Program Capital Program of 500 to 530 MM Six operated rigs through year end with one millions Range outsideoperated rig Drilling and Completion 433.0 457.0 Drilling approximately 70 gross wells (45 net Pipeline,…
  37. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 37
    FullYear 2013 Guidance Table Reaffirming 4th Quarter and Full Year 2013 Guidance Fourth Quarter 1Q13 2Q13 3Q13 2013 2013 Guidance Production: Crude oil (MBbls) 599 858 954 989 1,189 3,400 3,600 NGLs (MBbls) 234 260 254 227 257 975…
  38. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 38
    Derivatives Current Derivative Positions as of 12/10/13 Weighted Average Price Instrument Type Average Volume Per Day Floor/ Swap Ceiling Natural gas: (MMBtu) ( / MMBtu) ( / MMBtu) Fourth quarter 2013 Collars 15,000 3.67 4.37 First…
  39. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 39
    Adjusted EBITDAX Reconciliation NonGAAP Reconciliation Year ended December 31, LTM 2008 2009 2010 2011 2012 3Q13 Adjusted EBITDAX dollars in millions Net income (loss) from continuing operations 93.6 (130.9) (65.3) (132.9)…
  40. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 40
    Adjusted Net Loss Reconciliation NonGAAP Reconciliation Year ended December 31, LTM 2008 2009 2010 2011 2012 3Q13 Adjusted Net Loss dollars in millions Net income (loss) from continuing operations 93.6 (130.9) (65.3) (132.9)…
  41. Capital One Southcoast 8th Annual Energy Conference – Penn Virginia Corp – slide 41
    Penn Virginia Corporation 4 Radnor Corporate Center, Suite 200 Radnor, PA 19087 (610) 6878900 (main) (610) 6873688 (fax) Penn Virginia Oil & Gas Corporation 840 Gessner Road, Suite 800 Houston, TX 77024 (713) 7226500 (main) (713) 7226601…

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