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Barclays CEO Investor Conference – WPX Energy, Inc.

WPX Energy, Inc. · Sep 11, 2013 · 50 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. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 1
    Barclays CEO Energy Conference Ralph Hill, President & Chief Execu=ve Ocer September 11, 2013
  2. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 2
    Reserves Disclaimer The SEC requires oil and gas companies, in lings made with the SEC, to disclose proved reserves, which are those quan==es of oil and gas, which, by analysis of geoscience and engineering data, can be es=mated with…
  3. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 3
    Premier WPX Por_olio Piceance Basin Bakken Shale Marcellus Shale San Juan Powder River Apco* 3,010 Bcfe Proved 80.0 MMboe Proved 322 Bcfe Proved 423 Bcfe Proved 236 Bcfe Proved 25 MMboe Proved 12,039 Bcfe 3P 173.4 MMboe 3P 2,023…
  4. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 4
    WPX Strategic Direc=on Op4mize and focus the porolio over 4me BarneA and Arkoma sale in April 2012 Hired nancial advisors to assist in the poten4al mone4za4on of our equity interest in Apco Oil & Gas Op4miza4on could include…
  5. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 5
    Recent Highlights Announced two addi4onal rigs in the Piceance Arres4ng gas produc4on decline Niobrara well produces 1.4 Bcf in rst 180 days of produc4on 2nd well to be completed Q3 Spud 3rd well in mid-July 30% growth in…
  6. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 6
    Signicant Cost Structure Improvements by the End of 2014 2013 run rate savings of 47MM - 68MM* Willow Creek improved processing fee and 5er margin sharing Piceance gathering rate change Van Hook gathering system 2 - 4 Bbl savings…
  7. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 7
    Preeminent Piceance Posi=on Superior acreage posi4on WPX vs. Oset Operator Increased drilling plan Well D&C and Liming Costs Added 2 drilling rigs to eet total 7 2,500 Arres4ng produc4on decline Spud 51 wells in 2Q with 7 rigs…
  8. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 8
    Aggressively Delinea=ng Niobrara Focused plan Valley Acreage and 3D Seismic Coverage Proving up acreage Repeatability and improving costs Delinea4ng well spacing 2013 Spud and density Evalua4ng new horizons Discovery…
  9. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 9
    Williston Superior Well Performance Con=nues 9 wells put on 1st sales 7 Middle Bakken (Light Blue) 2 Three Forks Longs (Dark Blue) Spud 11 wells with 4 rigs 3 Middle Bakken 8 Three Forks Longs Wells con4nue to perform at…
  10. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 10
    WPX is 1 Middle Bakken Producer aqer 180 and 365 Days 38 total companies operate Middle Bakken long laterals 180- and 365-Day Cumula4ve Produc4on (Based on produc4ve days) greater than 5,000 160,000 26 companies with greater…
  11. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 11
    Williston Basin Ranked by F&D Cost (including WPX) Area Assumed Avg. EUR F&D Cost1* (Mboe) 1 Southern Antelope 11.96 920 Sanish and Parshall 12.63 634 WPX Energy FBIR 15.09 729 Nesson An4cline 15.35 456 Fort…
  12. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 12
    Explora=on Ac=vi=es Result in San Juan Oil Discovery Commencing commercial opera4ons 2013 one rig program Plan to drill a total of 12-14 wells in 2013 4 exploratory wells drilled Included science and tes=ng in pilot holes…
  13. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 13
    Leveraging Experienced San Juan Team to Rapidly Develop the Mancos/Gallup WPX has long history in the basin 31 Years of con4nuous opera4on in the San Juan Basin Drilled and operate 880 wells, hold joint interest in another 2,400…
  14. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 14
    San Juan Mancos Gallup First Full Month of Produc=on Reported to State 16,000 WPX Wells 14,000 Other Producers *168H Not yet reported to state, 5th best well in *Only 13 days of produc=on in 1st month 12,000 the en=re…
  15. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 15
    2013 Path to Greater Shareholder Value Maintain disciplined natural gas development Added two rigs in Piceance, arres5ng produc5on decline Grow oil produc4on 30% Williston produc5on growth 2013 eciencies drive 2014 produc5on…
  16. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 16
    Appendix
  17. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 17
    Key Sta=s=cs by Basin 2013 Net Current 2012 3P Gross Proved Addi4onal Acreage Rig Count Produc4on Oil/NGL Drilling Reserves 3P Reserves Resource (YE2012) (Op) (MMcfe/d) Focused Loca4ons (YE2012 Bcfe) (YE2012 Bcfe) Poten4al…
  18. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 18
    2012 Year-End Domes=c Reserves 2012 SEC Case Year-End 2012 Before Price Changes* Gas NGL Oil Equivalent Gas NGL Oil Equivalent Bcf Mbbl Mbbl Bcfe Bcf Mbbl Mbbl Bcfe Piceance Basin 2,339 103,094 8,755 3,010 2,773 124,204 11,025…
  19. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 19
    Contractual Cost Structure Improvements Eec4ve Financial Run Contract Descrip4on Income Statement Start Date Rate Impact (1) Willow Creek Change in fee and margin % 1Q13 25MM - 40MM Expense (Gathering & Processing) Piceance…
  20. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 20
    Piceance Con=nuous Improvements Major cost savings made in Ryan Gulch Drilling cycle 4me improvements Comple4on design improvements New infrastructure Con4nued improvement in Valley Ruthless aAen4on to eciencies High-grading…
  21. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 21
    WPX Posi=oned for Rapid Growth When Natural Gas Prices Recover Weve done it before We are ready to do it again 12% CAGR 1,000 Well Count 450 1,000 424 450 400 900 Avg. Rig Count 400 900 370 400 800 Net Op Bcfe 350 800…
  22. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 22
    Piceance Composite NGL Barrel and Realized Price (2nd Quarter, 2013) Product NGL Product /Gal Mix Ethane (1) 38% .27 Propane 29% .89 Iso-Butane 8% 1.24 Normal Butane 7% 1.21 Natural Gasoline 18% 1.99…
  23. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 23
    Piceance Cryo Capacity Willow Creek Modied processing agreement with a revenue sharing component Mont Belvieu priced products via Overland Pass Pipeline Volume dedica4on yields advantaged OPPL T&F rates Enterprise Meeker…
  24. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 24
    2013 Niobrara Program Niobrara discovery well drilled in 2012 Produced 1.4 Bcf in rst 180 days IP 16 MMcf/d 7,300 psi Currently producing 4.4 MMcf/d 2,300 psi Niobrara 2013 planned ac4vity Drilled our 2nd Niobrara horizontal…
  25. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 25
    WPX Has Drilled the Top Niobrara Shale Well IP Flow Operator Well County, State Loca4on/Basin Comp. Date 2,667 Boepd (1) 701-4 HN1 (16 MMcfpd) WPX Energy Gareld, Colo. Piceance Dec. 2012 Williams GM 1,831 Boepd EOG Resources,…
  26. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 26
    Piceance Basin Green: Highlands Yellow: Valley Net Acreage: 216,829(1) Average rigs running in 2013: 6.6 Remaining 3P drilling loca4ons: 10,424(1) Composi4on: 80% Gas/20% Liquids (1) Acreage and drilling locations are…
  27. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 27
    Capturing Williston Eciencies Fully transi4oned to pad drilling SIMOPS implemented drilling while producing, remote fracs conducted Spud to rig release days down 35% 3Q12 to 2Q13 Spud 11 wells with 4 rigs in Q2 Last 2 wells 22…
  28. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 28
    Williston Posi=oned for Con=nued Growth Eciencies driving addi4onal spuds in 2013 without increasing rig count 7 addi4onal spuds 11 more wells on 1st sales Oil exit rate increases by 2,000 Bopd to 15,000 Bopd at year-end Spud to…
  29. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 29
    Dunn County Middle Bakken Well Performance WPX is one of the top performers in Dunn County with 41.0% of wells in the top quar4le 400,000 Well Performance Detail % of Wells in Top Operator Total Wells Top Quartile Wells…
  30. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 30
    Dunn County Three Forks Well Performance 400,000 Well Performance Detail % of Wells in Operator Total Wells Top Quartile Wells Top Quartile 350,000 WPX ENERGY WILLISTON LLC 1 1 100.0% KODIAK OIL & GAS USA INCORPORATED 7 4…
  31. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 31
    Bakken Netback Price Analysis Es4mated Volume % Sales Outlets (Jul - Sep 2013) Basin-Priced Sales 50% Rail Deals 38% Enbridge Capacity 12% Total Sales Outlets 100% Assumed 3rd quarter total netback of WTI less 8 - 10 per…
  32. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 32
    Williston Basin Acreage: 83,756 Net Acreage: 84,205 (1) (1) Average Average rigs running rigs running inin 2013: 2013: 44 Remaining 3P drilling loca4ons: 4(1) 78(1) Remaining drilling locations: Composi4on: Oil focused…
  33. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 33
    Marcellus Growing Produc=on Volumes Produc4on results Net produc4on increased 33% Record produc4on day of 100 MMcf/d at end of June Growing produc4on despite infrastructure constraints Remedial work at Williams Dunbar sta4on…
  34. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 34
    Pennsylvania Net Acreage: 114,067(1) Average rigs running in 2013: 1 Remaining 3P drilling loca4ons: 561(1) Composi4on: Dry Gas (1) Acreage and drilling locations are based on YE 2012. Barclays CEO Energy Conference…
  35. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 35
    Apco Recent Highlights Argen4na Vaca Muerta Exposure Neuqun Basin ac4vity in progress Neuquen Basin (Vaca Muerta acreage) Chevron YPF ac4vity encouraging sign Entre Lomas 96,000 net acres of future development Bajada del Palo…
  36. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 36
    Argen=na Asset Map Noreste Basin Acambuco: 1.5% WI Entre Lomas: Agua Amarga: 23% WI, 40.7% Stock Interest 23% WI, 40.7% Stock Interest in Petrolera. in Petrolera Eec=ve Interest 52.8% Eec=ve Interest 52.8%…
  37. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 37
    Colombia Asset Map Valle Medio Del Magdalena Basin Llanos 40 Block 163,000 acres Turpial Block 100,000 acres Llanos Orientales Basin Llanos 32 Block 111,000 acres Block Basin Barclays CEO Energy…
  38. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 38
    CVX-YPF First Phase of Vaca Muerta Development to Take Place Nearby Apcos Acreage Chevron/YPF deal encourages Vaca Muerta development 97,607 Acres Apco Neuquen Proper=es YPF CVX/YPF 1st Phase Development for VM 0 13…
  39. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 39
    Domes=c Price Realiza=on for 2013 Gas (/Mcf) NGL (/Bbl) Oil (/Bbl) Q1 13 Q2 13 Q1 13 Q2 13 Q1 13 Q2 13 Weighted Average Sales Price 3.12 3.78 37.27 37.41 89.23 88.62 (1) Revenue Adjustments (0.27) (0.33) (9.06) (7.20) 0.54…
  40. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 40
    2nd Quarter Results 2Q YTD Dollars in millions, except produc3on numbers 2013 2012 2013 2012 Daily Produc4on Gas (MMcf/d) 1,007 1,142 1,014 1,137 Oil (Mbbl/d) 21.1 18.5 21.5 17.3 NGLs (Mbbl/d) 21.3 31 20.3 30.8…
  41. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 41
    2013 Consolidated Guidance Annual Produc4on Low Base High Capital Expenditures (in millions) Low Base High Gas MMcf/d 1,008 1,028 1,039 Piceance 320 340 380 Oil Mbbl/d 21.7 21.7 21.8 Bakken** 360 370 415 NGLs Mbbl/d* 20.5 20.8…
  42. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 42
    Impact of Ethane Rejec=on on 2013 Produc=on Guidance 2013 planned volumes impacted by approximately 3% due to assumed ethane recovery level Maximum Ethane 2013 Plan Ethane Minimum Ethane Recovery Recovery Recovery Natural Gas…
  43. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 43
    Summary of Hedges As of 7/26/2013 Volume Weighted Avg. Price Natural Gas (Bbtu/d) 3Q-4Q 2013 (/MMBtu) Swaps 470 3.61 Crude Oil Volume Weighted Avg. Price (/ Swaps 3Q-4Q 2013 (Bbl/d) Bbl) 10,326 101.84 Natural Gas…
  44. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 44
    WPX 2nd Quarter Liquidity At 06/30/13, 359 million leAers Liquidity (millions) of credit outstanding under bilateral agreements Cash and cash equivalents 06/30/13 90 Less: Total revolver borrowings Apco Oil and Gas (49) at…
  45. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 45
    Non-GAAP
  46. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 46
    WPX Non-GAAP Disclaimer This presenta=on may include certain nancial measures, including adjusted EBITDAX (earnings before interest, taxes, deprecia=on, deple=on, amor=za=on and explora=on expenses), that are non-GAAP nancial measures…
  47. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 47
    Reconcilia=on Adjusted Income (Loss) from Con=nuing Opera=ons (Unaudited) (Dollars in million, except per share amounts) 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr YTD Income (loss) from con=nuing opera=ons…
  48. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 48
    Consolidated Statements of Opera=ons and EBITDAX Reconcilia=ons (Unaudited) Dollars in million, except per share amounts 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr YTD Revenues: Product revenues: Natural gas…
  49. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 49
    Domes=c Statements of Opera=ons (Unaudited) Dollars in million, except per share amounts 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr YTD Revenues: Product revenues: Natural gas sales 353 307 327 359 1,346 263…
  50. Barclays CEO Investor Conference – WPX Energy, Inc. – slide 50
    Interna=onal Statements of Opera=ons (Unaudited) Dollars in million, except per share amounts 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr YTD Revenues: Product revenues: Natural gas sales 4 5 4 5 18 4 6 10…

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