Investing in the Future of Energy Warren Announces Marcellus Acquisition July 7, 2014
Transaction Overview Warren has agreed to acquire assets in the Marcellus Basin from Citrus Energy Corporation (Citrus Energy or Citrus) and two additional working interest owners for 352.5 million 312.5 million in cash and 40 million…
Warren Resources to Acquire Marcellus Assets of Citrus Energy Purchase price: 352.5 million Effective date: July 1, 2014 Estimated closing: August 2014 Estimated net Proved reserves: 208.3 Bcf % Proved developed: 55% Current…
Citrus Energy Overview Asset Summary Map of Operations & Offset Operators Concentrated acreage position in Wyoming County, PA Offset operators include Cabot, Southwestern, and Chesapeake Citrus drilled 7 of the top 25 wells in…
Strategic Rationale Entry into a prolific natural gas basin Acreage located in the part of the basin with top tier economics Transformative acquisition that doubles Warrens reserves and triples Warrens production Retention of key…
Financing Commitment and Optionality Commentary Pro Forma Capitalization Underlevered balance sheet prior to the acquisition Actual As of March 31, 2014 Adjustments Pro Forma Maintains ample liquidity post-transaction Cash &…
Key Takeaways Focused on shareholder value creation Transformative acquisition in new core play Doubles asset base and cash flow Accretive and low-risk acquisition Leverages technical and operational expertise in exploitation…
Warren Repositioning California Properties Marcellus Properties Wilmington Field in the Los Angeles 5,289 net acres in Northeast PA Basin Core-of-the-core Marcellus 3rd largest U.S. oilfield WY PA Waterflood oil recovery 30 PDP…
A Stronger, More Diversified Warren Citrus Pro Forma Pro Forma Warren % of Total Acquisition % of Total Warren Increase Estimated Net Proved Reserves (Bcfe)(1) 202.5 49% 208.3 51% 410.8 103% % Proved Developed 64% - 55% - 59%…
Reducing Financial Risk Hedging Program Warren currently targets hedges of approximately 50% of oil and gas production on a forward 12-24 month basis The Company primarily relies upon fixed price swaps to hedge production With the…
Financing Commitment and Optionality Commentary Pro Forma Capitalization Underlevered balance sheet prior to the acquisition Actual As of March 31, 2014 Adjustments Pro Forma Maintains ample liquidity post-transaction Cash &…
Key Takeaways Focused on shareholder value creation Transformative acquisition in new core play Doubles asset base and cash flow Accretive and low-risk acquisition Leverages technical and operational expertise in exploitation…
EBITDA Reconciliation to Net Income Pro Forma Warren Standalone Combined Year End Year End Year End 12 Months Ended 12 Months Ended December 31, 2011 December 31, 2012 December 31, 2013 March 31, 2014 March 31, 2014 (in…
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