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Brean Murray Curray Best Ideas Conference – Warren Resources Inc.

Warren Resources Inc. · Nov 8, 2012 · 32 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. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 1
    Brean Capital, LLC E&P Best Ideas Conference November 07, 2012
  2. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 2
    Areas of Operations Warren Resources, Inc. Proved Net Reserves as of 12/31/11: CASPER NEW 22.3 mmboe (15 oil, 7.3 natural gas) YORK 46% oil reserve growth in 2011 LONG BEACH Current Average Net Production: 5,500 boepd (3500 bopd…
  3. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 3
    California: Wilmington Oil Field Overview Los Angeles Warren Property Highlights Within the 3rd largest U.S. oilfield Shallow waterfloods in the Tar, Ranger and Upper Terminal formations 9- 17 gravity oil Deeper Ford…
  4. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 4
    Wyoming: Atlantic Rim CBM Gas Warren Property Highlights Spyglass Hill Mega Unit: 60,000 gross acres held by production 25-well per year Unit drilling commitment for 10 years Spyglass Hill 1 Bcf estimated EUR per 80 acre Mega…
  5. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 5
    Acquisition of Anadarko Interests Atlantic Rim Acquiring up to 100% of Anadarkos oil and gas interest (41.5% working interest) in the Atlantic Rim project, Washakie Basin, WY and 100% of Western Gas Resources interest in the…
  6. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 6
    Atlantic Rim Producing Zones Atlantic Rim Spyglass Hill Mega Unit W Mesaverde Outcrop E - 2,000' - 6,000' - 10,000' CBM Down Dip Productive Limits Ten Miles NASDAQ: WRES 6
  7. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 7
    Reasons to Invest Oil-weighted producer: 90% by revenue 22% CAGR 6-year oil production growth Top quartile Total Shareholder Return vs Peers over past 3 years 60% rate of return targeted for 2012 new wells Attractive Oil Assets in…
  8. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 8
    Business Strategy Production & Reserves Growth 6-8 year oil drilling inventory in CA with 25-30 mmbo net reserve additions potential 46% oil reserve growth in 2011 20+ year gas drilling inventory in Wyoming Fund 2012 capex of…
  9. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 9
    WTI-CMS Historical Prices WTI-CMSHistorical WTI-CMS Historical Prices Prices 120 WTI CMS* 115 110 105 Price per Bbl (Rolling 30 Day Average) 100 95 90 85 80 75 70 2/16/11 3/16/11 4/16/11 5/16/11…
  10. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 10
    California: Recent Oil Production Warren California Oil Production 4,000 3,500 3,000 Oil 2,500 Oil bpd 2,000 1,500 1,000 500 0 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 NASDAQ: WRES 10
  11. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 11
    Wyoming: Recent Gas Production Warren Production 16,000 14,000 12,000 10,000 MCFD 8,000 6,000 4,000 2,000 0 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 NASDAQ: WRES 11
  12. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 12
    California Oil Development WTU Redevelopments since 1937 Description Tar Historical BOPD Warren succeeded in redeveloping 2000 bopd the Tar interval with targeted Oil Cut horizontal drilling, increasing BOPD Warren…
  13. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 13
    California: Wilmington Townlot Unit NASDAQ: WRES 13
  14. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 14
    California Oil: Environmentally Friendly WTU CENTRALIZED DRILLING AND PRODUCTION CELLARS * Warrens drilling cellars received the IOGCC 2011 Environmental Stewardship Award for independent oil companies. NASDAQ: WRES 14
  15. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 15
    California Oil: Environmentally Friendly Warren Rig 1 is sound proofed completely enclosed. NASDAQ: WRES 15
  16. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 16
    California Oil: Wilmington Field Producing Zones SW Tar NE Ranger Terminal - 3000' Union Pacific Ford/237 - 6000' Schist Productive Basement - 9000' Limits One Mile NASDAQ: WRES 16
  17. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 17
    California Oil: Reservoir Modeling and Drilling Technology Well Placement Utilizing State-of-the-Art LWD Technology NASDAQ: WRES 17
  18. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 18
    California Oil: Tar Reservoir Tar Reservoir Horizontal Development Cross-section showing saturations in NW area of Tar NASDAQ: WRES 18
  19. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 19
    Targeted Sinusoidal Drilling Actual NWU Ranger well path shown Shale Sand Well path 180 amplitude Sinusoidal well shown above NASDAQ: WRES 19
  20. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 20
    California Oil: Tar Type Well Illustrative Economics (1) IRR 80 NYMEX = 100+% NYMEX Oil Price 80 NYMEX Price Required for 45 10% ROR Sales adjustment 10% Realized Price (Boe) 72 LOE, Gathering & Transportation (17.50 )…
  21. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 21
    2012 Milestones 6 California DOGGR injection well permits received in 2012 Improved reservoir pressure maintenance will shallow production decline 17 WTU oil wells drilled in 2012 Rate of return for 2012 new well drilling targeted…
  22. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 22
    Strong Assets & Significant Accomplishments World Class Assets 25-30 mmbo oil reserves potential California 250-300 bcf gas potential in Wyoming Strong Growth Track Record 22% CAGR 6-year oil growth rate 60-100% rate of return…
  23. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 23
    September 2012 Corporate Presentation Financial Highlights
  24. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 24
    Historical Financial Performance 6 months Ended Year Ended Year Ended Year Ended 2012 2011 2010 2009 Total production (MBOE) 954 1,748 1,744 1,600 Adjusted EBITDAX 31,667 50,511 52,061 25,581 Balance Sheet Information…
  25. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 25
    Peer Valuations Enterprise Value per Proved Developed BOE 600.00 / Proved Developed BOE 518.69 500.00 400.00 300.00 200.00 171.61 109.15 100.00 91.72 39.31 42.18 47.74 48.67 22.38 24.54 31.74 0.00 WRES33%…
  26. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 26
    Peer Analysis: 2-Year F&D 100% /BOE 19.74 75% 50% 9.30 25% Warren Resources Peer Group Average Source: EnerCom, Inc. Five Factor Model * Costs incurred divided by the sum of extension, discoveries, revisions and…
  27. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 27
    Peer Analysis: TTM OPEX/G&A 70.00 60.00 100% 50.00 40.00 /BOE 30.00 26.86 75% 26.15 50% 20.00 25% 10.00 0.00 Warren Resources Peer Group Average Source: EnerCom, Inc. Five Factor Model * (OPEX + G&A) divided…
  28. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 28
    Peer Analysis: TTM Capital Efficiency 400% 350% 100% 300% 75% 275% 250% 50% 200% 202% 150% 100% 25% 50% 0% Warren Resources Peer Group Average Source: EnerCom, Inc. Five Factor Model * (TTM EBITDA divided by TTM…
  29. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 29
    Peer Analysis: Debt / Total Cap 100% Concentrated effort to reduce debt 90% 100% 80% 70% 60% 50% 75% 40% 41% 50% 30% 34% 20% 25% 10% 0% Warren Resources Peer Group Average Source: Bloomberg NASDAQ: WRES 29
  30. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 30
    Debt / Total Cap 60% 50% 50% 42% 40% 33% 34% 30% 20% 10% 0% 12/31/2008 12/31/2009 12/31/2010 12/31/2011 Source: Bloomberg NASDAQ: WRES 30
  31. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 31
    Debt-Adjusted Production Growth Per Share NASDAQ: WRES 31
  32. Brean Murray Curray Best Ideas Conference – Warren Resources Inc. – slide 32
    Warren Resources, Inc.

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