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Howard Weil Conference – EPL Oil & Gas, Inc.

EPL Oil & Gas, Inc. · Mar 10, 2013 · 30 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. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 1
    OIL GROWTH VALUE 41ST ANNUAL ENERGY CONFERENCE March 2013
  2. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 2
    Company Overview At a Glance Oil Value Play Long Lived Oil Core Acreage Growth Driven Portfolio Louisiana Balanced Growth Strategy MP Complex WD 29 Field Stock Currently Undervalued South Timbalier Area Market Data SM 239 Area…
  3. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 3
    Oil-Weighted GOM Growth Company We are the Gulf of Mexico oil growth company Captured a large, high-quality asset base with low decline curves - 77 MMboe proved Regional focus - we know this area intimately, and the potential that…
  4. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 4
    Impressive Year-Over-Year Growth 21% Increase in Production 96% of Revenue from Crude Oil 28% Increase in EBITDAX 53% Increase in Adj. Net Income 54% Stock Price Appreciation 5 NYSE: EPL www.eplweb.com
  5. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 5
    2013 - Compelling Outlook 80% Oil by Production 71% Annual Oil Production Increase 75% Increase in EBITDAX 30% Increase in Capex 62% of Oil Production Hedged All figures estimated based on the midpoint of Company…
  6. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 6
    Not Your Typical GOM Company
  7. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 7
    Oil-Weighted Proved Reserves Reserves by Commodity Current commodity environment pays 5xs more for oil than natural gas on an energy equivalent basis Successful shift from natural gas profile to 80% oil in two years 95% of…
  8. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 8
    Acquire & Grow Oil Organically Achieved Oil Growth by Acquiring Assets and Executing Successful Organic Programs 20,000 20,000 18,000 18,000 Dec 2012 Exit Rate 16,000 16,000 Organic Growth 14,000 14,000 12,000 12,000 Storm…
  9. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 9
    Grow to Increase Opportunity Set 77.4 MM Organic Growth 187% Reserve 9.9 MM Replacement 37.1MM Organic Growth 100% Reserve 4.7 MM Replacement 27.4 MM Acquisition 35.7 MM Organic Growth 1.2 MM Acquisition 9.4 Base* Base*…
  10. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 10
    Strategic Proved Reserve Base Lower Costs, Higher Margins & Greater Upside Reserves by Area 1P Reserves 77.4 MMboe Operational knowledge and regional expertise drives growth potential Proximity of acreage enables EPL to share…
  11. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 11
    Abundant Free Cash Flow Operating Within Cash Flow Capital spend on exploration & development will remain well within cash flow Free cash flow from assets allows EPL to further grow liquidity Fully identified 300Mm Budget 200…
  12. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 12
    Protecting Free Cash Flow Hedges Allow FCF in Any Environment Evergreen hedge program to protect cash flow 62% of 2013 production hedged w/ majority 106/Bbl Brent swaps 100 oil generates 700 million in revenue 100 oil…
  13. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 13
    Not Your Typical GOM Company
  14. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 14
    Accelerating Growth TODAY: 2012: Align the Value with Grow the Asset the Asset 2011: Position for Grow organically Continue organic growth using Growth through the drill-bit state-of-the-art reprocessing Acquire techniques…
  15. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 15
    Organic Development Drives Success Rapid Reserve Growth (MMBoe) Efficient exploiter of acquired assets Total: 27.0 Tripled reserves in < 2 years Probable 7.2 Acquired assets for 238 million 2012 1P SEC PV-10 681 million Total:…
  16. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 16
    Repeatable Development Programs Organic Reserve Add Exposure to Accelerate Growth Multiple Pay Horizons Unique, core legacy assets Huge structures with stacked pays Quick cycle times Reserve add exposure Combined 1P asset base has…
  17. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 17
    Exploit Recently Acquired Assets Underdeveloped Asset Base with High Impact Potential Recent Hilcorp Acquisition Summary Proved Assets were non-core to seller Reserves (Mmboe) PV-10 (Mm) Net Developed Producing Acreage (M) wells…
  18. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 18
    Unlocking Our Upside Potential Unmatched Technical Expertise in Region State-of-the-Art 3-D Seismic Coverage 1,2 3 1) DEPTH 2) FREQUENCY ENHANCEMENT 3) INVERSION 1) DEPTH 2) FREQUENCY 2 1) DEPTH ENHANCEMENT 2 1) DEPTH 2)…
  19. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 19
    Not Your Typical GOM Company
  20. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 20
    A Case for Owning EPL Balancing Your Portfolio EPL trades at a significant discount to: Oily peer group Natural gas shale players Peer group average TEV / EBITDA EPL offers investors significant upside potential with…
  21. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 21
    Significant Net Asset Value Category (as of 12/31/12) SEC PV10 / Share EPL trades at a 40% discount Proved Developed Reserves(1) 1,469 37.57 to NAV (at March 15, 2013) Proved Undeveloped 510 13.05 Reserves(1) Less: Net Debt(1)…
  22. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 22
    Cash Margins Outperforming Peers Highest cash margin Highest realized oil price 19.4 17.4 3.8 5.3 16.6 3.8 14.7 63.4 4.1 56.8 46.4 32.1 Production from Oil 74.5% 68.1% 50.1% 42.0% Oil Revenue /Bbl 108.88 105.68…
  23. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 23
    Strong Financial Profile Against Peers Proved Reserve Life % Oil Production Proved Reserves / Annualized 4Q12 Production (Years) EBITDA(X) / boe Asset Retirement 4Q12 Discounted ARO / YE12 Proved Reserves (/boe) Note: Peer…
  24. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 24
    Why Invest in EPL Large, captured asset base of low- risk, repeatable oily assets Self-funded growth plan Majority of 2013 Capex program allocated toward low-risk, oil development Strong balance sheet Unmatched technical…
  25. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 25
    Key Takeaways Compelling value proposition: current Value market valuation does not reflect the quality of our assets & organic inventory Oil Captured a large, high-quality oily asset base with low decline curves Technical…
  26. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 26
    Appendix
  27. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 27
    Strong Management & Professional Team Highly Experienced & Scalable Organization Gary Hanna President & CEO David Cedro T. J. Thom Mac Jensen Andre Broussard Chad Williams SVP, SVP, SVP, SVP, SVP, Chief Accounting Chief…
  28. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 28
    2013 Guidance ESTIMATED PRODUCTION & SWAP HEDGE VOLUMES Net Production (per day) 1Q 2013 Full Year 2013 Oil, including NGLs (Bbls) 16,000 - 17,000 17,000 - 18,500 Natural gas (Mcf) 27,000 - 33,000 24,000 - 30,000 Boe 20,500 -…
  29. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 29
    Hedging Summary WTI SWAPS BRENT SWAPS BRENT COLLARS TOTAL OIL HEDGED NATURAL GAS SWAPS Daily Monthly Swap Daily Monthly Swap Daily Monthly Daily Daily Monthly S wap Volume Volume Level Volume Volume Level Volume Volume Volume Monthly…
  30. Howard Weil Conference – EPL Oil & Gas, Inc. – slide 30
    Not Your Typical GOM Company Principal Corporate Office Investor Relations Contact: 201 St. Charles Ave., Suite 3400 T.J. Thom New Orleans, LA 70170 Phone: (504) 799-1902 Phone: (504) 569-1875 Email: tthomeplweb.com Houston…

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