Combination of Sabine Oil & Gas LLC and Forest Oil Corporation May 6, 2014
Transaction Summary All-stock strategic combination between Sabine Oil & Gas LLC (Sabine) and Forest Transaction Oil Corporation (Forest or FST) under a newly incorporated public holding Overview company, Sabine Oil & Gas Corporation…
Strategic Rationale Extensive overlap in top two asset areas: East Texas and Eagle Ford Complementary Creates a leading East Texas position of 207,000 net acres Asset Positions Compelling inventory of high return, liquids-rich Cotton…
Leadership The combined companys management team has been together since Sabines formation in 2007, delivering top- tier well results and production/cash flow/asset growth Former Vice President and General Manager of Devon Energy…
Complementary Asset Footprints Map of Acreage Position(1) Combined Total 424,000 net acres Granite Wash OKLAHOMA Arkoma 290 Mmcfe/d ARKANSAS 33,500 net acres 15 Mmcfe/d (29% gas) current production 35,000 net acres 22 Mmcfe/d (100%…
Pro Forma Asset Profile Proved Reserves (1) FY2014E Production Guidance Acreage (in thousands) Bcfe Mmcfe/d Net acres 345 1,600 350 500 1,464 1,400 424 300 122 400 421 (35%) 60 1,200 (29%) 250 34 220 1,000 300 65 200 839 78…
Pro Forma Asset Profile Versus Comps Combined company gains significant scale; aligns with gas-weighted peers with focus on East Texas Proved Reserves(1) 2014E Production(2) Bcfe MMcfe/d 4,966 5,000 1,400 1,247 4,344 1,200 4,000…
Industry Leading East Texas Position Acreage Location Asset Overview Combination creates large, contiguous acreage position providing critical mass in region Texas Evolving completion techniques, lower costs and improving gas prices…
Industry Leading Performance 2,000 90 Cotton Valley Top Industry Operators Cotton Valley 1,800 80 Advanced completion design relative to most in 5 ((ofofwells) wells) industry, improving well performance 1,600 Avg. 12 Month Cum,…
Significant Eagle Ford Position Acreage Overview Asset Overview Sabines results have extended the best part of the Eagle Ford trend further northeast, with results comparable to core players Texas Sabine acreage is generally in the…
Eagle Ford Performance 250 198 ( of wells) 900 Top 25 Operators In northern DeWitt and Lavaca counties, Sabine has 800 validated that the upper Eagle Ford has excellent Avg. 12 Month Cum, Mboe (6:1) 140 200 280 26 185 700…
High Return Granite Wash Position Acreage Overview Asset Overview Sabine operates 33,500 net acres in oil window of play, shallowest part of Granite Wash trend Texas Outstanding productivity, with 8 of 17 horizontals producing (or…
Financing Highlights and Pro Forma Capitalization Financing Highlights Capitalization Table ( in millions) Q1 2014 Q1 2014 New RBL facility Sabine Forest Pro Forma Assumes Sabines 2nd lien and bonds remain in Cash 1 48 49 place…
2014 Financial Guidance Pro Forma Combined 2014E Guidance Low - High Midpoint Production: Natural Gas (Mmcf/d) 212 - 234 223 Oil (Bbl/d) 10,731 - 11,860 11,296 Natural Gas Liquids (Bbl/d) 8,552 - 9,452 9,002 Total Production…
Conclusions Extensive overlap in top two asset areas: East Texas and Eagle Ford Complementary Creates a leading East Texas position of 207,000 net acres Asset Positions Compelling inventory of high return, liquids-rich Cotton Valley…
Appendix 16
Last Closing Date Transaction Step Shareholders Sabine Oil & Gas Corporation (SABO) (formerly New Forest Oil Inc.) Sabine Oil & Gas Holdings LLC Forests existing 7.25% Senior Notes due 2019 (the Forest 2019 Notes).…
Resulting Debt Structure After Closing Date Transactions Shareholders Sabine Oil & Gas Corporation (SABO) (formerly New Forest Oil Inc.) Sabine Oil & Gas Holdings LLC (former holdco of Sabine Oil & Gas LLC) New…
Loading...
