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Q1 2009 Earnings Call – Petroquest Energy Inc.

Petroquest Energy Inc. · May 5, 2009 · 28 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. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 1
    May 2009
  2. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 2
    Corporate Characteristics Historically, the Company has been successful in growing through the drill bit and strategic acquisitions 10-year(1) historical drilling success rate 91% Consummated reserve and leasehold acquisitions in…
  3. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 3
    Proven Track Record of Drilling with Cash Flow MM 5 year totals: 300 Cap Ex 765MM 250 Cash Flow 752MM 98% Funded w/ Cash Flow 200 150 100 Cap Ex (Ex Acq.) 50 Cash Flow (1) 0 2004 2005 2006 2007 2008 (1) Includes proceeds…
  4. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 4
    Ten(1) Years of Growth Reserves 30% CAGR Production 36% CAGR Cash Flow 103% CAGR Stockholders Equity 29% CAGR Stock price 24% CAGR (1) Begins in 1999 4
  5. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 5
    Navigating the Current Environment Flexibility to control capital expenditures Large operated position allows for control of timing of investments Majority of acreage is held by production Minimal rig and other contractual…
  6. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 6
    Our Properties PQ operated Non-operated Tulsa Arkoma Basin East Texas We have grown beyond 68% Reserves (1) being solely a Gulf Coast Basin company our goal is to have 75% of our reserves in long-lived basins Lafayette 32%…
  7. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 7
    Our Portfolio UNCONVENTIONAL PLAYS Three Three separate EAST TX ARKOMA separate basins all basins all poised for core to PQ growth Gulf Coast South Offshore Louisiana GOM CONVENTIONAL PLAYS 1P 2P & 3P Drilling Estimated…
  8. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 8
    Arkoma Basin Approximately 48,000 net acres in the Woodford Shale Over 18,000 net acres in the Fayetteville Shale Current production in excess of 39,000 Mcf/day net 8
  9. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 9
    Woodford Shale Recent Activity Estimated locations: 360+ on 80 acre spacing; 720+ on 40 acre spacing Majority of operated Woodford production tied to Henry Hub index through Firm Transportation agreement Continued improvement in…
  10. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 10
    Gross Woodford Production (PQ Operated) Mcf / d Third Rig 70, 000 60, 000 Second Rig 50, 000 First Rig 40, 000 30, 000 20, 000 10, 000 0 Feb- M ar - A pr - M ay- Jun- Jul - A ug- Sep- Oct - Nov- Dec- Jan- Feb- M ar - A pr - M…
  11. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 11
    Woodford Shale PQ drills 5% of wells . delivers 47% of the top 21 producers TOP 21 WOODFORD WELL RATES (Highest one month average through December 2008) 12,000 PQ WOODFORD PROGRAM 492 Woodford Wells in trend 10,000 PQ completed 26…
  12. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 12
    Woodford Shale - Upside Leverage Ticker Woodford Acres Acres/EV (1) PQ 48,000 108.1 Macintosh SM 49,000 26.9 DVN XTO NFX 165,000 25.3 PQ Haskell Pittsburg CLR 47,000 9.6 Hughes Latimer XTO 160,000 4.7 CLR DVN 54,000 1.8…
  13. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 13
    Woodford Horizontal Well Economics Estimated Type Well Economics Capital 4MM 120 100 Capital 5MM 80 IRR (%) Capital 6MM 60 40 20 0 2 4 6 8 10 12 Gas Price (per MCF) Capital (M) Assumptions: Price* 4,000 5,000…
  14. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 14
    Fayetteville Shale Approximately 18,000 net acres Estimated locations: 2,000+ on 80 acre spacing Currently producing in excess of 7 MMcfe/d, net 14
  15. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 15
    Fayetteville Shale - Upside Leverage Ticker Fayetteville Acres Acres/EV (1) CHK HK SWN SWN 857,000 61.3 Stone PQ 18,000 40.5 XTO PQ HK 157,000 18.4 Van Buren Cleburne SWN CHK 415,000 16.8 Pope HK CHK XTO 380,000 11.2 (1)…
  16. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 16
    East Texas Basin TOMS PROSPECT NET ACRES: 1,500 SE CARTHAGE POTENTIAL DRILLS: 6 NET ACRES: 23,900 POTENTIAL DRILLS: 100+ NICKLAUS PROSPECT NET ACRES: 1,700 POTENTIAL DRILLS: 15+ NELSON PROSPECT NET ACRES: 4,875 TEXAS…
  17. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 17
    2008 Gulf Coast Drilling Program Lafayette The Bluffs (Producing) Royal Oaks (P&A) Pelican Point (Producing) The Highlands WC (P&A) (Development) SS72 (Development) Sand Hills (P&A) Successful First Prospects NRI…
  18. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 18
    Near-Term Drilling Inventory Gross Unrisked Prospect Ownership Total Depth Reserves Spud Date Syrah 25% 19,000 127 Bcfe TBD La Cantera 20% 19,300 98 Bcfe TBD Whistling Straits 24% 18,500 93 Bcfe TBD St. Andrews 35% 11,400 12 Bcfe TBD…
  19. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 19
    Consistent Approach Through Price Cycles Actively manage capital expenditures to stay within cash flow Economic reserve and production growth Balanced portfolio of projects Focus on cost control 19
  20. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 20
    Growth in Reserves Bcfe 200 180 160 140 120 Arkoma 100 East Texas 80 60 40 Gulf Coast 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20
  21. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 21
    Growth in Production Bcfe Guidance 40 Arkoma 35 East Texas 3 6% R 30 Gulf Coast C AG 25 20 15 10 5 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 (1) (1) Based upon the midpoint of production guidance…
  22. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 22
    Cash Flow Growth in millions 250 225 200 175 1 03% 150 G R C A 125 100 75 50 25 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 22
  23. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 23
    Gross Margin / Mcfe 7.90 6.90 (1) 5.90 2 0% G R 4.90 CA 3.90 2.90 1.90 0.90 (0.10) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (1) Begins in 1999 23
  24. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 24
    Capital Investment Program Diversification Reduces Risk 2002 2009E Arkoma GOM 66% 75% Gulf Coast Gulf Coast 25% 6% GOM 23% E. TX 5% 64 million 60 - 90 million Drilled 10 Wells Drill 60 80 Wells 24
  25. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 25
    Conservative Financial Philosophy Fund drilling expenditures with internal cash flow Target conservative leverage ratios Net debt / EBITDA < 2.0x (1.1x using 12/31/08 TTM) EBITDA / Interest 8.0x (14x using 12/31/08 TTM) No high…
  26. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 26
    Hedging Positions Target of hedging 40%-50% of annual production approximately 66% of the 2009 production is hedged (based on mid-point of production guidance) Counterparties are JP Morgan & Calyon Fair value of hedge positions at…
  27. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 27
    Summary and Outlook Proven Track record of drilling within cash flow Actively manage Capex to generate free cash flow Exploit inventory of low and moderate risk Gulf Coast assets Inventory and capability to continue production and…
  28. Q1 2009 Earnings Call – Petroquest Energy Inc. – slide 28
    400 East Kaliste Saloom Road, Suite 6000 Lafayette, Louisiana 70508 Phone: (337) 232-7028 Fax: (337) 232-0044 www.petroquest.com NYSE: PQ

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