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IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc.

Warren Resources Inc. · Apr 17, 2013 · 49 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. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 1
    IPAA OGIS April 17, 2013
  2. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 2
    Overview Philip A. Epstein, Chairman and CEO Investing in the Future of Energy NASDAQ (WRES) 3
  3. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 3
    Organizational Changes 12-13 Management Philip A. Epstein, Chairman and CEO Timothy A. Larkin, Chief Financial Officer Bob Dowell, Vice President & General Manager of CA Division Scott B. Daves, Engineering Manager of Rockies…
  4. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 4
    WRES Overview 65% x 3 65% Oil by Reserves 65% PDP and PDNP by Reserves Enterprise Value is 65% of our PV-10 Two cornerstone assets California Oil: Wilmington Oil Field Rockies Gas: Atlantic Rim CBM and Deep Oil Play Platform…
  5. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 5
    Areas of Operations 12% oil reserve growth in 2012 24.9 mmboe (16.4 oil, 8.5 natural gas) of Proved Net Reserves 6,000 boepd (2,900 bopd oil, 3,100 boepd gas) year end net production Operator of record across asset base Reserves…
  6. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 6
    Operations Performance: 2007-2012 A track record of production growth while lowering costs Proved Reserves (Bcfe) Historical Production (MBOE) Historical Cost Structure* (/BOE net) 2,050 2,500 356 25.00 349 2,000 327 22.20…
  7. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 7
    California Operations: Wilmington Townlot Unit Investing in the Future of Energy NASDAQ (WRES) 8
  8. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 8
    California: Wilmington Oil Field Overview Los Angeles Basin Warren Property Highlights Within the 3rd largest US oilfield WRES 10% current production of the Wilmington field Waterfloods in the shallow Tar, Ranger and Upper…
  9. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 9
    California Oil: Capex Trends 2012: 42 million 31 million for New Wells 11 million for New Facilities 2013E: 53 million 40 million for New Wells 13 million for New Facilities (includes Gas Sales Facility and oil pipeline)…
  10. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 10
    Existing WTU Cellar WTU Centralized Drilling and Production Cellars Warrens drilling cellars received the IOGCC 2011 Environmental Stewardship Award for independent oil companies. Investing in the Future of Energy NASDAQ (WRES)…
  11. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 11
    NWU Satellite 7 Drill Site Investing in the Future of Energy NASDAQ (WRES) 12
  12. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 12
    California Oil: Wilmington Field Producing Zones SW Tar NE Ranger Terminal - 3000' Union Pacific Ford/237 - 6000' Schist Productive Basement - 9000' Limits One Mile Investing in the Future of Energy NASDAQ (WRES) 13
  13. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 13
    California Oil Reservoirs Investing in the Future of Energy NASDAQ (WRES) 14
  14. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 14
    California: Recent Oil Production Warren California Net Oil Production 3500 3000 2500 2000 Oil bopd 1500 1000 500 0 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Investing in the Future of…
  15. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 15
    WTI-CMS Historical Prices March 2011: WTI Drops below CMS 2011: CMS rises above WTI Investing in the Future of Energy NASDAQ (WRES) 16
  16. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 16
    California: Development Strategy Continue horizontal / sinusoidal redevelopment plans 28% 7-year CAGR growth rate 6% growth rate target for 2013 over 2012 Drill Highly Targeted Wells in 14 layers of stacked pay (2600-6000) Target…
  17. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 17
    Rockies Operations Investing in the Future of Energy NASDAQ (WRES) 18
  18. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 18
    Rockies: Atlantic Rim CBM Gas Spyglass Hill Mega Unit: 113,000 gross acres (87,746 Net CBM Acres and 71,792 Net Deep Acres) Opportunity to hold acreage by drilling 25 CBM wells per year Form Federal Units to protect deep rights…
  19. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 19
    Atlantic Rim Producing Zones Atlantic Rim Spyglass Hill Mega Unit West East - 2,000' - 6,000' - 10,000' CBM Down Dip Productive Limits Ten Miles Investing in the Future of Energy NASDAQ (WRES) 20
  20. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 20
    Acquisition of Anadarko Interests-Atlantic Rim In October 2012 Warren acquired: 79% of Anadarkos oil and gas WI in the Spyglass Hill Unit for a purchase price of 11.4 mm 26.5 % of Anadarkos WI in the Catalina Unit operated by…
  21. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 21
    Acquisition of Anadarko Interests cont. Favorable Acquisition Economics: Added proved developed (PDP) reserves of 18.3 BCFE at 0.65 per MMbtu Added natural gas production of about 7.8 MMbtu/d Approximately 1,550 per flowing…
  22. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 22
    Rockies Operations: Price Trends 7.00 6.00 Anadarko Acquisition 5.00 4.00 3.00 2.00 1.00 0.00 Henry Hub CIG WRES Notes: 1) CIG and Henry Hub are 1st of the month pricing 2) WRES price is blended gas price from all…
  23. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 23
    Rockies Gas: Recent Gas Production WRES NET MCF/D 25,000 20,000 Anadarko Acquisition 15,000 10,000 5,000 0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Investing in the Future of Energy NASDAQ (WRES) 24
  24. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 24
    Atlantic Rim Deep Potential Significant Acreage Our geological review has identified attractive structures on our acreage Analogous to DJ & Powder River Basin Stacked Pay Opportunity (all producing in area) Sussex/Shannon…
  25. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 25
    Atlantic Rim Deep Potential Investing in the Future of Energy NASDAQ (WRES) 26
  26. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 26
    Atlantic Rim Deep Potential Investing in the Future of Energy NASDAQ (WRES) 27
  27. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 27
    Double Eagle Petroleum Co. (NASDAQ: DBLE) announced today that the Companys Niobrara exploration appraisal well 41-12N had an initial 24 hour production rate of 467 barrels of oil equivalent (BOE). DEEP OIL FIELDS Investing…
  28. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 28
    Rockies Operations: Goals Minimize CAPEX in current low gas price Maximize infrastructure value Evaluate & exploit deep potential Form multiple federal exploration/resource units Actively seek partners to develop acreage Seek…
  29. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 29
    Recap of 2012 Milestones Achieved 17 Wilmington Townlot Unit (WTU) oil wells drilled in 2012 Drilling costs reduced 20% from 2011 costs 2012 oil production growth rate of 20% 4 California DOGGR injection well permits received in…
  30. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 30
    2013 Objectives Drill 13 new oil wells and 3 water injection wells in WTU Initiate full field development of NWU with 4 Oil Wells and 3 Injection Wells Expand Rocky Mountain natural gas development Protect and joint venture…
  31. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 31
    Business Strategy Going Forward Protecting the Base 5-6 year oil drilling inventory in California with 150+ identified locations Continued California waterflood reserve growth Potential California oil upside with tertiary recovery…
  32. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 32
    Reasons to Invest World Class Self Operated Assets 25-30 mmbo oil reserves plus tertiary recovery potential in California 250-300 bcf gas potential in Wyoming Oil-weighted producer: 83% by revenue 28% CAGR 7-year oil production…
  33. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 33
    Financial and Market Position Timothy A. Larkin, Executive Vice President and CFO Investing in the Future of Energy NASDAQ (WRES) 34
  34. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 34
    Snapshot: Netherland, Sewell Reserve Report Netherland, Sewell & Associates, Inc. completed an evaluation of Warrens oil and natural gas reserves with an effective date of December 31, 2012 (the Netherland Sewell Report). As of…
  35. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 35
    Historical Financial Performance Year Ended Year Ended Year Ended Year Ended 2012 2011 2010 2009 Total production (MBOE) 2,028 1,748 1,744 1,600 Adjusted EBITDAX 72,451 50,511 52,061 25,581 Balance Sheet Information Cash and…
  36. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 36
    Existing Hedges 2013 Natural Gas Swaps at a blended price of 3.56 for 9 Mmcf/d 2014 Natural Gas Swaps at a blended price of 3.88 for 9 Mmcd/d 104.30 Brent Swap for 700 BOPD for the period October 1, 2013 to September 30,…
  37. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 37
    Peer Comparisons Investing in the Future of Energy NASDAQ (WRES) 38
  38. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 38
    Peer Valuations Enterprise Value/Proved Developed BOE 90.00 81.11 80.00 70.32 70.00 63.04 60.43 56.12 60.00 45.47 47.77 50.00 43.41 36.76 38.86 40.00 31.34 31.60 32.49 29.48 30.00 27.81 22.23 19.34 20.00 10.00…
  39. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 39
    100 120 20 40 60 80 0 3 CAMAC Energy Inc 3 Evolution Petroleum Corp 7 Synergy Resources Corp 7 US Energy Corp Wyoming 13 FX Energy Inc 15 Dune Energy Inc 18 Saratoga Resources Inc…
  40. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 40
    100 200 300 400 500 700 800 900 600 0 0 VAALCO Energy Inc 0 Evolution Petroleum Corp 4 CAMAC Energy Inc 5 Synergy Resources Corp 8 US Energy Corp Wyoming Harvest Natural Resources 9 Inc…
  41. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 41
    100% 120% 40% 60% 80% 0% 20% BPZ Resources Inc 0% CAMAC Energy Inc 0% VAALCO Energy Inc 5% Evolution Petroleum Corp 10% Harvest Natural Resources Inc 11% US Energy Corp Wyoming 14%…
  42. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 42
    1000% 1500% 2000% 2500% 3000% 500% 0% VAALCO Energy Inc 0% Evolution Petroleum Corp 0% Synergy Resources Corp 1% Harvest Natural Resources Inc 2% CAMAC Energy Inc 4% Panhandle Oil and Gas…
  43. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 43
    -20.00 10.00 20.00 30.00 40.00 -10.00 0.00 Harvest Natural Resources Inc -12.2x GMX Resources Inc -2.0x Endeavour International Corp 0.9x Penn Virginia Corp 1.2x Gastar Exploration Ltd 1.7x…
  44. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 44
    -50.00 -30.00 -10.00 10.00 30.00 50.00 70.00 90.00 GMX Resources Inc Harvest Natural Resources Inc -27.4x -15.1x VAALCO Energy Inc 3.5x Warren Resources Inc 3.9x US Energy Corp Wyoming 4.3x Penn Virginia…
  45. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 45
    10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 0 Constellation Energy Partners 3,321.47 LLC GeoMet Inc 4,866.90 Double Eagle Petroleum Co 4,972.98 Petroquest Energy Inc 5,028.51 Harvest Natural…
  46. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 46
    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…
  47. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 47
    Peer Analysis:Concentrated Debt/Total Cap effort to reduce debt 100% 90% 100% 80% 70% 60% 50% 75% 40% 41% 50% 30% 34% 20% 25% 10% 0% Warren Resources Peer Group Average Source: Source: Bloomberg Bloomberg…
  48. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 48
    Debt/Total Cap 60% 50% 50% 42% 40% 33% 34% 34% 30% 20% 10% 0% 2008 2009 2010 2011 2012 Source: Bloomberg Investing in the Future of Energy NASDAQ (WRES) 49
  49. IPAA 2013 Oil Gas Investment Symposium – Warren Resources Inc. – slide 49
    Warren Resources, Inc. Please visit our new website: www.warrenresources.com Investing in the Future of Energy NASDAQ (WRES) 50

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