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AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Aug 14, 2012 · 34 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. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 1
    Investor Presentation A ugust 2012
  2. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Wattenberg Field Market Cap: 701 million North Park Basin (Niobrara & Codell) (Niobrara) 20.8 MMboe 1P Share Price(1) : 17.53 Shares Outstanding(2) : 40.0 million 0.6 MMboe 1P 59% Oil 100% Oil Q2 2012…
  3. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 3
    Second Quarter 2012 Highlights 2Q12 as compared to 2Q11 144% Increase in Production 8,944 Boe/ d 71% oil and liquids 149% Increase in A dj. Net Income (1) 12.5 million (0.32/ sh) 127% Increase in EBITDA X (1) 36.9…
  4. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 4
    Bonanza Creek Strengths Management has proven track record Oily assets drive solid margins 45.06/ Boe EBITDA margin(2) Deep inventory for growth 360 net horizontal Niobrara drilling locations(1) Strong balance sheet 10%…
  5. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 5
    Track Record of Growth Proved Reserves(1) (Mboe) Production(1) (Boe/ d) 50,000 11,000 10,000 RANGE 40,000 9,000 8,000 7,000 G 30,000 U 6,000 I D 5,000 A 20,000 N 4,000 C E 3,000 10,000 2,000 1,000 0 0 2007 2008 2009…
  6. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 6
    Oil Weighted Assets Drive Strong Margins 2Q 2012 Revenue Unhedged Cash Margin / Boe (1) 53.5 Million 65.69 8% Nat. Gas 69% Cash Margin 92% Oil & Liquids 12% Cash G& A 5% Prod. Taxes 14% LOE (1) A verage sales price…
  7. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 7
    Organic Growth Pipeline 250 MMBoe of resource potential 8 primary opportunities in various stages of development and evaluation Wattenberg Codell A rkansas Cotton V alley Niobrara B Wattenberg Horizontal 5-acre spacing…
  8. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 8
    First Half Results Drive Increased CapEx Original CapEx Budget: 250MM New CapEx Budget: 298MM Wattenberg Field: 146 million Wattenberg Field: 183 million Horizontal Niobrara: 24 wells Horizontal Niobrara: 36 wells V ertical…
  9. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 9
    Rocky Mountain Operations 10
  10. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 10
    Wattenberg Field Horizontal Niobrara 16 wells A vg. 30-day Rate: 470 Boe/ d 74% oil 11 wells A vg. 60-day Rate: 373 Boe/ d 72% oil 3D SEISMIC LEGEND N July 2012 Acquired Leasehold BCEI 2011 Horizontals BCEI 2012…
  11. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 11
    Wattenberg Horizontal Niobrara Economics EUR 312,000 Boe; 65% crude oil Initial 30-day Rate 469 Boe/ d Cost per Well 4.0 MM NPV -10 at 80/ BO 4.1 MM NPV -10 at 100/ BO 6.1 MM Locations 360 net (1) IRR % at / BO WTI (2) 125% 100%…
  12. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 12
    Wattenberg Performance & Inventory Upside 1) Extended Reach Laterals 2) Niobrara C Bench Horizontal NBL: 750 MBoe EUR(1) No evidence of C bench stimulation from B NBL: 7.5 MM well cost (reported) bench fracs Dramatically improves F&…
  13. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 13
    Wattenberg Inventory Targets CURRENT DEV ELOPMENT TESTING FUTURE 14
  14. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 14
    North Park Basin Niobrara EUR 211,000 Boe Initial 30-day Rate 304 Boe/ d % Oil 90% Cost per Well 5.1 MM NPV -10 at 80/ BO 2.1 MM NPV -10 at 100/ BO 3.9 MM Type Curve(1) Bonanza Creek acreage (Boe/ d) 350 300 250 200 150…
  15. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 15
    Mid-Continent Operations (Arkansas) 14,980 gross (13,474 net) acres; 100% HBP ERA SYSTEM CENOZOIC SERIES EOCENE GROUP Claiborne FORMATION PALEOCENE Wilcox TERTIARY Midway Primary Target: Cotton V alley: 4,000 7,000 feet…
  16. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 16
    Dorcheat-Macedonia Economics EUR 152,000 Boe Peak 30-day Rate 103 Boe/ d % Oil & Liquids 70% Cost per Well 1.7MM NPV -10 at 80/ BO 1.9 MM NPV -10 at 100/ BO 2.8 MM IRR % at / BO WTI (1) 125% 100% 75% 50% 25% 0% 70…
  17. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 17
    Cotton V alley Lenticular Oil Sands Pin-Point Fracture Technology Focused completion technology Improved recovery of OOIP Highly repeatable Dorcheat Unit 37 25-30 sand/ shale sequences Each zone individually pressured…
  18. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 18
    Financial Overview 19
  19. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 19
    2012 Guidance Total: 3,330 - 3,700 Mboe Production A verage Net Daily Production: 9,100 - 10,100 Boe/ d Percent Oil & NGLs: 72% Lease Operating: 8.50 - 9.50 Operating Costs and Expenses Severance and A d V alorem: 3.60 - 4.00 (per…
  20. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 20
    Improving Operating Cost Structure High Margins Cash Costs ( per Boe) Realized Price & Cash Margins ( per Boe) 30 80 25 76.68 10.16 60 7.90 8.19 69.34 65.70 20 67.73 7.76 15 3.32 4.18 5.71 40 10 3.43 50.74 20 40.72 44.08…
  21. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 21
    Capitalization & Liquidity Total debt: 62.6 million Debt-to-Capital Ratio: 10% Capitalization & Liquidity ( in thousands) as of June 30, 2012 Capitalization: Outstanding Balance on Credit Facility 62,600 Book value of equity…
  22. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 22
    Hedge Positions (1) Commodity & Contract Term Type Avg. V olume Avg. Floor Avg. Ceiling Avg. Price Crude Oil (Bo/ Month) A ugust December 2012 collar 77,956 90.00 106.05 January A pril 2013 collar 42,654 91.64 112.00 May December…
  23. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 23
    Buying High Growth & Experience Experienced management team with proven growth track record Oil & liquids focused; strong cash margins Deep inventory highly leveraged to the Niobrara Healthy balance sheet considerable cash…
  24. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 24
    Corporate Information Company Headquarters Investor Relations 410 17 th Street, Suite 1400 James M. Masters Investor Relations Manager Denver, Colorado 80202 (720) 440-6121 (720) 440-6100 Main jmastersbonanzacrk.com (720) 305-0804…
  25. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 25
    A ppendix 26
  26. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 26
    Experienced Management Team Founder of predecessor companies Mike Starzer Prior: Executive and Engineering roles at Unocal and Berry Petroleum President & CEO B.S. in Petroleum Engineering, Colorado School of Mines; M.S. in…
  27. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 27
    Wattenberg Horizontal Niobrara Economics (Boe/ d) 500 Type Curve(1) 312,000 Boe EUR 400 65% crude oil; 35% rich gas 356,000 Boe EUR 300 57% crude oil; 19% NGLs; 24% dry gas 200 Field Development 85.6% WI / 69.1% NRI 100 360…
  28. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 28
    Wattenberg V ertical Niobrara/ Codell Development Economics Type Curve(1) 955,000 CapEx 78,000 Boe EUR 725,000 initial well cost 65 Boe/ d initial 30-day rate 230,000 refrac in five years Re-frac after 5 years with peak rate 70% of IP…
  29. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 29
    Dorcheat-Macedonia Field (Boe/ d) 120 Type Curve(1) Recompletions opening additional Cotton V alley oil pay zones up hole 152,000 Boe EUR(2) 100 Initial 30-day rate: 67 Boe/ d Peak 30-day rate: 103 Boe/ d Include subsequent…
  30. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 30
    Mid-Continent Gas Processing Facilities General Overview A pproximately 150 miles of gathering lines Nevada Processes minor quantities of third party natural gas Facilities interconnect into the CenterPoint Energy pipeline system…
  31. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 31
    California Region 8,940 gross (5,012 net) acres 100% HBP Thermal development opportunity in Kern River and Midway Sunset 16.5 MMBoe original oil in place(1) 0.7 MMBoe of Proved Reserves 100% crude oil 37% developed Operate…
  32. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 32
    Reconciliation to Adjusted Net Income We define adjusted net income as (1) unrealized gain or loss on commodity derivatives and (2) non-cash stock compensation expense. The amounts included in the calculation of adjusted net income and…
  33. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 33
    Reconciliation to EBITDAX We define EBITDA X as net income, plus (1) exploration expense, (2) depletion, depreciation and amortization expense, (3) stock-based compensation expense, (4) interest expense, (5) unrealized loss (gain) on…
  34. AUGUST 2012 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 34
    Reconciliation to Long-Term Debt to Capital Ratio Long-Term Debt to Capital Ratio Long-term debt-to-capital ratio is calculated as of June 30, 2012, and by dividing long-term debt (GA A P) by the sum of total stockholders equity (GA A…

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