400MM Eagle Ford Shale Acquisition Investor Presentation April 3, 2013 NYSE: PVA
Transaction Overview Penn Virginia is acquiring Eagle Ford Shale assets from Magnum Hunter for approximately 400 million Assets are adjacent to PVAs current Eagle Ford position in Gonzales and Lavaca Counties Transformational…
Strategic Rationale Transformational acquisition which increases our footprint in the volatile oil window core of the Eagle Ford Shale play With 82,995 gross (54,057 net) highly contiguous acres, our pro forma position will be…
Transformational Acquisition Greater scale with 54,000 net acres in the Eagle Ford and substantial growth in oil production revenue Purchase price of approximately 400 million ACREAGE 3D Seismic EAGLE HUNTER for 19,037 highly…
Transformational Acquisition (cont.) Acquisition Impacts to PVAs Asset Profile Growth in Key Corporate Metrics as a Result of Acquisition Growth in Key Eagle Ford Metrics as a Result of Acquisition Proved Proved Devel oped 9% Devel…
Expanded Eagle Ford Acreage Position (Net acreage in thousands) Net acreage by operator across entire Eagle Ford play Operators disclosed acreage includes leaseholds outside volatile oil window Approximately all of PVAs leasehold is…
Eagle Ford Shale Operators Eastern Volatile Oil Windows(1) Volatile Oil Condensate Rich Gas EFS Operators Gonzales PVA MHR San Antonio Hunt Wilson BHP Bexar CHK Lavaca COG COP Atascosa CRK DeWitt CRZO EOG FST MRO…
PVAs Pro Forma Eagle Ford Shale Position Sizeable Position in a Successful Portion of the Eastern Oil Window of the Eagle Ford Shale Premier Shale Oil & Liquids Play 82,995 gross (54,057 net) acres in Gonzales and Lavaca Counties,…
Acquired Asset in Detail Total of 345 (169 net) locations across 40,565 (19,037 net) acres in Gonzales and Lavaca Counties Gross Average Prospect Area Acres Net Acres Royalty Peach Creek (MHR) 19,722 9,166 20% Peach Creek (Hunt…
Pro Forma Eagle Ford Shale PVA vs. MHR Eagle Ford Assets PVA EXISTING MHR ASSETS TO BE ACQUIRED Located in Gonzalez and Lavaca Also located in Gonzalez and Lavaca Counties Counties and largely adjacent to PVAs existing…
Combined Position Post Acquisition Significant Eagle Ford Shale Acreage and Drilling Inventory Due to both acquisitions and leasing efforts over the past two years, our acreage position is now 83,000 gross (54,000 net) acres…
Pro Forma Total Company Drilling Inventory Pro Forma PVA Has a Healthy Inventory of Drilling Locations Total inventory of up to 1,133 gross undrilled locations (952 horizontal locations) Up to 692 gross horizontal drilling locations…
Revised 2013 Capital Plan 2013 Capital Spending Focused on Eagle Ford Drilling Fullyear 2013 capital expenditures expected to be approximately 457 million(1) Four operated rigs with two on existing PVA acreage and two rigs on…
Sources & Uses / Pro Forma Capitalization Sources ( in millions) Pro Forma Capitalization New Seni or Notes 400 Eagle Ford Acq. PVA Pro Forma Equi ty Is s ua nce (1) 40 ( in millions) 12/31/2012 Adjustments 12/31/2012 (4) Dra w on…
Strong Margins vs. Peers EBITDAX has increased significantly since mid2010 when we shifted our strategy to oil and NGLs Cash margin per Boe has also improved significantly due to the increase in oil prices and declining operating…
FullYear 2013 Guidance Table Revised for Proposed MHR Acquisition Assuming 5/15/13 Closing Date Current FullYear Adjustments for MHR Pro Forma 2013 Guidance Acquisition / One Less Rig 2013 Guidance Production: Crude oil (MBbls)…
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