Global Hunter Securities 100 Energy Conference June 24, 2014
Overview of Sabine Oil & Gas LLC Company Overview Formed in 2007, privatelyheld natural gas and oil North Texas(1) company owned by First Reserve and Management 2.5 MBOE/D (71% liquids) 36,200 net acres Primary Target: Granite Wash…
East Texas: Cotton Valley 2013 SABO Wells 2013 Results 2014 SABO Wells IP30 (MCFE/D) Evolving completion techniques and improving gas price leading to better economics 5 wells completed in 2013 had an average IP30 of 10.1…
East Texas: Haynesville Shale 2013 Results Industry leader in East TX completion design evolution leading to results improving over time 7 wells completed in 2013 had an average IP30 of 9.7 MMCFE 2014 Plan Completing…
East Texas Acreage Cotton Valley CVS Acreage by County Developed Undeveloped County Net Acres Net Acres Total Harrison 36,455 Harrison 43,374 2,283 45,657 Panola 45,657 Rusk 34,632 1,823 36,455 Rusk Panola 6,053 318 6,371…
Eagle Ford Shale: Shiner area Upper Eagle Ford landing validated and has excellent productivity in northern DeWitt and Lavaca counties Sabine Haynesville completion design being implemented: Tighter perf cluster, frac stage…
Eagle Ford Shale: Sugarkane 2013 SABO Wells 2014 SABO Wells Acquired acreage in December 2012 DE WITT IP30 (BOE/D) T-Bird 4H T-Bird 2H Core of the core Eagle Ford reservoir 2,238 BOE/D 2,192 BOE/D T-Bird 5H 2,261 BOE/D…
North Texas: Granite Wash Roberts County Well F Well H Operated 33,500 net acres in oil window of play, 2013 SABO Wells 190 BOE/D 2014 SABO Wells 1,641 BOE/D shallowest part of Granite Wash trend IP30 (BOE/D) Well G…
Transaction Summary Allstock 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, liquidsrich 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 O K L A H O M A Arkoma 290 Mmcfe/d A R K A N S A S 33,500 net acres 15 Mmcfe/d (29% gas) current production 35,000 net…
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…
Pro Forma Asset Profile Versus Comps Combined company gains significant scale; aligns with gasweighted 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 ( of wells) ( of wells) industry, improving well performance 1,600 Avg. 12 Month…
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…
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…
1Q14 Activity Combined company production for Q1 was approximately 290 MMCFE/D (33% liquids) Combined Adjusted EBITDA was 113MM, operating cash flow was 134MM Twelve rigs running for the combined company during the quarter Six rigs…
Financing Highlights and Pro Forma Capitalization Financing Highlights Capitalization Table ( in millions) Status Quo Status Quo New 1 billion RBL facility (already committed) Sabine Forest Pro Forma Cash 1 48 49 Forest 2019 and…
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, liquidsrich Cotton Valley…
Appendix 26
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…
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