Bank of America Merrill Lynch 2014 Global Energy and Power Leveraged Finance Conference June 4, 2014
Overview of Sabine Oil & Gas LLC Company Overview Formed in 2007, Sabine is a 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 1Q14 Production…
Sabine Historical Growth Production (Mmcfe/d) 1Q14 Production Mix 250 220 66% 200 155 150 19% 133 121 100 77 59 50 32 15% Gas Oil NGL 0 (2) (1) 2008 2009 2010 2011 2012 2013 2014E 34% of Production from Liquids 2013…
East Texas: Cotton Valley 2013 SABO Wells 2013 Results 2014 SABO Wells Hardy-Heirs Modisette 2H IP30 (MCFE/D) 16,769 MCFE/D Evolving completion techniques and improving gas price Hardy-Heirs Modisette 1H 11,402 MCFE/D leading to…
East Texas: Haynesville Shale 2013 SABO Wells 2014 SABO Wells 2013 Results IP30 (MCFE/D) Lowery Deep 1H Industry leader in East TX results improving over time Welch Deep 1H 9,125 MCFE/D 11,569 MCFE/D Dinkle Deep 1H & 2H 9,545…
1Q14 East Texas Acreage Position Core East Texas Acreage(1) 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…
Eagle Ford Shale: South Shiner 2013 SABO Wells Operated results to date 2014 SABO Wells IP30 (BOE/D) Fields 1H Acreage well delineated, now in development phase 1,089 BOE/D 14 wells drilled to date Loos 1H Janak 1H GONZALES 1,452…
Eagle Ford Shale: Sugarkane 2013 SABO Wells Operated results to date 2014 SABO Wells DE WITT IP30 (BOE/D) Acreage is in full development phase T-Bird 4H T-Bird 2H 2,238 BOE/D 2,192 BOE/D 13 wells drilled to date plus 1 acquired well…
Eagle Ford Shale: North Shiner 2012 SABO Wells 2013 SABO Wells Operated results to date 2014 SABO Wells IP30 (BOE/D) Acreage is currently being delineated 3 wells drilled todate Sustr 1H 869 BOE/D 3 additional wells expected to be…
North Texas: Granite Wash Roberts County 2013 SABO Wells Well F Well H Operated results todate 1,641 BOE/D 190 BOE/D 2014 SABO Wells IP30 (BOE/D) Outstanding productivity in NW Granite Wash trend 8 Sabine operated wells drilled and…
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…
Financing Highlights and Pro Forma Capitalization Financing Highlights Capitalization Table ( in millions) Q1 2014 Q1 2014 New RBL facility Sabine Forest Pro Forma Assumes Sabines 2nd lien and bonds remain in Cash 1 48 49 place…
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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