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MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp

Halcon Resources Corp · May 5, 2015 · 28 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. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 1
    Company Presentation May 2015
  2. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 2
    Company Profile 59% PF Reserve Growth & 557% Organic Reserve Replacement in 2014 Bakken/Three Forks 125,000 Net Acres Total Proved Reserves: (1) 189.1 MMBoe 140.0 MMBoe Proved Reserves (1) % Proved Developed: 41% % Oil: 82%…
  3. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 3
    Focused on Improving Balance Sheet Provide Sufficient Liquidity to Fund Recent Steps Taken to Strengthen Operations and Service Debt for Balance Sheet Several Years Extended maturity of the 8.0% Senior Convertible Notes to 2020…
  4. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 4
    Ample Liquidity & Improved Leverage Profile No Near-Term Debt Maturities Pro Forma Capitalization ( in Millions) PF HK PF HK HK HY Debt 3.31.2015 New 2nd Lien 3.31.2015 3.31.2015 Exchanges (1) (For Exchanges) Issuance (For 2nd Lien)…
  5. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 5
    Hedging Program Designed to support capital program and protect cash flow In 2015, 88% of oil and 86% of gas is hedged based on the midpoint of 2015E production guidance Weighted Average Oil Price: 90 in 2015 and 81 in 2016 (1)…
  6. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 6
    Income Generated from Hedging Program 2Q15 4Q15 Oil Price Sensitivity 2016 Oil Price Sensitivity 600 600 Q2 Q3 Q4 Q1 Q2 Q3 Q4 450 450 406 Pre-Tax Income ( MM) Pre-Tax Income ( MM) 353 132 319 87 300 300 263 104…
  7. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 7
    Consistent Production Growth Pro Forma Production Growth (MBoe/d) (1) 180% Increase in Daily Production Actual Production 42.5 Guidance Midpoint 40.8 24.7 15.0 PF 2012 PF 2013 PF 2014 2015E (2) (1) Pro forma to…
  8. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 8
    Significant Per Unit Cost Improvements Historical LOE (1)/Boe Historical G&A/Boe (2) 42% decrease in 68% decrease in LOE/Boe G&A/Boe 15.63 15.81 11.49 9.52 9.00 8.99 5.98 5.00 (3) (3) 2012 2013 2014 2015E 2012 2013…
  9. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 9
    High Quality Existing Asset Base Halcns asset base primarily consists of 125,000 Bakken / Three Forks net acres (100% HBP) and 100,000 fully de-risked East Texas Eagle Ford (El Halcn) net acres Bakken / Three Forks El Halcn 11
  10. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 10
    Drilling in Core Areas in 2015 D&C Capex by Area ( in millions) 350 El Halcn 35% Williston Basin 100% of Total D&C Allocated to Core Acreage 65% 2015 Note: D&C budget subject to revision; Excludes capital costs…
  11. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 11
    Bakken / Three Forks Highlights 2015 Outlook Williams County Expect to spud 25 - 30 gross operated wells w/ 2 rigs (avg. WI 55-60%) Expect to participate in 70 80 gross non-op wells (avg WI 2%) 100% of acreage is HBP Downspacing…
  12. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 12
    Well Cost Reduction Detail FBIR 11.0 (1.0) 8.0 (0.5) (1.1) Cost ( in millions) (0.4) Completions: all white sand Drilling: eliminate spud rig and more efficient use of contractors/consultants Reduced rates across the…
  13. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 13
    FBIR Well Economics 801 MBoe EUR Type Curve IRR vs. Oil Price: FBIR 175% 150% Current AFE CWC 125% has IRR of 51% at strip pricing (3) 100% IRR % (contango) 75% 50% 25% 0% 45 50 55 60 65 70 75 80 85 90 /Bbl NYMEX Oil…
  14. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 14
    Continued Focus on Enhanced Completions High intensity completions have led to increased recoveries in the Williston Basin Past Completions Wells completed with high intensity fracs continue to outperform type curves in FBIR -…
  15. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 15
    FBIR Bakken Slickwater Wells Outperforming 325,000 300,000 275,000 250,000 225,000 Cumulative Oil Production (Bbl) 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 Producing Days 0…
  16. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 16
    El Halcn East Texas Eagle Ford Shale Highlights 100,000 net acres leased in SWEET SPOT of play Entire position de-risked through operated step outs and offset results by other operators 2015 Outlook Expect to spud 12-15 gross…
  17. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 17
    Entire El Halcn Acreage Position De-Risked Sabalo Exploration Blacktip 1H IP: 894 BOEPD (2/7/14) Halcon Lobo 1H Sabalo Exploration Koontz Heirs 1H IP: 906 BOEPD (10/11/14) IP: 939 BOEPD (11/21/13) Halcon Reveille 1H Halcon Javelina…
  18. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 18
    Well Cost Reduction Detail El Halcn 9.5 (0.8) 7.5 (1.0) (0.2) Cost ( in millions) Reduced rates across the board Decreased drilling services and materials costs: labor, cement, wellhead, casing Decreased completion services…
  19. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 19
    Development Plan Well Costs Expectations El Halcn Lease Capture vs. Development Plan Cost Savings Single-Well Completed Well Cost ( in 000s) Land/Title (300) Initial pooled unit wells incur the majority of expense for title…
  20. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 20
    El Halcn Well Economics 452 MBoe EUR Type Curve IRR vs. Oil Price: El Halcn 80% 70% Current AFE CWC 60% has IRR of 17% 50% at strip pricing (2) IRR % (contango) 40% 30% 20% 10% 0% 45 50 55 60 65 70 75 80 85 90 /Bbl…
  21. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 21
    Significant Success To-Date in El Halcn Additional Upside Potential to Unlock Ongoing improvements will continue to unlock value in 2015+ 1 Shift from lease capture into development mode in 2H16 Peer and operated wells have…
  22. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 22
    El Halcn Well Performance 140,000 120,000 100,000 Cumulative Production, Boe 80,000 60,000 40,000 20,000 0 0 30 60 90 120 150 180 210 240 270 300 330 360 Producing Days 452 Mboe El Halcn Type Curve…
  23. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 23
    Navigating a Challenging Market Improving Balance Recent steps taken to strengthen balance sheet provide sufficient liquidity to fund operations and service debt for several years Sheet No near-term debt maturities Strong Hedge…
  24. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 24
    Appendix
  25. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 25
    2015 Operating and Financial Guidance Summary 2Q15E 2015E Production (Boe/d) Total 39,500 41,500 40,000 45,000 % Oil 82% % NGLs 8% % Gas 10% Capital Spending ( in millions) Drilling & Completions Capex (1) 325 - 375 Leasehold,…
  26. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 26
    Derivative Detail Oil Hedge Summary 9 Months 2015 FY 2016 FY 2017 Volume Ceiling / Swap Floor Volume Ceiling / Swap Floor Volume Ceiling / Swap Floor (1) (1) (1) (1) (1) (1) (Bbls) Price Purchased (Bbls) Price Purchased (Bbls)…
  27. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 27
    Oil & Gas Marketing Avg. NYMEX 2015 Marketing Highlights 1Q15 HK Oil Differentials by Area (1) Oil Price Williston Basin 48.80/bbl 102% Oil Marketing 95% Expect 90%+ of production to be connected to 84% 82% pipeline by…
  28. MAY 2015 CORPORATE PRESENTATION – Halcon Resources Corp – slide 28
    Halcn Ownership (in thousands) (6) Basic Dilutive Securities Fully Diluted Net Diluted Owner Shares Percent Conv. Debt (1) Conv. Preferred (2) Warrants (3) RSAs (4) PSUs (5) Options Shares Percent Shares Percent (7) HALRES LLC - -…

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