Barclays CEO Energy-Power Conference September 2-4, 2014 1
Corporate Profile Shares outstanding 87.0 MM Proved reserves3.. 2.5 Tcfe Market cap1... 12.4 B % Natural gas 52% Long-term debt 2.. 1.5 B % Proved developed 80% Enterprise value 13.9 B R/P Ratio.. 9.9x Stockholders' equity2…
Whats New +25% Daily Production 860-875 Expect 2014 production to (MMcfe) grow 25% (midpoint) Cana-Woodford Q2 production up 22% sequentially 2014 E&D Capex of 1.95bn up 15% y-o-y Closed 238mm Mid- 350 Continent acquisition…
Production Profile 2Q 2014 Production Mix Revenue Contribution Oil 30% Natural Gas 49% NGL 21% 839MMcfe per day; up 22% year-over-year Permian Basin oil production of 33,317 b/d up 11% year-over-year Strong prices…
2014 Capital Investment Plan Total Capital: 1.95 billion By Region: Facilities & Other 6% Land, Seismic & Cap. Overhead 14% Drilling 80% Robust Permian opportunity set commands 75% of capex Oil production growth of…
Permian Basin Region Delaware Basin focus Several zones producing 2nd & 3rd Bone Spring sands Multiple Wolfcamp zones Culberson area: D, C & A zones Reeves County: A & B/C Ward County: A Avalon Shale emerging 200-250 locations…
2014 Permian Drilling Capital Total Permian Wolfcamp 1.2 billion 685 million Wolfcamp program includes 20 extended laterals in the second half 14 in Culberson ( 11 Wolfcamp D; 3 Wolfcamp A) 6 Wolfcamp A in Reeves County Strong…
Delaware Basin - Bone Spring Activity Spend 375mm in 2014 to drill 100 gross (56 net) wells 48 gross (25 net) wells YTD Three areas New Mexico 2nd & 3rd Bone Spring (Eddy & Lea Counties) . 17 operated wells YTD 30-day average peak…
Delaware Basin Avalon Shale Six wells completed to date 30-day average peak IP of 943 BOE/d (74% oil) Upsized frac design unlocks oil window in the Avalon 13,700 net acres identified as prospective in Lea County 200+ locations…
Delaware Basin Wolfcamp Fairway 235,000 net acres in the fairway Multiple Wolfcamp Targets Culberson/White City Area 100,000+ net acres Wolfcamp D, C & A producing JDA with Chevron Reeves County New focus area 80,000 net acres…
Thick, Multi-pay Wolfcamp Section Culberson Area Reeves County Ward County 100,000 net acres 80,000 net acres 42,000 net acres IIndicates producing zone. 12 12
Culberson Focus Area Wolfcamp 100,000 net acres 100,000+ net acres Wolfcamp D long laterals show 2013 main objectives significant uplift 30-day Drilling to hold average peakacreage IP of 2,660 BOE/d (40% gas, 27% Wolfcamp C…
Upsized Returns from Long Lateral with Upsized Frac Culberson County Wolfcamp D Wells BOE/day 3000 Old New Long 2500 Well Cost (MM) 8.0 8.7 13.5 BT IRR 30% 90% 161% NPV10 (MM) 4.0 12.2 31.6 2000 Assumptions: Oil - 90/bbl; Gas -…
Reeves & Ward Counties Emerging Wolfcamp Reeves County Recent Wolfcamp A well has average 30-day peak IP of 1,368 BOE/d; 899bo/d (66%) Upsized frac design +30% uplift to IP Two Wolfcamp A downspacing . pilots underway 35mm…
Culberson County Wolfcamp Pilots Stacked Lateral Test 80-acre Spacing Pilot Wolfcamp C & D Wolfcamp D Two wells Four wells Producing/Evaluating Producing/Evaluating 16 16
Reeves County Wolfcamp Pilots 80-acre Spacing Pilot Stacked/Staggered Spacing Pilot Wolfcamp A Wolfcamp A Four wells Six wells Producing/Evaluating Currently drilling 17 17
Mid-Continent Highlights Cana-Woodford Activity Map Total 2014 E&D capex for the region of 480mm Cana capex of 360mm Operated Well Non-operated Well Upsized frac yield upsized results Cana production grew 44% year-over-year…
Upsized Returns from Upsized Frac Golden Section Cana-Woodford Shale Mcfe/day 10,000 Old New Completion Completion 8,000 Well Cost MM 6.5 7.2 BT IRR 38% 86% NPV10 (MM) 5.5 14.0 Assumptions: Oil 90; Gas 4.00; NGL 29 - held flat…
Mid-Continent Regional Activity Map Redefinition of core Woodford acreage underway Leota well has 30-day peak IP of 11.4 MMcfe/d Meramec test (Bomhoff) 3x offsetting wells Includes 662 bo/d Woodford test (Leota) First Meramec…
Summary Recap Well positioned for 2014 and beyond Focused on Permian projects & Cana-Woodford upside Continue generating new ideas Solid base of proved reserves and production 80% proved developed; 10-year reserve life Growing…
Appendix 22 22
Upsized Wolfcamp Frac Old Frac Design: 5,000-foot lateral; 12 stages; 4mm lbs of sand New Frac Design: 5,000-foot lateral; 20 stages; 6mm lbs of sand 23
2014 Guidance 2014 Production, Unit Expense and Capital Guidance Third Quarter Full-Year Production* Total Equivalent (Mmcfe/d) 920-945 860-875 % Liquids 52% 52% Expenses (/Mcfe): Production 1.12 - 1.17 Transportation,…
Hedges Oil Weighted Average Price (1) Period Index Type Bbl/d Floor Ceiling July - Dec. '14 WTI Collar 12,000 85.00 103.47 Gas Weighted Average Price (1) Period Index Type MMBTU/d Floor Ceiling July - Dec. '14 PEPL Collar…
Non-GAAP Reconciliation Reconciliation of Net Income to EBITDA and Adjusted EBITDA ( in Millions) 2011 2012 2013 Net income (loss) 530 354 565 Income tax expense (benefit) 312 207 329 Interest expense, net of capitalized 7 14 23…
Non-GAAP Reconciliation Reconciliation of cash flow from operations Debt/Cap Calculation Six months June 30, Ended June 30, 2014 2014 2013 (in millions) (in millions) Long-term debt 1,500 Net cash provided by operating activities…
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