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MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Mar 10, 2014 · 32 slides

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Slides

  1. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 1
    Integrity Teamwork Transparency Raymond James Institutional Investors Conference March 2014 Investor Presentation
  2. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Wattenberg Field (Niobrara & Codell) Market Cap(1): 2.0 billion North Park Basin (Niobrara) Enterprise Value(1): 2.4 billion 48.7 MMBoe 1P(2) (2) 0.3 MMBoe 1P 66% Oil Public Float: 78% 100% Oil Rapidly…
  3. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 3
    Strong Growth and Cash Flow Track Record Proved Reserves(1) (MBoe) Production(1) (Boe/d) 70,000 21,000 60,000 18,000 50,000 15,000 40,000 Oil & NGLs 12,000 Natural Gas 30,000 9,000 20,000 6,000 10,000 3,000 0 0 2007 2008 2009 2010…
  4. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 4
    Dramatic Year-Over-Year Increases 4Q13 compared to 4Q12 Corporate 77% Increase in Production (1) 21,119 Boe/d 84% Increase in Adjusted EBITDAX (2) 99.4 million 4Q13 compared to 4Q12 Rocky Mtns 130% Increase in Rocky Mtn…
  5. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 5
    2013 Oil Weighted Reserves and Production 30.7 1.9 69.8 BCEI Reserves Comparison YE 2012 YE 2013 Total Proved (MMBoe) 53.0 69.8 53.0 (10.0) % Crude 57% 62% (5.9) % NGLs 6% 4% % Nat. Gas 37% 33% B-Tax PV10 Value (MM) 835 1,227…
  6. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 6
    Strong Organic Growth Inventory 354 MMBoe of 3P reserves 15 years of Wattenberg inventory (1,800 locations) at current drilling pace Wattenberg Wattenberg Niobrara B Arkansas Cotton Valley North Park Niobrara C Arkansas 5-acre…
  7. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 7
    Wattenberg Niobrara a Premier Oil Resource Play Basin IRRs 80% 74% 73% 69% 70% 63% 62% 60% 57% 53% 48% 48% 46% 50% 38% 36% 40% 35% 33% 30% 30% 30% 30% 27% 27% 26% 25% 24% 24% 22% 22% 20% 10% 0% Futures Strip as of…
  8. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 8
    2014 CapEx Accelerating Wattenberg Value Wattenberg Field HZ Wells Drilled 2014 Capex (MM): 575 625(1) 140 2014 Drilling Program 121 Operated Wells Non-Operated 120 19 Non-Operated Wells 14% Niobrara A 100 80 ERL 9% 60 Codell…
  9. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 9
    2014 Completion Schedule & Annual Guidance Wattenberg HZ Well Completion Schedule 35 Q1 production volumes expected in the 30 range of 19,000 20,000 Boe/d 25 20 No HZ completions December February 15 10 Effectively linear…
  10. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 10
    Wattenberg Field BCEI in Wattenberg Field since 1999 Located in Extension Area 60% crude oil with associated liquids-rich natural gas Prospective for Codell and all benches of the Niobrara Contiguous acreage position…
  11. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 11
    Horizontal Niobrara/Codell Oil Focused Wells Ranch 40-acre and 80-acre pads testing Niobrara A, B, C and Codell Extended reach laterals Development & Testing Program LEGEND Niobrara A Bench Vert…
  12. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 12
    Niobrara B Bench Tracking 313 Mboe Type Curve 13
  13. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 13
    Wattenberg Hz Niobrara B Target Type Well Type Well Economics EUR 313,000 Boe; 62% crude oil(1) Initial 30-day Rate 458 Boe/d Cost per Well 4.2 MM NPV-10 at 90/BO 4.2 MM Payout 1.5 years ROR Sensitivity to Oil Price(2) (1)…
  14. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 14
    Super-Section Downspacing & Stacking Test Testing Future Development Concepts 15 downspaced and stacked 4,000 laterals Spacing configuration testing Pad 1: Stacked 80-acre Niobrara B Bench and Codell wells with offset Niobrara C…
  15. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 15
    Wattenberg HZ Risked 3P Reserves & Inventory 308 MMBoe Net HZ Risked 3P Reserves Codell Proved Reserves 30% Increase in 3P Reserves over 2012 21% Increase in 3P Inventory over 2012 20 MMBoe 46 Undrilled locations MMBoe 145 gross…
  16. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 16
    Mid-Continent Operations (Arkansas) Provides free cash flow; allocated to Wattenberg ERA SYSTEM SERIES GROUP FORMATION CENOZOIC EOCENE Claiborne PALEOCENE Wilcox Cotton Valley: 6,500 8,800 feet TERTIARY CRETACEOUS GULFIAN Midway…
  17. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 17
    Dorcheat-Macedonia Economics Type Well Economics 10-acre 5-acre EUR(1) 148,000 Boe 118,000 Boe % Oil & Liquids 65% 65% Cost per Well 1.8MM 1.8MM NPV-10 1.8MM 1.3MM Payout 1.6 years 1.8 years Risked Locations 120 gross(2) 213…
  18. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 18
    Cotton Valley Lenticular Oil Sands Pin-Point Fracture Technology Focused completion technology Improved recovery of OOIP Highly repeatable Dorcheat Unit 37 25-30 sand/shale sequences Each zone individually pressured Potential…
  19. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 19
    Financial Overview 20
  20. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 20
    Oil Weighted Production Result in High Margins Unit Cash Operating Costs (/Boe) Unit Revenue & Cash Margins (/Boe) 25 80 77.54 4.34 20 4.35 70.70 68.83 68.47 66.93 60 4.98 3.90 15 8.63 7.93 4.61 40 6.87 6.75 10 6.34…
  21. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 21
    Current Hedge Positions 10,300 Bbl/d hedged at an average minimum price of 89.55/Bbl in 2014(1) 4,500 Bbl/d hedged at a minimum price of 83.33/Bbl in 2015(1) 28,000 Mcf/d hedged at a minimum price of 4.19/Mcf in 2014(2) 15,000 Mcf/d…
  22. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 22
    Financial Summary Simplicity & Transparency = Successful Outcomes Balanced approach to capital allocation Achieve best-in-class growth via an expanding Wattenberg development program Fund oily growth with oily cash flow and prudent…
  23. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 23
    Investment Recap Total 3P reserves potential of 354 MMBoe Peer leading production growth rates Accelerating development with increasing activity levels Ability to fund acceleration while maintaining a strong balance sheet…
  24. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 24
    Corporate Information Company Headquarters Investor Relations 410 17th Street, Suite 1400 James Masters Investor Relations Manager Denver, Colorado 80202 (720) 440-6121 (720) 440-6100 Main jmastersbonanzacrk.com (720) 305-0804…
  25. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 25
    Appendix 26
  26. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 26
    Wattenberg Horizontal Niobrara Economics(1) Target 313 MBoe Type Curve 600 30-day Avg: 458 boepd 550 60-day Avg: 400 boepd 90-day Avg: 355 boepd 500 450 400 350 Boe/d 300 250 200 150 100 50 0 0 12 24 36 48 60…
  27. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 27
    BCEI Acreage Correlation to Wells Ranch Niobrara A Bench Thinner and resistivity less developed A Niobrara B Bench Similar thickness and resistivity A Niobrara C Bench Slightly thinner lower chalk bench; similar resistivity…
  28. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 28
    DJ Basin Midstream Infrastructure Capacity Crude Pipelines and Rail Projects Operator Origination Termination Hub Timing (Bbl/d) White Cliffs Pipeline SemGroup 75,000 Platteville, CO Cushing, OK Existing White Cliffs Expansion SemGroup…
  29. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 29
    Easing High Line Pressures in Wattenberg BCEI Considerations High line pressures caused by constrained gas processing capacity Legacy vertical wells impacted more than newer horizontal wells 95% of BCEI production in Q4 2013 came…
  30. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 30
    Dorcheat-Macedonia Type Curve(1)(2) 140 120 Recompletions opening additional Cotton Valley oil pay zones up hole 100 80 Boe/d 60 40 20 0 0 12 24 36 48 60 Months 10-acre 5-acre (1) The type curve shows the…
  31. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 31
    BCEI Liquidity & Credit Profile vs HY Peers MM 12/31/2013 Borrowing Base 450.0 Amount Drawn 0.0 Letter of Credit 36.0 Net Available on Revolver 414.0 Cash & Cash Equivalents 180.6 Total Liquidity 594.6 (1) Oily Single B Peer…
  32. MARCH 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 32
    Reconciliation to Adjusted EBITDAX Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of the Companys consolidated financial statements, such as industry analysts, investors,…

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