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MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd.

Gastar Exploration, Ltd. · Mar 10, 2014 · 36 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. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 1
    J. Russell Porter Howard Weil Presentation March 2014 E X P A N D I N G O U R H O R I Z O N S 2014 Gastar Exploration Inc.
  2. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 2
    Gastar Overview Gastar Exploration Inc. is a Houston-based independent energy company engaged in the exploration, development and production of oil, natural gas, condensate and natural gas liquids. Currently developing…
  3. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 3
    Investment Highlights High quality resource base Liquids rich Marcellus Shale Significant Utica/Point Pleasant potential under Marcellus Shale Hunton Limestone emerging oil play Organic growth strategy through the drillbit and…
  4. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 4
    Asset Overview Utica Dry Gas Q4 2013 Net Production by Region Hunton Limestone Oil Play 11,100 net acres(2) 126,000 net acres(1) Marcellus Shale Mid- Rich Gas Play Continent 59,900 net acres(1) 2.3 MBoe/d 25% Appalachia 6.9…
  5. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 5
    Proved Reserves Significant reserve growth and transition to liquids Proved Reserves 60.0 60.0 PDP PDNP PUD Gas Liquids 50.0 50.0 43% 45% 40.0 40.0 MMBoe MMBoe 30.0 1% 30.0 30% 28% 20.0 7% 20.0 23% 34% 56%…
  6. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 6
    Accelerating Production Liquids production expected to increase to 42% in 2014 Total Daily Production(1) Gas Condensate & Oil NGLs 10.0 9.0 15% 8.0 32% 7.0 17% MBoe/d 6.0 12% 20% 5.0 8% 4.0 0.8% 1% 2% 5% 3%…
  7. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 7
    Aggressively Shifting Capital to Liquids ( in millions) Area Capital 2014 Capital Investment Mid-Continent 85 Capitalized Costs 9MM Land 5% Appalachia 55 36MM 19% Infrastructure 7 Land 36 Mid-Continent Infrastructure 85MM…
  8. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 8
    Field and Development Overview 2014 Gastar Exploration Inc.
  9. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 9
    Marcellus Shale & Utica Activity concentrated in ultra liquids-rich portion of the play 59,900 net acres with Marcellus exposure(1) Marshall & Wetzel Counties, W. Va. 22,200 (11,100 net) acres (27% HBP) 50% WI, 80% NRI Focus…
  10. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 10
    Premier Position in the Marcellus and Utica Fairways The Core of the Core Marcellus and Utica Map Utica Fairway Marcellus Southern Core Marcellus Northern Core Marcellus Fairway Utica Core Source: Barclays…
  11. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 11
    Infrastructure Overview Processing Fort Beeler capacity 520 MMBtu/d Total system capacity growing to +1 BCFD Central receipt point capacity 140 MMBtu/d Firm transport 50 MMBtu/d Additional firm available Water System 14 mile…
  12. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 12
    Marshall & Wetzel Operated Drilling Overview Gastar has completed 57 gross (27 net) wells to date Average pad drilling time reduced to 16 days per well Additional savings realized on completion costs Williams operational issues…
  13. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 13
    Liquids-Rich Window of Marshall & Wetzel Counties Marshall Co. Marcellus Wells Producing: 57 High Btu gas and condensate yields PUDS: 38 30-40 Bbls/MMcf condensate Future Drilling Locations: 76 2014 Drilling 40-50 Bbls/MMcf…
  14. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 14
    Marshall & Wetzel Counties Economics 6.7 Bcfe EUR Daily Peak Rate 3.5 MMCFD & 175 BCPD 65% Gas (processed) 35% Liquids 35% IRR(1) Cost 7.5MM (5000 lateral) 1.42/MMcfe F&D Costs PV10 5.1 million per well (1) Based on…
  15. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 15
    Utica Activity Marshall & Wetzel Counties Overview Offset Utica Activity The Utica / Point Pleasant formation underlies Rice Gastars Marcellus West position XTO Dry gas Pending Utica locations: 114 gross (57 net)(1) GPOR 30…
  16. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 16
    Marcellus/Utica Gastar Marshall / Wetzel Acreage Target Formations Marcellus Shale - Silica-Rich Organic Mudstone - Condensate Window - Depth: 6500 TVD - Thickness: 50 - Porosity: 12% - 15% - TOC: 11 12 wt. % - Overpressured…
  17. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 17
    New Oklahoma Hunton Limestone Play Current lease position 126,000 net acres; 28% HBP Exposure to over 130 MMBOE of net resource potential, primarily oil Successful early drilling results De-risking by industry activity and…
  18. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 18
    Hunton Acreage Undeveloped acreage expands inventory of prospective low-cost, high- return drilling locations Initial operated drilling will test overall acreage position for Hunton prospectivity 2014 Gastar Exploration…
  19. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 19
    AMI Horizontal Well Activity Lower Hunton Encouraging Initial Results 2014 Gastar Exploration Inc. 20
  20. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 20
    Mid-Continent AMI Drilling Overview Gastars Wells in Existing AMI GENERIC WORKING FIRST TOTAL COST PEAK 24 HR CUM PROD EUR WELL NAME WELL NAME COUNTY INTEREST PRODUCTION (MM) IP RATE (BOE/D) % OIL (MBOE)(1) (MBOE)(2) UPPER HUNTON…
  21. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 21
    Mid-Continent Type Curve Comparison AMI JV DRILLING PROGRAM (BASED ON WRIGHT 12/31/13 RESERVES 2014 Gastar Exploration Inc. 22
  22. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 22
    Lower Hunton Horizontal Oil Play Economics 436 MBOE EUR Peak daily Rate 400 BO & 1,250 MCF 36% Gas (processed; 56% unprocessed) 65% Liquids 67% IRR(1) Cost 5.4MM (4,200 lateral) 15.86/BOE F&D Cost (1) Based on Wright…
  23. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 23
    Mid-Continent Operated Drilling Overview Gastars Operated Wells WORKING FIRST TOTAL COST PEAK 24 HR CUM PROD WELL COUNTY INTEREST PRODUCTION (MM) IP RATE (BOE/D) % OIL (MBOE)(1) BURTON 16-1H 79.0% 12/7/13 7.4 111 65% 3.4…
  24. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 24
    Bois dArc Potential (Upper Hunton) 2014 Gastar Exploration Inc. 25
  25. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 25
    WEHLU Bois dArc Horizontal Economics 123 MBOE EUR Peak Daily Rate 165 BO & 231 Mcf 12% Gas (processed; 19% unprocessed) 88% Liquids 35% IRR(1) Cost 3.0MM (3500 lateral) 27.88/BOE F&D Cost (1) Based on Wright &…
  26. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 26
    Chimney Hill Potential (Lower Hunton WEHLU) 2014 Gastar Exploration Inc. 27
  27. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 27
    WEHLU Chimney Hill Horizontal Economics 250 MBOE EUR Peak daily rate 340 BO & 1360 MCF 25% Gas (processed; 40% unprocessed) 75% Liquids 33% IRR(1) Cost 5.4MM (4,200 lateral) 23.66/BOE F&D Cost (1) Based on Wright &…
  28. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 28
    2014 Capital Budget - Oklahoma 2014 36 gross wells (17.1 net) 27 gross (9.5 net) non-operated AMI Hunton wells 7 gross (5.6 net) operated lower Hunton wells 2 gross (2.0 net) WEHLU Hunton wells (1 upper / 1 lower) Net Drilling…
  29. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 29
    Financial Overview 2014 Gastar Exploration Inc.
  30. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 30
    Balance Sheet Assets As of ( in millions) 12/31/2013 Cash and cash equivalents 32.4 Other current assets 22.8 Total current assets 55.2 Total property, plant and equipment, net 517.5 Other assets 17.2 Total assets 589.9…
  31. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 31
    Strong Collateral Coverage Collateral Coverage ( in millions) 900 805.8 800 688.7 700 213.3 96.2 600 500 292.6 million Net Debt 592.5 592.5 592.5 400 300 200 325.0 100 0 Senior Secured Notes Proved PV-10(1) Proved…
  32. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 32
    Pro Forma Credit Statistics Credit Statistics As of 12/31/13 ( in millions) Actual Pro Forma(1) Total Debt 325.0 325.0 Net Debt 292.6 292.6 LTM Adjusted EBITDA 66.1 97.4 LTM Normalized Adjusted EBITDA(2) 76.4 107.7 Total…
  33. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 33
    PDP Hedging Program Hedge Percentages Downside Hedge Percentages (PDP) Crude** NatGas NGL Lights 2014 101% 97% 54% 2015 92% 41% 2016 94% 18% 2017 78% 2018 32% Upside Hedge Percentages (PDP) Crude** NatGas NGL Lights 2014 97%…
  34. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 34
    PDP Hedging Program Crude Oil and NGL NOTE: Hedges as of February 28, 2014 2014 Gastar Exploration Inc. 35
  35. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 35
    PDP Hedging Program Natural Gas The following positions entered into by Gastar are not reflected in the above graph Apr14-Dec14 Put Spread Asset 4.00/3.7225 2,000 mmbtu/d NOTE: Hedges as of February, 28 2014 2014 Gastar…
  36. MARCH 2014 HOWARD WEIL PRESENTATION – Gastar Exploration, Ltd. – slide 36
    Summary Diverse base of assets focused in active unconventional plays in the United States 59,900 net acres in the Marcellus Shale in the Appalachian Basin High Quality Resource 126,000 net acres in the Hunton Limestone play in…

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