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FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Feb 10, 2014 · 34 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. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 1
    Integrity Teamwork Transparency February 2014 Investor Presentation
  2. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Wattenberg Field (Niobrara & Codell) Market Cap(1): 1.5 billion North Park Basin (Niobrara) Enterprise Value(1): 1.9 billion 31.9 MMBoe 1P(3) (3) 0.5 MMBoe 1P 59% Oil Public Float: 78% 100% Oil Rapidly…
  3. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 3
    Strong Growth and Cash Flow Track Record Proved Reserves(1) (MBoe) Production(1) (Boe/d) 60,000 18,000 50,000 16,000 14,000 40,000 12,000 10,000 30,000 8,000 20,000 6,000 4,000 10,000 2,000 0 0 2007 2008 2009 2010 2011 2012 2007…
  4. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 4
    Dramatic Year-Over-Year Increases 3Q13 compared to 3Q12 Corporate 88% Increase in Production (1) 17,656 Boe/d 119% Increase in Adjusted EBITDAX (2) 86.7 million 3Q13 compared to 3Q12 Rocky Mtns 135% Increase in Rocky Mtn…
  5. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 5
    Oil Weighted Production and Reserves Production by Commodity (MBoe/d)(1) Revenue by Commodity (MM)(1) 9 11 4% 1.4 15% 16 5% Crude Oil 7% Crude Oil 1.1 Mid-Con Dry Gas Mid-Con Dry Gas 12% 6.1 65% 0.8 Rockies Wet Gas Rockies Wet…
  6. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 6
    Strong Organic Growth Inventory 350 MMBoe of resource potential(1) 17 years of Wattenberg inventory (1,500 locations) at current drilling pace Wattenberg Wattenberg Niobrara B Arkansas Cotton Valley North Park Niobrara C Arkansas…
  7. FEBRUARY 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. FEBRUARY 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. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 9
    2014 Completion Schedule & Annual Guidance Q1 production volumes expected in the Wattenberg HZ Well Completion Schedule range of 19,000 20,000 Boe/d 35 30 No HZ completions December February 25 Effectively linear completion…
  10. FEBRUARY 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. FEBRUARY 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. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 12
    Niobrara B Bench Tracking 313 Mboe Type Curve 13
  13. FEBRUARY 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. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 14
    Wattenberg Expanding Resource Recovery Codell Codell prospective on 15,000 net acres Three wells currently producing: 539 Boe/d (71% crude) Avg. IP30 Niobrara C Bench Present on all BCEI Wattenberg acreage Five wells currently…
  15. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 15
    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…
  16. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 16
    Wattenberg 3P Reserves & Location Inventory 247 MMBoe Net 3P Reserves Proved Reserves 60% crude oil / 40% wet gas 32 MMBoe 32 MMBoe booked at YE2012 13 MMBoe PD 19 MMBoe PUD 107 MMBoe 108 MMBoe 215 MMBoe unbooked at YE2012…
  17. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 17
    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…
  18. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 18
    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…
  19. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 19
    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…
  20. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 20
    Financial Overview 21
  21. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 21
    Oil Weighted Production Result in High Margins Unit Cash Operating Costs (/Boe) Unit Revenue & Cash Margins (/Boe) 25 80 77.54 4.34 3.49 4.35 70.70 68.83 20 67.43 66.93 60 4.98 3.90 15 8.63 9.12 7.93 40 6.87 6.75 10 57.74…
  22. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 22
    Current Hedge Positions 9,500 Bbl/d hedged at an average minimum price of 89.48/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…
  23. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 23
    BCEI vs Basin Focused Peers Unit EBITDAX 2014 Production Growth 80 60% Consensus Production EBITDAX / Boe (MRQ) 70 50% Peer Group Peer Group 60 Avg: 40% Avg: 30% Growth 50 42.69 20% 40 20% 30 10% 20 0% 10 -10%…
  24. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 24
    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…
  25. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 25
    Investment Recap Total Resource Potential of 350 MMBoe Peer leading production growth rates Accelerating development with increasing activity levels Ability to fund acceleration while maintaining a strong balance sheet 26
  26. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 26
    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…
  27. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 27
    Appendix 28
  28. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 28
    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…
  29. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 29
    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…
  30. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 30
    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…
  31. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 31
    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 94% of BCEI production in Q3 2013 came…
  32. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 32
    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…
  33. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 33
    BCEI Liquidity & Credit Profile vs HY Peers Fall Bank 9/30/2013 200MM 9/30/2013 MM 9/30/2013 Redetermination As Adjusted High Yield Pro Forma Borrowing Base 330.0 120.0 450.0 450.0 Amount Drawn 38.5 38.5 (38.5) 0.0 Letter of Credit…
  34. FEBRUARY 2014 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 34
    Reconciliation to Adjusted EBITDAX We define adjusted EBITDAX as net income, plus (1) exploration expense, (2) depreciation, depletion and amortization expense, (3) impairment of oil and gas properties, (4) stock-based compensation…

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