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Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp

EP Energy Corp · Oct 12, 2011 · 21 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. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 1
    Interstate Pipelines Exploration & Production Midstream www.elpaso.com NYSE: EP John Hopper Vice President and Treasurer October 12, 2011 D E P E N D A B L E N A T U R A L G A S
  2. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 2
    Working to create value for shareholders 3
  3. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 3
    Transports more than 25 percent of natural gas delivered to U.S. consumers1 Best footprint Highly integrated systems Superior project execution 4 1As of December 31, 2010
  4. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 4
    Canadian Import Decline Northwest Demand Northeast Rockies Demand Power Generation Marcellus Coal replacements, Supply Shale renewable back-up Power Generation Coal replacements Rockies Demand Power Generation Demand…
  5. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 5
    In Service In Service In Service October November Expect to complete backlog within 7%8% of budget 6 1Phase two of three-phase project, includes SESH II
  6. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 6
    Marcellus/Utica Shale Coal plant Oil plant Renewable backstop Gas-fired plant (current/proposed) 20142020 Bcf/d Eastern powergen 5 Marcellus/Utica 6 Elba Island Mexico 2 Gulf LNG Rockies/NW powergen 1 Estimated 8…
  7. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 7
    Powerful deleveraging tool & efficient source of capital for EP EPB distribution growth15% CAGR since IPO El Paso committed to continue dropdowns Grow GP distributions (via IDR) Large inventory of suitable assets Only 40% of…
  8. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 8
    667 MM 25% interest in SNG 745 MM 810 MM 28% interest in CIG 51% of SLNG 15% interest in SNG 51% Elba Express 492 MM 20% interest in SNG 1,133 MM 49% of SLNG 49% Elba Express 15% interest in SNG 215 MM 18% interest in CIG…
  9. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 9
    1 billion equity raised year-to-date Successful 500MM 5% Senior Notes offering in September New larger 1 billion revolving credit facility Upsized from 750MM 5-year term Ample financial flexibility for another drop-down without…
  10. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 10
    EP acreage Industry shale plays EP current areas 30 B of gathering and processing infrastructure to be added in North America by 20201 11 110-year period; INGAA Foundation, June 2011. Gathering and processing assets
  11. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 11
    Cairo EGYPT Rio de Janeiro 12 BRAZIL
  12. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 12
    Oil is 48% of future drilling inventory But 2/3 of future value Oil volumes growing 35%45% in 2011 Oil expected to be 45% of 2012 revenues Tremendous growth in inventory plus shift in capital 13
  13. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 13
    Rapid production growth Top- or top-quartile program by any measure Holly area economic at sub 4 gas price Wells drilled: 95 Wells producing: 83 Continue to drive efficiencies Wells in backlog: 12 45 year remaining inventory…
  14. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 14
    Oil Oil Natural Natural Gas Gas Large oil inventory 800 future locations 125 MMBoe resource1 Substantial production growth potential Improved well productivity Continuous operational Applying new technologies improvement to…
  15. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 15
    Wells drilled: 52 Wells completed: 41 Central area remains TX Wells on-line: 32 focus of Eagle Ford program 75,000 net acre position delineated 3 rigs running Infrastructure build on track On track for EP Leasehold EP…
  16. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 16
    MIDLAND COKE GLASSCOCK STERLING TOM Very good initial results UPTON TX GREEN Delineating acreage REAGAN 800 locationsUpper IRION Wolfcamp only Current leasehold of 138,000 acreages El Paso acreage Wolfcamp/Wolfberry PECOS…
  17. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 17
    RUSK DE SOTO WINN 140,000 net acre position CHEROKEE SHELBY NATCHITOCHES Early, low-cost entry into NACOGDOCHES TX LA GRANT repeatable program SABINE SAN AUGUS- Leverages South Texas expertise HOUSTON TINE ANGELINA SABINE 3D…
  18. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 18
    Natural Gas Production Hedges Volume % of U.S. Gas EP Avg. Hedge Price1 Current Market Year (Bcf) Production (/MMBtu) Prices (NYMEX) 2011 96 80% 5.89 3.85 2012 105 40% 6.01 4.31 Oil Production Hedges Volume % of Total Oil EP Avg.…
  19. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 19
    Extended 3.25 B credit facilities to 2016 in 2Q11 EP1.25 B; EPB1.0 B, E&P1.0 B EP & EPBample liquidity E&Pflexibility to fund future growth Very successful debt offerings SNG 300 MM 4.4% 10-year Senior Notes EPB 500 MM 5% 10-year…
  20. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 20
    Pipelines nearing 60% TOTAL SHAREHOLDER RETURN completion of backlog 40% Will shift to cash flow generator 20% Great execution of 0% MLP strategy -20% Jan Feb Mar Apr May Jun Jul Aug Sep Oct E&P oil production 2011 2011 2011…
  21. Deutsche Banks 19th Annual Leveraged Finance Conference – EP Energy Corp – slide 21
    Interstate Pipelines Exploration & Production Midstream www.elpaso.com NYSE: EP John Hopper Vice President and Treasurer October 12, 2011 D E P E N D A B L E N A T U R A L G A S

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