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Howard Weil 39th Annual Energy Conference – Energen Corp.

Energen Corp. · Mar 29, 2011 · 29 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. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 1
    Focusing on Oil & Liquids March 28-29, 2011 Howard Weil 39th Annual Energy Conference
  2. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 2
    Energen is a top 25 independent producer of domestic natural gas, oil, & natural gas liquids and the largest distributor of natural gas in Alabama. 3
  3. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 3
    Excellent balance sheet 800.00 ATCF (MM) (debt-to-total cap at YE11 699 673 678 700.00 estimated at 25%) 576 600.00 Significant ATCF 500.00 1.0 billion syndicated 400.00 credit facility 300.00 Oil/NGLs comprise 47% 200.00 of…
  4. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 4
    777 800 (MM) 664 559 554 567 600 409 465 639 451 433 400 412 187 332 200 225 40 21 36 25 0 8 2008 9 2009 10 2010 11e2011e ATCF Exploratory Capital Development Capital Acquisitions (Energen Resources 2011e ATCF…
  5. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 5
    EPS diluted 2011 Assumptions 6.00 5.00 4.28 4.47 69% of est. production hedged 4.04* 3.35- 3.73 3.75 9% production growth 4.00 3.57 Unhedged price assumptions: 3.00 4.25 gas, 80 oil, 0.83 NGL 2.00 LOE: 12.18/BOE DD&A:…
  6. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 6
    69% of 2011(e) production hedged 2011(e) cash costs: 15.06/BOE Total NGL: 86.7 MMgal 49% Hedged 0.90/gal 73% Hedged 6.20/Mcf Total Oil: 6.4 MMBbl Total Gas: 72.1 Bcf 69% Hedged 78.10/bbl 2012: 3.7 MMBbl at 82.34, 40.5 Bcf at…
  7. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 7
    2011e Gas Oil NGL Assumed Price (unhedged) 4.25/Mcf 80/Bbl 0.83/Gal Every 0.10 Every 1 Every 0.01 Net Income Impact 725,000 1,085,000 230,000 EPS (diluted) Impact 1.0 1.5 0.3 8
  8. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 8
    303 MMBOE of proved reserves YE2010 CO San Juan Basin: 815 Bcfe (45%) 2011e production mix: Black Warrior Basin: Farmington 59% gas 154 Bcf (8%) 41% oil/NGL NM Birmingham Major presence in Arcadia AL Midland 3 largest areas…
  9. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 9
    (MMBOE) (MMBOE) 350.0 303 350.0 303 300.0 264 258 8 300.0 264 258 26 41 10 8 29 250.0 26 250.0 30 36 103 133 62 200.0 200.0 78 72 92 150.0 150.0 100.0 100.0 173 159 145 131 136 150 50.0 50.0 0.0 0.0 2008 2009 2010 2008 2009…
  10. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 10
    Oil/NGL comprise 41% of 25.0 Production (MMBOE) estimated production in 2011. 20.5 18.8 18.6 20.0 17.1 2.1 Based on pace of drilling and 1.8 1.8 1.7 41% 6.4 risking incorporated into 15.0 4.1 4.7 5.2 acquisition models,…
  11. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 11
    700 Capital Spending by Basin (MM) 12.00 Production Productionby by Basin (MMBOE) Basin (MBOE) 557 9.6 600 10.00 9.4 500 7.8 8.00 400 6.2 6.00 300 268 4.00 200 2.2 2.1 83 80 2.00 1.1 1.0 100 1 14 20 10 0 0.00 Permian San…
  12. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 12
    Gross Net Average PERMIAN BASIN Average Average Risked Rsrvs/ Average Cost/Well Cost/Well Rsrvs/Well Well Cost/BOE (000) (000) (MBOE) (MBOE) Wolfberry wells (156*) 1,775 155 1,775 100 17.75 Water flood (prod/inj) (125) 635 56 535…
  13. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 13
    Bone Spring/Avalon Seller: SandRidge Energy 40,000 net acres - Avalon 21,300 net acres - Bone Spring 21 MMBOE unproved reserves (net unrisked) 110 MM + closing adj. Future cost to develop Bone Spring potential: 465 MM Potential…
  14. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 14
    Avalon ERC Area of Interest 3rd Bone Spring NEW MEXICO Vertical depth: TEXAS 11,000 11,300 Loving Winkler Horizontal wells Multi-stage fracs (8-10) EUR: 400 500 MBOE Well cost: 7.5 Million Reeves Rigs in 2011: 4-5 Ward…
  15. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 15
    Avalon ERC Area of Interest Avalon Shale NEW MEXICO Vertical depth: TEXAS 8,500 9,000 Loving Winkler Horizontal wells Multi-stage fracs (8-10) EUR: 300 350 MBOE Well cost: 5.5 Million Reeves Ward 80,000 net undeveloped…
  16. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 16
    11,000 Top of 3rd Bone Bone Spring 8,500 Spring Sands Interval 8,550 Avalon 11,300 Top of Shale Wolfcamp 8,750 Upper Wolfcamp 11,900 17
  17. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 17
    Wolfberry Gaines Dawson Borden Completion interval: 7,500 10,500 Vertical wells Multi-stage fracs (6-8) Andrews Martin Howard Midland EUR: 125 175MBOE Well cost: 1.8 Million Ector Midland Glasscock Sterling Rigs in 2011: 7…
  18. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 18
    7,500 9,000 Upper Spraberry Wolfcamp 8,000 9,900 Lower Spraberry Cline 10,400 8,750 Dean Strawn 9,000 10,600 19
  19. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 19
    Mancos/Niobrara Shale Gas Marcellus Shale 55,500 acres* 200,000 acres Mancos/Niobrara Shale Oil 54,000 acres* Lewis Shale 55,500 acres* Haynesville Shale 12,000 acres* Net Undeveloped Acres * Held By Production Own Mineral…
  20. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 20
    Net Undeveloped Lewis Shale Durango Niobrara Shale Gas Acres La Plata Archuleta Lewis Shale: 55,500 Niobrara Shale Farmington Gas: 55,500 Niobrara Shale Rio Arriba San Juan Oil: 54,000 Niobrara Shale Oil Sandoval…
  21. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 21
    OHIO Recently Completed Haynesville Wells Recently Drilled Haynesville Wells LOUISIANA TEXAS PENN. W. VIRGINIA MD Webster Garrett Mineral Shreveport Tucker Areas of Major Marcellus Activity Bienville Area of Major…
  22. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 22
    Complementary business Excellent rate of return Primary source of dividend 23
  23. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 23
    Single-state utility More than 437,000 customers Progressive regulation Birmingham RSE through rate-year 2015 Allowed ROE: 13.15%-13.65% Forward-looking test year Montgomery Temperature adjustment RY ROE(%) 2005 2006 2007 2008…
  24. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 24
    2011 dividend raised 3.8% 0.80 Annual Dividend Rate Alagasco funds dividend at 0.60 0.54 0.52 0.50 0.48 0.46 0.44 utility payout over 65% 0.40 ERC may make small 0.20 payout contribution 0.00 2006 2007 2008 2009 2010…
  25. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 25
    Liquids-focused Significant Hedges Strong Cash Flows Excellent Fundamentals Proven Track Record 26
  26. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 26
    Julie S. Ryland Vice President Investor Relations 205-326-8421 jrylandenergen.com www.energen.com 27
  27. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 27
    Years Ended 12/31 ( in millions) 2010 2011e Net cash provided by operating activities (GAAP) 669 704 733 Changes in assets/liabilities & other adjustments (4) 40 40 After-tax cash flows (Non-GAAP) 673 664 693 Less: AGC cash flows from…
  28. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 28
    2010 ( in millions, except per share data) Net income (GAAP) 4.04 Non-cash leasehold write-off 0.34 Net income (Non-GAAP) 4.38 The U.S. Securities and Exchange Commission (SEC) requires public companies to reconcile Non- GAAP…
  29. Howard Weil 39th Annual Energy Conference – Energen Corp. – slide 29
    Focusing on Oil & Liquids March 28-29, 2011 Howard Weil 39th Annual Energy Conference

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