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CitiSmall and Mid Cap Conference – Energen Corp.

Energen Corp. · Nov 16, 2010 · 23 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. CitiSmall and Mid Cap Conference – Energen Corp. – slide 1
    FINANCIAL STRENGTH Citi Small- & Mid-Cap Conference November 16, 2010
  2. CitiSmall and Mid Cap Conference – Energen Corp. – slide 2
    Todays Energen 3 Energen is a top 25 independent producer of domestic natural gas, oil, & natural gas liquids as well as the largest distributor of natural gas in Alabama.
  3. CitiSmall and Mid Cap Conference – Energen Corp. – slide 3
    E&P Company, Small Utility 4 Energen Alabama Resources Gas Corp. 82% 18% Net Income Net Income Contribution Contribution (2011e) (2011e) Acquisition & exploitation company Earnings stability 1.6 Tcfe of proved reserves…
  4. CitiSmall and Mid Cap Conference – Energen Corp. – slide 4
    Financial Strength 5 Excellent balance sheet Minimizing (Debt-to-total capitalization at YE10 Risk estimated to be 18%) Hedging strategy Successful acquire- Significant after-tax cash flows &-exploit strategy 83% of proved…
  5. CitiSmall and Mid Cap Conference – Energen Corp. – slide 5
    2011 Earnings Outlook 6 ( per diluted share) 2011 Key 4.30- Assumptions 4.28 4.47 4.40* 3.20- 58% hedged 3.73 3.57 3.60 6% production growth to 120 Bcfe Unhedged price assumptions: 4.25 gas, 80 oil, 0.83 NGL LOE:…
  6. CitiSmall and Mid Cap Conference – Energen Corp. – slide 6
    Hedges Minimize Price Risk 7 2011e Production: 120 Bcfe 58% Hedged avg. NYMEXe price of 8.98/Mcfe 2011(e) cash costs: 2.31 per Mcfe Total NGL: 83.7 MMgal 47% Hedged 0.89/gal 54% Hedged 6.76/Mcf Total Oil: 6.1 MMBbl Total Gas:…
  7. CitiSmall and Mid Cap Conference – Energen Corp. – slide 7
    Hedges Reduce Price Sensitivity 8 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 1,600,000 950,000 225,000 EPS (diluted) Impact 2.2 1.3 0.3
  8. CitiSmall and Mid Cap Conference – Energen Corp. – slide 8
    2011e After-Tax Cash Flows 9 ( in MM) 699 688-695 608-630 576 Capital spending, 514 472 excluding acquisitions, projected to utilize bulk of after-tax cash flows in 2011. 2006 2007 2008 2009 2010e 2011e AGC ERC…
  9. CitiSmall and Mid Cap Conference – Energen Corp. – slide 9
    Top 25 Independent Producer* 10 3.5 Tcfe of proved & CO San Juan Basin: unproved 789 Bcfe (51%) reserves Farmington Black Warrior Basin: Product mix: 156 Bcf (10%) 60% gas NM 30% oil Birmingham 10% NGL Midland Arcadia…
  10. CitiSmall and Mid Cap Conference – Energen Corp. – slide 10
    Proven, Low-Cost Acquirer 11 San Juan Basin: Capital Investment 1.6 B Dominion (06) Private Seller (04) BP America (03) Development Costs to Date 2.5 B Burlington (97) Future Development Costs 0.5 B Permian Basin:…
  11. CitiSmall and Mid Cap Conference – Energen Corp. – slide 11
    Organic Reserve Replacement 12 (Bcfe) Value Post- 1,809 Acquisition 1,177 912 Net additions/ revisions add 50% to as-acquired reserves As-Acquired Additions/Revisions Cum. Production October 1, 1995 December 31, 2009
  12. CitiSmall and Mid Cap Conference – Energen Corp. – slide 12
    Oil & Gas Acquisitions 13 Increase in acquisition opportunities Acquisition Focus Primary interest: In/around existing Onshore North America properties Operated properties Would consider company and/or PDP and asset…
  13. CitiSmall and Mid Cap Conference – Energen Corp. – slide 13
    Wolfberry Trend Acquisitions 14 Private seller Private seller 8,700 net acres 10,360 net acres 185 MM + closing adjustments 75 MM + closing adjustments Future cost to develop: 325 MM Future cost to develop: 430 MM Future…
  14. CitiSmall and Mid Cap Conference – Energen Corp. – slide 14
    Focus on Oil 15 Basin/Area Capital for Existing Dev. Drilling Production (Bcfe) Properties (MM) (Net Wells) 2011e 2010e 2011e 2010e 2011e 2010e San Juan 83 79 45 24 57.4 56.4 Permian 368 266 284 234 44.1 37.3 Black Warrior 14 1…
  15. CitiSmall and Mid Cap Conference – Energen Corp. – slide 15
    2011 Estimated Drilling Costs 16 Gross Net PERMIAN BASIN Average Average Average Risked Average Cost/Well Rsrvs/ Well Cost/Well Rsrvs/Well Cost/BOE (000) (MBOE) (000) (MBOE) Wolfberry wells 1,775 155 1,775 100 17.75 Water…
  16. CitiSmall and Mid Cap Conference – Energen Corp. – slide 16
    Unproved Reserves 1.9 Tcfe 17 Probable Unrisked By Basin/Area (Bcfe) Infill drilling Basin/Area Probable Possible Step-out drilling Performance Rsrvs Cost/Mcfe Rsrvs Cost/Mcfe improvements San Juan 423 0.72 712 1.13…
  17. CitiSmall and Mid Cap Conference – Energen Corp. – slide 17
    Utility Operations 18 Complementary business Excellent rate of return Primary source of dividend
  18. CitiSmall and Mid Cap Conference – Energen Corp. – slide 18
    Alagasco 19 Single-state utility More than 440,000 customers Birmingham Progressive regulation RSE through rate-year 2015 Allowed ROE: 13.15%-13.65% Forward-looking test year Montgomery Temperature adjustment RY ROE(%) 2005…
  19. CitiSmall and Mid Cap Conference – Energen Corp. – slide 19
    28 Years of Dividend Growth 20 2010 Dividend raised 4% 0.52 0.48 0.50 0.44 0.46 Alagasco funds 0.40 dividend at utility payout over 65% (2010 at 80%) ERC may make small payout contribution 2005 2006 2007 2008 2009 2010
  20. CitiSmall and Mid Cap Conference – Energen Corp. – slide 20
    Pursuing Opportunities 21 Significant Hedges Strong Cash Flows Excellent Fundamentals Proven Track Record
  21. CitiSmall and Mid Cap Conference – Energen Corp. – slide 21
    Earnings Reconciliation to GAAP 23 Nine Months Ended 6/30/2010 2010 Guidance ( in millions, except per share data) Net Income EPS (Diluted) Estimated Earnings Net income (GAAP) 210.6 2.92 3.96 - 4.06 Non-cash leasehold write-off…
  22. CitiSmall and Mid Cap Conference – Energen Corp. – slide 22
    For More Information 24 Julie S. Ryland Vice President Investor Relations 205-326-8421 jrylandenergen.com www.energen.com
  23. CitiSmall and Mid Cap Conference – Energen Corp. – slide 23
    FINANCIAL STRENGTH Citi Small- & Mid-Cap Conference November 16, 2010

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