J. Russell Porter Chief Executive Officer IPAA OGIS New York April 2013 E X P A N D I N G O U R H O R I Z O N S 2013 Gastar Exploration Ltd.
Gastar Overview Listed on the NYSE MKT: GST 186.0 million market capitalization(1) 371.0 million enterprise value(2) 68.4 million shares outstanding(3) Focus in two areas Marcellus Shale in liquids-rich window of West Virginia…
Asset Overview 4Q 2012 Net Production by Region Hunton Limestone Oil Play 17,300 net acres(1) Marcellus Shale Mid- + Rich Gas Play Appalachia Continent 0.1 157,000 net acres in pending 65,600 net acres(1) 30.0 MMcfe/d…
Historical Reserve Growth % of high-value liquids expected to increase substantially in 2013 2012 proved reserve F&D cost of 1.97 per Mcfe Proved Reserves PDP PDNP PUD Gas Liquids 200.0 200.0 180.0 180.0 160.0 160.0 23% 34%…
Historical Production Total Daily Production Gas Oil NGLs 40.0 35.0 12% 30.0 8% 25.0 MMcfe/d 0.8% 2% 20.0 3% 15.0 80% 10.0 99.2% 95% 5.0 0.0 2010 2011 2012 2012 Marcellus production constrained by 14%…
Accelerating Liquids Growth Driving Stronger Economics New Hunton Oil Play Exposes GST to Additional Oil Production & Reserves 1800.0 1600.0 1400.0 Net Barrels of Liquids/day 1200.0 1000.0 1,680 800.0 600.0…
Major 2012 Accomplishments Increased total company proved reserves by 51% to 180.9 Bcfe (1) Proved PV-10 increased by 40% to 333 million based on NYMEX forward prices Marcellus assets represented 85% of proved reserves and 93%…
Aggressively Shifting Capital to Liquids ( in millions) Area Capital 2013 Capital Investment Marcellus 60 Capitalized Costs Mid-Continent 27 & Other 4 4% East Texas 2 Capitalized Costs (1) 3 Mid-Continent Total 93 27 29%…
Great Assets with Room to Grow 2013 Gastar Exploration Ltd.
Strong Position in the Marcellus Shale Near-term activity concentrated in highly prospective liquids-rich portion of the play 65,600 net acres with Marcellus exposure(1) Marshall & Wetzel Counties, W. Va. JV partner Atinum 11,400…
Liquids-Rich Window of Marshall & Wetzel Counties High Btu gas and condensate yields Active development program 30-50 Bbls/MMcf condensate 40-50 Bbls/MMcf NGLs 57 horizontal Marshall County wells scheduled to be on production by…
Marcellus West Economics 6.3 Bcfe EUR 63% Gas 37% Liquids 42% IRR(1) Cost 7.0MM (5000 lateral) 1.41/MMcfe F&D Costs (1) Based on third party reservoir engineering curve and the NYMEX futures curve on April 5, 2013.…
Pad Drilling Drives Attractive Economics Average drilling time reduced to < 20 days per well Additional savings being realized on completion costs 2013 Gastar Exploration Ltd. 14
New Oklahoma Hunton Limestone Play Exposure to over 100 MMBOE of net resource potential, primarily oil Excellent results from Gastars second horizontal well Play further de-risked by partners recent activity and historic vertical…
Existing and Acquisition Hunton Acreage Acquisition includes: 176 wells generating 500,000 - 600,000/month of cash flow 3.0 MMBOE of Reserves 100% PDP(1) PV-10 of 34.4 million(1) Undeveloped acreage expands inventory of…
Key Terms of Acquisition Purchase Price: 85 million, subject to customary closing adjustments 41.0 million for undeveloped lease acreage 33.2 million for developed, producing acreage(1) 9.8 million for repurchase of 6.8 million…
Hunton Oil Play Well Data Gastars Wells in Existing AMI: Most Recent First 10 Day County Production Average (BOE/D) Mid-Con 1H Kingfisher 10/05/12 67 Optimized Drilling & Mid-Con 2H Kingfisher 02/15/13 1,183 Completion Method…
Hunton Horizontal Oil Play Economics 436 MBOE EUR 35% Gas 65% Liquids 57% IRR(1) Cost 5.2MM (4,200 lateral) (1) Based on third party reservoir engineering curve and the NYMEX futures curve on April 5, 2013. 2013…
Preliminary Hunton Drilling Plan 2013 12 total wells 8 within existing AMI (non-operated) 4 on new acreage (operated) 11 million net increase to current budget 2014 24 total wells 8 within existing AMI (non-operated) 16 on new…
Financial Overview 2013 Gastar Exploration Ltd.
Liquidity and Financing Plan Base Capital Program Marcellus & Existing Mid-Continent Properties Funded from internally generated cash flow supplemented by borrowings under current credit facility 7.1 million cash on hand at…
Balance Sheet Assets ( in millions) December 31, 2012 Cash and cash equivalents 8.9 Other current assets 18.4 Total current assets 27.3 Total property, plant and equipment, net 256.3 Other assets 6.5 Total assets 290.1…
8.625% Cumulative Preferred Stock Well Received by the Market 98.8 million issued to date(1) Issuer: Gastar Exploration USA, Inc. Symbol: NYSE MKT: GST.PRA Guarantor: Gastar Exploration Ltd. Annual Rate: 8.625% Face Value: up to…
Hedging Program Natural Gas as of March 31, 2013 2013 Gastar Exploration Ltd. 25
Hedging Program (contd) Crude Oil and NGLs as of March 31, 2013 2013 Gastar Exploration Ltd. 26
Summary Well positioned for reserve & production growth with strong economics in 2013 & beyond 2013 production projected to grow materially over 2012 High-value liquids production expected to increase vs last year New oil play…
Gastar Exploration Ltd. Gastar Exploration is an independent energy company engaged in the exploration, development and production of natural gas and oil in the U.S. Our principal business activities include the identification,…
Q&A 2013 Gastar Exploration Ltd.
Appendix 2013 Gastar Exploration Ltd.
Marcellus East Large position Low entry price Acquired dry gas assets in November 2010 100% WI, 80% NRI Tested Marcellus potential in 2 vertical wells Tested at 0.8-1.1 MMcf/d First horizontal drilled August 2011 2,500 foot…
Shallow Potential Combined With Proven Success in East Texas Combination of Eagle Ford/Woodbine liquids and Bossier gas Leon Substantial Shallow Potential Identified Eagle Ford/Woodbine (Eaglebine) becoming more active Encana and…
Solid Acreage Position in the Rapidly Developing Eagle Ford Trend Actively monitoring and evaluating as our peers de-risk the play. 17,100 Net Acres 2013 Gastar Exploration Ltd. 33
Abundant Supply of Eagle Ford/ Woodbine Opportunities Potential for 100+ horizontal drilling locations First Class Neighbors 2013 Gastar Exploration Ltd. 34
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