Skip to main content Jefferies 2014 conference – Jones Energy Inc. Investor Presentation | Shale Experts
Loading...
Pm

Jefferies 2014 conference – Jones Energy Inc.

Jones Energy Inc. · Nov 12, 2014 · 30 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. Jefferies 2014 conference – Jones Energy Inc. – slide 1
    Jefferies Global Energy Conference November 11-12, 2014
  2. Jefferies 2014 conference – Jones Energy Inc. – slide 2
    Jones Energy Overview (NYSE: JONE) NYSE Ticker: JONE Share Price: 12.76 Anadarko Basin Key Formations: Cleveland & Tonkawa Market Cleveland Daily Production: 18.3 MBoe/d 630 million Capitalization: Arkoma Basin Key Formation:…
  3. Jefferies 2014 conference – Jones Energy Inc. – slide 3
    Third Quarter 2014 Highlights Year over Year growth: EBITDAX up 50% Crude oil production up 59% Total production up 41% Cleveland production up 73% Acquired 6,924 net acres since June 30, 2014 130 total Cleveland net drilling…
  4. Jefferies 2014 conference – Jones Energy Inc. – slide 4
    2014 Development Plan and 2015 Outlook Executing on 2014 development plan 370 million spent YTD as of 3Q14 9% 2% Annual production guidance raised in August by 1,000 Boepd for full year (23.0 15% 24.0 MBoepd) Full year guidance…
  5. Jefferies 2014 conference – Jones Energy Inc. – slide 5
    Hedging Program Among the Best of Peer Group Extensive hedging program provides security in an uncertain commodity price environment 2015 % oil hedged 100 75 50 25 0 2015 % gas hedged 100 75 50 25 0…
  6. Jefferies 2014 conference – Jones Energy Inc. – slide 6
    Hedged for Success Jones strong hedge position mitigates the risk of continued commodity price declines A 30% decline in commodity prices only has a 13% impact on EBITDAX 400 Hedging Impact on EBITDAX (1) 13% drop in EBITDAX…
  7. Jefferies 2014 conference – Jones Energy Inc. – slide 7
    Jones Commodity Price Realizations - Steady and Predictable Steady, Predictable Differentials Ample midstream takeaway options in the Mid-Continent region Realizations Compare Favorably to Infrastructure Constrained Regions Jones…
  8. Jefferies 2014 conference – Jones Energy Inc. – slide 8
    Oil Gathering System for Cleveland Production Recently signed 10 year oil gathering agreement with Monarch Oil Pipeline for capacity of up to 12,000 barrels per day on system expected to be in service 2Q15 Benefits include: Reduced…
  9. Jefferies 2014 conference – Jones Energy Inc. – slide 9
    The Anadarko Basin Prolific History with Stacked Pay Potential Stacked pay zones within concentrated footprint provide significant development opportunities Current Target Formations Tonkawa Sandstone Lease Acreage: 35,000…
  10. Jefferies 2014 conference – Jones Energy Inc. – slide 10
    Extensive Experience Focused on the Mid-Continent Drilling History by Formation 140 120 700% growth in activity over the past 15 years Brown Dolomite 100 Tonkawa Nearly 400 horizontal wells in the Cleveland alone Cleveland 80…
  11. Jefferies 2014 conference – Jones Energy Inc. – slide 11
    Cleveland Play Evolution: More Frack Stages = More Oil JOHN B DOYLE 6H JOHN B DOYLE 703-15H IP30: 948 BOE/D IP30: 1,103 BOE/D OIL IP30: 138 BO/D OIL IP30: 645 BO/D JONES TRUST 189-1H PARNELL RANCH 165-1H IP30: 167 BOE/D IP30:…
  12. Jefferies 2014 conference – Jones Energy Inc. – slide 12
    Cleveland Frack Trial Results Relative Decline Curves Comparison of Average Cumulative Oil Production & Oil Decline Curve 500 Oil decline curves through 300 days Bbl/Day Sustained uplift of the oil curve 50 with increased…
  13. Jefferies 2014 conference – Jones Energy Inc. – slide 13
    Cleveland Frack Trial Results Oil Uplift From Additional Frack Stages Comparison of Average Cumulative Oil Production & Oil Decline Curve 60 Incremental oil production 500 Comparable cumulative production continues to grow through…
  14. Jefferies 2014 conference – Jones Energy Inc. – slide 14
    Cleveland Frack Trial Results Gas Production Remains the Same Comparison of Average Cumulative Gas Production & Gas Decline Curve 10000 Gas decline curves and cumulative production through 300 days 1000 MCF/Day 100…
  15. Jefferies 2014 conference – Jones Energy Inc. – slide 15
    Evolution of Jones Anadarko Completion Techniques Jones standard completion method prior to Cleveland frack trial 20 Stage Open Hole Open-hole packers and sleeves Unverifiable isolation Limits long-term wellbore optionality Max…
  16. Jefferies 2014 conference – Jones Energy Inc. – slide 16
    NCS Sliding Sleeve Deployment Process Frac ports Locator recess Inner barrel Casing sleeve Coiled tubing Resettable Sleeve Pressure bridge plug locator recorder Frac-isolation assembly NCS Sliding Sleeve Active Video…
  17. Jefferies 2014 conference – Jones Energy Inc. – slide 17
    Jones Energy Sliding Sleeve Progress Cemented sliding sleeves utilized in all current Anadarko completions Includes Tonkawa wells Current costs in-line with budgeted expectations 4.3 million to drill and complete using new…
  18. Jefferies 2014 conference – Jones Energy Inc. – slide 18
    Continuing to Build Scale Via Multiple Avenues 800 Cleveland Drilling Inventory Growth 700 2012 600 Acquisition of Chalker Energy 2014 Jones Leasing 500 Program 2009 Acquisition of Crusader Energy 400 2013 2004…
  19. Jefferies 2014 conference – Jones Energy Inc. – slide 19
    Cleveland Leasing Update Over 16,500 net acres added year to date for 22 million, or less than 1,500 per net acre Replaced nearly 200% of budgeted Cleveland wells for 2014 (130 net locations) Acreage prospective for Marmaton and…
  20. Jefferies 2014 conference – Jones Energy Inc. – slide 20
    Tonkawa Provides Opportunities for Significant Additional Oil Production Drilling program underway Tonkawa 2.9 million acres Drilled 4 wells in 3Q14 using 20- stage cemented sliding sleeve 5th well spud and progressing Average…
  21. Jefferies 2014 conference – Jones Energy Inc. – slide 21
    Marmaton Shows Promise As Others Drill Ahead Marmaton lies just below the Marmaton Lime 1.0 million acres Cleveland formation Majority of Jones Anadarko Average formation depth: acreage lies within the Marmaton Marmaton: 9,000 feet…
  22. Jefferies 2014 conference – Jones Energy Inc. – slide 22
    Jones Energy A Growing Presence in the Mid-Continent Mid-Continent Focus History of success & reputation as a partner of choice Expertise creates opportunities to acquire at favorable prices Stacked Pay Zones Multiple horizons on…
  23. Jefferies 2014 conference – Jones Energy Inc. – slide 23
    2014 Full Year Guidance and Q4 Production Guidance Full Year Total Production (MMBoe)[1] 8.4 - 8.8 Full Year Average Daily Production (MBoe/d)[1] 23.0 - 24.0 Fourth Quarter Total Production (MMBoe)[1] 2.25 - 2.30 Fourth Quarter…
  24. Jefferies 2014 conference – Jones Energy Inc. – slide 24
    20 Stage Open Hole Method Versus Cemented Liner w/Sliding Sleeve Open Hole Completion System Cemented Liner w/Sliding Sleeves 100 SPACING Open Hole Completion System Cemented Liner w/Sliding Sleeves Multiple Stages: 20 43 2.2x…
  25. Jefferies 2014 conference – Jones Energy Inc. – slide 25
    Hedge Positions 2014 2015 2016 Q4 Q1 Q2 Q3 Q4 Full year Crude Swaps (Mbbl) 511 474 557 571 464 1,786 Hedge Price / Bbl 91.60 87.61 85.15 85.00 86.11 83.90 Natural Gas Swaps (MMcf) 5,180 4,352 3,945 3,630 3,356 11,880 Hedge Price /…
  26. Jefferies 2014 conference – Jones Energy Inc. – slide 26
    Corporate Structure Metalmark, Management Public & Other Investors Shareholders Class B Common Stock Class A Common Stock 74.7% of voting power in Jones 25.3% of voting power in Jones Energy, Inc. Energy, Inc. 74.7% of total…
  27. Jefferies 2014 conference – Jones Energy Inc. – slide 27
    Up-C Structure Overview JONE went public using an Up-C structure Other recent energy IPOs with Up-C structure include: Athlon Energy Inc. Franks International N.V. Parsley Energy, Inc. Due to the Up-C structure, on its financial…
  28. Jefferies 2014 conference – Jones Energy Inc. – slide 28
    Forecasting JONE EPS The simplest way to forecast JONE EPS is on a 100% basis: Income before income tax - Income tax provision (36.5% of pre-tax income*) Net income Total Class A and B shares outstanding of 49,367,741 Net income…
  29. Jefferies 2014 conference – Jones Energy Inc. – slide 29
    Forecasting JONE EPS Alternatively, EPS can be calculated using net income attributable to controlling interests and Class A shares outstanding: Income before income tax on 100% basis - Pre-tax income attributable to non-controlling…
  30. Jefferies 2014 conference – Jones Energy Inc. – slide 30
    Understanding JONE EPS Calculation on Reported Financial Statements Breakdown of JONE Income Tax Calculation ( in millions, except per share data) JONE Q3 2014 Income Statement Income before income tax ( in thousands, except per…

From the store

Browse maps, data & reports in the Shale Experts store