Skip to main content CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. Investor Presentation | Shale Experts
Loading...
Database
Slide Database

CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc.

Carbo Ceramics Inc. · Dec 3, 2012 · 40 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. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 1
    CARBO is the worlds largest supplier of ceramic proppant for fracturing oil and gas wells, and a supplier of resin coated sand proppant; the provider of the industrys most widely used fracture simulation software; and a provider of…
  2. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 2
    Company Business Profile CARBO has the leading products that make oil & gas wells produce better and increase recovery (EUR) We are an oilfield services technology company selling products globally We manage the business with a…
  3. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 3
    Global Opportunities Products/services sold in 50 countries Ceramic proppant manufacturing plants: USA (Eufaula, AL; Toomsboro, GA; McIntyre, GA) Russia (Kopeysk), China (Louyang) Resin Coating plants: New Iberia, LA; Marshfield,…
  4. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 4
    Our Main Mission We make oil & gas wells produce better and increase recovery (EUR) (EUR) 5
  5. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 5
    CARBO improves the effectiveness of fracs 1 Frac Design Software Highest Conductivity Highest Conductivity Proppant Proppant Improve Frac Completions E&P Value: Expert Fracpro Frac Increased Consultants For DANA*…
  6. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 6
    CARBO is the world leader in Proppant We provide the highest quality, highest conductivity Ceramic Proppant in the world, since 1979 We are the largest Ceramic Proppant producer in the world Ceramic Proppant makes oil & gas wells…
  7. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 7
    Ceramic Proppant Sales vs Capacity Lbs (Millions) 2,000 CRR Ceramic Manufacturing Capacity (YE) 1,750 CRR Total Ceramic Sales Volume 1,500 1,250 1,000 750 500 250 0
  8. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 8
    Proppant Capacity Lbs M 2,400 CRR Resin Coated Proppant Capacity 2,200 CRR Ceramic Proppant Capacity 2,000 400 1,800 100 1,600 1,400 1,200 1,000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010…
  9. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 9
    Our Ceramic Business Moats Proppant Advantages Conductivity Is Technology The Critical Factor Leader In Well Production & ROI Highest High Efficiency Conductivity Plants Ceramic Proven Low Cost Production Gains…
  10. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 10
    FractureConductivity Fracture Conductivity Conductivityfrac = kfrac * wfrac wf Reservoir Frac Wellbore kf Reservoir Factors that affect. Permeability (kf): Proppant quality (size, strength, shape), fm fines, gel damage Width…
  11. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 11
    Economic Conductivity Proppant Types & Conductivity Highest Production, EUR, ROI Highest Conductivity Engineered, Manufactured Product High strength (minimizes crush) Tier 1 - High Conductivity Uniform size and shape Ceramic…
  12. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 12
    Baseline Conductivity Comparison 8000. Marcellus 7000. Bakken 6000. Eagle Ford 5000. Haynesville Conductivity, md-ft 4000. Tier 1 LW Ceramic Tier 2 Premium RCS 3000. Tier 3a Ottawa Sand Tier 3b Brady Sand 2000. Tier…
  13. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 13
    Our Ceramic Proppant Value Proposition What should an E&P Operator expect using CARBOs Ceramic Proppant versus a sand based Proppant 20%+ Increase in Production Rates 20%+ Increase in Estimated Ultimate Recovery (EUR) High ROI and…
  14. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 14
    Examples of the impact of High Conductivity Ceramic Proppant on Production, EUR, and ROI 15
  15. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 15
    Slide from Brighams October 2011 IR presentation 16
  16. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 16
    Bakken Shale - ECONOMIC CONDUCTIVITY 100% increase in Production 250,000 125,000 Bbl increase per well (7) Wells CARBO LW 8.7 Million revenue increase Ceramic Proppant per well 70/Bbl Oil 200,000 100% Cumulative Oil, Bbls…
  17. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 17
    Bakken Shale - ECONOMIC CONDUCTIVITY 180 Ceramic - 23 wells 160 Sand - 91 wells 140 Ceramics average 40% higher initial production rate and Oil Rate (BOPD per lateral) continues to grow over time, approaching 90% in 20…
  18. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 18
    Slide from WPX Energy presentation at Barclays CEO Conference Sept 2012 19
  19. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 19
    Bakken Shale - ECONOMIC CONDUCTIVITY All Areas Mountrail County Study 90000 Operator A (11) (11) Wells CARBO LW Ceramic Proppant 80000 Operator B (10) 70000 Operator C (7) 40% - 50% 60000 Cumulative BOE 50000 40000 (17)…
  20. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 20
    Eagle Ford Shale - ECONOMIC CONDUCTIVITY Rosetta Resources Gates Ranch 12 Month Cumulative Gas Production, MMcfe Well Completion Between Sand and Ceramic Proppant Normalized to Number of Stages After 12 months: 15 mmcfe increase…
  21. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 21
    Granite Wash - ECONOMIC CONDUCTIVITY Well Groups - Cumulative MCFE 2,500,000 Direct offset well comparisons: ---- CARBOHYDROPROP (3) wells Cumulative Production (MCFE) ---- 40/70 Resin Coated Sand (3) wells 19% 2,000,000…
  22. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 22
    Haynesville Shale - ECONOMIC CONDUCTIVITY 2,500,000 CARBO's Hydroprop (20 Wells) Cumulative Production (MMCF), per well avg. Other's Proppant (35 wells) 19% 2,000,000 1,500,000 After 32 months: 1,000,000 19% increase in…
  23. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 23
    Not all ceramic is created equal 24
  24. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 24
    Quality Matters As an E&P Operator investing 4M 12M on a well that will last 20+ years, how much conductivity are you sacrificing (which leads to lower Production & EUR) by using low quality Chinese Intermediate Density Ceramic (IDC)…
  25. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 25
    Quality Matters As an E&P Operator investing 4M 12M on a well that will last 20+ years, how much conductivity are you sacrificing (which leads to lower Production & EUR) by using low quality Chinese Intermediate Density Ceramic (IDC)…
  26. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 26
    Quality Matters Three more field samples of low quality, low Conductivity Chinese Intermediate Density Ceramic (IDC) proppant suppliers: CARBOLITE Chinese 20/40 Chinese 20/40 Chinese 20/40 20/40 IDC 4C IDC 5C IDC 6C Bottom Row…
  27. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 27
    Quality Matters At 10,000 psi closure stress, Chinese IDC Sample 1C had 31% less conductivity than lightweight CARBOEconoprop & 55% less conductivity than CARBOLite. 31% to 55% Higher than Chinese IDC 28
  28. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 28
    Economic Conductivity To Match Any Reservoir Wells with multi-phase flow, receive the most benefit from our high conductivity Ceramic Proppant General Application Lightest weight ceramic proppant on the market. CARBOHYDROPROP Best…
  29. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 29
    Product Development Dual focus of inventing new products and adding technology to existing products New product introductions CARBOScaleGuard Fracpro REMOTE Recent product introductions New Proppant CARBOHYDROPROP Resin coated…
  30. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 30
    CARBOScaleGuard Chemicals are deployed into the frac in porous proppant CARBO possesses IP to both manufacture porous ceramic proppant, and infuse it with chemical CARBOScaleGuard provides a more efficient inhibition of scale than…
  31. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 31
    Fracpro REMOTE iPAD app for communication with Fracpro Joins Fracpro at the well site van to you Watch your frac job through the internet Buy it at Apple App Store 35
  32. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 32
    Falcon Technologies Engineered to Protect TM
  33. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 33
    Falcon Technologies Falcon provides Spill Prevention & Containment Containments, tank lining, tank bases Proprietary polyurea technology Business supports the growing environmental awareness and stewardship of the O&G industry…
  34. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 34
    Falcon Technologies Value Proposition Risk Mitigation Environmental Stewardship Operating Cost Reduction Public Image Enhancement Environmental Best Practice Eliminates product loss EPA Publication: Average spill 1,300…
  35. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 35
    Financial Results 39
  36. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 36
    CARBO Financials 750 3,000 200 Revenue M 700 2,800 Net Income M NAM Total Rigcount 650 180 171 650 626 2,600 Cash from Operations * 168 600 2,400 160 550 2,200 473 140 500 2,000 130 450 1,800 119 120 110 388 400 1,600 342 100…
  37. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 37
    CARBO Financials 700 8.00 8.50 Revenue M 650 Earnings Per Share Cashflow Per Share 650 7.50 8.00 626 7.43 7.31 7.00 7.50 600 6.50 7.00 550 6.00 6.50 5.62 500 473 6.00 5.50 5.16 450 5.00 5.50 4.80 388 5.00 400 4.50 342 4.50…
  38. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 38
    Dividends Increased Last 12 Years Per Share Shares - Millions 1.20 30.0 Dividends Paid Per Share 1.10 27.0 1.00 Shares Outstanding 24.0 0.90 21.0 0.80 0.70 18.0 0.60 15.0 0.50 1.02 12.0 0.88 0.40 0.76 0.70 9.0 0.30…
  39. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 39
    Industry Factors Current oversupply of proppant in the market, but low quality Chinese imports have declined Expect normal seasonality (holiday plus some weather impact) during the fourth quarter, and some reduced capital spending…
  40. CAPITAL ONE SOUTHCOAST 2012 ENERGY CONFERENCE – Carbo Ceramics Inc. – slide 40
    Summary CARBO has the leading products that make oil & gas wells produce better and increase recovery (EUR) Conductivity Matters Most. The only reason we frac wells is to create a high conductivity channel for oil and gas to flow…

From the store

Browse maps, data & reports in the Shale Experts store