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ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc.

Carbo Ceramics Inc. · Aug 17, 2014 · 46 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. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 1
    ....provides industry leading technology for: Production Enhancement EnerCom The Oil & Gas Conference August 17-21, 2014 Investor Presentation
  2. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 2
    One of the biggest economic opportunities in the oil and gas industry is to increase the recovery factor. In the shale reservoirs we are leaving over 90% of the oil in the ground. Fracturing Technology Evolution
  3. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 3
    Shale Reservoirs Need For Improved % Recovery Tighter rock needs fracs with more Contact Area and Conductivity Current Shale Recovery Factor < 5%-8% Conventional Sands Tight Sands Shale Millidarcies Microdarcies…
  4. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 4
    To Increase Recovery In Shales..We Need Contact Area Conductivity To be economical, low perm reservoirs Convergent Flow from Transverse Fracs require large contact areas to drain creates enormous flow velocity near Create multiple…
  5. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 5
    Contact Area Techniques To Create More Dependent upon the reservoir, the industry has attempted several methods to create more Contact Area Transverse fracs in horizontal wells Longer laterals Stages, spacing, perf density Zipper…
  6. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 6
    Contact Area Creating Complex Network Fracs One Size Does Not Fit All The Brittleness of the shale Barnett vs reservoirs greatly influences Eagle Ford whether a complex network frac is being created, or a more planer-type frac.…
  7. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 7
    Conductivity - Connecting The Reservoir & Wellbore 200 ft perfs 200 ft perfs 200 ft height Hydrocarbons enter 6 casing. Very large pressure drop & high velocities Vertical Well Frac Horizontal Well Transverse Frac 2 x 200 ft…
  8. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 8
    Conductivity Multi-phase Flow Restricts Production 7000 White Sand gas Low Density Ceramic liquid Effective Conductivity (md-ft) 6000 4310 5000 4000 Modest liquids addition of 2 bbl/day, reduces effective 3000…
  9. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 9
    Conductivity - Effects of Pressure on Sand Conditions: Northern White Sand 20/40 9,000 psi, 250 F Flowing 2% KCL for 30 days Cross sections of Proppant pack shown At 9,000 psi, the Sand experienced severe crushing and the…
  10. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 10
    Conductivity - Sand Crushes at High Pressure White Sand 6,000 psi stress White Sand 10,000 psi stress Widthfrac Widthfrac Sand crushes Formation Formation and limits oil & gas flow. Reduces EUR .most wells are…
  11. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 11
    Conductivity Proppant Comparisons 6,000 CARBOLITE 20/40 CARBOLITE 30/50 5,000 CARBOLITE 40/70 White Sand 20/40 Smaller mesh size, has Conductivity (md-ft) White Sand 30/50 4,000 lower Conductivity White Sand 40/70 100 Mesh…
  12. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 12
    Conductivity Flow Through The Proppant Pack Animation depicts flow through a 16/20 Low Density Ceramic proppant pack, 2 lb/ft2 and 4000 psi ISO Test Conditions: Velocity at 2 Well Conditions: 100 bopd, or 120 ml/min MSCFD at 1500 psi…
  13. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 13
    Conductivity Proppant Options To Increase % Recovery Ceramic will have the highest Conductivity and EUR Sand will have lower Conductivity and EUR Sometimes 100 mesh Sand is used as a lead-in proppant in slickwater, with…
  14. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 14
    What is the right balance between initial Investment and maximizing Recovery % Shorter Term Perspective Longer Term Perspective AFE ( ) EUR ( BOE )
  15. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 15
    Shorter Term Perspective Longer Term Perspective Fracs Are Not Optimized Reasons to Optimize Fracs
  16. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 16
    Over 150 SPE papers have been written documenting the benefits of increased conductivity on well Production and EUR. Generally, the payout on the additional Proppant investment is less than 2 - 6 months, and increases Production and EUR…
  17. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 17
    Ceramic Success Grows Into Key Basins
  18. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 18
    Bakken - Statoil Mountrail County 350,000 CARBOECONOPROP CARBO (7 Wells) (7 wells) 309,781 300,000 WhiteSand White Sand (12 (12 wells) Wells) Ceramic wells out produce offset Sand 250,000 Cumulative Oil Production (bbls)…
  19. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 19
    Bakken - Liberty Resources Liberty Resources has lead the way in increasing Contact Area and Conductivity Higher well production results compared to offset wells, has verified the technical success of their completions…
  20. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 20
    Liberty Resources Leader in Contact Area & Conductivity In liquid-rich or unconventional oil reservoirs, operators have typically sacrificed some contact area to maximize fracture conductivity. They have done this by lowering fluid…
  21. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 21
    Bakken Operator Optimizing Completion Design Thousands 70 6 Mo Cum Oil 16 60 NPV (M) 14 50 52 12 6 Mo Cum Oil (bbl) 40 10 NPV (M) 34 8 30 32 27 6 20 4 10 2 0 0 Conductivity Low Cost Contact Contact &…
  22. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 22
    Eagle Ford Field Trial on Offset Wells Karnes County Offset Wells: Karnes Trial One well with 30% white sand 120,000 2.40 lead and 70% Ceramic tail-in White Sand/RCS 101,982 One well with 80% white sand White Sand/ECONOPROP lead…
  23. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 23
    Eagle Ford Operator Optimizing Completion Design 25,000 30 Day Cum Oil 23,400 20,000 30 Day Oil (bbl) 15,000 13,260 12,414 10,000 5,000 0 Conductivity Design (Ceramic) Increased Contact Design (Sand) Increased…
  24. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 24
    Eagle Ford - Operator Design Comparison Six Months Oil 5th Highest McMullen County 80,000 Oil Recovery 60,000 40,000 20,000 0 Company C Company A Company B Company X Company E Company F Company D Company…
  25. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 25
    Eagle Ford - Small Mesh Proppant Production Longevity Production Drivers: Others ASMS Initiated a study of the 160,000 impact of using primarily 140,000 small mesh sand (ASMS), has on the production 120,000 longevity OIL…
  26. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 26
    Eagle Ford - Small Mesh Proppant Production Longevity As we continue to study the effects of small mesh sand, and see more confirmation of the following two observations: Early production governed by Contact Area Longer term…
  27. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 27
    Permian Basin - Bone Spring Operators Lea County 60,000 CARBOLITE & CARBOECONOPROP (3 wells) RCS (4 wells) 49,181 50,000 Sand (19 wells) Ceramic wells CARBOLITE (1 well < 6 mo) Cumulative Oil (bbls) out produce 40,000 offset…
  28. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 28
    Haynesville Ceramics Out-Produce Resin-Coated Sand 3,000,000 ---- CARBOHYDROPROP 40% Tail-in (20 wells) Cumulative Production (MMCF), per well avg. ---- Resin Coated Sand 40% Tail-in (33 wells) 2,528,761 2,500,000 25% 2,018,835…
  29. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 29
    .a leading production enhancement company Frac Design Frac Conductivity & Durability Economic Optimization Production Assurance Reservoir Performance Fracture Evaluation Post Job Analysis Flow Enhancement Well Site…
  30. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 30
    Technology to Increase the Recovery Factor KRYPTOSPHERE creates a paradigm shift in improved proppant performance ICDS Infused Chemicals Delivery System creates a step change in the performance of production chemicals. We improve…
  31. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 31
    Proppant Delivered Technology Platforms CARBOHYDROPROP CARBOECONOPROP KRYPTOSPHERE CARBOPROP CARBOLITE CARBOHSP Ceramics Higher EUR Proppant Proppant Proppant Delivered Delivered Delivered ICDS Production Flow…
  32. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 32
    Production Assurance - SCALEGUARD Chemically infused porous proppant with controlled release of scale inhibitor 12 wells completed recently in the Rockies & N Texas Excellent placement (0% screenout) Controlled release as…
  33. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 33
    Flow Enhancement - CARBORPM Improve permeability to hydrocarbons in the propped fracture Minimize capillary pressures in propped fracture with neutral wettability Increase effective fracture conductivity Improve fracture…
  34. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 34
    Fracture Evaluation - CARBONRT Non radioactive tagged proppant Environmentally friendly Direct measurement of proppant placement Manufactured into proppant Measurement of fracture height in vertical well allows estimate of…
  35. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 35
    Hierarchy of Proppant Conductivity Highest Production, EUR, ROI Highest Conductivity Ceramic - Engineered product Ultra-high strength Ultra-conductive Ceramic Mono-size and spherical High strength Tier 1 High conductivity…
  36. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 36
    KRYPTOSPHERE is a paradigm shift in improved Conductivity KRYPTOSPHERE HD Competitors Bauxite KRYPTOSPHERE HD is the strongest, highest conductivity Proppant commercially available today for the industrys deepest, highest stress…
  37. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 37
    Ceramic Proppant Sales vs Capacity Lbs (Millions) 3,000 2,750 CRR Manufacturing Capacity (Year End) 2,500 CRR Ceramic Sales Volume 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 0 Millen Line 2 est completion near end of…
  38. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 38
    Proppant is one of the biggest factors in determining Production and EUR in fracture stimulated wells. It is important that E&P Operators know what Proppant is being used in their wells. Make sure you are getting the Conductivity and…
  39. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 39
    Industry Awareness of Low Quality Chinese Ceramics The Stakeholders - E&P Operators, Service Companies, Royalty Owners, State Agencies.. are becoming more aware of the losses to well Production and EUR that can occur when using low…
  40. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 40
    Proppant Quality Matters in Well Production As an E&P Operator investing 4M 12M on a well, how much Production & EUR are you sacrificing by using low quality Chinese ceramic proppant Production & EUR Loss Chinese 20/40 Chinese 20/40…
  41. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 41
    CARBO vs Low Quality Chinese Ceramic Comparison of three field samples from North Dakota from low quality, low Conductivity Chinese ceramic proppant suppliers, compared to CARBOLITE : CARBOLITE Chinese 20/40 Chinese 20/40 Chinese…
  42. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 42
    Finance
  43. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 43
    CARBO Financials 900 3,000 200 200 Revenue M Cash From Operations M Net Income M 800 2,700 180 171 180 NAM Total Rigcount 691 2,400 160 156 160 700 646 667 147 626 138 2,100 140 140 130 600 1,800 120 120 110 500 473 106 1,500…
  44. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 44
    CARBO Financials 900 9.00 9.00 Revenue M Cash Flow Per Share Earnings Per Share 800 8.00 8.00 7.43 691 6.80 700 667 7.00 7.00 646 6.42 626 6.02 600 6.00 6.00 5.62 500 473 5.00 4.80 5.00 4.59 388 4.00 400 4.00 4.00 342…
  45. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 45
    Dividends Increased - 14 Years Per Share Shares - Millions 1.30 36 Dividend Amount Paid Per Share Per Year 1.26 1.20 34 1.10 Shares Outstanding 1.14 32 1.00 1.02 30 0.90 0.88 28 0.80 26 0.76 0.70 0.70 24 0.60 0.62 22…
  46. ENERCOM THE OIL & GAS CONFERENCE – Carbo Ceramics Inc. – slide 46
    Cash Flow from Operations Reconciliation Results from Continuing Operations in 000s For The Years Ended Dec 31 2005 2006 2007 2008 2009 2010 2011 2012 2013 TTM Net Income 45,463 52,245 49,641 60,405 52,810 78,716 130,136 105,933…

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