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November 2014 Investor Presentation – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Nov 7, 2014 · 26 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. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 1
    Integrity Teamwork Transparency November 2014 Investor Presentation
  2. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Market Cap(1): 1.8 billion Wattenberg Field Arkansas 20,000 6,000 Enterprise Value(1): 2.5 billion Boe/d Boe/d Rapidly growing 0 0 Q4 Q3 Q4 Q3 (2) 2011 2014 2011 2014 50% Y/Y forecasted in 2014 102% CAGR 23% CAGR…
  3. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 3
    Strong Growth and Cash Flow Track Record Production(1) (Boe/d) Adjusted EBITDAX(3) (thousands) 25,000 120,000 100,000 20,000 80,000 15,000 60,000 10,000 40,000 5,000 20,000 0 - 2010 2011 2012 2013 Q1 '14 Q2 '14 Q3 '14 Q1 Q2 Q3 Q4 Q1 Q2…
  4. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 4
    Deep Organic Development Inventory 25 Years of Wattenberg 3P Inventory (3,500 gross locations) Wattenberg Wattenberg Niobrara B Arkansas Cotton Valley North Park Niobrara C Arkansas 5-acre spacing Basin Niobrara Brown Dense Wattenberg…
  5. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 5
    Wattenberg Niobrara a Premier Oil Resource Play Basin IRRs 80% 74% 71% 70% 66% 65% Stacked Pays Low D&C Costs 63% 62% 60% 55% 53% Oil-weighted Near-term Catalysts 51% 51% 50% 43% 41% 39% 40% 35% 32% 32% 32% 29% 29% 28% 27% 27% 30%…
  6. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 6
    2014 CapEx Accelerating Wattenberg Value Wattenberg Field HZ Wells Drilled 2014 Budgeted Capex 140 2014 Drilling Program 121 Operated Wells Non-Operated 630 680 million 120 19 Non-Operated Wells Niobrara A Arkansas 100 13% XRL 80 Other…
  7. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 7
    Strong Production Growth & Declining Costs Wattenberg HZ Well First Production Schedule Significant improvements to unit LOE and G&A 40 35 30 Completions on schedule: 100 net in 2014 25 20 47% production growth forecasted to…
  8. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 8
    Stacked Pay Zones a Multiplier Effect on Value 4th largest leaseholder in Wattenberg Field 70,000 net acres in Extension Area 60% crude oil; liquids-rich natural gas Contiguous acreage attractive for long laterals Prospective for Up to…
  9. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 9
    Concentrated Land Position in Wattenberg LEGEND Current BCEI Leasehold 126,400 gross (70,100 net) acres Horizontal Wells North Block: 25,700 net BCEI BBG/EOG NBL CRZO Central Block: 35,500 net PDCE OTHER South Block: 8,900 net 10
  10. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 10
    Increasing Asset Value through Innovation Recent 40-Acre Results Above Type Curve(1) NEW 28-Stage Completion Nio B 40-Acre 1 Nio B 40-Acre 2 Nio B 40-Acre 3 Nio B 40-Acre 4 70,000 60,000 50,000 BOE/D 40,000 30,000 20,000 10,000 - 0 30…
  11. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 11
    Reserves Growing by Acquisition & Technology (1) 308 MMBoe Net HZ Risked 3P Reserves 30% Increase in 3P Reserves over 2012 No 3P reserves currently associated with recent acquisition Inventory life of 25 years at current pace * 3P…
  12. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 12
    Wattenberg Hz Niobrara B Target Type Well Type Well Economics EUR 313 MBoe; 62% crude oil(1) Initial 30-day Rate 458 Boe/d Cost per Well 4.2 MM NPV-10 at 90/BO 4.2 MM Payout 1.5 years ROR Sensitivity to Oil Price(2) (1) EUR based on…
  13. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 13
    Mid-Continent Operations (Arkansas) Provides free cash flow; allocated to Wattenberg ERA SYSTEM SERIES GROUP FORMATION CENOZOIC EOCENE Claiborne PALEOCENE Wilcox Cotton Valley: 6,500 8,800 feet TERTIARY CRETACEOUS GULFIAN Midway…
  14. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 14
    Lenticular Oil-Weighted Cotton Valley Sands Pin-Point Fracture Technology Focused completion technology Improved recovery of OOIP Highly repeatable Dorcheat Unit 37 25-30 sand/shale sequences Each zone individually pressured Potential…
  15. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 15
    Financial Overview 16
  16. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 16
    Oil Weighted Production Results in High Margins Unit Cash Operating Costs (/Boe) Unit Revenue & Cash Margins (/Boe) 25 80 77.54 71.85 72.95 20 6.06 68.47 66.64 7.82 60 74% 4.98 6.54 76% 15 68% 68% 71% 4.61 7.51 6.86 40 6.87 10 4.97…
  17. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 17
    Production Hedged at 88/Bbl in 2015 2014 2015 2016 Crude Oil 11,400 Bbl/d 90.65 10,000 Bbl/d 88.21 5,500 Bbl/d 85.00 Natural Gas 28,000 Mcf/d 4.19 15,000 Mcf/d 4.00 Volume Fixed Price Volume Floor Price Ceiling Price (1) 1,753 Bbl/d in…
  18. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 18
    BCEI Attractive Relative to Basin Peers Unit EBITDAX 2014 Production Growth 70 60% Consensus Production EBITDAX / Boe (MRQ) 60 Peer Group 50% Avg: 40% Peer Group 50 40.98 Avg: 30% Growth 20% 40 20% 30 10% 20 0% 10 -10% 0 -20%…
  19. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 19
    Investment Recap Company Headquarters Investor Relations 410 17th Street, Suite 1400 James Masters Increasing Denver, Colorado 80202 (720) 440-6121 NAV (720) 440-6100 jmastersbonanzacrk.com Impressive 50% Y/Y Cash Production Returns…
  20. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 20
    Appendix 21
  21. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 21
    Wattenberg Horizontal Niobrara Economics(1) Target 313 MBoe Type Curve 600 30-day Avg: 458 boepd 550 60-day Avg: 400 boepd 90-day Avg: 355 boepd 500 450 400 350 Boe/d 300 250 200 150 100 50 0 0 12 24 36 48 60…
  22. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 22
    Legacy Acreage Correlation to Wells Ranch Niobrara A Bench Thinner and resistivity less developed A Niobrara B Bench Similar thickness and resistivity A Niobrara C Bench Slightly thinner lower chalk bench; similar resistivity Codell…
  23. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 23
    Crude Oil Pipeline Infrastructure Expanding Announced Rail Capacity by YE 2015 Operator Capacity Timing Plains 68,000 Bbl/d Existing 35,000 Bbl/d 2015 Q3 ARB Midstream 70,000 Bbl/d 2015 Q4 Announced Pipeline Capacity by YE 2017…
  24. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 24
    Significant Gas Processing Upgrades 25
  25. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 25
    Reconciliation to Adjusted EBITDAX Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of the Companys consolidated financial statements, such as industry analysts, investors,…
  26. November 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 26
    Reconciliation to Cash Margin We define unhedged cash margin per Boe as oil and natural gas revenues, less (1) lease operating expense, (2) oil and natural gas taxes, and (3) cash G&A expense (excludes stock-based compensation),…

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