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JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Jun 10, 2015 · 53 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. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION Investor Presentation June 2015
  2. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 2
    Who We Are Magnum Hunter Resources is an exploration and production company focused in two of the most prolific unconventional resource shale plays in North America; the Marcellus and Utica Shales of West Virginia and Ohio Redirected…
  3. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 3
    Where We Operate A natural gas focused company with assets based in the heart of the Marcellus and Utica Shale plays 175 mile gas gathering system strategically located in Ohio and West Virginia moving over 400,000 MMBtu/d with seven…
  4. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 4
    Production Growth 2015 estimated production anticipated to increase 77% 101% compared to 2014 2014 reported production increased 44% compared to 2013 (after asset sales) 2013 production increased 92% to 14,831 Boepd(1) compared to 7,739…
  5. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 5
    Proved Reserve Growth Consistency Track record of proved reserve growth since inception Approximately 869.2 Bcfe of proved reserves at March 31, 2015 (75.3% natural gas) up 73% year over year) Expect to significantly increase proved…
  6. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 6
    Proved Reserves History PDP PDNP PUD 1000 869.2 800 Proved Reserves (Bcfe) 600 502.8 455.4 438.6 400 270.0 200 79.8 0 2010 2011 2012 2013 2014 Q1 2015 SEC Pricing 2010 2011 2012 2013 2014 Q1 2015 Oil Price…
  7. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 7
    Reserves Summary Extensive inventory of lowrisk development drilling locations in the Marcellus Shale and Williston Basin Significant exploration potential in the wet/dry gas window of the Utica Shale in Ohio and West Virginia Reserves…
  8. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 8
    Consistent Growth Continues EBITDAX Revenue 450 391.5 400 350 300 280.4 250 ( MM) 200 150.5 150 140.4 112.4 100 76.2 66.5 50.4 50 28.6 4.2 0 2010 2011 2012 2013 2014 * See Appendix of this…
  9. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 9
    Breakdown of Capital Expenditures 2015 Capital Budget Breakdown Appalachia Williston Leasehold Acquisition 20% 10% 70% Total: 100 Million 8
  10. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 10
    Substantial Leasehold Inventory Developed Undeveloped (1) (2) As of January 31, 2015 Acreage Acreage Total Acreage Gross Net Gross Net Gross Net (3) Appalachian Basin Marcellus Shale 61,901 59,566 28,792 20,368 90,693 79,933…
  11. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 11
    Appalachian Division (Ohio, West Virginia and Kentucky) 10
  12. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 12
    Appalachian Division Overview Overview Areas of Operation Proved Reserves and PV10 Total proved reserves of 817.5 Bcfe as of 3/31/15 Proved producing reserves of 313.8 Bcfe as of 3/31/15 PV10 of 765.8 million as of 12/31/14…
  13. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 13
    Marcellus Shale Recent Well Results Marcellus Operated Well Results IP 24hr avg. rate (Mcfe/d) IP 30day avg. rate (Mcfe/d) Frac Stages () 18,000 17,028 17,116 16,847 Recently Completed Wells 16,000 14,000 13,321 12,854 12,832…
  14. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 14
    NGL Uplift in Appalachia Following the startup of the Mobley Processing Plant in December 2012, Magnum Hunter has realized an uplift in NGLs on a per wellhead Mcf basis between 0.50 0.85 The Company has 200 MMcf/d of dedicated…
  15. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 15
    Economic Sensitivity of Marcellus Magnum Rich Assumptions for 2014 Case: CAPEX: 7.0 million per well EUR: 11.0 Bcfe (includes NGL) 2014 Case 16 14 IRR: 88% 12 IRR: 75% Single Well NPV10 ( MM) IRR: 63% 10 IRR: 52% 8…
  16. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 16
    Marcellus Shale NOBLE MONROE MHR Ormet 9 Pad MHR/Eclipse McIntire Pad MHR Ormet 15 Pad Mark West Mobley MHR/Eclipse Stalder Pad WETZEL Fractionation Facility Eclipse/MHR Herrick Pad Eureka Carbide Compression Facility MHR…
  17. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 17
    Results Indicate Best Shale Play in US Shale Play Comparison Chart Ohio/West Va./Penn. Wyoming/Colorado Texas N. Dakota Utica Shale / Parameter Point Pleasant DJ Basin Niobrara Eagle Ford Bakken Lithology Calcareous Shale…
  18. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 18
    Utica Asset Transactions Announced Total Transaction Implied Date Buyer(s) Seller(s) Value (MM) Acreage / Acre Apr15 Gulfport Energy Corporation Paloma Partners 300 24,000 12,500 Nov14 Antero Resources Undisclosed 185 12,000 15,417…
  19. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 19
    Stalder Pad Drilling Locations Magnum Hunter announced the initial production results from the first Utica horizontal well on the MHR Stalder 3UH 32.5 MMCF 97% Methane Stalder Pad on 2/14/14 Tested at a peak rate of 32.5 MMCF of…
  20. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 20
    Pad Drilling in Appalachia 19
  21. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 21
    StewartWinland Pad Drilling Locations The StewartWinland Pad located in Tyler County, WV has seven planned Tyler County, West Virginia laterals Magnum Hunter Acreage MHR / JV Partner Acreage Four wells have been drilled and…
  22. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 22
    Fracing Operations 21
  23. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 23
    Utica Shale Recent Well Results Note: MHR currently owns approximately 128,000 net acres in the Utica Shale 22
  24. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 24
    Best in Class Dry Gas Utica Peak Peak Rate Rate Lateral Well Name County Operator (MMcfe/d) (Boe/d) % Gas Length Stages Stewart Winland 1300U Tyler, WV MHR 46.5 7,750 100% 5,289 22 Bigfoot 9H Belmont, OH RICE 41.7 6,948 100% 6,957 40…
  25. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 25
    New Marcellus/Utica Production Planned in 2015 (2) (2) MHR Working MHR Net Estimated Gross Production Estimated Net Production Anticipated (1) Well Name Location Interest Revenue Interest Boe/d (3) Mcfe/d Boe/d (3) Mcfe/d Timing…
  26. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 26
    Eureka Hunter Midstream 25
  27. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 27
    Eureka Hunter Highlights Southeastern Ohio Location Northern West Virginia 2014 Dry Utica 30% of volumes 2014 Wet Marcellus 70% of volumes Basins 2015E Dry Utica 40% of volumes 2015E Wet Marcellus 60% of volumes 2013 80 miles HP…
  28. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 28
    Appalachian Natural Gas Production 27
  29. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 29
    Contracted vs. Gathered Volumes Eureka Hunter Pipeline 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 High Pressure Reservation Volume (MMBtu/d) Magnum Hunter 87,950 92,339 75,000 75,000 83,500 96,000 111,400…
  30. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 30
    Eureka Hunter Utica Exposure MARSHALL Clairington MarkWest Hub Seneca Blue Racer Berne Blue Racer Natrium Ormet Wells NOBLE MONROE PENN W.V. Farley Units Stalder Units WETZEL MORGAN MarkWest Dominion Mobley Eureka…
  31. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 31
    Eureka Hunter Utica Exposure 30
  32. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 32
    How Do We Measure Up Gathering Capacity Marcellus / Utica Operations Summit Midstream mcf/d, 1050 Eureka Hunter mcf/d, 2000 Crestwood Midstream mcf/d, 700 Markwest Midstream mcf/d, 1000 EQT Midstream mcf/d, 1940…
  33. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 33
    Operating Cost 0.27 0.28 20.0 0.26 0.24 0.22 15.0 0.22 Total Annual OPEX and G&A Per MMBtu Expense 0.20 MM 0.18 10.0 0.16 0.14 5.0 0.11 0.12 0.10 0.08 2013 2014 2015E OPEX and G&A Per MMBtu…
  34. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 34
    Performance Metrics Cost Goal is to reduce the cost per mile of installation by 10% Maintain current level of quality Manage timelines with producers per contractual obligations within 5% Manage budget CAPEX with in +/ 5% not to…
  35. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 35
    Appalachia Differentials Appalachia Net Demand Overview 12.0 Seasonal winter demand to drive better pricing in Q4 2014 and Q1 2015 10.0 Pricing improvements in 2015+ expected as year overyear demand is positive 8.0 New…
  36. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 36
    Midstream Outlook Proposed Interstates Pipeline Project Receipt Area Delivery Area Capacity Rate In Service ANR 2015 Lebanon Reversal Lebanon Glenn Karn 350,000 Tariff Nov15 TETCO U2GC Uniontown LebanonGas City 425,000 Tariff Nov15…
  37. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 37
    Eureka Hunter Pipeline Construction Challenging Terrain Welding Up Pipeline Strung Pipe Before Connection Being Lowered 36
  38. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 38
    TransTex Hunter Overview Treating for H2S and CO2 Removal Gas Processing / Dew Point Control Production Equipment / Dehydration Equipment & Gas Coolers Services Facility Operations & Maintenance Turnkey Installations…
  39. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 39
    TransTex Hunter Amine Plants 38
  40. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 40
    Alpha Hunter Drilling 39
  41. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 41
    Drilling Fleet Overview Current fleet of six (6) drilling rigs: One (1) Schramm TXD 500 Rig 7 o Spud first well (Stalder Pad) on July 1, 2013 o Contract Rate of 24,000/day o Two (2) year term with Triad Hunter Five (5) Schramm TXD…
  42. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 42
    Alpha Hunter Growth Continues 35 30 Revenues ( in millions) 25 20 15 10 5 0 2010 2011 2012 2013 2014 Revenues 41
  43. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 43
    Alpha Hunter Experience Company of Wells Drilled AEP 14 Bretagne 1 CNX Gas 8 Consol 3 Central WV Oil & Gas 1 Dominion 34 Eagle Ford Hunter 15 Eclipse 44 EQT 342 EXCO Resources 57 Green Hunter Water 4 Hildreth 7 PetroEdge 1…
  44. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 44
    Williston Basin Assets (NonCore Assets) 43
  45. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 45
    Williston Basin Overview Areas of Operation Overview Proved Reserves and PV10 Total proved reserves of 7.9 MMBoe as of 12/31/14 Proved producing reserves of 5.2 MMBoe as of 12/31/14 Total Proved PV10 of 143.5 million as of…
  46. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 46
    Financial Overview 45
  47. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 47
    Financial Strategy Capital spending driven by rates of return across all operating areas 2015 capital budget of 100 million will focus predominately on high return areas in the Appalachian Basin Closed Calgary and Denver offices in…
  48. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 48
    Liquidity Initiatives Liquidity Initiatives Events in Progress Structure Liquidity Impact Status Letters of credit removal (associated Negotiating definitive AMA agreement with large gas marketing firms 39.3 Million with firm…
  49. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 49
    Adjusted EBITDAX Reconciliation FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 Net income (loss) from continuing operations ( 22.3) ( 76.7) ( 119.7) ( 204.1) ( 137.8) Unrealized (gain) loss on derivatives 3.1 4.2 ( 10.9) 17.1 73.6 Net…
  50. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 50
    NonCore Divestiture Overview Focused on divesting noncore assets to redeploy capital into Utica / Marcellus Over 700 million raised since beginning of 2013 Asset Sales Value (MM) Completed in 2013 Eagle Ford Sale 401.0 Gain on…
  51. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 51
    A Focused Company on the Right Path Proven management and technical team in place committed to proper capital allocation for future growth Successful proven track record in the development and highgrading of key resource plays in…
  52. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 52
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets MLV Partners Canaccord Genuity RBC Capital Markets Capital One Southcoast Robert W. Baird &…
  53. JUNE 2015 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 53
    Appendix Net Asset Value Although Magnum Hunter does not consider Net Asset Value and Net Asset Value Per Share to be nonGAAP financial measures, as defined in SEC rules, Magnum Hunter uses Net Asset Value as an estimate of fair value.…

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