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MAY 2014 CORPORATE PRESENTATION – Itg

Itg · May 12, 2014 · 33 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. MAY 2014 CORPORATE PRESENTATION – Itg – slide 1
    Permian Basin A Case for Growth And Improving Economics May 2014 Darrel Koo, CFA Vice President, Energy Research David J. Howard, P. Eng Managing Director, Energy Research Manuj Nikhanj, CFA, FRM Managing Director Head of…
  2. MAY 2014 CORPORATE PRESENTATION – Itg – slide 2
    Permian Basin Versus Other US Oil Plays Permian Basin 5/2014 2
  3. MAY 2014 CORPORATE PRESENTATION – Itg – slide 3
    Permian Basin: One of the Big Three Source: ITG IR, raw data from didesktop Permian Basin 5/2014 3
  4. MAY 2014 CORPORATE PRESENTATION – Itg – slide 4
    Unconventional Permian Area Similar to Bakken Source: ITG IR, raw data from didesktop, BEG Permian Basin 5/2014 4
  5. MAY 2014 CORPORATE PRESENTATION – Itg – slide 5
    10X Gross Thickness = More Resource Midland Basin Williston Basin Wolfcamp/Cline Bakken Additional potential 40 in 2,000 130 Spraberry, Strawn, Atoka Note: Logs not on identical scales. Source: ITG IR, raw data from…
  6. MAY 2014 CORPORATE PRESENTATION – Itg – slide 6
    Horizontal Drilling Driving 50% Growth 50% oil growth in 3 years 2,000 500 1,800 450 1,600 Total rigs 400 1,400 350 Welllhead OIl (MBbl/d) 1,200 Vertical rigs 300 Rigs 1,000 250 800 200 600 150 400 100 200…
  7. MAY 2014 CORPORATE PRESENTATION – Itg – slide 7
    2.5 MMbbl/d by 2025 in Base Case High Case 3.2 MMbbl/d by 2025 3,500 3,000 2,500 Wellhead Oil (MBbl/d) Current 2,000 1.5 MMbbl/d Base Case 2.5 MMbbl/d by 2025 1,500 1,000 500 0 2005 2006 2007 2008…
  8. MAY 2014 CORPORATE PRESENTATION – Itg – slide 8
    Midland Basin Production Forecast Permian Basin 5/2014 8
  9. MAY 2014 CORPORATE PRESENTATION – Itg – slide 9
    5 Million Acre Economic Fairway Source: ITG IR, raw data provided by didesktop Permian Basin 5/2014 9
  10. MAY 2014 CORPORATE PRESENTATION – Itg – slide 10
    80% of Wells in Lower Rate SE and University Midland Horizontal Cumulative Wells Midland Historical Oil Production 1,000 600 900 Cumulative Wells on Production 800 500 700 Wellhead Oil (MBbl/d) 600 400 500 300 400…
  11. MAY 2014 CORPORATE PRESENTATION – Itg – slide 11
    Rig Productivity and Production Increasing Midland Hz Wells & Rig Efficiency Historical Midland Hz Oil Production 100 600 120 90 100 80 Peak Production Add (boe/d) per Rig 450 70 Wellhead Oil (Mbbl/d) 80 60 Wells /…
  12. MAY 2014 CORPORATE PRESENTATION – Itg – slide 12
    Status Quo: +500 Mbbl/d by 2025 Productivity, Rigs Midland Oil Production 200 800 2,500 175 700 2,000 Flat rigs and 150 600 productivity Wellhead Oil (Mbbl/d) Peak Add (boe/d) per Rig Wells per Month/Rigs 125 500…
  13. MAY 2014 CORPORATE PRESENTATION – Itg – slide 13
    Horizontal Rigs 20 30 40 50 60 70 90 10 80 0 100 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Source: ITG IR, raw data from didesktop Permian Basin Feb-12 SE Hz Mar-12 Apr-12…
  14. MAY 2014 CORPORATE PRESENTATION – Itg – slide 14
    Wolfcamp Deepest in the Central Basin Source: ITG IR, BEG, raw data from didesktop Permian Basin 5/2014 14
  15. MAY 2014 CORPORATE PRESENTATION – Itg – slide 15
    Productivity Increases with Depth 5,000 6,000 Increasing Depth 7,000 8,000 TVD (ft) 9,000 10,000 11,000 12,000 0 50 100 150 200 250 300 350 Normalized 24-hr Test Rate (boe/d/1,000 lateral feet) SE…
  16. MAY 2014 CORPORATE PRESENTATION – Itg – slide 16
    155 boe/d/1,000 in Deep, 70 in Shallow 5,000 SE average 6,500 TVD 6,000 70 boe/d/1,000 Increasing Depth 7,000 University average 8,000 Central average TVD (ft) 9,400 TVD 9,000 155 boe/d/1,000 10,000 11,000…
  17. MAY 2014 CORPORATE PRESENTATION – Itg – slide 17
    Productivity Increases with Depth Future wells drilled in basin core Historical wells drilled in low- rate areas Source: ITG IR, BEG, raw data from didesktop Source: ITG IR, raw data from didesktop Permian Basin…
  18. MAY 2014 CORPORATE PRESENTATION – Itg – slide 18
    Laterals and Proppant Doubled, Still Evolving Permian Basin 5/2014 18
  19. MAY 2014 CORPORATE PRESENTATION – Itg – slide 19
    Frac Intensity Deep vs. Shallow 350 Recent wells 300 in Central Normalized 24-hr Test Rate (boe/d/1,000 lateral feet) 250 200 150 100 50 0 0 500 1,000 1,500 2,000 2,500 Proppant/Lateral Foot…
  20. MAY 2014 CORPORATE PRESENTATION – Itg – slide 20
    Rig Ramp Generates +750 Mbbl/d by 2025 Productivity, Rigs Midland Oil Production 200 800 2,500 175 700 Rig Ramp 2,000 150 600 Wells per Month/Rigs Peak Add (boe/d) per Rig Wellhead Oil (Mbbl/d) 125 500 1,500 100…
  21. MAY 2014 CORPORATE PRESENTATION – Itg – slide 21
    Increasing Rigs and Productivity +1.5 MMbbl/d Productivity, Rigs Midland Oil Production 200 800 2,500 175 700 2,000 Wellhead Oil (Mbbl/d) Peak Add (boe/d) per Rig 150 600 Wells per Month/Rigs 125 500 1,500 100…
  22. MAY 2014 CORPORATE PRESENTATION – Itg – slide 22
    1-1.8 MMbbl/d Total Permian Growth by 2025 3,500 3,000 2,500 Wellhead Oil (Mbbl/d) 2,000 1,500 1,000 500 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019…
  23. MAY 2014 CORPORATE PRESENTATION – Itg – slide 23
    Midland Plays Economic Below 80 WTI 13 6 2 2 2 5 3 3 2 1 140 70 Break-Even WTI (/Bbl) (25:1 NYMEX to WTI Ratio) 120 Resource 60 Cumulative Total Resource (Bboe) (Bboe) 100 50 80 40 60 30 40 20 20 10 0 0…
  24. MAY 2014 CORPORATE PRESENTATION – Itg – slide 24
    Midland Basin Horizontal Economics Permian Basin 5/2014 24
  25. MAY 2014 CORPORATE PRESENTATION – Itg – slide 25
    Historical Wells Marginally Economic 400 350 300 250 Break-Even 75/bbl WTI boe/d 200 150 100 50 0 0 12 24 36 48 60 Month 2011 (210 MBoe EUR, 50% oil) 2012 (220 MBoe EUR, 50% oil) 2013 (300 MBoe EUR, 50%…
  26. MAY 2014 CORPORATE PRESENTATION – Itg – slide 26
    7,500 Laterals Improve Recoveries 1,400 6,382' 5,048' 6,913' 7,338' 5,862' 7,084' 7,673' 6,348' 8,483' 4,709' 7,140' 6,790' 1,200 Average lateral length 1,000 EUR (Mboe) 800 600 400 200 0 ATHL SM LPI PXD…
  27. MAY 2014 CORPORATE PRESENTATION – Itg – slide 27
    ...and Boost Economics 100 6,382' 5,048' 6,913' 7,338' 5,862' 7,084' 7,673' 6,348' 8,483' 4,709' 7,140' 6,790' 80 Average lateral length Break-even WTI 25:1 (/bbl) 60 40 20 0 ATHL SM LPI PXD RSPP AREX EPE FANG…
  28. MAY 2014 CORPORATE PRESENTATION – Itg – slide 28
    Go-Forward Base Case EURs of 350-600 Mboe 700 600 500 EUR (Mboe) 400 300 200 100 0 Central Garden City University SE Source: ITG IR, raw data from didesktop Permian Basin 5/2014 28
  29. MAY 2014 CORPORATE PRESENTATION – Itg – slide 29
    Go-Forward Break-Evens Between 50-70/bbl 80 70 60 Break-even WTI 25:1 (/bbl) 50 40 30 20 10 0 Central Garden City University SE Source: ITG IR, raw data from didesktop Permian Basin 5/2014 29
  30. MAY 2014 CORPORATE PRESENTATION – Itg – slide 30
    Go-Forward: Central Operators Have Lowest B/E 100 6,382' 5,048' 6,913' 7,338' 5,862' 7,084' 7,673' 6,348' 8,483' 4,709' 7,140' 6,790' 80 Average lateral length Break-even WTI 25:1 (/bbl) 60 40 20 0 SM RSPP…
  31. MAY 2014 CORPORATE PRESENTATION – Itg – slide 31
    Huge Resource: PXD, Endeavor, CVX and APA 6,000 80 16 67 11 48 91 N/A 140 54 16 39 110 12 44 5 136 10 25 N/A 35 N/A 82 52 6 5 164 5,000 75 Mboe per of EV Break-even WTI 25:1 (/bbl) Total Resource MMboe 4,000 70 3,000…
  32. MAY 2014 CORPORATE PRESENTATION – Itg – slide 32
    ADDITIONAL COMPANIES MENTIONED IN THIS REPORT Name of Company Ticker Exchange Recent Price Apache APA NYSE 88.92 Chevron CVX NYSE 123.81 ConocoPhillips COP NYSE 78.11 EP Energy EPE NYSE 19.05 Laredo Petroleum Holdings LPI NYSE 27.19…
  33. MAY 2014 CORPORATE PRESENTATION – Itg – slide 33
    Analyst Certifications and Important Disclosures ITG Canada Corp. is a minority shareholder in a company called Aequitas Innovations, Inc. (Aequitas), which is seeking to establish a regulated Canadian Securities Market. Certain clients…

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