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JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Jul 7, 2015 · 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. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 1
    Integrity Teamwork Transparency July 2015 Investor Presentation
  2. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Market Cap(1): 0.9 billion Wattenberg Field(2) Arkansas 25,000 7,000 Enterprise Value(1): 1.6 billion Boe/d Boe/d Resilient asset base at lower prices 0 0 4Q 1Q 4Q 1Q 2011 2015 2011 2015 Low cost…
  3. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 3
    Strong Growth and Cash Flow Track Record Sales Volumes(1) (Boe/d) Adjusted EBITDAX(2) (thousands) 25,000 140,000 120,000 20,000 100,000 15,000 80,000 10,000 60,000 40,000 5,000 20,000 - - 2007 2008 2009 2010 2011 2012 2013…
  4. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 4
    Wattenberg Niobrara Resilient to Low Oil Prices Selected U.S. Oil / Liquids Basin IRRs at the Strip and Theoretical IRR with 20% Reduction in Capex Internal Rate of Return (IRR) 40% IRR at the Strip IRR -20% Cost Deflation 35% 30%…
  5. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 5
    How to Thrive Through the Bottom of a Cycle Discretionary Deployment of Capital Majority of leasehold is HBP 14 million required to maintain leases not intending to drill in 2015 No long term rig, frac or sand commitments…
  6. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 6
    Cutting Spending Increasing Production Capital Expenditures Budget(1) Annual Daily Avg. Sales Volumes(1) 700 32,000 600 30,000 500 28,000 (millions) 400 26,000 300 24,000 200 100 22,000 - 20,000 2014 2015 2014 2015…
  7. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 7
    ExplorationDelineationOptimizationEfficiency Wattenberg Field Operated HZ Wells Drilled Since 2011 Cumulative 2011 2012 2013 2014 2015 Operated Wells Drilled 3%3% 2% 1% 3% 7% 10% 29% 10% 14% 4 40 127 241 46% 9% 318 34% 29% 100%…
  8. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 8
    Deep Organic Development Inventory 30 Years of Wattenberg 3P Inventory (2,000 net locations) Wattenberg Wattenberg Arkansas Cotton Valley Niobrara B North Park Codell 5-acre spacing Basin Niobrara Wattenberg Niobrara B/C…
  9. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 9
    Contiguous Acres Support Full Development 70,000 net acres in Extension Area Zero exposure to urban population Near established infrastructure Blocky acreage attractive for long laterals Prospective for Up to Five Stacked Pay…
  10. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 10
    Evolution of Greater Wattenberg Development 2012 2015 2012 Niobrara B productive across acreage 2013 Niobrara C productive across acreage; Codell productive across 15,000 net acres 2014 Niobrara B / C stacking confirmed;…
  11. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 11
    Concentrated Land Position in Wattenberg 97,000 gross (70,000 net) acres LEGEND Current BCEI Leasehold Existing Horizontal Wells BCEI BBG/EOG NBL CRZO PDCE OTHER 12
  12. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 12
    Composite Acreage Correlation to Wells Ranch Niobrara A Bench 3 Thinner and resistivity less developed vs B & C Benches 2 Niobrara B Bench 1 4 Consistent thickness and resistivity across BCEI leasehold 5 Niobrara C Bench 6 7 Good…
  13. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 13
    2015 Rockies Drilling Program 1 Goal: Leverage Existing Infrastructure; Minimize Non-Well Capital 70+ wells into 8 shared facilities LEGEND Large Centralized Battery 2015 Planned Drill Pad Future Salt Water Disposal Well…
  14. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 14
    Leading Relative HZ Niobrara Well Performance Creaming Curve(1) (Wattenberg HZ wells since 2013) Key Takeaways & Methodology 3,000 Superior 90-day cumulative well production history Creaming curves show rate of change and relative…
  15. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 15
    Strong Proved & 3P Reserves Growth Wattenberg 1P Reserves(1) 558 MMBoe Net 3P Reserves 70,000 Codell Wattenberg 1P 60,000 55% 7% 14% Arkansas 50,000 8% 40,000 60% 30,000 20,000 40% 32% 68% Niobrara C Niobrara B 10,000 0 2012…
  16. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 16
    Wattenberg Hz Niobrara B Target Type Well Type Well Economics 4,000 9,000 EUR(1) (MBoe) 354 687 Current Cost per Well 3.6 MM 5.9 MM NPV-10 at 60/BO 0.9 MM 3.1 MM ROR Sensitivity to WTI Crude Oil Price(2) 70% XRL 5.9MM SRL 3.6MM…
  17. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 17
    Crude Oil Pipeline Infrastructure Expanding Rail Capacity by YE 2015 Operator Capacity Timing Pony Express Multiple 120 MBbl/d Existing DJ Lateral Plains 35 MBbl/d 3Q 2015 ARB Midstream 70 Bbl/d 4Q 2015 Grand Mesa(1) Pipeline…
  18. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 18
    Gas Processing & Compression Upgrades 19
  19. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 19
    Mid-Continent Operations (Arkansas) Conventional Cotton Valley: 6,500 8,800 feet ERA SYSTEM SERIES GROUP FORMATION CENOZOIC EOCENE Claiborne PALEOCENE Wilcox Low-risk infill development down to 5-acre spacing TERTIARY CRETACEOUS…
  20. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 20
    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…
  21. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 21
    Strict Focus on Cash Operating Costs Unit Cash Operating Costs (/Boe) Unit Revenue & Cash Margins (/Boe) 25 75 67.06 67.92 20 60 5.66 61.73 7.28 15 3.15 45 68% 68% 6.05 2.62 72% 48.01 7.00 6.39 10 6.03 5.43 65% 30 4.14…
  22. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 22
    Significant Production Hedged Oil: Swaps Oil: 2-Way Collars Oil: 3-Way Collars Gas: 3-Way Collars 2Q 2015 6,319 b/d 87.55 5,500 b/d 67.73 x 84.09 x 95.16 15,000 Mcf/d 3.50 x 4.00 x 4.75 3Q 2015 6,000 b/d 72.16 5,500 b/d 84.09 x 95.16…
  23. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 23
    BCEI vs Basin Focused Peers Unit EBITDAX 25 EBITDAX / Boe (MRQ) CASH MARGIN Peer Group 20 Avg: 15.30 15 AVERAGE 10 5 LEVERAGE VALUATION 0 BCEI Bakken Permian Marcellus/ DJ Basin Miss Lime Eagle…
  24. JULY 2015 INVESTOR PRESENTATION – Bonanza Creek Energy, Inc. – slide 24
    Wattenberg Horizontal Niobrara Economics(1) Target Three-Stream SRL 354 and XRL 687 MBoe Type Curves 700 SRL 354 (2-stream IPs): 650 30-day Avg: 30-day 458 boepd Avg: 458 boepd 60-day Avg: 60-day 400 boepd Avg: 400 boepd 600…
  25. JULY 2015 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. JULY 2015 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), divided…

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