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February 2015 Investor Presentation – Halcon Resources Corp

Halcon Resources Corp · Feb 25, 2015 · 34 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. February 2015 Investor Presentation – Halcon Resources Corp – slide 1
    Company Presentation February 2015
  2. February 2015 Investor Presentation – Halcon Resources Corp – slide 2
    Company Profile 59% PF Reserve Growth & 157% Organic Reserve Replacement in 2014 Bakken/Three Forks 127,000 Net Acres Total Proved Reserves: (1) 189.1 MMBoe 140.0 MMBoe Proved Reserves (1) % Proved Developed: 41% % Oil: 82%…
  3. February 2015 Investor Presentation – Halcon Resources Corp – slide 3
    Hedging Program Designed to support capital program and protect cash flow In 2015, 88% of oil and 86% of gas is hedged based on the midpoint of 2015E production guidance Average Oil Price: 90 in 2015 and 85 in 2016 (1) Mark-to-market…
  4. February 2015 Investor Presentation – Halcon Resources Corp – slide 4
    Ample Liquidity to Fund Capital Program Borrowing Base Recently Reaffirmed at 1.05 Billion (spring 15 redetermination) Capitalization ( in Millions) HK 12.31.2014 Cash and Cash Equivalents 60 Revolving Credit Facility 557 8.000%…
  5. February 2015 Investor Presentation – Halcon Resources Corp – slide 5
    No Significant Near-Term Debt Maturities Debt Maturity Schedule Senior 1,400 Notes Senior 8.875% Notes 1,200 Aggregate Principal Amount 9.75% 1,000 (MM) 800 600 Senior Senior Notes 400 Convertible Notes (1)…
  6. February 2015 Investor Presentation – Halcon Resources Corp – slide 6
    Consistent Production Growth Pro Forma Production Growth (MBoe/d) (1) 180% Increase in Daily Production Actual Production 42.5 Guidance Midpoint 40.8 24.7 15.0 PF 2012 PF 2013 PF 2014 2015E (2) (1) Pro forma to…
  7. February 2015 Investor Presentation – Halcon Resources Corp – slide 7
    Significant Per Unit Cost Improvements Historical LOE (1)/Boe Historical G&A/Boe (2) 42% decrease in 68% decrease in LOE/Boe G&A/Boe 15.63 15.81 11.49 9.52 9.00 8.99 5.98 5.00 (3) (3) 2012 2013 2014 2015E 2012 2013…
  8. February 2015 Investor Presentation – Halcon Resources Corp – slide 8
    High Quality Existing Asset Base Halcns asset base primarily consists of 127,000 Bakken / Three Forks net acres (100% HBP) and 101,000 fully de-risked East Texas Eagle Ford (El Halcn) net acres Bakken / Three Forks El Halcn 10
  9. February 2015 Investor Presentation – Halcon Resources Corp – slide 9
    Drilling in Most Economic Areas in 2015 D&C Capex by Area ( in millions) 375 El Halcn 35% Williston Basin 100% of Total D&C Allocated to Core Acreage 65% 2015 Note: D&C budget subject to revision; Excludes capital costs…
  10. February 2015 Investor Presentation – Halcon Resources Corp – slide 10
    Bakken / Three Forks Highlights 2015 Outlook Williams County Expect to spud 25 - 30 gross operated wells with 2 rigs (avg. WI 57%) Expect to participate in 85 - 95 gross non-op wells (avg. WI 4%) 100% of acreage is HBP Downspacing…
  11. February 2015 Investor Presentation – Halcon Resources Corp – slide 11
    Well Cost Reduction Expectations Fort Berthold Indian Reservation (FBIR) Completed Well Costs (MM) - FBIR Expect 25% reduction in completed well costs by mid- year 2015 11.0 8.5 8.0 4Q14E Current AFE Mid-Year '15E…
  12. February 2015 Investor Presentation – Halcon Resources Corp – slide 12
    Well Cost Reduction Detail FBIR 11.0 (0.9) 8.5 (0.5) (0.8) Cost ( in millions) (0.3) Completions: all white sand Drilling: eliminate spud rig and more efficient Reduced rates across the board use of…
  13. February 2015 Investor Presentation – Halcon Resources Corp – slide 13
    FBIR Well Economics 801 MBoe EUR Type Curve IRR vs. Oil Price: FBIR 175% 150% Current AFE CWC 125% has IRR of 44% at strip pricing (3) 100% IRR % (contango) 75% 50% 25% 0% 45 50 55 60 65 70 75 80 85 90 /Bbl NYMEX Oil…
  14. February 2015 Investor Presentation – Halcon Resources Corp – slide 14
    Significant Improvements Driven by Drilling & Completion Modifications Average Spud to Total Depth Drilled Days Key Metrics FBIR (Bakken) 4Q12 4Q14 100% % Avg. Avg. 35 73% Spud to FBIR (Bakken) 33 16 (52%) 22 TD (Days)…
  15. February 2015 Investor Presentation – Halcon Resources Corp – slide 15
    Continued Focus on Enhanced Completions High intensity completions have led to increased recoveries in the Williston Basin Wells completed with high intensity fracs continue to outperform type curves in FBIR & Williams County - Plug &…
  16. February 2015 Investor Presentation – Halcon Resources Corp – slide 16
    FBIR Bakken Slickwater Wells Outperforming 300,000 275,000 250,000 225,000 200,000 Cumulative Oil Production (Bbl) 175,000 150,000 125,000 100,000 75,000 50,000 25,000 0 - 30 60 90 120 150 180 210…
  17. February 2015 Investor Presentation – Halcon Resources Corp – slide 17
    El Halcn East Texas Eagle Ford Shale Highlights 101,000 net acres leased in SWEET SPOT of play Entire position de-risked through operated step outs and offset results by other operators 2015 Outlook Expect to spud 12-15 gross…
  18. February 2015 Investor Presentation – Halcon Resources Corp – slide 18
    Entire El Halcn Acreage Position De-Risked Halcon Manta 1H Sabalo Exploration Koontz Heirs 1H IP: 1,192 BOEPD (9/27/14) IP: 939 BOEPD (11/21/13) Halcon Tiger Shark 2H Halcon Javelina 1H IP: 1,027 BOEPD (9/27/14) IP: 1,171 BOEPD…
  19. February 2015 Investor Presentation – Halcon Resources Corp – slide 19
    Well Cost Reduction Expectations El Halcn Completed Well Costs (MM) - El Halcn 30% reduction 20% reduction in CWC in in CWC by mid- development year 2015 phase 9.5 8.0 7.5 6.5 4Q14 Current AFE Mid-Year '15E…
  20. February 2015 Investor Presentation – Halcon Resources Corp – slide 20
    Well Cost Reduction Detail El Halcn 9.5 (0.6) 8.0 (0.8) (0.1) Cost ( in millions) Reduced rates across the board Decreased drilling services and materials costs: labor, cement, wellhead, casing Decreased completions…
  21. February 2015 Investor Presentation – Halcon Resources Corp – slide 21
    2016 Development Plan Well Costs Expectations El Halcn Lease Capture vs. Development Plan Cost Savings Single-Well Completed Well Cost ( in 000s) Land/Title (300) Initial pooled unit wells incur the majority of expense for title…
  22. February 2015 Investor Presentation – Halcon Resources Corp – slide 22
    El Halcn Well Economics 452 MBoe EUR Type Curve IRR vs. Oil Price: El Halcn 80% 70% Current AFE CWC 60% has IRR of 13% 50% at strip pricing (2) IRR % (contango) 40% 30% 20% 10% 0% 45 50 55 60 65 70 75 80 85 90 /Bbl…
  23. February 2015 Investor Presentation – Halcon Resources Corp – slide 23
    Significant Success To-Date in El Halcn Additional Upside Potential to Unlock Ongoing improvements will continue to unlock value in 2015+ 1 Shift from lease capture into development mode in 2H16 Peer and operated wells have…
  24. February 2015 Investor Presentation – Halcon Resources Corp – slide 24
    2014 El Halcn Well Performance 140,000 120,000 100,000 Cumulative Production, Boe 80,000 60,000 40,000 20,000 0 0 30 60 90 120 150 180 210 240 270 300 330 360 Producing Days 452 Mboe El Halcn Type Curve…
  25. February 2015 Investor Presentation – Halcon Resources Corp – slide 25
    Investment Highlights Successful Opportunity-Rich High Quality Value Creation For Management and + + A&D / M&A = Existing Asset Base Stakeholders Operations Team Environment - History of creating - 46,076 Boe/d 4Q14 - Cyclical low…
  26. February 2015 Investor Presentation – Halcon Resources Corp – slide 26
    Appendix
  27. February 2015 Investor Presentation – Halcon Resources Corp – slide 27
    2015 Operating and Financial Guidance Summary 2015E Production (Boe/d) Total 40,000 - 45,000 % Oil 82% % NGLs 8% % Gas 10% Capital Spending ( in millions) Drilling & Completions Capex (1) 350 - 400 Leasehold, Infrastructure,…
  28. February 2015 Investor Presentation – Halcon Resources Corp – slide 28
    2014 Proved Reserves Reconciliation Oil Gas NGL Total Proved Reserves Reconciliation (MBbls) (MMcf) (MBbls) MBoe As of 12.31.13 114,511 69,748 9,832 135,967 Extensions, discoveries and additions 61,312 31,938 5,984 72,618…
  29. February 2015 Investor Presentation – Halcon Resources Corp – slide 29
    2014 Pro Forma Proved Reserves Reconciliation Proved PF Proved Reserves Reconciliation (MMBoe) Reserves Reserves As of 12.31.13 136.0 118.5 Extensions, discoveries and additions 72.6 72.6 Purchases 1.1 - Sales (17.6) -…
  30. February 2015 Investor Presentation – Halcon Resources Corp – slide 30
    Derivative Detail Oil Hedge Summary FY 2015 FY 2016 Volume Ceiling / Floor Volume Ceiling / Floor (1) (1) (1) (Bbls) Swap Price Purchased (Bbls) Swap Price Purchased (1) (2) Collars 9,611,250 93.64 86.44 2,744,000 86.37 81.06 (2)…
  31. February 2015 Investor Presentation – Halcon Resources Corp – slide 31
    Income Generated from Hedging Program 2015 Oil Price Sensitivity 2016 Oil Price Sensitivity 600 600 537 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 132 450 450 422 Pre-Tax Income ( MM) Pre-Tax Income ( MM) 104 132 324 308 300 300 79…
  32. February 2015 Investor Presentation – Halcon Resources Corp – slide 32
    Oil & Gas Marketing Avg. NYMEX 2015 Marketing Highlights 4Q14 HK Oil Differentials by Area (1) Oil Price Williston Basin 73.02/bbl 102% 101% Oil Marketing 99% Expect 90%+ of production to be connected to 89% 85% pipeline by…
  33. February 2015 Investor Presentation – Halcon Resources Corp – slide 33
    Halcn Ownership (in thousands) (6) Basic Dilutive Securities Fully Diluted Net Diluted Owner Shares Percent Conv. Debt (1) Conv. Preferred (2) Warrants (3) RSAs (4) PSUs (5) Options Shares Percent Shares Percent (7) HALRES LLC - -…
  34. February 2015 Investor Presentation – Halcon Resources Corp – slide 34
    Contact: Scott M. Zuehlke, VP Investor Relations 1000 Louisiana St., Suite 6700 Houston, TX 77002 832-538-0314 szuehlkehalconresources.com

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