Skip to main content Howard Weil Energy Conference – National Fuel Gas Co. Investor Presentation | Shale Experts
Loading...
Pm

Howard Weil Energy Conference – National Fuel Gas Co.

National Fuel Gas Co. · Mar 30, 2011 · 57 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. Howard Weil Energy Conference – National Fuel Gas Co. – slide 1
    Howard Weil Energy Conference March 2830, 2011
  2. Howard Weil Energy Conference – National Fuel Gas Co. – slide 2
    National Fuel Gas Company Business Segment Reporting Publicly Traded National Fuel Gas Company Holding Company NYSE symbol NFG Reporting Exploration & Pipeline & Energy Utility Segments Production Storage Marketing Seneca…
  3. Howard Weil Energy Conference – National Fuel Gas Co. – slide 3
    44 Howard Weil Energy Conference March 2830, 2011
  4. Howard Weil Energy Conference – National Fuel Gas Co. – slide 4
    55 Howard Weil Energy Conference March 2830, 2011
  5. Howard Weil Energy Conference – National Fuel Gas Co. – slide 5
    66 Howard Weil Energy Conference March 2830, 2011
  6. Howard Weil Energy Conference – National Fuel Gas Co. – slide 6
    National Fuel Gas Company Corporate & Financial Highlights 7 Howard Weil Energy Conference March 2830, 2011
  7. Howard Weil Energy Conference – National Fuel Gas Co. – slide 7
    National Fuel Gas Company Net Income from Continuing Operations Excluding Items Impacting Comparability (1) 300 266.3 P&S 210.5 219.1 34.9 MM 16.4% 200 146.6 E&P ( Millions) 98.0 112.5 Utility 110.1 MM 62.5 MM 51.6% 100…
  8. Howard Weil Energy Conference – National Fuel Gas Co. – slide 8
    National Fuel Gas Company Capital Expenditures(1) from Continuing Operations Utility Pipeline & Storage Exploration & Production All Other 1,250 1,000 8451,010 Capital Expenditures ( Millions) 780895 750 501 685800 500…
  9. Howard Weil Energy Conference – National Fuel Gas Co. – slide 9
    National Fuel Gas Company Capital Structure ShortTerm Debt ShortTerm Debt 1% 2% LongTerm LongTerm Shareholders Debt Shareholders Debt Equity 37% Equity 35% 62% 63% 2.824 Billion(1) Forecasted Capital at December 31, 2010…
  10. Howard Weil Energy Conference – National Fuel Gas Co. – slide 10
    Exploration & Production Seneca Resources Corporation 11 Howard Weil Energy Conference March 2830, 2011
  11. Howard Weil Energy Conference – National Fuel Gas Co. – slide 11
    Exploration & Production Fiscal Year End Proved Reserves(1) East Appalachia 600 Natural Gas Proved Reserves (Bcf) Reserves: 333 Bcfe (48%) 428 400 226 249 200 0 2008 2009 2010 At September 30 Oil Proved Reserves…
  12. Howard Weil Energy Conference – National Fuel Gas Co. – slide 12
    Exploration & Production Fiscal 2010 Oil/Gas Mix Annual Proved Reserves Production Revenue Oil Oil Gas 39% Gas Gas 39% Oil 61% 43% 61% 57% 700 Bcfe(1) 49.7 Bcfe 425.6 Million (1) At September 30, 2010 13 Howard Weil…
  13. Howard Weil Energy Conference – National Fuel Gas Co. – slide 13
    Exploration & Production Capital Expenditures by Region West Upper Devonian Gulf of Mexico Marcellus 1,000 Capital Expenditures ( Millions) 685800 750 600655 500 398 640740 560600 250 192 188 332 64 71 61 68 63 23…
  14. Howard Weil Energy Conference – National Fuel Gas Co. – slide 14
    Exploration & Production Annual Production by Region 100 West Upper Devonian Gulf of Mexico Marcellus 83100 Marcellus production in 80 Fiscal 2012 could equal 6471 Production (Bcfe) the entire company production in…
  15. Howard Weil Energy Conference – National Fuel Gas Co. – slide 15
    Exploration & Production California 16 Howard Weil Energy Conference March 2830, 2011
  16. Howard Weil Energy Conference – National Fuel Gas Co. – slide 16
    Senecas California Properties North Lost Hills 1,235 BOEPD South Lost Hills Tulare & Etchegoin Formation 1,830 BOEPD Primary & Steamflood Monterey Shale 181 Active Wells Primary 216 Active Wells North Midway Sunset 4,050 BOEPD…
  17. Howard Weil Energy Conference – National Fuel Gas Co. – slide 17
    California Average Daily Production 10,000 Modest capital spending 9,500 to maintain production Pursue additional bolton 9,000 acquisitions BOE/Day 8,500 2011 Plans: CapEx 40 MM 8,000 50 Development wells Two 5acre…
  18. Howard Weil Energy Conference – National Fuel Gas Co. – slide 18
    California Fiscal Year 2011 Sespe Field Development Plans First drilling for Seneca at Sespe since 1991 Will drill six wells during this fiscal year Wells to be drilled at 10acre spacing: 4 wells Test wells to be drilled at 5acre…
  19. Howard Weil Energy Conference – National Fuel Gas Co. – slide 19
    Exploration & Production Gulf of Mexico 20 Howard Weil Energy Conference March 2830, 2011
  20. Howard Weil Energy Conference – National Fuel Gas Co. – slide 20
    Gulf of Mexico Planned Divestiture of Offshore Assets On March 9, 2011, Seneca entered into an agreement to sell its offshore Gulf of Mexico oil and natural gas producing properties Sale price: 70 million Effective Date: January 1,…
  21. Howard Weil Energy Conference – National Fuel Gas Co. – slide 21
    Exploration & Production East Division 22 Howard Weil Energy Conference March 2830, 2011
  22. Howard Weil Energy Conference – National Fuel Gas Co. – slide 22
    East Division Average Daily Production 120 Upper Devonian Marcellus Average Daily Production (MMcfe/Day) 100 80 Rapid growth in the East 60 Division as Marcellus is ramping up 40 20 0 23 Howard Weil Energy…
  23. Howard Weil Energy Conference – National Fuel Gas Co. – slide 23
    Marcellus Shale Senecas Pennsylvania Acreage Seneca Resource Acreage Position 9 745,000 Net Acres in the heart of the PA Marcellus fairway 9 Risked Resource Potential: 815 TCFE 9 80% Fee Seneca owns the minerals No lease…
  24. Howard Weil Energy Conference – National Fuel Gas Co. – slide 24
    Marcellus Shale Senecas Development Areas Eastern Development Area (Mostly Leased) Western Development Area (Mostly Fee and HBP) SRC Fee Acreage SRC Lease Acreage 25 Howard Weil Energy Conference March 2830, 2011
  25. Howard Weil Energy Conference – National Fuel Gas Co. – slide 25
    Marcellus Shale Eastern Development Area Tioga/Lycoming/Potter Covington Area Full Development 9 55,000 Acres Initial Test Wells 9 37 Wells Drilled; 27 Producing 9 Drilling / Fracing 9 Potential: 2 Tcf 9 Gross Prod: (As of…
  26. Howard Weil Energy Conference – National Fuel Gas Co. – slide 26
    Marcellus Shale Longer Lateral EDA Wells Outpacing 6 Bcf Typecurve 8,000 Average EDA Production per Well (1) 6 Bcf Typecurve 6,000 Gas Rate (Mcf/d) 4,000 2,000 0 0 30 60 90 120 150 180 210 240 270 300 330 360…
  27. Howard Weil Energy Conference – National Fuel Gas Co. – slide 27
    Marcellus Shale Western Development Area Activity SRC Fee Acreage Approx. Outline of JV Acreage SRC Lease Acreage 9 200,000 Gross Acres SRC Contributed JV Acreage 9 Seneca 50% W.I. (Avg. 58% NRI) EOG Contributed JV Acreage…
  28. Howard Weil Energy Conference – National Fuel Gas Co. – slide 28
    Marcellus Shale Target Zone Example Important to Find Ideal Target 9 Must account for the variable rock quality and geomechanical profile 9 Major factor in quality of Fracture Stimulation Marcellus Interval Optimal…
  29. Howard Weil Energy Conference – National Fuel Gas Co. – slide 29
    Marcellus Shale 150 Marcellus Net Production EOG JV Eastern Development Area Western Development Area 125 Marcellus Daily Net Production (MMcfe) 100 In early March 2011, Marcellus net production reached: 120 MMcfe per day…
  30. Howard Weil Energy Conference – National Fuel Gas Co. – slide 30
    Marcellus Shale Centralized Water System Recovering water discharged from an abandoned coal mine which was adversely impacting a local trout stream Authorized by SRBC to withdraw approximately 500,000 gallons per day of mine…
  31. Howard Weil Energy Conference – National Fuel Gas Co. – slide 31
    Utica Shale Seneca Acreage Source rock maturation status based on combined CAI to Ro regression equation. (TrentonBlack River Research Consortium, 2006) 32 Howard Weil Energy Conference March 2830, 2011
  32. Howard Weil Energy Conference – National Fuel Gas Co. – slide 32
    Seneca Resources Evaluation of JV Opportunities Senecas Marcellus joint venture goals: 9 Ramp up development faster than current growth plans 9 Bring forward the earnings stream, where a minorityinterest partner pays a significant…
  33. Howard Weil Energy Conference – National Fuel Gas Co. – slide 33
    National Fuel Gas Company Peer Group Comparisons 1Year Total Return 3Year Total Return 5Year Total Return Peer Group Total Return Peer Group Total Return Peer Group Total Return National Fuel 49% National Fuel 64% National Fuel 159%…
  34. Howard Weil Energy Conference – National Fuel Gas Co. – slide 34
    National Fuel Gas Company Key Takeaways HighQuality Marcellus Acreage Position 9 745,000 net acres with a resource potential of 815 Tcfe 9 Fee ownership results in superior economics 9 Rapid Growth: 0 120 MMCFD in 18 months…
  35. Howard Weil Energy Conference – National Fuel Gas Co. – slide 35
    36 Howard Weil Energy Conference March 2830, 2011
  36. Howard Weil Energy Conference – National Fuel Gas Co. – slide 36
    National Fuel Gas Company Dividend Growth National Fuel has had 108 uninterrupted 1.38 years of dividend payments and has increased its dividend for 40 consecutive years Compound Annual Growth Rate 5.1% 0.19 Annual…
  37. Howard Weil Energy Conference – National Fuel Gas Co. – slide 37
    National Fuel Gas Company Fiscal Year 2011 Earnings Guidance Key Drivers(1) Exploration & Production Production 36% DD&A: 2.05 to 2.15 per Mcfe LOE: 1.10 to 1.35 per Mcfe G&A: 41 44 Million FY2010 Pipeline & Storage FY 2011 EPS…
  38. Howard Weil Energy Conference – National Fuel Gas Co. – slide 38
    National Fuel Gas Company Seneca Oil and Gas Hedge Positions Natural Gas Volume Average Volume Average Swaps (Bcf) Hedge Price Oil Swaps (MMBbl) Hedge Price Fiscal 2011 21.4 6.07 / Mcf Fiscal 2011 1.3 70.93 / Bbl Fiscal 2012 21.1…
  39. Howard Weil Energy Conference – National Fuel Gas Co. – slide 39
    Utility Segment National Fuel Gas Distribution Corporation 40 Howard Weil Energy Conference March 2830, 2011
  40. Howard Weil Energy Conference – National Fuel Gas Co. – slide 40
    Utility Rate Mechanisms New York Pennsylvania Revenue Decoupling Low Income Rates Customer Choice / POR Customer Choice / POR Merchant Function Charge Merchant Function Charge 90/10 Sharing (large volume users) Under…
  41. Howard Weil Energy Conference – National Fuel Gas Co. – slide 41
    Utility Return on Equity (1) 20.0 NY PA Return on Equity (%) 14.7 15.0 14.0 13.2 11.8 10.9 10.6 10.3 9.8 10.0 9.1 6.3 5.0 0.0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 (1) Calculated using Average Total…
  42. Howard Weil Energy Conference – National Fuel Gas Co. – slide 42
    Pipeline & Storage / Midstream National Fuel Gas Supply Corporation Empire Pipeline, Inc. National Fuel Gas Midstream Corporation 43 Howard Weil Energy Conference March 2830, 2011
  43. Howard Weil Energy Conference – National Fuel Gas Co. – slide 43
    PIPELINE & STORAGE / MIDSTREAM EXPANSION INITIATIVES NORTHERN ACCESS EXPANSION TIOGA COUNTY EXTENSION CENTRAL TIOGA LAMONT COUNTY COMPRESSOR EXTENSION STATION PHASE I & II COVINGTON GATHERING SYSTEM TROUT RUN…
  44. Howard Weil Energy Conference – National Fuel Gas Co. – slide 44
    Pipeline & Storage/Midstream Expansion Initiatives Capacity Est. InService Project Name Market Status (Dth/D) CapEx Date Covington Gathering 145,000 16 MM 11/17/09 Fully Subscribed Completed Flowing into TGP 300 Line System Lamont…
  45. Howard Weil Energy Conference – National Fuel Gas Co. – slide 45
    Pipeline & Storage Challenges & Opportunities Challenges Opportunities NFGSC Contract Turnbacks Expansion Projects Supply has received capacity Both Supply and Empire have turnbacks on expiring contracts, significant pipeline…
  46. Howard Weil Energy Conference – National Fuel Gas Co. – slide 46
    Midstream Corporation Trout Run Gathering System Lycoming County Capacity: 300,000 Dth/d Will Interconnect with Transco Pipelines in Lycoming County Seneca Resources will be the anchor shipper Estimated InService: Fall 2011…
  47. Howard Weil Energy Conference – National Fuel Gas Co. – slide 47
    Exploration & Production Seneca Resources Corporation 48 Howard Weil Energy Conference March 2830, 2011
  48. Howard Weil Energy Conference – National Fuel Gas Co. – slide 48
    Exploration & Production Fiscal 2010 Annual Production East Appalachia 40 Natural Gas Gas Production (Bcf) 30.3 Production: 16.5 Bcfe (33%) 30 22.3 22.3 20 10 0 2008 2009 2010 Fiscal Year Oil 4,000 Oil…
  49. Howard Weil Energy Conference – National Fuel Gas Co. – slide 49
    Marcellus Shale Pennsylvania Acreage Holdings SRC Fee Acreage SRC Lease Acreage SRC Contributed JV Acreage EOG Contributed JV Acreage 50 Howard Weil Energy Conference March 2830, 2011
  50. Howard Weil Energy Conference – National Fuel Gas Co. – slide 50
    Exploration & Production Acquisition of EOGs Tioga County Interests Seneca has acquired EOGs interest in Tioga County, Pa. Seneca has always been the operator on all jointinterest wells in Tioga County, Pa. Acquisition Price:…
  51. Howard Weil Energy Conference – National Fuel Gas Co. – slide 51
    Marcellus Shale Gross Horizontal Wells Drilled per Year EOG JV Horizontal Wells Seneca Horizontal Wells 150 Marcellus Horizontal Rig Count 125 Current Rig Count: 115140 9 Seneca : 4 Rigs 9 EOG : 2 Rigs 85110 Gross Wells…
  52. Howard Weil Energy Conference – National Fuel Gas Co. – slide 52
    Marcellus Shale PreTax IRR Comparison at NYMEX of 4.00/MMBtu Eastern Development Area Net Net Well Costs ( Millions) Working Revenue Description EUR Interest Interest 6.0 6.4 Seneca EDA Well 8 Bcf 100% 85% 73% 63% Seneca EDA…
  53. Howard Weil Energy Conference – National Fuel Gas Co. – slide 53
    Marcellus Shale Decline Curve 6.0 BCF Estimated Ultimate Recovery (EUR) 8,000 Category Type Curve Parameters Initial Rate 7,250 MCF/D 7,000 Average first year decline 72% Final decline 6% 6,000 MCF/D Hyperbolic Coefficient 1.4…
  54. Howard Weil Energy Conference – National Fuel Gas Co. – slide 54
    Marcellus Shale Water Handling & Recycling Characterization Freshwater sources are piped to a centralized impoundment and blended in subsequent fracs with flowback and produced fluids. Centralized Coal Essentially all water can…
  55. Howard Weil Energy Conference – National Fuel Gas Co. – slide 55
    National Fuel Gas Company Comparable GAAP Financial Measure Slides and Reconciliations This presentation contains certain nonGAAP financial measures. For pages that contain nonGAAP financial measures, pages containing the most…
  56. Howard Weil Energy Conference – National Fuel Gas Co. – slide 56
    Reconciliation of GAAP Net Income to Income From Continuing Operations Excluding Items Impacting Comparability ( Thousands) 12 Mos. Ended FY 2008 FY 2009 FY 2010 12/31/2010 GAAP Net Income E&P Segment GAAP Net Income 146,612…
  57. Howard Weil Energy Conference – National Fuel Gas Co. – slide 57
    Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures ( Thousands) FY 2011 FY 2012 FY 2007 FY 2008 FY 2009 FY 2010 Forecast Forecast Capital Expenditures from Continuing Operations Exploration &…

From the store

Browse maps, data & reports in the Shale Experts store