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Third Annual Investor Day – Energy XXI Gulf Coast, Inc

Energy XXI Gulf Coast, Inc · Jun 19, 2012 · 49 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. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 1
    Third Annual Investor Day June 19th, 2012 NASDAQ: EXXI AIM:EXXI www.energyxxi.com 6/13/2012
  2. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 2
    Agenda 9:00 am Opening Address John Schiller, Chairman and CEO Concurrent Sessions Breakout A Breakout B Breakout C 9:30 am 10:15 am 11:00 am 11:45 pm Q&A Starlight Roof Room 12:30 pm Lunch Palm Room, 18th Floor, Towers…
  3. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 3
    Delivering the Next 5% NASDAQ: EXXI AIM:EXXI www.energyxxi.com John D. Schiller Chairman & CEO 05/10/2011
  4. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 4
    Current GoM Properties EXXI operates 5 of the 11 largest oil fields on the GoM shelf East Cameron 334/335 1,000 BOE/d Laphroaig-Pontiff 1,100 BOE/d South Timbalier 21 2,500 BOE/d Grand Isle 16, 18 12,400 BOE/d Eugene Island 330…
  5. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 5
    Overview Major EXXI Fields The 3rd Largest Producer of Oil on the Gulf of Mexico Shelf 70% of Production is Oil Interest in 6 of the 11 Largest Oil Fields on the GoM Shelf Reserves and Production are 86% Operated 70% of Proved…
  6. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 6
    What Makes EXXI Different Technical Staff Large Oil Fields Shallower Declines Material High-Impact Exploration
  7. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 7
    Technical Staff is the Difference 51 Members Previous Experience Number of People ExxonMobil 5 Kerr McGee 5 Superior 4 Amoco 3 Apache 2 Gulf Oil 2 Marathon 2 Ocean 2 Pennzoil 2 Texaco 2 College New Hires 6 EXXI Technical…
  8. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 8
    GoM Shelfs Largest Oil Fields Cumulative Production* Field Operator Oil (MMBO) Gas (BCF) MMBOE WD30 EXXI 576 929 731 BM2 Chevron 532 552 625 EI330 Apache 432 1,823 735 GI43 Chevron 371 1,590 634 GI16 EXXI 302 381 366 SP61…
  9. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 9
    GoM Production Characteristics Typical Decline Curve Characteristics Water Drive Flat rates until water encroaches Abnormally Pressured Gas Well MMcf/d Normally Pressured Gas Well Time Oil Water Drive Gas Water…
  10. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 10
    Normal vs Abnormal Pressured Gas Wells South Pass 89 A-15ST Well Normal Pressured 25 4000 20 3000 PSIA MMcfd 15 2000 10 5 1000 0 0 Gas FTP Bayou Carlin Landers 1 Abnormal Pressured 60 16000 50 12000 40…
  11. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 11
    Oil Drives Lower Decline Rates EXXI OPERATED PDP OIL WELLS* 1000 14% Decline 85% of EXXI GROSS MBbl/m Production is Tied to Oil Wells; 70% is Oil 100 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17…
  12. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 12
    Legacy Fields (MP Complex & ST21) EUR Potential 10000 1000 Gross Monthly MBOE 100 Acq Gross Current Gross (MMBOE) (MMBOE) Cumulative Prod 430 468 Rem Proved Res. 51 49 10 EUR 481 517 EUR: 1% increase 5 5 EUR: 3%…
  13. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 13
    Top 5 XOM Fields EUR Potential 10000 1000 100 Acquisition Current 75 Gross MBOE / Month Gross Gross per BOE* (MMBOE) (MMBOE) (80% NRI) 10 Cumulative Prod 1,418 1,425 Rem Proved Reserves 52 54 EUR 3-1-12 1,470 1,480…
  14. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 14
    High Impact Exploration Core Prospect P10 (Net) PS Mannochmore 11.3 MMBO / 1,129 Bcf 7% Crete 18.0 MMBO / 293 Bcf 18% Glenlossie 3.0 MMBO / 303 Bcf 15% Stealth 12.5 MMBO / 125 Bcf 25% Cohiba 6.4 MMBO / 160 Bcf 13% Total…
  15. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 15
    Ultra-Deep Exploration P10 EXXI Net Gross* Potential Offshore Resources: (Tcfe) (Tcfe) 95 Tcfe Davy Jones Potential Onshore Resources: 36.0 5.5 Strategic Area 54 Tcfe Lafitte Total Potential Gross: 36.5 6.2 Strategic Area 148…
  16. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 16
    Exploration/High Risk Potential Confidence of at Least One Success vs. Ps 100% Confidence of at Least one Success 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 2 4 6 8 10 12 14 16 18 20 Number of Prospects 10% 25% 50% 75%…
  17. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 17
    Potential Exploration Impact on EXXI Location P10 EXXI Net Core Shelf 2.3 Tcfe Ultra-deep 22.2 Tcfe Total 24.5 Tcfe 15% Ps = 3.7 Tcfe net to EXXI 18
  18. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 18
    Redevelopment of GoM Updip Locations Reprocess Seismic Inversion Work Reservoir Simulation
  19. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 19
    Updip Location Today 500 MBO 100/Bbl 50 MM Drill & Complete Cost 10 MM --------------- Net Revenue 40 MM x Salt Then 90s 500 MBO 30/Bbl 15 MM Drill & Complete Cost 10 MM --------------- Net Revenue 5 MM 20
  20. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 20
    Main Pass Complex Gross Field BOE/d 18,085 18000 BOE/d 15000 12000 9000 6000 3000 0 Jun-07 Jan-08 Jul-08 Feb-09 Aug-09 Mar-10 Sep-10 Apr-11 Nov-11 May-12 Field Stats Techniques to Flatten Declines and Increase…
  21. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 21
    Main Pass 61 Field Extensive Upside Production Probable Proved 60 53 MBOE 50 15 Gross MBOE 40 9 30 27 MBOE 5 20 29 10 22 0 Reserves 2007 Reserves Acquisition 6/30/11 22
  22. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 22
    Horizontal Redevelopment Strong Water Drive Reservoir Water Injection on Weaker Water Drive Reservoir
  23. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 23
    South Timbalier 21 D-12 Well Benefits of Updip Drilling with Water Injection Systems Increases reservoir pressure to enhance production Increases oil recovery 24
  24. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 24
    West Delta 73 Horizontal Drilling Vertical Well with Water Flood Benefits of Horizontal Drilling with Water Injection Systems Increases reservoir pressure to enhance production Increases oil recovery Horizontal Well with Water…
  25. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 25
    South Timbalier 21 Horizontal Well 26
  26. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 26
    West Delta 73 Horizontal Well 27
  27. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 27
    Horizontal Program Economics 10 Well Horizontal Program Well Gross Net DHC D&C Payout PV-10 P/I Economics MMBOE MMBOE (M) (M) (Mos) (M) 10% WD73 2.2 1.8 6.6 9.4 10 68.5 7.5 ST21 1.2 1.0 6.6 9.4 16 32.4 3.7 10-Well Program 17.0…
  28. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 28
    Horizontal Type Curve 29
  29. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 29
    Reserves Historical Proved Reserve Growth Changing the Definition Reserve Adds Through the Drillbit
  30. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 30
    Historical Proved Reserve Growth 250 1P: 48% CAGR 200 3P: 55% CAGR 196.2 150 MMBOE 116.6 104.1 100 81.7 75.6 53.1 50 0 FY 2009 FY 2010 FY 2011 1P Reserves 3P Reserves 31
  31. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 31
    Changing the Definition Prospective no longer 3P Once a fault block is proven, adjacent fault 1P blocks are no longer 3P; 2P Proven they are now prospective. 3P Prospective no longer 3P 32
  32. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 32
    Typical Gulf of Mexico Combination Drive Discovery Well Development Well Poss SALT As we produce our Prob proved reserves, additional downdip oil/gas booked as 2P and PUD 3P upgrade to 1P and 2P HKO respectively. LKO Prob…
  33. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 33
    Positive Revisions Every Year Historical Proved Revisions (MBOE) 6,000 5,198 4,877 4,000 2,406 2,148 2,000 70 - (2,000) Ceiling test write-downs (4,000) 2008 2009 2010 2011 YTD Thru 03/31/2012 Crude Gas…
  34. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 34
    Low-Cost Development of 3P Reserves 3P: 196 MMBOE *Reserves Do Not Include POSS DEV 4 MMBOE POSS UNDEV 78 MMBOE Contingent and 3.41/BOE 30 MMBOE 4.98/BOE 308 MMBOE Prospective PROB PDP UNDEV 60 MMBOE Resources Attributed to…
  35. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 35
    FY2013 Budget and Financial Update
  36. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 36
    Annual Drilling Capital Expenditures* 300 250 200 150 Ultra Deep Exploration 100 Development 50 0 2010 2011 2012 Est. 145MM 280MM 550MM Fiscal Year *Excludes P&A 37
  37. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 37
    FY13 Budget Capital Breakout 599MM 700MM G&G, Land, G&A ULTRA Admin 28 DEEP 43 94 Abandonment 30 EXXI XOM 183 322 Ultra-Deep 94 Drill and Complete, Recomplete & Facilities 505 Other GI 16 EI 330 109 119 22 BB West…
  38. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 38
    Multi-Year Inventory Drives Y/Y Growth 2013 2014 2015 100 Additional Opportunities Identified for 2016 and Beyond GI 16 W/O (8) Hyden Elbert Torrey ST 21 124ST North Gouda El Diente Gelato Trophy* Hood* Mandalay Bay Speyside* Aliadros…
  39. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 39
    Volume Growth and Free Cash Flow Production and Capital 120 1,000 110 900 100 800 90 700 MBOE/D 80 600 700 700 700 MM 70 500 570 60 400 50 300 40 200 30 100 20 0 FY'12 FY'13 FY'14 FY'15 Production Low Production…
  40. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 40
    Production Analysis High Rate Gas Gas Oil FY10 FY11 FY12 Est. FY13 Net Risked Oil = 100/Bbl Gas = 3/MCF 24 MMcf/d = 26.2 MM Revenue Per Year 1,000 Bbl/d = 36.5 MM Revenue Per Year 41
  41. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 41
    Consistently Improving Balance Sheet Quarterly EBITDA (MM) Quarterly Net Income (MM) 250 100 215 83 200 80 150 60 100 40 50 20 0 0 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Dec 10 Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Net…
  42. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 42
    Market Price Comparison Platts Index / Prompt Futures* WTI vs Brent 160 115 104.60 106.51 106.73 140 91.28 95 120 75 100 55 80 35 60 WTI 40 Brent 15 -5 20 WTI LLS HLS Brent May-07 May-08 May-09 May-10 May-11 May-12…
  43. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 43
    Current Crude Hedge Profile 45.0 EXXI has 50% crude and 44% WTI Put Spread 40.0 of total revenue hedged for the Brent Collar Brent Put Spread 35.0 next 18 months Brent 3W Collar WTI 3W Collars 30.0 WTI Collars 25.0 Proved…
  44. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 44
    Historical Settles & Future MTMs 80 EXXI has made 124MM from hedging over the life of the company, and the MTM as of June 14, 2012 is 70MM, 60 combining to equal 194MM 40 Millions 20 Historical Settlements Future MTMs as…
  45. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 45
    Options to Deploy Free Cash Pay Additional Future Dividends Initiated a 0.07 quarterly dividend on common stock to shareholders of record Goal is to increase dividend based on performance Reduce Net Debt (Stockpile Cash) Prior to…
  46. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 46
    Debt Reduction Adds Share Value* Maintain EV, with Projected Net Debt Reduction 5,000 4,000 3,000 Net Debt, Market Cap (MMs) 2,000 1,000 0 -1,000 -2,000 6/30/2012 6/30/2013 6/30/2014 6/30/2015 Net Debt…
  47. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 47
    Potential Stock Upside* 250 Risked Ultra-Deep 200 10% Increase in EUR Additional Ultra-deep and Core 5% Increase in EUR Exploration Success 150 3P 2P 100 1P 50 Current Stock Price 0 Total Resources (1) Total Resources…
  48. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 48
    Why Energy XXI Large GoM Oil Fields Provide Significant Opportunity for Reserve Growth 5% Increased Recovery of Oil-in-Place in Top 5 Reservoirs Doubles Reserves Horizontal Redevelopment Will Have an Impact Multi-Year Drilling…
  49. Third Annual Investor Day – Energy XXI Gulf Coast, Inc – slide 49
    Contact NASDAQ: EXXI AIM:EXXI www.energyxxi.com Stewart Lawrence, IRO Greg Smith, Director of IR Energy XXI (Bermuda) Limited Energy XXI (Bermuda) Limited 1021 Main Street, Suite 2626 1021 Main Street, Suite 2626 Houston, Texas 77002…

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