Louisiana New Orleans Johnson Rice & Company October 2012
Oil, Value & Growth Focused Operations in Prolific Areas WD 29 Field Louisiana South Timbalier Area MP Complex East Bay & SP 49 Fields Central Gulf of Mexico Financial Snapshot Market Cap. (10/01/2012) 807 MM Senior…
Our Key Accomplishments Transformed from a gas profile to 80% oil within two years Fully integrated three oily acquisitions within focus area Optimized capital budget to drive DCF Addressed organic growth through drillbit…
Recent Organic Success in Acquired Core Areas West Delta Area Executed on 12 operations to date, 100% successful Additional opportunities so deep it required a brand New WD B Platform new 7 slot platform installation Installation…
Acquisition Decision Criteria Cash On Cash Return IRR 1P, 2P Operational Fit Upside Potential Asset Quality Strategic Impact Long lived Transformative events High margin Embedded acquisition targets Good pricing Risk…
Recently Announced Hilcorp GOM Transaction Purchase Price (1) 550 MM Effective July 1, 2012 Estimated Closing October 31, 2012 Proved Reserves 36.3 Mmboe 40% PDP, 54% Oil Current production 10,000 boe/d, 50% oil Proved PV10 (2)…
GOM Shelf Acquisition Highlights Oily GOM complimentary assets provide scale for relatively low acquisition cost at 15/Boe Accretive on all metrics Significant upside potential given our strength in shallow water exploitation in…
Strategic Fit With Our Existing Portfolio Three Oily Overlays within our regional focus and technical expertise GOM Core Areas Enhances operational synergies Adds Years to Numerous low risk, oil rich, shallow drilling opportunities…
A Stronger, More Diversified EPL % of % of EPL Pro EPL Acquisition Total Total Forma Proved Reserves (MMBoe) 38.1 51% 36.3 49% 74.4 % Oil 73% 54% 64% % PD 90% 66% 79% 2012E Exit 12.7 56% 10.0 44% 22.7 Production (MBoe/d)…
Significant Oil Production Growth Pro Forma Production Heavily Weighted to Oil Results in 200% Oil Production Bo/d 5,000 growth in oil production since 2009 Pro forma 2012 exit 11,000+ 8,089 production 70% oil vs.…
Underexploited Legacy Assets Assets were noncore to Key Assets Summary seller Proved Net Producing Allows for significant Reserves PV10 2H12 Avg. Developed wells (MMBoe) (MM) Net Boe/d Acreage (M) (gross) untapped exploitation SS…
Drill Opportunities Identified and Emerging Robust inventory of low risk 11000 F exploitation projects 63 behind pipe opportunities 2 Unbooked 28 identified PUD locations exist Pay Sands, 1.0 MMBO Potential In short order, EPL…
Unlocking the Upside in Short Order EPL has already identified An EPL Identified Unbooked multiple bypassed oil Thick, Oil Bearing Sand Section opportunities Exists throughout the TP11 proven reserve base on core properties As…
Moving the Asset Forward Extracting growth from Far Stack AMP w/Seismic Depth Structure Map undeveloped assets Regional understanding and technology uplift will illuminate shallow & deep potential Reprocessing 3D data…
Financing Commitment and Optionality Underlevered Balance Sheet Prior Pro Forma Capitalization to the Acquisition As of 6/30/12 Pre Pro Significant liquidity and cash (US in millions) Acquisition Adjustment Forma on hand Cash and…
Reducing Financial Risk Hedging Program Provides protection against EPL Hedged Oil Volumes as of September 2012 downward commodity price 9,000 movements 8,000 7,000 6,000 Majority of the program Bbls/d 5,000 consists of…
Key Takeaways Compelling value proposition: current market valuation does not reflect the quality of our assets, organic inventory or cash flow generation If youre looking for long lived oil assets correlated to Brent…
Louisiana New Orleans Supplemental Information
2012 Guidance (PreHilcorp Acquisition) Adjusted for Impact from Hurricane Isaac; No Adjustments for the Hilcorp Acquisition Estimated Production & Swap Hedge Prices Net Production (per day) 3Q 2012 4Q 2012 Full Year 2012 4Q and Full…
Definitions boe Barrels of oil equivalent MMboe Million barrels of oil equivalent Mboe Thousand barrels of oil equivalent Mmcf Million cubic feet bw Barrels of water P&A Plug & Abandonment ARO Asset retirement obligation GOM Gulf…
Strong Management & Scalable Organization Flat & Nimble Organization with a Highly Experienced Professional Team Gary Hanna President & CEO David Cedro T. J. Thom Mac Jensen Andre Broussard Chad Williams SVP, SVP, SVP, SVP,…
Oily Proved Reserve Base Proved Reserves of 37.1 MMboe at 12/31/11 74% oil, 91% proved developed Repeatable, lowrisk behind pipes & sidetracks Pretax PV10 of 1.1 billion using SEC pricing (1) Oil reserves up 59% from 2010 to 27.3…
Performance Driven Probable Reserve Base 2011 Probable Reserves of 14.0 MMboe 67% oil, 38% related to performance 62% related to behind pipe & unbooked PUDs (5 yr SEC PUD rule) Excludes reserve potential from current drilling…
2012 Capital for Organic GrowthPre Hilcorp 217 MM budget, 97% for oil projects % Capex by Field 126 MM for development 11% 2% 14% 73 MM for organic growth 9% EB & SP WD 18 MM for regional seismic study & lease sale 64% MP 130 MM…
2012 Central Lease Sale Enhances Inventory Utilized recently acquired 3D EPL High Bidder from Central seismic to identify and evaluate GOM Lease Sale EPL Properties prospects Multi million barrel reserve exposure MP All…
Strong Financial Profile Against Peers Proved Reserve Life EBITDA(X) / boe (2Q12) Proved Reserves / Annualized 2Q12 Production (Years) Asset Retirement Balance Sheet 2Q12 Discounted ARO / YE11 Proved Reserves (/boe) Net Debt /…
Creating Opportunities Using Enhanced 3D Technology for Exploitation Seismic Data Enhancement Extensive library of seismic & well data 16,974 sq. miles (1,886 blocks) of 3D and 100,000 line miles of 2D MultiClient PSTM Data Greatly…
Core Hilcorp Assets SS 208 Area WI 100% NRI 83% Operated Yes Proved Reserves 13.5 MMBoe (51% oil) PV10 (MM) 303 2H12 Avg. Net boe/d 3,538 (64% oil) Developed Acreage (M) 15.0 gross / 15.0 net Producing wells (gross) 28 Water…
Core Hilcorp Assets SP 78 Area WI 67% NRI 56% Operated Yes Proved Reserves 5.5 MMBoe (77% oil) PV10 (MM) 142 2H12 Avg. Net boe/d 1,253 (88% oil) Developed Acreage (M) 10.5 gross / 7.0 net Producing wells (gross) 23 Water Depth…
Core Hilcorp Assets SMI 239 Area WI 94% NRI 78% Operated Yes Proved Reserves 4.4 MMBoe (41% oil) PV10 (MM) 67 2H12 Avg. Net boe/d 853 (46% oil) Developed Acreage (M) 16.1 gross / 13.5 net Producing wells (gross) 8 Water Depth 20…
Deeper Dive into Our Focus Areas South Timbalier Area WD 29 Field ST 26: EPL operated, 100% WI EPL operated, 85 100% WI 2P: 10.4 MMboe, R/P= 19 years 2P: 7.2 MMboe, R/P= 9 years ST 41: EPL operated, 100% WI 2012 Activity: Infield…
Louisiana New Orleans Principal Corporate Office Investor Relations Contact: 201 St. Charles Ave. T.J. Thom Suite 3400 Phone: (504) 7991902 New Orleans, LA 70170 Email: tthomeplweb.com Phone: (504) 5691875 Houston Office…
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