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August 2015 Investor Presentation – Gastar Exploration, Ltd.

Gastar Exploration, Ltd. · Aug 6, 2015 · 48 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. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 1
    Investor Presentation August 2015 E XPANDING 2015 Gastar Exploration Inc. O UR H ORIZONS 1
  2. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 2
    Company Profile Asset Overview (06/30/2015) Q215 Net Prod. by Region Appalachia Utica Dry Gas(1) Marcellus Shale Play 7.7 MBoe/d Mid- 8,600 net acres leased 46,700 net acres 55% Continent 1,900 net acres pending 6.2 MBoe/d 45%…
  3. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 3
    Key Investment Criteria Strong drilling results in the Hunton Limestone oil play High-Quality Resource Offset STACK Play wells (Meramec and Woodford) successful Base Core development position in the liquids-rich Marcellus Shale…
  4. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 4
    Proven Track Record of Growth Significant reserves and production growth through acquisitions and the drill bit Proved Reserves by Product(1) 120.0 96.0 91.4 72.0 53% 54% MMBoe 48.0 45% 24.0 23% 28% 47% 46% 0.7% 55%…
  5. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 5
    Summary Target Economics 704 net locations for Hunton, Marcellus and Utica, additional 349 net locations in STACK Play Operated and Non- Operated WEHLU Operated WEHLU Operated Hunton Upper Hunton Lower Hunton Marcellus Utica Number…
  6. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 6
    2015 Capital Budget 91% of drilling budget operated, provides financial flexibility Current 2015 Budget Area Capital (MM) % of Total Mid-Continent Operated 65 54% Mid-Continent Non-Operated 9 8% Drilling and Marcellus 18 15%…
  7. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 7
    Production Growth YTD Average Production has grown 29% over 2014 average Total Daily Production(1) 15.0 13.2 12.0 2.9 10.2 53% 8.9 Liquids 9.0 2.2 1.4 4.1 MBoe/d 48% 31% Liquids Liquids 1.4 2.7 6.0 3.0 6.1…
  8. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 8
    HUNTON & STACK PLAYS 2015 Gastar Exploration Inc. 10
  9. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 9
    Hunton: First Mover Advantage Large, contiguous acreage position with multiple horizontal targets Asset Overview Hunton Asset Map 103,900 net acres Low all-in acreage cost due to non-core lease sales OKLAHOMA WEHLU acquisition…
  10. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 10
    Oklahoma Hunton Play Overview Hunton Activity Map Successful drilling results, leading to development OKLAHOMA De-risking by industry activity and historic vertical production in the area Oklahoma Hunton Statistics 1P…
  11. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 11
    Operated Hunton Development 2015 Development Plan Operated Activity Map Focus is on WEHLU Two rigs currently drilling Lower Hunton Development OKLAHOMA 11 horizontal operated wells drilled over large geographic area to date…
  12. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 12
    Operated Hunton Potential - WEHLU Hunton offers a substantial source of high return projects Upper Hunton Overview Lower Hunton Overview 45 PUDs on northern WEHLU acreage Previous operator drilled no horizontal producing wells on…
  13. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 13
    Non-Operated AMI Activity Overview Non-Operated Activity Map AMI established in 2012 to focus on Lower Hunton development Have drilled 37 wells in the Lower Hunton and 2 wells in the Upper Hunton Currently re-drilling one well 55…
  14. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 14
    Non-Operated AMI Average Well Performance Production averages in line with current type curve 800 640 74% (Boe and % Oil) 480 72% 320 77% 74% 70% 70% 72% 67% 68% 66% 67% 65% 160 66% 76% 0 Peak Rate…
  15. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 15
    STACK - Meramec Overview Meramec / Miss Lime Activity Map(1) Offset operator IPs range up to 1,600 Boe/d (98% oil) OKLAHOMA Meramec play naturally fractured carbonate similar to Hunton Other operator activity de-risking the…
  16. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 16
    STACK - Woodford Overview Woodford Activity Map(1) Offset operator IPs up to 1,000 Boe/d (84%+ oil) OKLAHOMA Gastar acreage unexplored Other operator activity de-risking the play Non-operated participation Woodford…
  17. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 17
    Oklahoma Summary 2015 Capital Budget Activity Hunton Wells spud - 15.0 gross (13.2 net) wells 12.0 gross (11.8 net) operated Hunton wells 3.0 gross (1.4 net) non-operated AMI Hunton wells Hunton Wells completed - 23.0 gross (17.5…
  18. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 18
    MARCELLUS AND UTICA 2015 Gastar Exploration Inc. 20
  19. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 19
    Core Position in the Marcellus and Utica Acreage position lies near other leading players in the basin Appalachia Overview Marcellus and Utica Map Core acreage proven in both the Utica Marcellus wet gas and the Utica dry gas Dry…
  20. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 20
    Infrastructure Overview Operational Improved run-time No flow restrictions expected Processing Total system capacity to 720 MMcf/d Central receipt point capacity 155 MMcf/d Adequate takeaway capacity Firm transport 50…
  21. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 21
    NE Basis Gas and NGL basis differentials widened in 2015 Gas infrastructure buildout to alleviate REX reversal to west August 1, 2015 1.8 Bcf 15 Bcf/d of incremental takeaway capacity announced since YE 2013 Source: Tudor…
  22. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 22
    Marcellus Shale Activity concentrated in liquids-rich portion of the play Marshall & Wetzel Counties, W. Va. Gross Appalachia Production Atinum 50% JV Partner High Btu gas and condensate yields 3040 Bbls/MMcf condensate 4050…
  23. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 23
    Marcellus Shale Development Development Plan Marcellus Drilling Locations Gastar has drilled and completed Marshall Co. - Marcellus Wells 74 gross (35.4 net) horizontal wells Producing - 74 PUDS 51 and one vertical well to date…
  24. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 24
    Utica Shale Acreage position lies in core of the Dry Gas Window Overview Utica Activity Map(2) Underlies core 11,100 acre Marcellus Rice GPOR Hess 2 wells 1 well position IP: 42 MMcfe/d (Bigfoot 9H) IP: 2945 MMcfe/d IP: 25 MMcfe/d…
  25. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 25
    Utica Shale Development Development Plan Utica Drilling Locations Blake well completed, 6,600 lateral Marshall Co. - Utica Wells Blake U-7H with 34 stage frac 6600 Lateral Length Producing - 2 Future Locations - 77 15.3MM D&C…
  26. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 26
    Utica Shale Development Blake U-7H and Simms U-5H demonstrate the repeatability of dry gas Utica across Gastars Marshall County position Blake U-7H Simms U-5H Initial production date 05/18/15 08/29/14 Initial 48 hours sales rate…
  27. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 27
    Utica Acreage is the dry gas Core of the Core Point Pleasant Shale Point Pleasant Shale Porosity Cross-Section Porosity Cross-Section A A GASTAR SIMMS U-5H 4-6% Porosity Up to 17% Porosity VERY HIGH Landing point…
  28. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 28
    Point Pleasant Paleography and SSTVD Structure East and West Appalachian Acreage on same shelf with similar features Point Pleasant Paleogeography Point Pleasant SSTVD Structure Scotts Run Pad-EQT 3,221 treated interval 24 hr.…
  29. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 29
    Appalachia Summary 2015 Capital Activity Complete 7.0 gross (3.5 net) Marcellus wells Complete 1.0 gross (0.5 net) Utica wells Net Drilling Locations 57 net Marcellus locations on existing acreage 54 net Utica locations on…
  30. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 30
    FINANCIAL OVERVIEW 2015 Gastar Exploration Inc. 32
  31. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 31
    Financial Strategy Goal: Grow NAV and reserves per share through exploitation of existing assets Maintain acceptable leverage and coverage ratios given commodity price environment Leverage Ratios and Financial flexibility through…
  32. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 32
    Capitalization and Liquidity Capitalization ( in millions) 06/30/2015 Cash 9.4 Long Term Debt Senior Secured Notes due 2018, net (maturity value) 325 Revolving Credit Facility 95.0 Total Debt 420 Total Stockholders Equity 230.6…
  33. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 33
    PDP Hedging Program Oil and NGLs Hedging Strategy 5,000 4,000 77.71 80.00 75.02 74.73 (Bbl/d) 3,000 2,000 1,000 0 (1) (2) 2015 2016 2017 2018 Volume Average Hedge Floor Price (/Bbl) (3) Downside Hedged % 64% 62% 60%…
  34. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 34
    Realized Prices - Historical Realized Oil Prices Realized Gas Prices 100.00 93% 91% 90% 100% 6.00 120% 86.00 72% 75% 80% 100% 4.80 81% 80% 81% 79% 85.12 80% 72.00 60% 3.60 70.91 81.75 55% 60% 58.00 65.45 40% 3.21 3.02 3.41…
  35. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 35
    Production Costs Historical (/Boe) Lease Operating Expense Transportation 9.00 4.00 3.51 7.20 6.74 3.20 (1) 5.53 5.26 2.25 5.40 2.40 3.60 2.80 2.92 1.60 1.24 1.80 0.80 0.56 0.43 0.00 0.00 2011 2012 2013 2014 YTD'15 2011…
  36. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 36
    Key Investment Criteria Strong drilling results in the Hunton Limestone oil play High-Quality Resource Offset STACK Play wells (Meramec and Woodford) successful Base Core development position in the liquids-rich Marcellus Shale…
  37. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 37
    APPENDIX 2015 Gastar Exploration Inc. 39
  38. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 38
    Lower Hunton Non-Operated Drilling Overview Well Results Cumulative Production Averages(2) Date Flowback Peak Approx. NRI % Commenced Rate(1) 30 Day 60 Day 90 Day 180 Day 270 Day 360 Day Current 5 Day Average(3) % Oil(4) (Boe/d)…
  39. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 39
    AMI Drilling Results Lower Hunton Wells are in line with current type curve Thrasher 1H 300,000 40 Bledsoe 128H 37 Gritz 17H 36 Henley 111H 35 State School Land 136H 34 Stevens 136H 33 Jet 112H 32 Jones 121H 240,000 31 32…
  40. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 40
    Lower/Upper Hunton Drilling Overview Well Results Approx. NRI Date Flowback Peak Current 5 Day % Commenced Rate(1) 30 Day 60 Day 90 Day 180 Day 270 Day 360 Day Average(3) % Oil(4) Operated Hunton WEHLU Lower Easton 22-1H 80.5%…
  41. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 41
    Utica Shale Development Utica Dry Gas Comparative Statistics(1) 1. Other operator data obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by…
  42. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 42
    Point Pleasant Gross Isopach Thickness Low thickness variations in the Point Pleasant across Gastars acreage GPOR Irons 4H EQT IP: 30.3 MMcf/d CVX Scotts Run Pad Conner 6H IP: 72.9 MMcf/d IP: 25 MMcf/d Eclipse Shroyer 2H &…
  43. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 43
    Utica Activity around Marshall & Wetzel Counties (1) 1. Other operator data obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar…
  44. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 44
    Simms/Dangel Cross-Section Statoil USA Onshore Prop Inc Dangel 1-H Gastar Simms U-5H 5 Miles to west of Gastars acreage Target Depth: 11,350 TVD Porosity: 6 12% Porosity: Avg. 11% (up to 17%) Net pay of +/- 74 Net pay of 92…
  45. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 45
    Realized Prices by Area YTD15 Realized Oil Prices Realized Gas Prices 60.00 120% 6.00 120% 101% 100% 50.00 90% 96% 4.80 96% 40.00 44.76 72% 3.60 72% 50.40 55% 2.40 42% 48% 30.00 39% 48% 35% 2.81 19.57 1.20 24% 20.00 24% 1.55…
  46. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 46
    Production Costs by Area YTD15 (/Boe) Lease Operating Expense Transportation 12.00 1.00 Workover expense 9.80 0.79 0.78 9.60 0.80 2.53 7.20 0.60 5.53 0.43 4.80 1.15 0.40 7.27 2.40 4.38 0.20 2.21 0.01 0.19 0.00 0.00…
  47. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 47
    Hedge Detail Natural Gas Oil Period Contract Type Volume Hedged Price Period Contract Type Volume Hedged Price Aug - Dec 15 NYMEX Swap 400 MMBtu/d 4.00 Aug - Dec 15 3-Way 400 Bbl/d 85.00 / 70.00 / 96.50 Aug - Dec 15 NYMEX Swap 2,500…
  48. August 2015 Investor Presentation – Gastar Exploration, Ltd. – slide 48
    References Cornell, S. R. 2000. Sequence Stratigraphy and Event Correlations of upper Black River and lower Trenton Group Carbonates of northern New York State and southern Ontario, Canada, unpublished M.S. Thesis, University of…

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