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JP Morgan Global High Yield Conference – EP Energy Corp

EP Energy Corp · Feb 26, 2013 · 18 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. JP Morgan Global High Yield Conference – EP Energy Corp – slide 1
    J.P. Morgan Global High Yield Conference Dane Whitehead Executive Vice President and Chief Financial Officer February 26, 2013
  2. JP Morgan Global High Yield Conference – EP Energy Corp – slide 2
    3 Purpose: What We Do At EP Energy, we have a passion for finding and producing the oil and natural gas that enriches people\'s lives
  3. JP Morgan Global High Yield Conference – EP Energy Corp – slide 3
    4 Vision: Where We?re Going Extraordinary People Exceptional Performance Enduring Partnerships We are committed to being the industry leader known for:
  4. JP Morgan Global High Yield Conference – EP Energy Corp – slide 4
    5 Investment Thesis ? Focused on 3 key oil programs - Eagle Ford, Wolfcamp, and Altamont ? Growing oil impact ? volumes up 39% (CAGR 2010-2012) ? Operating control over 98%1 of key oil program drilling inventory ? 20 year inventory ?…
  5. JP Morgan Global High Yield Conference – EP Energy Corp – slide 5
    6 EP Energy EAGLE FORD ALTAMONT WOLFCAMP Central 2011 Reserves (Bcfe): 1,110 4Q 2011 Production (MMcfe/d): 153 Central 2012 Reserves: 298 MMBoe Production: 95 MBoe/d3 Southern 2012 Reserves: 75 MMBoe Production: 17 MBoe/d3…
  6. JP Morgan Global High Yield Conference – EP Energy Corp – slide 6
    7 20+ Year Inventory Note: As of 12/31/12, includes PUD locations and PUD reserves in resource potential Key Programs Drilling Locations Eagle Ford 1,176 Wolfcamp 1,292 Altamont 1,386 Total 3,854 ALTAMONT WOLFCAMP EAGLE FORD…
  7. JP Morgan Global High Yield Conference – EP Energy Corp – slide 7
    8 Investments Generating High Returns Capital ($MM) 1 EUR (Mboe) 1 IP 30 (Boe/d)1,2 IRR3 Average Working Interest Eagle Ford, Central 7.8 ? 8.8 550 ? 800 550 ? 750 40 ? 50% 89% Wolfcamp, Upper 6.2 ? 7.2 460 ? 505 425 ? 500 25…
  8. JP Morgan Global High Yield Conference – EP Energy Corp – slide 8
    9 Eagle Ford 1 As of December 31, 2012 Key Strengths Program Overview1 ? Highest value program generating leading returns in portfolio ? Located in heart of the oil window ? Significant inventory of oil opportunities ? Well cost…
  9. JP Morgan Global High Yield Conference – EP Energy Corp – slide 9
    10 Eagle Ford Production Growth Mboe/d, net 0.0 5.0 10.0 15.0 20.0 25.0 30.0 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 Mboe/d Oil NGL Gas 274% CAGR 4Q?10 ? 4Q?12
  10. JP Morgan Global High Yield Conference – EP Energy Corp – slide 10
    11 Wolfcamp 1 As of December 31, 2012 Key Strengths Program Overview1 ? Largest oil inventory in portfolio ? Three prospective zones ? Full development in upper Wolfcamp ? Delineating lower Wolfcamp ? Upper/lower Wolfcamp spacing…
  11. JP Morgan Global High Yield Conference – EP Energy Corp – slide 11
    12 Wolfcamp: Continuous Execution Improvement ? Wolfcamp development plan has been consistent with Eagle Ford/Haynesville ? Now in full development of upper Wolfcamp ? Renegotiated land agreement - provides for more efficient…
  12. JP Morgan Global High Yield Conference – EP Energy Corp – slide 12
    13 Altamont 1 As of December 31, 2012 Key Strengths Program Overview1 ? Long-term oil asset with significant inventory ? Vertical development in Uinta Basin ? Evaluating horizontal opportunities (Uteland Butte and other areas) ?…
  13. JP Morgan Global High Yield Conference – EP Energy Corp – slide 13
    14 Successful 2012 ? PV10 Value of $7.3 billion + 4% ? Oil reserves of 261 MMBbl +43% ? Total production of 147 MBoe/d + 5% ? Oil production of 27 MBbl/d +55% Increase from 2011 Delivered outstanding returns from capital program
  14. JP Morgan Global High Yield Conference – EP Energy Corp – slide 14
    15 Significant Oil Volume Growth 0 2,000 4,000 6,000 8,000 10,000 12,000 2010 2011 2012 5.1 6.3 9.8 MMBbls Oil and Condensate Expect 30% - 50% growth in 2013 8 6 4 2 10 12
  15. JP Morgan Global High Yield Conference – EP Energy Corp – slide 15
    16 Financial Gearing ? Maintain strong liquidity position ? Borrowing base redetermination April 1 ? Actively manage commodity price risk ? Multi-year rolling hedge program ? Allocate capital based on returns ? Grow margins and…
  16. JP Morgan Global High Yield Conference – EP Energy Corp – slide 16
    17 Favorable Crude Oil Hedges MMboe Hedged Volumes Avg. Ceiling/Foor Price WTI Strip Price (2/22/13) Percentage of hedged volumes for 2013, 2014, and 2015 are based on 2013 expected volumes 2013 2014 2015 As of Feb. 12, 2013…
  17. JP Morgan Global High Yield Conference – EP Energy Corp – slide 17
    18 Natural Gas Hedges Protect Cash Flow MMboe Percentage of hedged volumes for 2013, 2014, and 2015 are based on 2013 expected volumes Hedged Volumes WTI Strip Price (2/22/13) 2013 2014 2015 As of Feb. 12, 2013 (Contract Months:…
  18. JP Morgan Global High Yield Conference – EP Energy Corp – slide 18
    19 Building Premium Valuation ? Execution ? Capital program ? Cost control ? Base production optimization ? Running room ? Repeatable, multi-year inventory ? Quality assets in the right places ? Profitability ? Strong investment…

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