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August 2015 Investor Presentation – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Aug 10, 2015 · 53 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 – Magnum Hunter Resources Corp. – slide 1
    Fighting Our Way Back Up Investor Presentation August 2015
  2. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 2
    Who We Are Magnum Hunter Resources is an exploration and production company focused in two of the most prolific unconventional resource shale plays in North America; the Marcellus and Utica Shales of West Virginia and Ohio Redirected…
  3. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 3
    Where We Operate A natural gas focused company with assets based in the heart of the Marcellus and Utica Shale plays 175 mile gas gathering system strategically located in Ohio and West Virginia moving over 400,000 MMBtu/d with seven…
  4. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 4
    Significant Decline in Commodity Prices Crude oil (53.82) since summer of 2014 Natural gas (1.31) since summer of 2014 WTI ( per Bbl) NYMEX ( per Btu) 95.00 92.06 4.00 3.92 85.00 3.80 3.60 75.00 3.40 65.00 3.20 3.00…
  5. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 5
    Production Growth 2015 estimated production anticipated to increase 72% 96% compared to 2014 2014 reported production increased 44% compared to 2013 (after noncore asset sales) 2013 production increased 92% to 88,986 Mcfepd(1) compared to…
  6. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 6
    Proved Reserve Growth Consistency Track record of proved reserve growth since inception Approximately 801.8 Bcfe of proved reserves (75% natural gas) at June 30, 2015 (up 68% yearoveryear) Significantly increases in proved reserves in…
  7. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 7
    Proved Reserves Growth History PDP PDNP PUD 1000 801.8 800 Proved Reserves (Bcfe) 600 502.8 455.4 438.6 400 270.0 200 79.8 0 2010 2011 2012 2013 2014 Q2 2015 SEC Pricing 2010 2011 2012 2013 2014 Q2 2015 Oil…
  8. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 8
    Total Reserves Summary Extensive inventory of lowrisk development drilling locations in the Marcellus Shale and Williston Basin Significant exploration potential in the wet/dry gas window of the Utica Shale in Ohio and West Virginia…
  9. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 9
    Consistent Historical Growth EBITDAX Revenue 450 391.5 400 350 300 280.4 250 ( MM) 200 150.5 150 140.4 112.4 100 76.2 66.5 50.4 50 28.6 4.2 0 2010 2011 2012 2013 2014 * See Appendix of this…
  10. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 10
    Breakdown of Capital Expenditures 2015 Capital Budget Breakdown Appalachia Williston Leasehold Acquisition 20% Actual Capital Expenditures YTD 10% (June 30, 2015) 60.0 Million 70% Total: 100 Million 9
  11. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 11
    Substantial Leasehold Inventory Developed Undeveloped (1) (2) As of June 30, 2015 Acreage Acreage Total Acreage Gross Net Gross Net Gross Net (3) Appalachian Basin Marcellus Shale 61,576 59,276 20,509 16,649 82,085 75,925 Utica…
  12. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 12
    Appalachian Division (Ohio, West Virginia and Kentucky) 11
  13. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 13
    Appalachian Division Overview Overview Areas of Operation Proved Reserves and PV10 Total proved reserves of 767.4 Bcfe as of 6/30/15 Proved producing reserves of 290.0 Bcfe as of 6/30/15 PV10 of 652.3 million as of 6/30/15…
  14. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 14
    Marcellus Shale Recent Well Results Marcellus Operated Well Results IP 24hr avg. rate (Mcfe/d) IP 30day avg. rate (Mcfe/d) Frac Stages () 18,000 17,028 17,116 16,847 Recently Completed Wells 16,000 14,000 13,321 12,854 12,832…
  15. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 15
    NGL Uplift in Appalachia Following the startup of the Mobley Processing Plant in December 2012, Magnum Hunter has realized an uplift in NGLs on a per wellhead Mcf basis between 0.25 1.50 The Company has 200 MMcf/d of dedicated…
  16. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 16
    Economic Sensitivity of Marcellus Magnum Rich Assumptions for 2014 Case: CAPEX: 7.0 million per well EUR: 11.0 Bcfe (includes NGL) 2014 Case 16 14 IRR: 88% 12 IRR: 75% Single Well NPV10 ( MM) IRR: 63% 10 IRR: 52% 8…
  17. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 17
    Marcellus Shale NOBLE MHR Ormet 9 Pad MONROE MHR/Eclipse McIntire Pad MHR Ormet 15 Pad Mark West Mobley MHR/Eclipse Stalder Pad WETZEL Fractionation Facility Eclipse/MHR Herrick Pad Eureka Carbide Compression Facility MHR…
  18. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 18
    Utica Asset Transactions Announced Total Transaction Implied Date Buyer(s) Seller(s) Value (MM) Acreage / Acre May15 Antero Resources Magnum Hunter Resources; Triad Hunter 38 5,210 7,217 Apr15 Gulfport Energy Corporation Paloma Partners…
  19. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 19
    Pad Drilling in Appalachia 18
  20. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 20
    StewartWinland Pad Drilling Locations The StewartWinland Pad located in Tyler County, WV has seven planned Tyler County, West Virginia laterals Magnum Hunter Acreage MHR / JV Partner Acreage Four wells have been drilled and…
  21. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 21
    Fracing Operations 20
  22. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 22
    Utica Shale Recent Well Results Note: MHR currently owns approximately 128,000 net acres in the Utica Shale 21
  23. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 23
    Best in Class Dry Gas Utica Peak Peak Rate Rate Lateral Well Name County Operator (MMcfe/d) (Boe/d) % Gas Length Stages Scotts Run Greene, PA EQT 72.9 12,150 100% 3,221 N/A Claysville Sportsman 11H Washington, PA RRC 59.0 9,833 100%…
  24. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 24
    New Marcellus/Utica Production Planned in 2015 (2) (2) MHR Working MHR Net Estimated Gross Production Estimated Net Production Anticipated Well Name(1) Location Interest Revenue Interest Boe/d (3) Mcfe/d Boe/d (3) Mcfe/d Timing…
  25. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 25
    Marcellus / Utica Joint Venture Announced Letter of Intent with private equity fund on August 10, 2015 for up to 430 million of new drilling capital dedicated to the Utica Shale of Ohio 25 million to reimburse Magnum Hunter for…
  26. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 26
    Eureka Hunter Midstream 25
  27. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 27
    Eureka Hunter Highlights Southeastern Ohio Location Northern West Virginia 2015E Dry Utica 40% of volumes 2015E Wet Marcellus 60% of volumes Basins 2014 Dry Utica 30% of volumes 2014 Wet Marcellus 70% of volumes 2015E 185 miles HP…
  28. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 28
    Appalachian Natural Gas Production 27
  29. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 29
    Contracted vs. Gathered Volumes Eureka Hunter Pipeline 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 High Pressure Reservation Volume (MMBtu/d) Magnum Hunter 92,339 75,000 75,000 83,500 96,000 111,400 135,000…
  30. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 30
    Eureka Hunter Utica Exposure MARSHALL Clairington MarkWest Hub Seneca Blue Racer Berne Blue Racer Natrium Ormet Wells NOBLE MONROE PENN W.V. Farley Units Stalder Units WETZEL MORGAN MarkWest Dominion Mobley Eureka…
  31. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 31
    Eureka Hunter Utica Exposure 30
  32. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 32
    How Do We Measure Up Gathering Capacity Marcellus / Utica Operations Summit Midstream mcf/d, 1050 Eureka Hunter mcf/d, 2000 Crestwood Midstream mcf/d, 700 Markwest Midstream mcf/d, 1000 EQT Midstream mcf/d, 1940…
  33. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 33
    Operating Cost 0.27 0.28 20.0 0.26 0.24 0.22 15.0 0.22 Total Annual OPEX and G&A Per MMBtu Expense 0.20 MM 0.18 10.0 0.16 0.14 5.0 0.11 0.12 0.10 0.08 2013 2014 2015E OPEX and G&A Per MMBtu…
  34. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 34
    Appalachia Differentials Appalachia Net Demand Overview 12.0 Seasonal winter demand to drive better pricing in Q4 2014 and Q1 2015 10.0 Pricing improvements in 2015+ expected as year overyear demand is positive 8.0 New…
  35. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 35
    Midstream Outlook Proposed Interstates Pipeline Project Receipt Area Delivery Area Capacity Rate In Service ANR 2015 Lebanon Reversal Lebanon Glenn Karn 350,000 Tariff Nov15 TETCO U2GC Uniontown LebanonGas City 425,000 Tariff Nov15…
  36. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 36
    Eureka Hunter Pipeline Construction Challenging Terrain Welding Up Pipeline Strung Pipe Before Connection Being Lowered 35
  37. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 37
    TransTex Hunter Overview Treating for H2S and CO2 Removal Gas Processing / Dew Point Control Production Equipment / Dehydration Equipment & Gas Coolers Services Facility Operations & Maintenance Turnkey Installations…
  38. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 38
    TransTex Hunter Amine Plants 37
  39. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 39
    Alpha Hunter Drilling 38
  40. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 40
    Drilling Fleet Overview Current fleet of six (6) drilling rigs: One (1) Schramm TXD 500 Rig 7 o Spud first well (Stalder Pad) on July 1, 2013 o Contract Rate of 24,000/day o Two (2) year term with Triad Hunter Five (5) Schramm TXD…
  41. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 41
    Alpha Hunter Growth Continues 35 30 Revenues ( in millions) 25 20 15 10 5 0 2010 2011 2012 2013 2014 Revenues 40
  42. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 42
    Alpha Hunter Experience Company of Wells Drilled AEP 14 Bretagne 1 CNX Gas 8 Consol 3 Central WV Oil & Gas 1 Dominion 34 Eagle Ford Hunter 15 Eclipse 44 EQT 342 EXCO Resources 57 Green Hunter Water 4 Hildreth 7 PetroEdge 1…
  43. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 43
    Williston Basin Assets (NonCore Assets) 42
  44. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 44
    Williston Basin Overview Areas of Operation Overview Proved Reserves and PV10 Total proved reserves of 5.7 MMBoe as of 6/30/15 Proved producing reserves of 5.6 MMBoe as of 6/30/15 Total Proved PV10 of 90.5 million as of…
  45. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 45
    Financial Overview 44
  46. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 46
    Financial Strategy Capital spending driven by rates of return across all operating areas 2015 capital budget of 100 million will focus predominately on high return areas in the Appalachian Basin Closed Calgary and Denver offices in…
  47. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 47
    Liquidity Initiatives Events in Progress Structure Liquidity Impact Status Letters of credit removal (associated Negotiating definitive AMA agreement with large gas marketing firms 39.3 Million with firm transportation agreements)…
  48. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 48
    Adjusted EBITDAX Reconciliation FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 Net income (loss) from continuing operations ( 22.3) ( 76.7) ( 119.7) ( 204.1) ( 137.8) Unrealized (gain) loss on derivatives 3.1 4.2 ( 10.9) 17.1 73.6 Net…
  49. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 49
    NonCore Divestiture Overview Focused on divesting noncore assets to redeploy capital into Utica / Marcellus Over 700 million raised since beginning of 2013 Asset Sales Value (MM) Completed in 2013 Eagle Ford Sale 401.0 Gain on…
  50. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 50
    MHR Net Asset Value* Assumptions Valuation ( in thousands) Low High Low High (1) Total Proved Reserves PV10 (12/31/2014) 909,300 909,300 /acre (2) Undeveloped Acreage Low High Williston Basin U.S. 42,700 3,000 5,000 128,100…
  51. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 51
    A Focused Company on the Right Path Proven management and technical team in place committed to efficient capital allocation for future growth in a new low commodity price environment new COO added September 1, 2015 Successful proven…
  52. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 52
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets MLV Partners Capital One Southcoast RBC Capital Markets Credit Suisse Securities Robert W.…
  53. August 2015 Investor Presentation – Magnum Hunter Resources Corp. – slide 53
    Appendix Net Asset Value Although Magnum Hunter does not consider Net Asset Value and Net Asset Value Per Share to be nonGAAP financial measures, as defined in SEC rules, Magnum Hunter uses Net Asset Value as an estimate of fair value.…

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