2015 Barclays CEO Energy-Power Conference Lee M. Tillman President & Chief Executive Officer September 9, 2015
Key Messages Strong response to lower for longer pricing Reducing capital program in 2016 while maximizing allocation to highest returns in U.S. resource plays Further scale back of conventional exploration; ongoing portfolio…
Line of Sight on Reduced Capital Program Flexibility to adjust further while still concentrating on U.S. resource plays 2015 capital program expected at or below 3.3B 2016 capital budget process underway Identified initial reductions…
Further Scale Back of Conventional Exploration 100MM expected in 2016 CAPEX Program 2014 2015 Budget 2016E 500MM Strategic Evaluation 250MM Strategy 100MM Implementation GOM & Gabon Efficient resource capture and high…
Lowering Cost Structure Across the Business Downward trends in both unit and absolute costs E&P Production Expenses 400 12 Total E&P production expense 10 decreased 23% from a year- 300 Int'l E&P ago quarter 8 /BOE MM 200…
Scale of U.S. Resource Plays Growing 2P Resource 3.6 BBOE; 5,700 gross COOP well inventory Grew 2P Resource and total resource 6 20% from year-end 2014 2P growth led by STACK and SCOOP 5 with 400 MMBOE or 35% increase Eagle…
Quality of U.S. Resource Play Inventory Improving Almost 80% breakeven at flat 50 WTI 100% 70 WTI: 98% Breakeven 90% 60 WTI: 87% Breakeven 80% 50 WTI: 77% Breakeven 70% Cumulative % of Wells 60% 50% 40% 30% 20%…
Resilient Economics in Lower for Longer Pricing U.S. resource portfolio offers optionality Indicative Lower for Longer Not opportunity constrained Single Well Economics at low commodity prices 50% Austin Chalk Selective capital…
Enhancing Value Through Capital Efficiency Increasing productivity and lowering well costs Well Performance 2000 W Myrmidon Further delineation and shallower decline in SCOOP Woodford drives 30 Day IP (BOED) higher well…
Improving Depth & Quality in Oklahoma Resource Basins Largest 2P Resource in unconventional portfolio Total Resource 1.6 BBOE 2P Resource (2.2 BBOE 2.5 total resource) 2.0 Resource (BBOE) Increased 360 MMBOE in STACK and 1.5…
SCOOP Offers Compelling Returns Springer economics compete with high oil yield MRO COOP MRO OBO Springer Springer MRO Acreage SCOOP Acreage is 85% HBP Woodford Woodford SCOOP Woodford 70% delineated 450 net (1,770 gross) well…
Meramec Highest Value Target in STACK 42,000 net acres delineated STACK Potential Expanding KINGFISHER 80% prospective for co- BLAINE development of multiple horizons STACK Meramec 42,000 net acres delineated 330 net (1,200…
Eagle Ford Co-Development Proven and Expanding 700 gross wells in AC and UEF inventory Stack Potential AC/LEF Co-Development UEF/LEF Co-Development 1.3 BBOE 2P Resource (2.3 BBOE 40-Acre LEF Development Stack and Frac pilots…
Differentiating West Myrmidon in the Bakken TF 2nd bench early results encouraging Doll Pad 24hr IP range 3,059 3,538 BOED 800 MMBOE 2P Resource (1.0 BBOE total TF2: 3,303 BOED 30 day IP average** resource) 1,450 BOED Current…
Key Takeaways Capital Discipline Unconventional Resource Growth Initial Reductions to 2016 Capital Program Increasing Scale 600MM 3.6 BBOE 2P Resource Further flexibility from cost savings, efficiencies, activity 20% from 2014…
Lower for Longer Single Well Economics North America OKLAHOMA RESOURCE BASINS BAKKEN EAGLE FORD SCOOP SL SCOOP XL STACK West East Hector Condensate High GOR Austin Condensate Condensate Meramec Myrmidon Myrmidon MB (UEF/LEF) Oil…
G&A Reconciliation (MM) Total Company G&A to Adjusted G&A 2013 2014 2015 YTD Total Company G&A expenses 659 654 339 Adjustments to G&A expenses: Pension settlement (45) (99) (81) Reduction in workforce (43) Adjusted G&A…
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