Barclays CEO Energy-Power Conference Brent Smolik Chairman, President and Chief Executive Officer EP Energy Corporation September 9, 2015
EP Energy (NYSE: EPE) Improving execution in EAGLE FORD SHALE WOLFCAMP SHALE all four asset areas Net Acres: 94,0001 Net Acres: 2Q 2015 Net Daily Production (MBoe/d): 180,000 19.1 2Q 2015 Net Daily Production (MBoe/d): 60.4 Gross…
EPE: Compelling Value Improving performance of high-quality assets Reducing capital and operating costs Increasing well-level returns and asset value Improving financial position Proven track record of improving performance…
High-quality Asset Portfolio Eagle Ford Wolfcamp Altamont Haynesville 5
Eagle Ford: Improving Franchise Oil Program Highest return program with efficient growth Increasing well productivity with higher IP rates Continuing to reduce costs and improve cycle times Low break-even oil price1 of 36 per…
Wolfcamp: Tremendous Resource in S. Midland Basin Largest company inventory 3,300 future drilling locations1 STOOIP (MMBO) Increased sub-surface knowledge Per Section + Significant database Extensive analysis Technical…
Wolfcamp: Keys to Superior Performance Starts with better knowledge of sub-surface in area 1,000 square miles of 3-D seismic 6,000 of whole core Using knowledge to optimize development plans Wolfcamp A Well-to-well spacing…
Wolfcamp: Leader In The S. Midland Basin 2015 YTD 576 total wells in four county area 80 800 70 700 60 600 Average IP24, BOPD 50 500 Well Count 40 400 30 300 20 200 10 100 0 0 Peer A Peer B Peer C Peer D…
Wolfcamp: New Type Curve 23 Increased initial oil rates by 120,000 more than 40 percent Early time improvements drive returns higher 100,000 Increased estimated EUR from 461 MBoe to 600 MBoe for the Cumulative Oil…
Altamont: Best Acreage In The Basin Oil Production Continued improvement in mature program (MBbls/d) 12.8 12.5 12.9 2Q14, 4Q14 and 2Q15 benefited 11.7 11.8 from top 15 EPE wells Continuing cost reductions and cycle time 9.8 8.9…
Haynesville: New Techniques Enhancing Returns Drilled first two 4,500 lateral wells since 1Q12 12 MMcf/d avg. (IP-30) Current completion design 2,700 - 3,600 lbs/ft proppant loading 220 frac stage spacing Completing two 7,500…
Improving Cost and Efficiency Gross Well Cost1 Total Well Cost per Foot1 Rig Days Stimulation (MM) (/ft.) (Spud to Rig Release) (Stages per day) 8.3 569 9.4 Eagle Ford 7.4 7.2 498 489 14 6.9 12 10 9 6.5 6.5 6.4 421 4.7 6…
Continuing To Improve Low Cost Operations /Boe Average LOE (2Q14 2Q15)1 Adjusted Cash Operating Costs Per Unit Peer Group EP Energy Corporation 8.06 14.88 7.73 7.86 7.70 7.32 7.32 12.85 12.00 6.71 11.44 6.45 10.74 9.19…
Strong Well Economics Eagle Ford Wolfcamp Well Cost: 5.1MM Well Cost: 4.7MM 100% Lateral Length: 5,300 ft 50% Lateral Length: 7,500 ft Break-even Price: 36 per Bbl Break-even Price: 41 per Bbl 80% 40% BTAX IRR BTAX IRR 60%…
Solid Multi-year Hedge Program 2015 2016 2017 Oil Fixed Price Hedges Fixed Price Swap Oil volumes (MMBbls)1 11.1 18.0 5.1 Average floor price (/Bbl) 91.11 80.29 65.87 Percent hedged based on midpoint of updated 2015 guidance 97% 79%…
Improving Financial Position Protecting cash flows Efficient programs continue to generate solid unit margins Industry-leading hedge program Significant liquidity 1.6 billion at 6/30/15 2.75 billion borrowing base Benefits from…
Superior Performance Protecting balance sheet, improving asset base and adding value Consistently meeting or beating expectations All programs continuing to improve Reducing capital/operating costs Increasing well-level…
Barclays CEO Energy-Power Conference Brent Smolik Chairman, President and Chief Executive Officer EP Energy Corporation September 9, 2015
EPE Type Well Economics Eagle Ford1 Wolfcamp Altamont Haynesville Holly 7,500' Vertical 4,500'. 5,200' 7,500' Pre-Tax IRR3 67% 34% 45% 109% 107% 103% Breakeven Pricing (/BBl or /Mcf)4 36.00 40.75 35.50 1.78 1.81 1.69 Gross Well Costs…
Improved 2015 Outlook Original Guidance Previous Guidance Current Guidance (2/19/15) (4/30/15) (7/30/15) Capital program ( billion) 1.2 1.3 1.2 1.25 1.2 1.25 Acquisition cost ( billion) 0.1 Total production (MBoe/d) 94.5 109.5…
Eagle Ford: Adding Production and Inventory Bolt-on to current Eagle Ford asset for EPE Dilley Office 118MM Good value and strategic fit Producing 2,950 Boe/d (80% liquids)1 Acreage on trend and similar in quality to existing black…
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