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Barclays CEO Energy and Power Conference – WPX Energy, Inc.

WPX Energy, Inc. · Sep 9, 2015 · 27 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. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 1
    Sept. 9, 2015 Barclays CEO Energy-Power Conference Rick Muncrief, President and Chief Executive Officer
  2. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 2
    WPX Highlights Announced or completed more than half of year-end 2015 divestitures target Announced 185MM sale of Van Hook gathering system Completed 80MM sale of Powder River Basin operations Upsized unsecured revolver to 1.750B…
  3. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 3
    Highlights Over the Past 16 Months Completed exit of international assets Infill project added 200 January 2015 Renegotiated 1.75B gross locations in unsecured revolver Williston July 2015 Rick Muncrief becomes CEO May 2014…
  4. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 4
    Premier Western Energy Producer PERMIAN BASIN Deep Inventory of High-Return Locations Decades of drillable locations Significant upside potential from downspacing and additional prospective horizons 670,000+ net prospective acres…
  5. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 5
    Core Delaware Basin Acreage 92,000 net acres with 12 prospective zones 670,000+ net prospective acres of stacked pay 3,600+ gross risked locations 98% of net acres held by production 22,000 Boe/d current production Wolfcamp…
  6. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 6
    Delaware - World-Class Hydrocarbon System BELL CANYON Hydrocarbon Pay Indication Delaware Mountain Group CHERRY CANYON 3,000+ of stacked conventional sands 200+ vertical Delaware wells across Stateline position de-risk the play…
  7. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 7
    Williston: Costs Down with Performance Increasing 9 LOE per BOE 8.61 Flexible capital program Adding 3rd rig in November 6 /BOE 6.11 Inventory of 14 drilled uncompleted wells 29% 3 Decrease Increased EURs 25% to 750 Mboe -…
  8. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 8
    San Juan Gallup: Continued Growth and Execution Oil Differentials Y/Y 0 300%+ production growth1 -2 -4 Efficiencies drive more wells with fewer rigs 24% -6 Two record wells of 7.9 days -8 Improvement Intra-pad rig move of 0.3…
  9. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 9
    Piceance: Large-Scale Resource with Deep Potential Half the time and twice the depth Piceance Niobrara Days vs. Depth Spud May 2014: 1 mile drilled in 117 days 0 Spud April 2015: 2 mile drilled in 50 days 2,500 2 mile Niobrara well…
  10. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 10
    WPX is an Attractive Investment Opportunity Core Acreage WPX holds core acreage in each of its basins Decades of drilling inventory with 4,600 quality drillable Deep Oil Inventory locations in the Delaware, Williston and San Juan…
  11. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 11
    Appendix
  12. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 12
    Pro Forma WPX Hedges Updated: September 1, 2015 Sep - Dec 2015 2016 2017 Volume/Day Average Price Volume/Day Average Price Volume/Day Average Price Natural Gas (MMBtu) Fixed Price Swaps 436,506 4.06 412,132 3.63 - - Costless…
  13. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 13
    Williston Overview 87,000 net acres Currently operating 2 rigs 2nd rig in August, well-to-well contract 3rd rig in November, well-to-well contract 600+ gross drilling locations 520 operated drilling locations 90 non-op locations…
  14. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 14
    San Juan Overview 232,000 net acres Oil window: 100,000 acres1 Gas window: 132,000 acres Currently operating 2 rigs 3,900 total gross drilling locations2 Oil window: 400+3 Gas window: 3,5002 DRY GAS Commodity mix Oil window Oil:…
  15. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 15
    Piceance Overview 200,000 net acres Currently operating 1 rig 10,000 gross drilling locations Commodity mix1 2% oil 77% natural gas 21% NGLs Available sales outlets San Juan Rockies California MidCon Unbooked deep resource…
  16. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 16
    Cost Continue to Trend Lower LOE G&A1 60 80 58 59 70 68 in Millions in Millions 60 56 50 56 54 40 52 18% 50 14% 30 10% Decrease Decrease 51 20 Decrease 48 10 46 0 2Q'14 2Q'15 2Q'14 2Q'15 GP&T Oil…
  17. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 17
    Strong Well Results Validate Delaware Core Position RKI Mewbourne OXY Concho RKI Burton 4 IL Fed Com 1H (4,068 lat.) Gobbler 5 B2PM State Com 1H Misty 35 Federal Com 4H ( 4,135) Lizard Pot Federal 5H (4,431) Lindsay 10-8H IP(30): 1,293…
  18. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 18
    Infrastructure Capacity in Place for Rapid Development Produced water gathering system 174 miles of pipeline 200,000 barrels per day of water gathering capacity Current gathering: 90,000 bpd Fresh water transfer system 16 miles of…
  19. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 19
    2014-15 Reported Daily Production 2014 2015 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total Total Production Gas (MMcf/d) 795 791 746 742 768 705 675 690 Oil (Mbbl/d) 19.3 23.7 25.8 32.3 25.3 34.6 32.7 33.7 NGLs (Mbbl/d) 17.6 17.9 17.1 15.9…
  20. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 20
    Domestic Price Realization for 2015 Gas (/Mcf) Oil (/bbl) NGL (/bbl) 1Q 15 2Q 15 3Q 15 4Q 15 1Q 15 2Q 15 3Q 15 4Q 15 1Q 15 2Q 15 3Q 15 4Q 15 Weighted-Average Sales Price 2.90 2.40 38.34 49.64 22.74 20.40 1 Revenue Adjustments (.28)…
  21. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 21
    Western Prices Have Increased Relative to Eastern Locations West Basis Strengthening1 East Basis Weakening2 0.50 0.33 0.00 (0.19) (0.24) per MMBtu -0.50 (0.42) -1.00 (1.06) -1.50 (1.76) -2.00 2006 to 2010 2011…
  22. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 22
    Mexican Exports to Drive Western Demand Growth Total Current Capacity July 2014, El Paso announced 7.4 Bcf/d 21 Year deal with Mexicos CFE to provide up to 500 MMBtu/d of firm capacity from SJ basin Total Proposed Capacity to…
  23. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 23
    San Juan Gallup: Gathering Infrastructure Asset Description WPX built multi-commodity gathering system with multiple market outlets Current crude oil market access to Westerns Gallup, NM refinery and El Paso, TX refinery through…
  24. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 24
    Williston: Van Hook Gathering System Whiting CDP Asset Description WPX CDP Site WPX constructed pipe WPX built multiple commodity WPX planned pipe gathering system WPX Leasehold Access to utility grade power Van Hook CDP 2nd…
  25. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 25
    Piceance: Water Treatment System Asset Description WPX built produced and completions water handling system Three water treatment facilities located in basin 400 miles of water pipeline infrastructure System designed for 10 + rig…
  26. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 26
    Reconciliation-Adjusted Income (Loss) from Continuing Operations (Unaudited) 2014 2015 (Dollars in millions, except per share amounts) 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q YTD Income (loss) from continuing operations attributable to WPX…
  27. Barclays CEO Energy and Power Conference – WPX Energy, Inc. – slide 27
    Reconciliation EBITDAX (Unaudited) 2014 2015 (Dollars in millions) 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD Adjusted EBITDAX Reconciliation to net income (loss): Net income (loss) 19 (133) 66 219 171 68 (30) 38 Interest expense 29 28 31…

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