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September 2015 Investor Presentation – Resolute Energy Corp

Resolute Energy Corp · Sep 29, 2015 · 41 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.

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  1. September 2015 Investor Presentation – Resolute Energy Corp – slide 1
    Energy Corporation Resolute Energy is a regionally diversified growth oriented E&P company Investor presentation focused on long-lived (NYSE: REN) domestic oil producing assets September 2015
  2. September 2015 Investor Presentation – Resolute Energy Corp – slide 2
    Resolute overview Company history Market capitalization1 36.4 million SEC PV10 2 973 million 2004 Resolute formed Long term debt 3 759.1 million Aneth Field: Assets acquired from Shares outstanding1 77.5 million 2005…
  3. September 2015 Investor Presentation – Resolute Energy Corp – slide 3
    Our operating areas Proved reserves are 92% liquids Areas of operation Powder River Basin 5.9 MMBoe proved reserves1 1,655 Boe per day (27% oil)2 Powder River 49,600 gross (44,400 net) Basin properties acres2 Aneth Field 54.2…
  4. September 2015 Investor Presentation – Resolute Energy Corp – slide 4
    The strategy is working Production is up 10% year-over-year despite 2015 net drilling and completion spending limited to approximately 10 million EBITDA is flat year-over-year despite significantly reduced product price…
  5. September 2015 Investor Presentation – Resolute Energy Corp – slide 5
    The strategy is working LOE is down 40% year-over-year Aneth LOE per Boe lowest since acquisition more than a decade ago Permian Basin cost reduction program reflects the results of operational enhancements that began when we…
  6. September 2015 Investor Presentation – Resolute Energy Corp – slide 6
    Reserves and production overview Year-end 2014 SEC case: Proved reserves: 74.2 MMBoe 56% proved developed 86% oil, 92% liquids PV10 973 million R/P ratio of 16 years 13,528 Boe per day Q2 net production 10% year-over-year…
  7. September 2015 Investor Presentation – Resolute Energy Corp – slide 7
    Long-lived properties Low declines, low maintenance capital requirements Aneth Field Boe per day Aneth Field discovered in 1956 7% base annual decline 2014 production increased by 2% 2015 maintenance capital 16 18 million Hilight…
  8. September 2015 Investor Presentation – Resolute Energy Corp – slide 8
    Permian Basin
  9. September 2015 Investor Presentation – Resolute Energy Corp – slide 9
    Permian Basin Permian Basin map 32,100 gross (22,100 net) acres1 85% located in core horizontal Denton development areas Northwest 54% oil, based on Q2 net Shelf Midland Basin production of 5,566 Boe per day 43% proved…
  10. September 2015 Investor Presentation – Resolute Energy Corp – slide 10
    Permian Basin Year-end 2014 SEC case: Proved reserves: 14 MMBoe PV10 181 million 28% year-over-year net production growth as of Q2 Current focus on horizontal Wolfcamp development in Reeves County 2014 proved reserve…
  11. September 2015 Investor Presentation – Resolute Energy Corp – slide 11
    Reeves County overview Horizontal development program Resolute-operated horizontal wells 22,100 gross (13,500 net) acres 1 Vertical producing well Resolute acreage Mustang Appaloosa Q2 net production 2,888 Boe per day, up 363%…
  12. September 2015 Investor Presentation – Resolute Energy Corp – slide 12
    Mustang area activity Relevant industry success Energen Winchester 57-10 1H Mustang BHP IP30: 2,186 Boepd State Hanging H Ranch 56-T3 8 1H IP30: 959 Boepd BHP Hansard Bettye 45-3 2H Cimarex IP30: 570 Boepd Eighteen Mile 56-18 1H…
  13. September 2015 Investor Presentation – Resolute Energy Corp – slide 13
    Appaloosa area activity Relevant industry success Appaloosa Cimarex Cimarex Horizontal well Resolute acreage Ruby 1-39 1H Livingston 2-12 1H IP30: 1,407 Boepd IP30: 1,816 Boepd Wolfcamp B Wolfcamp C Resolute Harrison State…
  14. September 2015 Investor Presentation – Resolute Energy Corp – slide 14
    Project economics Reeves County IRR sensitivity by well cost ( thousand) Area Mustang Appaloosa Lateral length 7,500 feet 4,500 feet 30 day IP (gross) 990 Boe per day 750 Boe per day EUR (gross) 910 MBoe 670 MBoe % oil 54% 59%…
  15. September 2015 Investor Presentation – Resolute Energy Corp – slide 15
    Horizontal well potential Delaware Basin Based on derisked zones Acreage Wells Resource Percent Average EUR Zones potential Gross Net Gross Net oil (MBoe) (MMBoe) Delaware Basin Mustang 13,200 7,200 153 88 54% 3 910 58 Appaloosa…
  16. September 2015 Investor Presentation – Resolute Energy Corp – slide 16
    Recent well results Operated wells 17
  17. September 2015 Investor Presentation – Resolute Energy Corp – slide 17
    Gardendale overview Gardendale 4,700 gross (4,600 net) acres 1 Midland Midkiff 1818H Q2 net production 1,649 Boe per day, up 2% from Q1 Opportunity for Lower Spraberry and Wolfcamp B development Three successful Resolute Wolfcamp…
  18. September 2015 Investor Presentation – Resolute Energy Corp – slide 18
    Stacked horizontal potential Offset results Resolute Midkiff 1818H Gardendale RSP Johnson Ranch 1018 WA IP30: 578 Boepd IP30: 1,059 Boepd Resolute Martin RSP Pearl Jam 2417H Horizontal well Resolute acreage Cross Bar Ranch MS…
  19. September 2015 Investor Presentation – Resolute Energy Corp – slide 19
    Project economics Gardendale (Spraberry) IRR sensitivity by well cost ( thousand) Zone Lower / Middle Spraberry Lateral length 5,000 feet 10,000 feet 30 day IP (gross) 750 Boe per day 1,235 Boe per day 1 EUR (gross) 580 MBoe 950…
  20. September 2015 Investor Presentation – Resolute Energy Corp – slide 20
    Project economics Gardendale (Wolfcamp B) IRR sensitivity by well cost ( thousand) Zone Wolfcamp B Lateral length 5,000 feet 10,000 feet 30 day IP (gross) 600 Boe per day 980 Boe per day EUR (gross) 425 MBoe 700 MBoe % oil 74%…
  21. September 2015 Investor Presentation – Resolute Energy Corp – slide 21
    Horizontal well potential Gardendale Based on derisked zones Acreage Wells Resource Average EUR Percent oil Zones potential Gross Net Gross Net (MBoe) (MMBoe) Midland Basin Lower / Middle Spraberry 1 Gardendale 4.5K 52 48 78% 2…
  22. September 2015 Investor Presentation – Resolute Energy Corp – slide 22
    Denton Field overview Acquired producing asset in 2013 Denton Field 2,900 gross (2,800 net) acres 1 Q2 net production 621 Boe per day Cumulative production through Q2 2015 120 MMBoe Some individual wells have produced more than…
  23. September 2015 Investor Presentation – Resolute Energy Corp – slide 23
    Aneth Field
  24. September 2015 Investor Presentation – Resolute Energy Corp – slide 24
    Aneth Field introduction Foundation asset Aneth Field 1.5 billion barrels OOIP Produced 438 MMBbl of oil through 2014 (29% recovery) Ongoing successful CO2 flood Aneth and McElmo Creek units predict an average recovery of 40% of…
  25. September 2015 Investor Presentation – Resolute Energy Corp – slide 25
    Aneth Field overview Year-end 2014 SEC case: Proved reserves: 54.2 MMBoe 57% proved developed PV10 717 million 6,307 Boe per day net Q2 production (95% oil) 2014 proved reserve characteristics 2014 SEC reserve report 26
  26. September 2015 Investor Presentation – Resolute Energy Corp – slide 26
    Aneth Field overview Foundation asset Fields like Aneth are rare Large CO2 recovery project, unlocks millions of recoverable barrels of oil Located 28 miles from the largest naturally occurring CO2 resource in the country Cash…
  27. September 2015 Investor Presentation – Resolute Energy Corp – slide 27
    Powder River Basin
  28. September 2015 Investor Presentation – Resolute Energy Corp – slide 28
    Hilight Field Subject to PSA Hilight Field (Muddy units) Resolute has entered into a PSA to Resolute Resolute sell Hilight Field Grady Unit Jayson Unit Purchase price of 55 million Private equity buyer Effective date of July 1,…
  29. September 2015 Investor Presentation – Resolute Energy Corp – slide 29
    Financial overview
  30. September 2015 Investor Presentation – Resolute Energy Corp – slide 30
    2015 production and cost guidance Projected 2015 Q2 2015 2014 guidance actual actual Total production (MBoe) 4,380 4,745 1,231 4,645 Boe per day 12,000 13,000 13,528 12,727 LOE ( million) 88 98 19 112 G&A1 ( million) 25 29 6 24…
  31. September 2015 Investor Presentation – Resolute Energy Corp – slide 31
    Bank borrowing base and second lien status Bank borrowing base 260 million borrowing base currently 160 million drawn as of June 30, 2015 Next redetermination October 2015 Incremental 50 million of second lien term loan drawn in May…
  32. September 2015 Investor Presentation – Resolute Energy Corp – slide 32
    Hedging strategy Provide protection against price downside Two to three year horizon Work the hedge book opportunistically Current Oil Derivative Positons Bbl/day % Hedged Utilizing Swap Collars Term Hedged Swaps Collars Options…
  33. September 2015 Investor Presentation – Resolute Energy Corp – slide 33
    Key investment highlights High quality base of long-lived oil producing properties Portfolio of development projects that are poised to provide incremental value Strong project returns and improving cost metrics Proven,…
  34. September 2015 Investor Presentation – Resolute Energy Corp – slide 34
    Resolute investor contacts
  35. September 2015 Investor Presentation – Resolute Energy Corp – slide 35
    Resolute investor contacts HB Juengling Vice President Investor Relations (hbjuenglingresoluteenergy.com) Theodore Gazulis Executive Vice President and Chief Financial Officer (tgazulisresoluteenergy.com) Corporate headquarters:…
  36. September 2015 Investor Presentation – Resolute Energy Corp – slide 36
    Appendix
  37. September 2015 Investor Presentation – Resolute Energy Corp – slide 37
    Margins/cost structure 2014 2015 ( in millions, except as noted) Q1 Q2 Q3 Q4 YTD Q1 Q2 YTD Sales volumes Total MBoe 1,134 1,120 1,164 1,227 4,645 1,215 1,231 2,446 Revenue including hedging 86.1 81.2 79.1 78.0 324.4 65.3 66.4…
  38. September 2015 Investor Presentation – Resolute Energy Corp – slide 38
    Margins/cost structure per Boe 2014 2015 ( per Boe) Q1 Q2 Q3 Q4 YTD Q1 Q2 YTD 1 Adjusted revenues 75.96 72.44 67.95 63.56 69.83 53.77 53.93 53.85 Expenses 2 Operating expenses 25.11 26.02 24.31 21.13 24.08 16.59 15.64 16.11…
  39. September 2015 Investor Presentation – Resolute Energy Corp – slide 39
    Adjusted EBITDA 2014 2015 ( in millions) Q1 Q2 Q3 Q4 YTD Q1 Q2 YTD Net income (loss) (3.5) (16.1) 15.0 (17.2) (21.9) (208.2) (259.1) (467.3) Adjustments: Interest 7.8 7.6 7.8 8.3 31.5 11.2 15.8 27.0 Taxes (1.1) (6.7) 7.4 (3.7)…
  40. September 2015 Investor Presentation – Resolute Energy Corp – slide 40
    Quarterly prices and volumes 2014 2015 Q1 Q2 Q3 Q4 YTD Q1 Q2 YTD Average prices: Oil ( per Bbl) 92.31 95.34 86.77 63.95 84.28 41.47 50.54 45.96 NGL ( per Bbl) 34.01 28.06 32.02 22.17 28.58 10.02 12.19 11.21 Gas ( per Mcf) 6.88…
  41. September 2015 Investor Presentation – Resolute Energy Corp – slide 41
    Pricing used for IRR sensitivities Pricing as of July 22, 2015 Strip 2015 2016 2017 2018 2019 Thereafter Oil 50.06 53.97 57.73 60.52 62.64 64.26 Gas 3.00 3.21 3.34 3.41 3.49 3.62 High strip 2015 2016 2017 2018 2019 Thereafter…

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