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November 2015 Investor Presentation – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Nov 26, 2015 · 29 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. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 1
    Integrity Teamwork Transparency November 2015 Investor Presentation
  2. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Market Cap(1): 0.4 billion Wattenberg Field(2) Arkansas 25,000 7,000 Enterprise Value(1): 1.2 billion Boe/d Boe/d 3Q15 Production: 29.0 Mboe/d Production Mix(3): 76% liquids 2014 Proved…
  3. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 3
    Stacked Pay in High-Margin Oil Window 70,000 net acres in delineated oil window Zero exposure to urban population eliminates regulatory setback risk Blocky acreage accommodates long laterals Established field level and regional…
  4. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 4
    Contiguous Position Enables Efficient Development Contiguous Leasehold Position Advantage on 97,000 Gross (70,000 Net) Acres Minimize rig movement time from pad to pad Leverage efficient batch drilling approach on multi-well pads…
  5. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 5
    Consistent Geology Throughout Acreage Position Niobrara A Bench 3 Thinner and resistivity less developed vs B & C Benches 22 Niobrara B Bench 1 4 Consistent thickness and resistivity across BCEI leasehold 5 Niobrara C Bench 6 7…
  6. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 6
    Driving Efficiencies & Strengthening the Balance Sheet Solid 3Q execution Production above guidance Costs down materially quarter over quarter Creating value through capital and production efficiencies Increased well performance…
  7. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 7
    3Q15 Highlights GAAP net loss of 112.3 million, or 2.25 per diluted share; Adjusted net loss of 3.6 million, or 0.07 per diluted share and adjusted EBITDAX of 73.3 million for 3Q15.(1) CAPEX Production 30 180 164 29 160 28 140…
  8. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 8
    Increased Sand Enhances Well Economics Increase in sand loading to 1,500 lbs per lateral foot resulted in a 45% decrease to well payback period assuming current strip pricing. Bonanza Creek plans to implement increased sand loading…
  9. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 9
    Infrastructure Improvements Improved Performance due to Pronghorn Gathering System/Windmill Line Start up of Windmill pipeline resulted in lower, more consistent line pressure on BCEIs eastern acreage. Upon start up, production…
  10. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 10
    Delivering on Well Cost Reductions (A) Pro forma the RMI transaction, the Company is executing well costs of 3.0 million for SRL and 4.5 million for XRLs. (B) Drilling incentives from the RMI transaction will effectively reduce well…
  11. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 11
    Increasing Drilling Efficiencies Significant decrease in drill times for both SRL and XRL wells in 2015 Average SRL Drill time Released a rig in 10 4Q15 due to reduced 5 7.8 cycle times; BCEI 6.3 5.9 0 now operating 1 rig in…
  12. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 12
    Attractive RMI transaction Entered into an agreement to divest RMI to a strategic midstream partner for anticipated proceeds of 255 million. Transaction expected to close by December 31, 2015, but no later than January 31, 2016.…
  13. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 13
    Solid Financial Position 420 million in liquidity at 3Q15 594 million pro forma RMI closing(1) Pro Forma(1) Debt Maturities at Sept. 30, 2015 Long-dated, low coupon 600 unsecured debt issuances 500 400 millions 300 Pro…
  14. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 14
    BCEI vs Basin Focused Peers Unit EBITDAX Net Debt / EBITDAX 35 4.5x Net Debt / LTM EBITDAX EBITDAX / Boe (MRQ) Peer Group Peer Group 30 4.0x Avg: Avg: 25 19.38 3.5x 3.1x 20 3.0x 2.5x 15 2.0x 10 1.5x 5 1.0x 0 0.5x…
  15. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 15
    Investment Recap Company Headquarters 410 17th Street, Suite 1400 Contiguous Denver, Colorado 80202 Investor Relations Acreage (720) 440-6100 Ryan Zorn (720) 440-6172 rzornbonanzacrk.com Resilient Maximizing James Edwards…
  16. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 16
    Appendix 17
  17. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 17
    Significant Multi-Year Growth in the Wattenberg 2012 2015 2012 Niobrara B productive across acreage 2013 Niobrara C productive across acreage; Codell productive across 15,000 net acres 2014 Niobrara B / C stacking confirmed;…
  18. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 18
    DJ Basin Predictability is Superior 8x 7x Ideally suited for full-field 1st 90 Day Production: Ratio of P10/P90 6x development 5x 4x 3x 2x 1x 0x Permian - Wolfcamp Marcellus Eagle Ford Utica Bakken DJ…
  19. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 19
    Wattenberg Niobrara Resilient to Low Oil Prices Selected U.S. Oil / Liquids Basin IRRs at the Strip and Theoretical IRR with 20% Reduction in Capex Internal Rate of Return (IRR) 40% 75% of BCEI acreage is 35% amenable to extended…
  20. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 20
    Strong Reserves Growth and Measured Booking Methodology Wattenberg 1P Reserves(1) 558 MMBoe Net 3P Reserves 70,000 Codell Wattenberg 1P 60,000 55% 7% 14% Arkansas 50,000 8% 40,000 60% 30,000 20,000 40% 32% 68% Niobrara C…
  21. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 21
    Increased Gas Infrastructure Enhances Productivity Sullivan CS 40 MMcf/d Lucerne II 200 MMcf/d Windmill Line DCP Lucerne II plant brings significant additional gas processing capacity to the basin, creating lower, more…
  22. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 22
    Oil Pipeline Infrastructure Expanding Differentials Tightening Rail Takeaway Capacity Timing 120 MBbl/d Existing Pony Express 105 MBbl/d By YE15 DJ Lateral Pipeline Takeaway Grand Mesa(1) Capacity Timing 470 MBbl/d…
  23. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 23
    Wattenberg Horizontal Niobrara Economics(1) Target Three-Stream SRL 354 and XRL 687 MBoe Type Curves 700 SRL 354 (2-stream IPs): 650 30-day Avg: 30-day 458 boepd Avg: 458 boepd 60-day Avg: 60-day 400 boepd Avg: 400 boepd 600…
  24. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 24
    Adjusted Net Income (1) Reconciliation Three Months Ended September 30, 2015 Net Loss (112,298) Adjustments to net loss: Derivative gain (37,894) Derivative cash settlements 37,717 Impairment of proved properties 166,780…
  25. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 25
    Adjusted EBITDAX(1) Reconciliation Three Months Ended September 30, 2015 Net Loss (GAAP) (112,298) Exploration 6,979 Depreciation, depletion and amortization 58,635 Impairment of proved properties 166,780 Abandonment and impairment…
  26. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 26
    Strict Focus on Cash Operating Costs Unit Cash Operating Costs (/Boe) Unit Revenue & Cash Margins (/Boe) 20 75 18 16 1.63 60 3.15 61.73 6.05 2.62 14 0.91 12 45 72% 48.01 6.76 6.03 5.43 5.50 10 4.14 8 30 65% 35.44 29.52 6…
  27. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 27
    Reconciliation to Cash Margin We define unhedged cash margin per Boe as oil and natural gas revenues, less (1) lease operating expense, (2) oil and natural gas taxes, and (3) cash G&A expense (excludes stock-based compensation), divided…
  28. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 28
    Mid-Continent Operations (Arkansas) Conventional Cotton Valley: 6,500 8,800 feet ERA SYSTEM SERIES GROUP FORMATION CENOZOIC EOCENE Claiborne PALEOCENE Wilcox Low-risk infill development down to 5-acre spacing TERTIARY CRETACEOUS…
  29. November 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 29
    Lenticular Oil-Weighted Cotton Valley Sands Pin-Point Fracture Technology Focused completion technology Improved recovery of OOIP Highly repeatable Dorcheat Unit 37 25-30 sand/shale sequences Each zone individually pressured…

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