EP Energy (NYSE: EPE) Improving execution in all four asset areas Net Acres: EAGLE FORD SHALE 94,0001 Net Acres: WOLFCAMP SHALE 3Q 2015 Net Daily Production (MBoe/d): 180,000 21.1 3Q 2015 Net Daily Production (MBoe/d): 61.4…
Focused Execution Operations consistently meeting/beating expectations each period since IPO Significantly reduced capital costs and operating costs Increased 2015 Outlook twice (April and July) Increased Wolfcamp Type Well EUR…
Top Tier Capital 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 6.5 6.5 6.0 9 395 6…
Top Tier Operating Costs /Boe Average LOE (3Q14 3Q15)1 Adjusted Cash Operating Costs Per Unit Peer Group 8.18 EP Energy Corporation 7.56 7.30 7.36 12.85 7.08 6.84 6.90 12.00 11.44 10.74 6.24 8.72 5.59 7.73 6.61 6.32 6.02…
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…
High-quality Asset Portfolio Eagle Ford Wolfcamp Altamont Haynesville 8
2015E Capital Program 1.2 1.25 Billion Facilities, Lease Other & Seismic 4% 8% Wolfcamp 20% Altamont 12% Eagle Ford 63% Haynesville Drilling & 5% Completions 88% Estimate 1 billion to maintain 2016 production around…
Eagle Ford: EPE Logical Consolidator Highest return oil program Top tier well productivity with higher IP rates Continuing to reduce costs and improve cycle times Acquired acreage EPE acreage Sub-sea depth (feet) Low…
Wolfcamp: Tremendous Resource in S. Midland Basin STOOIP (MMBO) Per Section Largest company inventory + 3,300 future drilling locations1 Increased sub-surface knowledge 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: Continued Improvement With Top Tier Results Top tier 2015 performance in Midland Basin Significantly improved IP30 and EUR 23 Results for Midland Basin counties; Midland, Glasscock, Upton, Reagan, Irion, Crockett,…
Altamont: Best Acreage In The Basin Oil Production Continued improvement in mature program (MBbls/d) 11.8 12.8 12.5 12.9 12.7 Oil production up 8% (3Q14 to 3Q15) 11.7 Completed two all-time best wells in 2015 9.5 9.8 8.9…
Haynesville: Premier Shale Gas Resource 36,000 net acres 100% HBP Excellent well level returns with break-even price below 2 per MMBtu1 Access to attractive Gulf Coast markets 2015 test program Completed two 4,500 laterals and…
Building a Stronger EPE Successful financial execution Multiple options to improve financial position Solid cash flow and earnings results Managing cash flow and capex Strong hedge program provides cash Increased capital efficiency…
Multi-year Hedge Program Provides Cash Flow Stability 2015 2016 2017 Oil Fixed Price Hedges Fixed Price Swap Oil volumes (MMBbls)1 5.6 18.0 5.1 Average floor price (/Bbl) 91.11 80.29 65.87 Percent hedged based on midpoint of…
Strengthening EPE Excellent financial and operational results Continued to improve asset programs Wolfcamp breakthrough Increased inventory in Eagle Ford Reduced cost, maintained margins and improved well returns Focused on further…
Company Overview December 2015
2015 Completed Wells By Quarter Program 1Q 2Q 3Q 4QE FY Eagle Ford 38 42 24 11 115 Wolfcamp 10 9 16 - 35 Altamont 9 12 7 1 29 Haynesville - - 2 2 4 Total company 57 63 49 14 183 21
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 (2/19/15) (4/30/15) Current Guidance 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 97.0 107.0…
Debt Summary Note 9/30/15 Interest Maturity Rating ( in millions) Rate Moodys / S&P 2.75B RBL1 1,135 Libor + May 2019 750M Term Loan 495 Libor + May 2018 B+ / Ba3 Principal 400M Term Loan 150 Libor + April 2019 B+ / Ba3…
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