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January 2016 Company Presentation – Halcon Resources Corp

Halcon Resources Corp · Jan 20, 2016 · 26 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. January 2016 Company Presentation – Halcon Resources Corp – slide 1
    COMPANY PRESENTATION January 2016
  2. January 2016 Company Presentation – Halcon Resources Corp – slide 2
    Significant Oil Price & Rig Count Declines Have and Will Continue To Translate Into Lower Domestic Supply 2014 to Present: Lower 48 Rig Oil Rig Count & Oil Price Key Observations 120.00 Since the beginning of 2014, oil rig 1,800…
  3. January 2016 Company Presentation – Halcon Resources Corp – slide 3
    Oil Supply + Demand are Poised to Balance in 2016 Major 2016 Global Supply/Demand Factors (MMbbl/d) 1.4 Other Factors That Could Drive a Bigger Supply Deficit in 2016 (0.6) +0.3 +0.0 Geopolitical risk; Escalating turbulence in…
  4. January 2016 Company Presentation – Halcon Resources Corp – slide 4
    2016 Strategy 2016 Capital Budget Recently announced reduced 2016 D&C budget of 140 160 MM 1,600 45.0 1,400 40.0 - 55% decrease in D&C Budget vs. 2015 40.8 41.4 (1) 1,200 (2) 35.0 38.0 - Focus on preserving liquidity and…
  5. January 2016 Company Presentation – Halcon Resources Corp – slide 5
    2015 Achievements Focused on Improving our Balance Sheet Reduced long-term debt by 1 BN & annual cash interest expense by 50 MM - Exchanged 290 MM in face value of Senior Unsecured Notes into 113 MM of Second Lien Secured Notes -…
  6. January 2016 Company Presentation – Halcon Resources Corp – slide 6
    Ample Liquidity & Improved Leverage Profile No Near-Term Debt Maturities HK 4Q Debt PF HK Capitalization (MM) 09.30.15 Exchange 09.30.15 Cash & Cash Equivalents 6 6 Restricted Cash 17 17 Senior Secured Revolving Credit Facility 44…
  7. January 2016 Company Presentation – Halcon Resources Corp – slide 7
    Preliminary 2016 Operating and Financial Guidance Summary HK continues to evaluate its 2016 drilling plans considering current commodity prices 2016E Production (Boe/d) Total 37,000 39,000 Capital Spending ( in millions) Drilling…
  8. January 2016 Company Presentation – Halcon Resources Corp – slide 8
    Strong Hedge Program in 2016 Designed to support capital program and protect cash flow In 2016, 81% of oil is hedged based on the midpoint of 2016E production guidance Weighted Average Oil Price: 81/bbl in 2016 (1) 3,750 bbl/d…
  9. January 2016 Company Presentation – Halcon Resources Corp – slide 9
    Significant Per Unit Cost Improvements Historical LOE (1)/Boe Historical G&A/Boe (2) 42% decrease in 75% decrease in LOE/Boe G&A/Boe 15.63 15.81 11.49 9.52 9.00 9.00 8.99 5.98 5.00 4.00 (3) (3) (3) (3) 2012 2013 2014…
  10. January 2016 Company Presentation – Halcon Resources Corp – slide 10
    Core Growth Assets in Place Inventory Highlights Potential Gross Operated Drilling Inventory (2) 1,000 economic gross operated locations in core 1,319 areas at 60 WTI +31% - Represents 7+ years of drilling inventory with 1,007…
  11. January 2016 Company Presentation – Halcon Resources Corp – slide 11
    Bakken / Three Forks Highlights 2016 Outlook Williams County Expect to spud 15 to 20 gross operated wells with 1 rig running the majority of 2016 (avg. WI 60%) Avg. estimated EUR: 900 MBoe Expect to participate in 50 65 gross…
  12. January 2016 Company Presentation – Halcon Resources Corp – slide 12
    Deep Inventory in the Heart of the Williston Basin Depth of Inventory in FBIR Avg. Base EUR Wells per DSUs Remaining Gross Op Locations (Mboe) DSU 12/31/15 60 WTI (2) 80 WTI (3) Strip (1) North FBIR 14 10 69 69 69 801 South…
  13. January 2016 Company Presentation – Halcon Resources Corp – slide 13
    FBIR Bakken Slickwater Wells Outperforming the Type Curve 375,000 350,000 325,000 300,000 275,000 Cumulative Oil Production (Bbl) 250,000 225,000 200,000 175,000 150,000 125,000 100,000 75,000 50,000…
  14. January 2016 Company Presentation – Halcon Resources Corp – slide 14
    Well Cost Reduction Details Fort Berthold (FBIR) 11.0 (1.6) (0.8) 6.8 Cost ( in millions) (1.3) (0.5) Completions: all white sand Drilling: eliminate spud rig and more efficient use of contractors/consultants Reduced…
  15. January 2016 Company Presentation – Halcon Resources Corp – slide 15
    Williams County: Ready for a Rebound Depth of Inventory in Williams County Avg. Base EUR Wells per DSUs Remaining Gross Op Locations (Mboe) DSU Williams County 12/31/15 60 WTI (2) 80 WTI (3) Strip (1) Williams Co. 4-7 94 102 251…
  16. January 2016 Company Presentation – Halcon Resources Corp – slide 16
    Williams County HK Completed Wells Outperforming the Type Curve 175,000 150,000 125,000 Cumulative Oil Production (Bbl) 100,000 75,000 50,000 25,000 0 - 60 120 180 240 300 360 420 480 540 600 660…
  17. January 2016 Company Presentation – Halcon Resources Corp – slide 17
    El Halcn East Texas Eagle Ford Shale Highlights 92,000 net acres leased in the core of the play Entire position de-risked through operated step outs and offset results by others 2016 Outlook Expect to spud 2 gross operated wells…
  18. January 2016 Company Presentation – Halcon Resources Corp – slide 18
    Deep Inventory in Core of Play Depth of Inventory in El Halcn Avg. Well Base EUR Remaining Gross Op Locations Spacing (Mboe) 12/31/15 60 WTI (2) 80 WTI (3) Strip (1) El Halcon 1,000' 97 548 678 452 Total 97 548 678 Years…
  19. January 2016 Company Presentation – Halcon Resources Corp – slide 19
    Well Cost Reduction Detail El Halcn Single Well Cost Lower Frac Intensity Development Well Cost Higher Frac Intensity 9.5 (1.1) +0.5 6.8 +0.2 6.8 (1.3) Cost ( in millions) (0.3) (0.7) Reduced rates across the board…
  20. January 2016 Company Presentation – Halcon Resources Corp – slide 20
    El Halcn Well Performance 160,000 140,000 120,000 Cumulative Production, Boe 100,000 80,000 60,000 40,000 20,000 0 0 30 60 90 120 150 180 210 240 270 300 330 360 Producing Days 452 Mboe El Halcn Type Curve…
  21. January 2016 Company Presentation – Halcon Resources Corp – slide 21
    Navigating a Challenging Market Improving Balance Recent steps taken to strengthen balance sheet, provide sufficient liquidity to fund operations and service debt for several years Sheet No near-term debt maturities Strong Hedge…
  22. January 2016 Company Presentation – Halcon Resources Corp – slide 22
    Company Presentation Appendix
  23. January 2016 Company Presentation – Halcon Resources Corp – slide 23
    Company Profile Bakken/Three Forks 120,000 Net Acres 140.0 MMBoe Proved Reserves (1) Other 7.4 MMBoe Proved Reserves (1) El Halcn 92,000 Net Acres 41.7 MMBoe Proved Reserves (1) (1) Proved reserves and PV10 as of…
  24. January 2016 Company Presentation – Halcon Resources Corp – slide 24
    Derivative Detail Oil Hedge Summary FY 2016 FY 2017 Volume Ceiling / Swap Floor Volume Ceiling / Swap Floor (Bbls) Price (1) Purchased (1) (Bbls) Price (1) Purchased (1) Collars 4,574,000 78.47 72.63 1,368,750 74.16 57.33 (2) Swaps…
  25. January 2016 Company Presentation – Halcon Resources Corp – slide 25
    Oil & Gas Marketing Avg. NYMEX Marketing Highlights 3Q15 HK Oil Differentials by Area (1) Oil Price Williston Basin 46.70/bbl 101% Oil Marketing 98% 80%+ of production connected to pipeline at 98% 83% 87% year-end 2015…
  26. January 2016 Company Presentation – Halcon Resources Corp – slide 26
    Halcn Ownership (in thousands) (6) Basic Dilutive Securities Fully Diluted Net Diluted (1) (2) (3) RSAs (4) (5) Owner Shares Percent Conv. Debt Conv. Preferred Warrants PSUs Options Shares Percent Shares Percent HALRES LLC - -…

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