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April 2015 Management Presentation – Venoco Inc.

Venoco Inc. · Apr 29, 2015 · 40 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. April 2015 Management Presentation – Venoco Inc. – slide 1
    Venoco Management Presentation 1
  2. April 2015 Management Presentation – Venoco Inc. – slide 2
    Venoco Management Team Timothy Marquez Executive Chairman 30+ years of experience Mark DePuy Chief Executive Officer 30+ years of experience Brian Donovan Scott Pinsonnault General Counsel, Secretary Interim Chief…
  3. April 2015 Management Presentation – Venoco Inc. – slide 3
    Venoco Today Company Overview Primary Areas of Operation Founded in 1992 and currently has 20+ Santa Barbara County Bakersfield years of California experience L.A. Carpinteria Ellwood Facility Platform with experienced 3 Mile…
  4. April 2015 Management Presentation – Venoco Inc. – slide 4
    Operational and Financial Strategy Preserve net asset value through low-risk development projects while positioning for upside Focus on cost optimization in light of challenging commodities market Maintain low operating cost per Boe…
  5. April 2015 Management Presentation – Venoco Inc. – slide 5
    2014 Highlights Drilling success achieved at South Ellwood in both the Lease Line wells and Coal Oil Point discovery Adopted maintenance capital plan in late 2014 (46 MM FY 2014(1); 18 MM FY 2015E) 6 wells drilled (1 Coal Oil…
  6. April 2015 Management Presentation – Venoco Inc. – slide 6
    2015 Planned Activity Continued response to current low oil price environment Capital budget based on necessary maintenance capex Manage capital and operating budgets safely through vendor, lease, and project deferral savings…
  7. April 2015 Management Presentation – Venoco Inc. – slide 7
    Key Investment Highlights Controls 406 MMBoe low risk resource base(1) 1 Large Inventory of 2P reserves of 63 MMBoe (96% Liquids) with a 21 year reserve life(2) Long Life Oil-Weighted 2P pre-tax PV-10 of 1,223 MM(2)(3) Reserves 91%…
  8. April 2015 Management Presentation – Venoco Inc. – slide 8
    1 Venoco Reserves Proved Reserves by Hydrocarbon Proved Reserves by Category Proved Reserves by Area Gas NGLs 4% 4% Texas PUD 25% South 31% Ellwood Other 50% PDP SoCal 7% Sockeye Oil PNP 66% 18% 92% 3% Reserves Oil…
  9. April 2015 Management Presentation – Venoco Inc. – slide 9
    2 Exposure to Crude Upside Operating leverage creates significant upside As of 2/6/2015 from improving crude prices ( in millions) 2015 Hedges Mark-to-Market(1) 44 10 / Boe increase in crude prices (1) 2016 Hedges Mark-to-Market…
  10. April 2015 Management Presentation – Venoco Inc. – slide 10
    2 Hedging Program Oil Downside Protection % of Oil Production 90% 68% 5,000 4,500 4,000 100.40 3,500 3,000 Bbls/d 2,500 96.00 90.00 Avg. = 2,000 91.04 Avg. = 1,500 93.00 1,000 90.00 500 - 2015 2016 Collars Swaps…
  11. April 2015 Management Presentation – Venoco Inc. – slide 11
    3 Premier California Platform Venoco has proven performance & commitment in environmentally and socially sensitive areas. Venoco is extremely proficient working in California, which is a competitive advantage. Operational Excellence…
  12. April 2015 Management Presentation – Venoco Inc. – slide 12
    4 Exemplary Safety and Corporate Record Venocos ongoing commitment to safety and operational excellence is a key element of the Companys corporate culture. Managing Liabilities and Operating Exposures Federal offshore Safety and…
  13. April 2015 Management Presentation – Venoco Inc. – slide 13
    3 Track Record of Successful M&A Venoco has proven track record of executing successful M&A transactions. Whittier Field: 1994 2001 Cash-on-cash return 55.0x Beverly Hills: 1994 Today Cash-on-cash return of 7.0x Santa Clara…
  14. April 2015 Management Presentation – Venoco Inc. – slide 14
    5 Large Inventory of Potential Projects Project Platform Region Comments Reservoir 2015-2021 Timing 3P Booked Contingent Risk Capex Reserves(1) Resources(1) ( MM) (MMBoe) (MMBoe) Growth Capex Included in Forecast South Ellwood Holly…
  15. April 2015 Management Presentation – Venoco Inc. – slide 15
    5 Significant Upside from Existing Assets Company Resource Potential (MMBoe) 450 400 34 6 350 300 180 250 200 406 9 14 150 17 5 3 17 100 56 2 50 23 65 41 0 1P Reserves 2P Reserves 3P Reserves Total…
  16. April 2015 Management Presentation – Venoco Inc. – slide 16
    5 South Ellwood Lease Line Adjustment Continuation of current, proven South Ellwood Field Resource potential of 56 MMBoe with low resource risk 1.0 Billion Bbls OOIP in adjustment area Utilizes existing Platform Holly…
  17. April 2015 Management Presentation – Venoco Inc. – slide 17
    5 South Ellwood Lease Line Adjustment Development Details Drill up to 6 wells from April 2017 through May 2029(1) 22 MM average well cost Longest wells reaching +/- 23,000 MD Expected IP 2,500 6,000 Boe/d Potential for additional…
  18. April 2015 Management Presentation – Venoco Inc. – slide 18
    Asset Detail 19 19
  19. April 2015 Management Presentation – Venoco Inc. – slide 19
    South Ellwood Asset Location South Ellwood Field Overview (100% WI) Located 2 miles offshore along the northern margin of the Santa Barbara Channel 2P reserves of 36.2 MMBoe (94% Liquids)(1); current net production of 3,362…
  20. April 2015 Management Presentation – Venoco Inc. – slide 20
    Santa Clara Unit Overview Santa Clara Unit Overview (100% WI) Asset Location Located 10 miles offshore in Federal waters 2P reserves of 9.3 MMBoe (100% Liquid)(1); current net production of 2,019 Boe/d(2) Upside of 28.2 MMBoe…
  21. April 2015 Management Presentation – Venoco Inc. – slide 21
    Hastings Field CO2 Flood Project Asset Overview (Venoco 22.45% Non-op Reversionary WI) Asset Location Denbury Resources (DNR) operated Venoco has 22.45% reversionary working interest and 19.3% Net Revenue Interest - Option to back into…
  22. April 2015 Management Presentation – Venoco Inc. – slide 22
    Other SoCal Properties Low Capex, High Rate of Return Assets Dos Cuadras Field (25% Non-Op WI) Beverly Hills (100% WI) Stable production and cash flow Stable production and cash flow BFIT Net Cash/Boe averaged 36.02 in 2014 BFIT Net…
  23. April 2015 Management Presentation – Venoco Inc. – slide 23
    Financial Projections 24 24
  24. April 2015 Management Presentation – Venoco Inc. – slide 24
    Forecast Assumptions (1) Price February 6, 2015 strip for WTI through 2020; flat 69.78/Bbl thereafter Differentials Based on 5 year historical average PDP Decline Curve 9 15% decline curve from 2015 2021 Project: 2015 2021 capex…
  25. April 2015 Management Presentation – Venoco Inc. – slide 25
    Forecast Summary Fiscal Year Ending December 31, ( in millions, except per barrel statistics) 2015 2016 2017 2018 2019 2020 2021 Key Operating Statistics WTI (Feb 6 Strip) 55.04 62.48 64.88 66.80 68.46 69.78 69.78 Net Realized…
  26. April 2015 Management Presentation – Venoco Inc. – slide 26
    Appendix 27 27
  27. April 2015 Management Presentation – Venoco Inc. – slide 27
    Seasoned Management Team Timothy Marquez, Executive Chairman Co-founded Venoco Inc. in September 1992 and served as CEO until June 2002. During that time the company progressed from a startup with an initial equity stake of 3,000 to…
  28. April 2015 Management Presentation – Venoco Inc. – slide 28
    Seasoned Management Team Brian Donovan, General Counsel, Secretary Became General Counsel and Secretary in October of 2014. Brian began his tenure with Venoco, as Assistant General Counsel and Assistant Secretary in December of 2007…
  29. April 2015 Management Presentation – Venoco Inc. – slide 29
    Seasoned Management Team Beth A. Behnke. Vice President Human Resources Began her tenure as Venocos Training Manager in early 2008. She took over leadership of the department in March 2009 as Director of Human Resources. Ms. Behnke…
  30. April 2015 Management Presentation – Venoco Inc. – slide 30
    Seasoned Management Team Chris Peltonen, Geoscience Manager Currently Geoscience Manager for Venoco, Inc.s Southern California operations including the onshore Monterey Shale, he oversees a team of geoscientists responsible for…
  31. April 2015 Management Presentation – Venoco Inc. – slide 31
    South Ellwood Recent Drilling De-risked Coal Oil Point structure with discovery well (3242-19RD5) in 2013 and 2014 follow up (3242-20RD2) 3242-20RD2 3242-19RD5 3242-4RD3 3242-12RD1 3242-15Rd1 3242-20: Follow up well…
  32. April 2015 Management Presentation – Venoco Inc. – slide 32
    South Ellwood Lease Adjustment Lease adjustment; recoverable resources of 56 South Ellwood Field (Venoco 100% WI, 83% NRI) MMBoe Continuation of current, proven S Ellwood field 1.0B OOIP in adjustment area Structurally high to…
  33. April 2015 Management Presentation – Venoco Inc. – slide 33
    Onshore Monterey Sevier Field (Venoco 100% WI, NRI 80%) Sevier Field Net Acres Leased: 6,562 300 600 Well Locations Contiguous acreage; 98% unitized Identified 2P reserves of 33 MBoe (100% Oil)(1); current net production of 28…
  34. April 2015 Management Presentation – Venoco Inc. – slide 34
    Additional Exploration Portfolio Paredon: 14 MMBoe Recoverable Asset Location 100 MMBoe in place Main Structure Tested 31 API Oil from transition zone (1824 41) South Flank Confirmed by Production (1826 34A cum 405,455Boe) Offshore…
  35. April 2015 Management Presentation – Venoco Inc. – slide 35
    Condensed Strategic M&A Timeline Entered Sac Basin with Venoco founded Built asset base in Southern CA with acquisition of acquisition of Willows & Acquired Platform by Tim Marquez Whittier Field in March 1994 & Santa Clara Ave. field…
  36. April 2015 Management Presentation – Venoco Inc. – slide 36
    Condensed Strategic M&A Timeline Tim Marquez announced take private Completed sale of bid for 12.50/share in Acquired West Hastings complex to Aug. 2011 Montalvo (61 MM) Denbury in Feb. 2009 Acquired TexCal and Manvel (45 (251MM…
  37. April 2015 Management Presentation – Venoco Inc. – slide 37
    Reserve Report Summary Reserve Report Summary 2014YE 2014YE 2014YE 2014YE SEC Pricing Estimated Reserves as of December 31, 2014 Net Oil Net Gas Net NGL Net BOE (Mbbl) (Mmcf) (Mbbl) (Mbbl) Coastal California Beverly Hills PDP 139 140…
  38. April 2015 Management Presentation – Venoco Inc. – slide 38
    Reserve Report Summary (Contd) Reserve Report Summary 2014YE 2014YE 2014YE 2014YE SEC Pricing Estimated Reserves as of December 31, 2014 Net Oil Net Gas Net NGL Net BOE (Mbbl) (Mmcf) (Mbbl) (Mbbl) Monterey Sevier PDP 34 - - 34 PDN -…
  39. April 2015 Management Presentation – Venoco Inc. – slide 39
    Non-GAAP Measures Adjusted EBITDA We use Adjusted EBITDA, as a supplemental measure of our performance that is not required by, or presented in accordance with, GAAP. We define Adjusted EBITDA as net income (loss) before interest…
  40. April 2015 Management Presentation – Venoco Inc. – slide 40
    Non-GAAP Measures PV-10 The pre-tax present value of future net cash flows, or PV-10, is a non-GAAP measure because it excludes income tax effects. We believe that pre-tax cash flow amounts are useful for evaluative purposes since…

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