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March 2016 Investor Presentation – Gastar Exploration, Ltd.

Gastar Exploration, Ltd. · Mar 10, 2016 · 32 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. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 1
    Investor Presentation March, 2016
  2. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 2
    Gastar Overview Mid-Continent focused operator with high exposure to prolific STACK Play Mid-Continent STACK Play Utica Shale Play Potential Utica Shale Potential 25,400 net acres(1) STACK Optionality STACK Oswego 14,900 net…
  3. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 3
    Key Investment Criteria Pure play Mid-Continent STACK operator High-Quality STACK Resource Leading acreage position in coveted Mid-Continent STACK play Base Strong drilling results in the Meramec shale and Hunton Limestone oil play…
  4. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 4
    Track Record of Reserve Growth Mid-Continent Proved Reserves By Product(1) 50.0 41.1 40.0 21% 34.0 18% 30.0 MMBoe 78% Liquids 79% Liquids 57% 20.0 17.7 61% 13% 68% Liquids 10.0 55% 22% 21% 32%…
  5. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 5
    Mid-Continent Production Growth Mid-Continent Daily Production(1) 8.0 6.4 6.0 20% 4.8 4.3 MBoe/d 21% 74% 3.2 54% 71% 50% 1.6 1.1 6% 48% 54% 26% 29% 46% 0.0 2013 2014 2015 1. Gas converted to oil…
  6. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 6
    Summary Target Economics Meramec WEHLU Upper Hunton WEHLU Lower Hunton Northern Hunton Number of net drilling locations 351(1) 142(1) 144(1) 220(1) EURs Processed 827 Mboe 338 Mboe 459 Mboe 498 Mboe Wet Gas 710 Mboe 314 Mboe 428 Mboe…
  7. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 7
    Preliminary Capital Budget Preliminary 2016 Budget Detail Capital Area % of Total No. of Wells Spud Gross Net (MM) STACK Operated Drilling 5.5 15% Mid-Continent STACK Operated 1.0 1.0 STACK Non-Operated Drilling 8.0 22%…
  8. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 8
    Recent Transformative Transactions Pure Play Mid-continent Operator
  9. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 9
    Mid-Continent Acquisition Overview Take over operatorship and increase interest in coveted core Mid-continent STACK area Deal Overview Asset Map Closed December 16, 2015 42.1MM purchase price In addition to gross proceeds,…
  10. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 10
    NE Divestiture Overview Deal Overview Asset Map Effective date 01/01/2016 GST Position GST Existing Pipeline Expected close March 2016 Purchase price of 80.0MM PSA Signed 02/18/2016 Creates pure-play Mid-continent small cap…
  11. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 11
    Mid-Continent STACK Asset Overview
  12. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 12
    Mid-Continent STACK Operator Map One of the most active horizontal plays in North America currently, 32 rigs running in the area Note: Rig data obtained from Drillinginfo as of 03/02/2016 2016 Gastar Exploration Inc. 15
  13. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 13
    STACK Play - Overview Overview Five prospective formations across acreage position Multiple formations may be stacked depending on specific area Multiple benches within prospective formations Offers large quantity of drilling…
  14. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 14
    Mid-Continent Focused Operator Large, contiguous acreage position with multiple stacked horizontal targets Mid-Continent Asset Overview Mid-Continent Asset Map 110,200 net acres(1) Oklahoma North STACK 58,000 Meramec play key target…
  15. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 15
    STACK - Meramec Overview Activity Map(4) Offset operator IPs range up to 1,300 Boe/d (98% oil) Meramec returns attractive at todays commodity price environment Meramec activity - 103 active permits and 100 completed wells in the…
  16. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 16
    STACK Meramec Development GST Meramec Development Deep River 30-1H Production(1) 80,000 Deep River 30-1H Peak 24-Hr IP 1,094 Boe/d (71% oil) 70,000 30-day IP 956 Boe/d (68% oil) Cumulative Boe (2-Phase) 60,000 60-day IP 803…
  17. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 17
    STACK - Osage Overview Activity Map(4) Offset operator IPs range up to 1,900 Boe/d GST & other operator activity de-risking the play Osage activity 38 active permits and 86 completed wells in the area(1) Osage potential net…
  18. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 18
    STACK - Oswego Overview Activity Map(4) Offset operator IPs up to 2,000 Boe/d (93%+ oil) A growing horizontal target in the basin Up to four porosity-driven targets within the Oswego Oswego activity 14 active permits and 29…
  19. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 19
    STACK - Woodford Overview Activity Map(4) Offset operator IPs up to 1,000 Boe/d (84%+ oil) Other operator activity de-risking the play Non-operated participation in five wells Woodford activity 37 active permits and 58…
  20. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 20
    WEHLU WEHLU-Hunton offers a substantial source of high return projects Upper Hunton Overview WEHLU Map 41 PUDs on northern WEHLU acreage Seven well average results: Peak rate of 549 Boe/d (78% oil) Lower Hunton Overview 23 PUDS on…
  21. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 21
    Northern Hunton Development Northern Hunton Development Northern Hunton Activity Map Established position in 2012 to focus on Lower Hunton development Took over operatorship with closing of acquisition in December 2015 39…
  22. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 22
    Financial Overview
  23. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 23
    Financial Strategy Review strategic opportunities to reduce leverage and enhance liquidity Leverage Ratios and Liquidity Reduced capex budget allows for liquidity preservation Protects cash flow Hedging Program As of…
  24. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 24
    Capitalization and Liquidity Capitalization ( in millions) 12/31/2015 Pro-Forma(1) Cash 50.1 28.8 Long Term Debt Senior Secured Notes due 2018 (face value) 325.0 325.0 Revolving Credit Facility 200.0 100.0 Total Debt 525.0 425.0…
  25. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 25
    PDP Hedging Program Oil and NGLs Hedging Strategy 5,000 85.00 4,000 80.00 81.50 77.71 3,000 78.00 (Bbl/d) 74.73 2,000 2,405 74.50 1,000 1,422 71.00 283 0 (1) 67.50 2016 2017 2018 Volume Average Hedge Floor Price…
  26. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 26
    Realized Prices Mid-Continent Realized Oil Prices Realized Gas Prices 100% 99% 100% 100% 98% 99% 100.00 100% 6.00 100% 80.00 94.80 80% 4.80 80% 4.75 88.84 60.00 60% 4.25 3.60 60% 40.00 46.18 40% 2.40 40% 2.57 20.00 20% 1.20…
  27. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 27
    Production Costs Mid Continent (/Boe) Lease Operating Expense Transportation 12.00 Workover expense 0.05 10.17 9.48 9.60 0.05 8.85 0.04 0.39 1.98 7.20 0.03 0.02 10.12 4.80 9.09 0.02 6.87 2.40 0.01 0.01 0.01 0.00 0.00 2013…
  28. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 28
    Appendix
  29. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 29
    Realized Prices - Historical Realized Oil Prices Realized Gas Prices 100.00 93% 91% 91% 100% 6.00 100% 81% 80% 81% 79% 86.00 72% 75% 80% 4.80 80% 85.12 72.00 60% 3.60 60% 70.91 81.75 47% 65.45 3.21 3.41 58.00 40% 2.40 3.02 40%…
  30. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 30
    Production Costs Historical (/Boe) Lease Operating Expense Transportation 4.00 9.00 Workover expense 3.51 3.20 7.20 6.74 1.64 2.40 2.25 5.21 5.40 4.81 0.17 0.88 1.60 3.60 1.24 2.80 2.92 5.10 0.35 0.09 5.04 3.94 0.80 0.56 1.80…
  31. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 31
    Drilling Overview Well Results Cumulative Production Averages(1) Peak Area Rate 30 Day 60 Day 90 Day 180 Day 270 Day 360 Day % Oil(2) (Boe/d) Northern Hunton Average 632 378 380 366 316 271 238 63% Type Curve Well (3) 817 125 392…
  32. March 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 32
    Hedge Detail Natural Gas Oil Period Contract Type Volume Hedged Price Period Contract Type Volume Hedged Price Mar - Oct 16 3-Way 2,500 MMBtu/d 3.00 / 2.25 / 3.65 Mar - Dec 16 3-Way 275 Bbl/d 85.00 / 65.00 / 95.10 Mar - Dec 16 Prot.…

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