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The Permian Opportunity – Brigham Resources, LLC

Brigham Resources, LLC · May 22, 2014 · 22 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. The Permian Opportunity – Brigham Resources, LLC – slide 1
    Private Equity and the Permian Opportunity May 22, 2014 CONFIDENTIAL INFORMATION
  2. The Permian Opportunity – Brigham Resources, LLC – slide 2
    Our New Company Overview Austin, TX based company founded by Bud Brigham, Gene Shepherd and former Brigham Exploration management team members 650 Million Equity Commitment from Warburg, Pine Brook and Yorktown Dual Business…
  3. The Permian Opportunity – Brigham Resources, LLC – slide 3
    Building a Successful Company q A well thought out business model which is a good match with current industry conditions q Successful partnerships: Capital providers Lessors Service providers The local community State and federal…
  4. The Permian Opportunity – Brigham Resources, LLC – slide 4
    Our Business Model Build a portfolio of projects within a targeted risk profile Project Sourcing Vetting Acreage Capture Proof of Concept Development Drilling Strong resource play attributes Value Accretion Some level of…
  5. The Permian Opportunity – Brigham Resources, LLC – slide 5
    The Right People Our Team Name Title Experience Bud Brigham Chairman 30 Yrs Gene Shepherd Chief Executive Officer 31 Yrs Pat Medlock EVP - Geology 30 Yrs Erik Hoover EVP - Operations 24 Yrs Ken Treaccar EVP - Land 33 Yrs Rob Roosa…
  6. The Permian Opportunity – Brigham Resources, LLC – slide 6
    The Right Areas Our Current Project Portfolio Southern Delaware Basin Acreage: 72,805 Gross / 48,687 Net Objectives: Upper Wolfcamp (A & B) Lower Wolfcamp (C & D) 2nd Bone Spring Sand Southern Illinois Basin Acreage: 91,544…
  7. The Permian Opportunity – Brigham Resources, LLC – slide 7
    Capital Formation in the E&P Industry Private vs. Public Capital q Advantages of being a private equity backed company: Reduced level of disclosure and investor relations requirements: Allows management to be more focused on…
  8. The Permian Opportunity – Brigham Resources, LLC – slide 8
    The Current Private Equity Company Dilemma Arbitrage opportunity between the public and A&D markets is narrowing Page 9
  9. The Permian Opportunity – Brigham Resources, LLC – slide 9
    The Case for the Permian Permian Attributes q Oil denominated q Large geographic area q Good geologic continuity across the basins q Multiple objectives q Constructive regulatory environment q Lots of data q Significant existing…
  10. The Permian Opportunity – Brigham Resources, LLC – slide 10
    Permian Parallels with the Williston Permian Attributes Williston Attributes q Oil denominated q Large geographic area q Good geologic continuity across the basin q Multiple objectives q Constructive regulatory environment q Lots…
  11. The Permian Opportunity – Brigham Resources, LLC – slide 11
    Permian Deviations from the Williston q Competition, competition, competition q Very little leasehold available in core areas q Very sophisticated landowners with difficult lease provisions q Significantly thicker gross interval q…
  12. The Permian Opportunity – Brigham Resources, LLC – slide 12
    Thicker Interval and More Optionality but Greater Cap-Ex S. Delaware Midland Williston Basin Basin Basin Similar areal extent but significantly thicker gross interval Gross Interval Page 13
  13. The Permian Opportunity – Brigham Resources, LLC – slide 13
    Williston vs. Eagle Ford Production Daily Production (Mbbl/d) 1,600 1,400 1,319 1,200 Williston production grew 663% in 1,000 last 7 years, while Eagle Ford 1,017 production saw a 656% growth in 800 last 3 years 600 400 200…
  14. The Permian Opportunity – Brigham Resources, LLC – slide 14
    vs. Permian Basin Production Daily Production (Mbbl/d) 1,600 1,431 1,400 Where will the Permian be in 1,319 1,200 3 years 1,000 1,017 800 600 400 200 0 Eagle Ford Williston Permian Page 15
  15. The Permian Opportunity – Brigham Resources, LLC – slide 15
    Williston Basin Horizontal Activity 2007 Williston Horizontals As of YE2007, there were 52 rigs running and 3,655 horizontal wells had been drilled Page 16
  16. The Permian Opportunity – Brigham Resources, LLC – slide 16
    Williston Basin Horizontal Activity 2013 Williston Horizontals As of YE2013, there were 190 rigs running and 15,742 horizontal wells had been drilled Page 17
  17. The Permian Opportunity – Brigham Resources, LLC – slide 17
    Forecasted Williston and Permian Production Mbbl/d Forecasted YE 2025 production of 3 million vs. 2 million Bbls per day 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Permian Historical Williston Historical Permian…
  18. The Permian Opportunity – Brigham Resources, LLC – slide 18
    Permian Issues q Oil prices and basis Basis Differentials differentials 35.00 q Oilfield services capacity 30.00 q Crude oil takeaway 25.00 capacity 20.00 15.00 10.00 5.00 0.00 (5.00) WTI Cushing / Midland LLS /…
  19. The Permian Opportunity – Brigham Resources, LLC – slide 19
    Permian Takeaway Capacity q In the near future, infrastructure build-out should keep pace with production growth until 2017 but the supply / demand balance will remain tight q Permian production increases are mostly light sweet crude…
  20. The Permian Opportunity – Brigham Resources, LLC – slide 20
    The Road Ahead As acreage is delineated and operators move to manufacturing mode, huge operational efficiencies will be achieved, further enhancing project returns and NAVs: q Walking rigs with multi-axis move capabilities q Batch…
  21. The Permian Opportunity – Brigham Resources, LLC – slide 21
    The Road Ahead Four Key Factors to Outperformance Multi Lateral Drilling Batch Drilling Zipper Fracs Walking Rigs Page 22
  22. The Permian Opportunity – Brigham Resources, LLC – slide 22
    The Outlook for the Resource Opportunity in the Permian is Bright Picture of the Stewart 30 1H CONFIDENTIAL INFORMATION Page 23

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