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June 2016 Investor Presentation – Gastar Exploration, Ltd.

Gastar Exploration, Ltd. · Jun 28, 2016 · 34 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. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 1
    Investor Presentation June 2016
  2. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 2
    Corporate Overview
  3. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 3
    Gastar Overview Mid-Continent focused operator with high exposure to prolific STACK Play Mid-Continent STACK Play STACK Optionality STACK Oswego 14,900 net acres(1) STACK Meramec 37,500 net acres(1) STACK Osage 38,700 net…
  4. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 4
    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…
  5. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 5
    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%…
  6. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 6
    Mid-Continent Production Growth Mid-Continent Daily Production(1) 8.0 6.4 6.1 6.0 20% 21% 4.8 4.3 MBoe/d 21% 71% 74% 3.2 50% 54% 71% 50% 1.6 1.1 6% 54% 29% 48% 26% 29% 46% 0.0 2013 2014 2015…
  7. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 7
    Summary Target Economics Based on Wright & Co. proved reserve type curve assumptions(1) Meramec WEHLU Upper Hunton WEHLU Lower Hunton Number of net drilling locations 351 142 144 EURs Processed 827 Mboe 338 Mboe 459 Mboe Wet Gas…
  8. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 8
    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(2) 1.0 1.0 STACK Non-Operated Drilling 8.0 22%…
  9. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 9
    Mid-Continent STACK Asset Overview
  10. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 10
    Mid-Continent STACK Operator Map One of the most active horizontal plays in North America, currently 20 rigs running in the area Note: Rig data obtained from Drillinginfo as of 04/29/2016 2016 Gastar Exploration Inc. 12
  11. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 11
    Recent STACK Research WTI Breakevens ( / bbl) Niobrara Inner Core Wolfcamp B Brushy Canyon Wolfcamp A 45 Oil, 2.50 Gas STACK 35 Oil, 2.00 Gas Bonespring Eagleford East Eagleford West Niobrara Middle Core SCOOP/STACK…
  12. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 12
    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…
  13. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 13
    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 Oklahoma Meramec play key target North STACK 58,000…
  14. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 14
    STACK - Meramec Overview Activity Map(4) Offset operator IPs range up to 1,600 Boe/d (98% oil) Meramec returns attractive at todays commodity price environment Meramec activity - 103 active permits and 142 completed wells in the…
  15. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 15
    STACK Meramec Development GST Meramec Development Deep River 30-1H Production(1) 120,000 Deep River 30-1H Drilled to TD in 34 days 100,000 Peak 24-Hr IP 1,094 Boe/d (71% oil) 30-day post IP 956 Boe/d (68% oil) Cumulative Boe…
  16. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 16
    STACK - Osage Overview Activity Map(5) Offset operator IPs range up to 1,900 Boe/d Other operator activity de-risking the play Non-operated participation in two wells Osage activity 43 active permits and 91 completed wells in…
  17. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 17
    STACK - Oswego Overview Activity Map(5) Offset operator IPs up to 2,100 Boe/d (93%+ oil) A growing horizontal target in the basin Up to four porosity-driven targets within the Oswego Other operators activity de-risking the play…
  18. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 18
    STACK - Woodford Overview Activity Map(4) Offset operator IPs up to 1,500 Boe/d (80%+ oil) Other operator activity de-risking the play Non-operated participation in five wells Woodford activity 36 active permits and 68…
  19. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 19
    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 568 Boe/d (86% oil) Lower Hunton Overview 23 PUDS on…
  20. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 20
    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…
  21. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 21
    Financial Overview
  22. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 22
    Financial Strategy Continue to review strategic opportunities to reduce leverage and enhance liquidity Leverage Ratios and Liquidity Reduced capex budget allows for liquidity preservation Protect cash flow Hedging Program As of…
  23. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 23
    Capitalization and Liquidity Capitalization ( in millions) 03/31/2016 Pro-Forma(1)(2) Cash 27.0 68.2 Long Term Debt Senior Secured Notes due 2018 (face value) 325.0 325.0 Revolving Credit Facility 179.6 99.6 Total Debt 504.6 424.6…
  24. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 24
    PDP Hedging Program Oil and NGLs Hedging Strategy 5,000 90.00 80.00 4,000 70.91 78.00 65.00 3,000 66.00 (Bbl/d) 2,000 54.00 2,129 1,000 1,579 42.00 283 0 30.00 2016(1) 2017 2018 Volume Average Hedge Floor Price (/Bbl)…
  25. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 25
    Realized Prices Mid-Continent Realized Oil Prices Realized Gas Prices 100.00 100% 99% 100% 100% 100% 6.00 100% 98% 99% 100% 92% 80.00 94.80 80% 4.80 80% 88.84 4.75 60.00 60% 3.60 4.25 60% 40.00 40% 2.40 40% 46.18 2.57 20.00…
  26. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 26
    Production Costs Mid Continent (/Boe) Lease Operating Expense Transportation Workover expense 12.00 0.20 10.17 9.84 9.48 9.60 0.05 8.85 0.15 0.16 0.39 1.91 1.98 7.20 0.12 10.12 4.80 9.09 0.08 7.93 6.87 2.40 0.04 0.02 0.01…
  27. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 27
    Appendix
  28. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 28
    Recent Transformative Transactions Pure Play Mid-continent Operator
  29. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 29
    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 GARFIELD In addition to gross proceeds,…
  30. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 30
    NE Divestiture Overview Deal Overview Asset Map Effective date 01/01/2016 GST Position GST Existing Pipeline Closed April 8, 2016 Purchase price of 80.0MM(1) Creates pure-play Mid-continent small cap player Alleviates…
  31. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 31
    Realized Prices - Historical Realized Oil Prices Realized Gas Prices 100.00 100% 6.00 100% 91% 91% 90% 80% 81% 79% 80.00 72% 75% 80% 4.80 80% 63% 60.00 70.91 81.75 60% 3.60 60% 65.45 47% 3.41 40.00 40% 2.40 3.02 40% 41.17 2.21…
  32. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 32
    Production Costs Historical (/Boe) Lease Operating Expense Transportation 9.00 2.50 Workover expense 2.25 7.20 2.00 5.21 5.05 5.40 4.81 1.50 0.17 1.24 0.88 0.88 3.60 2.80 2.92 1.00 0.35 0.09 5.04 0.56 0.44 0.51 1.80 3.94…
  33. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 33
    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 632 378 380 366 308 271 253 62% Type Curve Well (3) 817 125 392…
  34. June 2016 Investor Presentation – Gastar Exploration, Ltd. – slide 34
    Hedge Detail Natural Gas Oil Period Contract Type Volume Hedged Price Period Contract Type Volume Hedged Price Aug - Oct 16 3-Way 2,500 MMBtu/d 3.00 / 2.25 / 3.65 Aug - Dec 16 3-Way 250 Bbl/d 85.00 / 65.00 / 95.10 Aug - Dec 16 3-Way…

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