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September 2016 Corporate Presentation – Halcon Resources Corp

Halcon Resources Corp · Sep 9, 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. September 2016 Corporate Presentation – Halcon Resources Corp – slide 1
    Halcn Resources Corporation September 2016
  2. September 2016 Corporate Presentation – Halcon Resources Corp – slide 2
    Investment Highlights Reasonable leverage & strong liquidity Balance Sheet Provides Sustainable capital structure even if low prices persist Excellent access to capital Staying Power Ability to pursue acquisitions Quality assets…
  3. September 2016 Corporate Presentation – Halcon Resources Corp – slide 3
    Halcn is Poised for Value Creation Whats New Whats Unchanged Significantly less debt and Strong assets with deep inventory improved leverage profile in 2 oil-rich basins Committed management team Cash flow positive…
  4. September 2016 Corporate Presentation – Halcon Resources Corp – slide 4
    Strategy 1 rig focused on drilling Add hedges in 17 & 18 most economic to protect drilling locations program - Potential to add more Continue cost rigs when prices reductions recover Maintain Spend within cash flow Continue to…
  5. September 2016 Corporate Presentation – Halcon Resources Corp – slide 5
    Halcn Resources Corporation Bakken/Three Forks 118,000 Net Acres 122.0 MMBoe Proved Reserves (1) Total Proved Reserves: (1) 146.8 MMBoe 26k boe/d of 2Q 16 Production % Proved Developed: 56% % Oil: 82% Highlights % Operated:…
  6. September 2016 Corporate Presentation – Halcon Resources Corp – slide 6
    Financial Profile Face Value Actual Pro Forma Highlights Highlights Pro Forma Capitalization (MM) 6/30/2016 Restructuring 6/30/2016 Reasonable Cash & Cash Equivalents (Including HKTMS Restricted Cash) 24 - 24 leverage Senior…
  7. September 2016 Corporate Presentation – Halcon Resources Corp – slide 7
    Halcn Continues to Reduce Operating Costs Historical LOE (1)/Boe Historical G&A/Boe (2) 8.99 30% decrease in LOE/Boe 56% decrease in G&A/Boe 11.49 9.52 5.98 8.21 8.00 4.83 4.00 (3) (3) 2013 2014 2015 2016E 2013 2014 2015…
  8. September 2016 Corporate Presentation – Halcon Resources Corp – slide 8
    Improving Corporate Cash Costs Historical & Projected Cash Expenses (/Boe) HKs Per Unit Cash Operating Costs Are Expected to Decline by 45% from 2014 to 2017 50.00 43.75 38.92 40.00 34 30.00 24 20.00 10.00 0.00 2014…
  9. September 2016 Corporate Presentation – Halcon Resources Corp – slide 9
    Core Growth Assets in Place Inventory Highlights Potential Gross Operated Drilling Inventory (2) 750+ economic gross operated locations in core areas at 60 WTI +44% 1,117 - Represents 11 years of drilling inventory with 4 rigs…
  10. September 2016 Corporate Presentation – Halcon Resources Corp – slide 10
    Bakken / Three Forks Property Highlights 100% of acreage is HBP Fort Berthold Area: 30,000 net acres 25,000 Operated (66% WI) 5,000 Non-Operated (2% WI) Williams County (Operated): 72,000 net acres (83% WI) 2H 2016 Outlook Spud…
  11. September 2016 Corporate Presentation – Halcon Resources Corp – slide 11
    Best in Class Well Productivity in the Williston Basin Ouray Pad Development (NFBIR) Recent Ouray Pad Well Performance (NFBIR) EUR - Well Formation Spacing Mboe(2) 19D-18-6H Middle Bakken 660 1,167 19D-18-7H Three Forks 660 869…
  12. September 2016 Corporate Presentation – Halcon Resources Corp – slide 12
    Best in Class Well Productivity in the Williston Basin (contd) Average 15 & 16 30 Day IP Comparison (Boe/d)(1) 1,400 HKs 30 Day IP is 60% better than the 1,203 1,200 peer average and 15% better than the next best peer in the…
  13. September 2016 Corporate Presentation – Halcon Resources Corp – slide 13
    Best in Class Well Productivity in the Williston Basin (contd) Type Curve Comparison WTI Break-Even Price Bakken 37 38 45 55 47 55 50 55 73 66 NA TF 45 44 56 95 49 66 58 95 82 75 52 1,000 900 870 HKs FBIR assets are in…
  14. September 2016 Corporate Presentation – Halcon Resources Corp – slide 14
    El Halcn East Texas Eagle Ford Shale Property Highlights 83,000 net acres leased in the core of the play Entire position de-risked 79% HBP No drilling for remainder of 2016 Staff in place to quickly scale up drilling operations…
  15. September 2016 Corporate Presentation – Halcon Resources Corp – slide 15
    Investment Highlights Reasonable leverage & strong liquidity Balance Sheet Provides Sustainable capital structure even if low prices persist Excellent access to capital Staying Power Ability to pursue acquisitions Quality assets…
  16. September 2016 Corporate Presentation – Halcon Resources Corp – slide 16
    Appendix
  17. September 2016 Corporate Presentation – Halcon Resources Corp – slide 17
    Williston Basin Fort Berthold Depth of Inventory in FBIR Avg. Remaining Gross Operated Base EUR North FBIR Wells / DSUs Locations (Mboe) DSU 9/1/16 60 WTI (2) 80 WTI (3) Strip (1) North FBIR 14 10 69 69 69 900 South FBIR 14…
  18. September 2016 Corporate Presentation – Halcon Resources Corp – slide 18
    FBIR Type Curve Economics IRR vs. Oil Price: FBIR 225% 200% 175% FBIR type curve has an IRR 150% of 46% at strip pricing (3) 125% IRR % 100% 75% 50% 25% 0% 40 45 50 55 60 65 70 75 80 /Bbl NYMEX Oil FBIR Type Curve…
  19. September 2016 Corporate Presentation – Halcon Resources Corp – slide 19
    FBIR Well Performance vs. Type Curve 425,000 400,000 375,000 350,000 325,000 300,000 Cumulative Oil Production (Bbl) 275,000 250,000 225,000 200,000 175,000 150,000 125,000 100,000 75,000 50,000…
  20. September 2016 Corporate Presentation – Halcon Resources Corp – slide 20
    Williston Basin Williams County Depth of Inventory in Williams County Avg. Remaining Gross Operated Base EUR Wells / DSUs Locations (Mboe) DSU 9/1/16 60 WTI (2) 80 WTI (3) Strip (1) Tier 1 4-7 33 127 127 127 600 Tier 2 4-7…
  21. September 2016 Corporate Presentation – Halcon Resources Corp – slide 21
    Williams County Type Curve Economics IRR vs. Oil Price: FBIR 100% 90% 80% Tier 1 type curve has an IRR 70% of 15% at strip pricing (3) 60% IRR % 50% 40% 30% 20% 10% 0% 40 45 50 55 60 65 70 75 80 /Bbl NYMEX Oil Tier 1…
  22. September 2016 Corporate Presentation – Halcon Resources Corp – slide 22
    Williams County Tier 1 Well Performance vs. Type Curve 210,000 195,000 180,000 165,000 150,000 Cumulative Oil Production (Bbl) 135,000 120,000 105,000 90,000 75,000 60,000 45,000 30,000 15,000 Producing…
  23. September 2016 Corporate Presentation – Halcon Resources Corp – slide 23
    Williams County Tier 2 Well Performance vs. Type Curve 135,000 120,000 105,000 Cumulative Oil Production (Bbl) 90,000 75,000 60,000 45,000 30,000 15,000 Producing Days 0 - 60 120 180 240 300 360 420 480…
  24. September 2016 Corporate Presentation – Halcon Resources Corp – slide 24
    El Halcn Depth of Inventory in El Halcn Avg. Well Remaining Gross Operated Base EUR Spacing Locations (Mboe) 9/1/16 60 WTI (2) 80 WTI (3) Strip (1) Tier 1 1,000' 251 251 251 430 Tier 2 1,000' 0 80 275 325 Total 251 331…
  25. September 2016 Corporate Presentation – Halcon Resources Corp – slide 25
    El Halcn Type Curve Economics IRR vs. Oil Price 70% 60% 50% 40% IRR % 30% 20% 10% 0% 40 45 50 55 60 65 70 75 80 /Bbl NYMEX Oil El Halcon Tier 1 Type Curve (430 Mboe) Pricing & Expense Assumptions D&C Assumptions Gas…
  26. September 2016 Corporate Presentation – Halcon Resources Corp – slide 26
    El Halcn Well Performance 120,000 100,000 Cumulative Production, Boe 80,000 60,000 40,000 20,000 0 0 30 60 90 120 150 180 210 240 270 300 330 360 Producing Days 2015-16 Average Well 430 Mboe El Halcon…
  27. September 2016 Corporate Presentation – Halcon Resources Corp – slide 27
    12/31/15 Proved Reserves SEC Pricing Proved Reserves by Type Net Oil Net Gas Net NGL Net Equiv Dev Capex PV 10 56% proved developed SEC 12/31/15 (MMbl) (Bcf) (MMbl) (MMBoe) (MM) (MM) 91% liquids PDP 61.4 46.3 7.1 76.2 4 816 95%…
  28. September 2016 Corporate Presentation – Halcon Resources Corp – slide 28
    2016 Operating and Financial Guidance Summary 2016E Production (Boe/d) Total 37,000 39,000 Capital Spending ( in millions) Drilling & Completions Capex (1) 140 - 160 Operating Costs and Expenses (/Boe) Lease Operating &…
  29. September 2016 Corporate Presentation – Halcon Resources Corp – slide 29
    Strong Hedge Program for the Remainder of 2016 Subject to market conditions, our plan is to hedge the next 18-24 months of production Designed to support capital program and protect cash flow Remaining 6 Mos of 2016, 72% of oil is…
  30. September 2016 Corporate Presentation – Halcon Resources Corp – slide 30
    Derivative Detail Oil Hedge Summary 6 Mos 2016 FY 2017 Volume Ceiling / Swap Floor Volume Ceiling / Swap Floor (1) (1) (1) (1) (Bbls) Price Purchased (Bbls) Price Purchased Collars 1,840,000 80.26 74.30 3,558,750 61.20 51.66 (2)…
  31. September 2016 Corporate Presentation – Halcon Resources Corp – slide 31
    Halcn Ownership Pro Forma Ownership Summary Shares Excluding Including MIP Fully Diluted Holder MIP & Warrants % Ownership Including Warrants % Ownership New Shares issued to Current HK Shareholders 3,600,000 4.0% 3,600,000 3.4% (1)…
  32. September 2016 Corporate Presentation – Halcon Resources Corp – slide 32
    Oil & Gas Marketing Avg. NYMEX Marketing Highlights 2Q16 HK Oil Differentials by Area (1) Oil Price Williston Basin 45.56/bbl Oil Marketing 96% 80%+ of production connected to pipeline 84% 87% Gas Marketing All existing gas…

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