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Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd.

Gastar Exploration, Ltd. · Sep 22, 2016 · 35 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. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 1
    Investor Presentation September 2016
  2. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 2
    Gastar Overview 109,000 net surface acres in prolific STACK Play Mid-Continent STACK Play STACK Optionality STACK Oswego 14,900 net acres(1) STACK Meramec 38,300 net acres(1) STACK Osage 45,200 net acres(1) STACK…
  3. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 3
    Key Investment Criteria Pure play Mid-Continent STACK operator High-Quality STACK Resource Large acreage position in coveted Mid-Continent STACK play Base Strong drilling results in the Meramec shale and Hunton Limestone oil play Offset…
  4. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 4
    Mid-Continent Reserve Summary Mid-Continent Proved Reserves By Product(1) 50.0 33% 41.1 40.0 33% 8.7 42% 34.0 32.8 6.3 30.0 6.0 MMBoe 78% Liquids 54% 79% Liquids 23.2 20.0 79% Liquids 17.7 20.6 19.7 2.3 68%…
  5. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 5
    Mid-Continent Production Growth Daily Production(1) 8.0 6.4 6.2 6.0 20% 23% 4.8 4.3 MBoe/d 21% 72% 74% 3.2 49% 54% 71% 50% 1.6 1.1 6% 54% 29% 48% 26% 29% 46% 0.0 2013 2014 2015 YTD 2016 Gas…
  6. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 6
    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 357 111 108 EURs Processed 843 Mboe 402 Mboe 557 Mboe Wet Gas…
  7. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 7
    Capital Budget 44.8 million May equity issuance supports capital budget increase Preliminary 2016 Budget Detail Revised 2016 Budget Detail Capital Capital Area % of Total Area % of Total (MM) (MM) STACK Operated Drilling (1 gross well)…
  8. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 8
    2016 /17 Delineation Operated Drilling Program Highlights De-risk multiple formations across a large geographic area to support and grow NAV Maximizes impact of limited drilling capital with locations in key areas to further…
  9. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 9
    Mid-Continent STACK Asset Overview
  10. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 10
    Mid-Continent STACK Operator Map One of the most active horizontal plays in North America, currently 29 rigs running in the area Note: Rig data obtained from Drillinginfo as of 09/15/2016 2016 Gastar Exploration Inc. 13
  11. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 11
    Recent STACK Research 45 Oil, 2.50 Gas 35 Oil, 2.00 Gas SCOOP/STACK Midland Hzl Eagle Ford Williston DJ Basin Delaware Other Oil Permian Vert The SCOOP/STACK continues to be the most economic oil basin Heikkinen Energy…
  12. Johnson Rice Company 2016 Energy Conference – 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. Johnson Rice Company 2016 Energy Conference – 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 109,200 net acres Meramec play key target North STACK 58,000 net…
  14. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 14
    STACK - Meramec Overview Activity Map(4) Offset operator IPs range up to 2,200 Boe/d (68% oil) Meramec returns attractive at todays commodity price environment Meramec activity - 112 active permits and 204 completed wells in the…
  15. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 15
    STACK Meramec Development GST Meramec Development Deep River 30-1H Production(1) Deep River 30-1H 150,000 Post Peak IP:30 956 Boe/d (68% oil) Post Peak IP:60 803 Boe/d (63% oil) Post Peak IP:90 713 Boe/d (61% oil) Post Peak…
  16. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 16
    STACK - Osage Overview Activity Map(5) Offset operator IPs range up to 1,900 Boe/d Currently drilling 1st Osage test well McGee 29-1H Non-operated participation in four wells Osage activity 62 active permits and 126 completed…
  17. Johnson Rice Company 2016 Energy Conference – 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. Johnson Rice Company 2016 Energy Conference – 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 75…
  19. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 19
    WEHLU WEHLU-Hunton offers a substantial source of high return projects Upper Hunton Overview WEHLU Map 31 PUDs on northern WEHLU acreage Seven well average results: Peak rate of 568 Boe/d (86% oil) Lower Hunton Overview 18 PUDS on…
  20. Johnson Rice Company 2016 Energy Conference – 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. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 21
    Earthquake Seismicity Map Low seismicity around Gastar leasehold Gastar recently re- completed a SWD well in the Wilcox to mitigate limitations of disposing in the Arbuckle Other operators are following this trend GST:…
  22. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 22
    Financial Overview
  23. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 23
    Financial Strategy Continue to review strategic opportunities to reduce leverage and enhance liquidity Leverage Ratios and Raised 44.8MM in May 2016 to address liquidity concerns Liquidity 10.1MM litigation settlement proceeds…
  24. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 24
    Capitalization and Liquidity Capitalization ( in millions) Pro-Forma 8/31/2016(1) Cash 50.7 Long Term Debt Senior Secured Notes due 2018 (face value) 325.0 Revolving Credit Facility 99.6 Total Debt 424.6 Stockholders Equity…
  25. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 25
    PDP Hedging Program Oil and NGLs Hedging Strategy 3,000 100.00 2,400 2,580 88.00 80.00 1,800 70.75 71.75 76.00 (Bbl/d) 1,628 1,200 64.00 600 52.00 283 0 40.00 (1) 2016 2017 2018 Volume Average Hedge Floor Price…
  26. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 26
    Realized Prices Mid-Continent Realized Oil Prices Realized Gas Prices 100% 99% 100% 99% 100% 98% 99% 100.00 100% 6.00 100% 90% 80.00 94.80 80% 4.80 80% 88.84 4.75 60.00 60% 3.60 4.25 60% 40.00 46.18 40% 2.40 40% 2.57 35.80…
  27. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 27
    Production Costs Mid Continent (/Boe) Lease Operating Expense Transportation Workover expense 12.00 0.50 10.17 9.48 9.60 0.05 8.85 8.90 0.40 0.39 0.35 0.75 1.98 7.20 0.30 10.12 4.80 9.09 0.20 8.15 6.87 2.40 0.10 0.02 0.01…
  28. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 28
    Appendix
  29. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 29
    Recent Transformative Transactions Pure Play Mid-continent Operator
  30. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 30
    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,…
  31. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 31
    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…
  32. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 32
    Realized Prices - Historical Realized Oil Prices Realized Gas Prices 100.00 91% 94% 100% 6.00 100% 91% 80% 81% 79% 80.00 72% 75% 80% 4.80 80% 68% 60.00 70.91 81.75 60% 65.45 3.60 60% 47% 3.41 40.00 40% 2.40 3.02 40% 41.17…
  33. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 33
    Production Costs Historical (/Boe) Lease Operating Expense Transportation 9.00 2.50 Workover expense 2.25 7.20 2.00 5.97 5.21 0.47 5.40 4.81 1.50 0.17 1.24 0.88 3.60 2.92 1.00 2.80 0.35 0.09 5.04 5.50 0.56 0.56 3.94 0.44…
  34. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 34
    Drilling Overview Well Results Post IP Production Averages(1) Peak 30 Day Post 60 Day Post 90 Day Post 180 Day 270 Day Post 360 Day Post Current 5 Day Well Rate Peak Peak Peak Post Peak Peak Peak Average(4) % Oil(2) (Boe/d) Meramec…
  35. Johnson Rice Company 2016 Energy Conference – Gastar Exploration, Ltd. – slide 35
    Hedge Detail Natural Gas Oil Period Contract Type Volume Hedged Price Period Contract Type Volume Hedged Price Oct - Oct 16 3-Way 2,500 MMBtu/d 3.00 / 2.25 / 3.65 Sep - Dec 16 3-Way 250 Bbl/d 85.00 / 65.00 / 95.10 Oct - Dec 16 3-Way…

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