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Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd.

Gastar Exploration, Ltd. · Dec 8, 2016 · 30 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. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 1
    Investor Presentation December 2016
  2. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 2
    Mid-Continent STACK Asset Overview
  3. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 3
    Gastar Overview 81,500 net surface acres in prolific STACK Play Mid-Continent STACK Play STACK Optionality STACK Oswego 10,800 net acres(1) STACK Meramec 18,500 net acres(1) STACK Osage 38,200 net acres(1) STACK…
  4. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 4
    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…
  5. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 5
    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%…
  6. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 6
    Mid-Continent Production Growth Daily Production(1) 8.0 6.4 6.0 6.0 20% 23% 4.8 4.3 MBoe/d 21% 71% 74% 3.2 54% 48% 71% 50% 1.6 1.1 6% 29% 48% 54% 26% 29% 46% 0.0 2013 2014 2015 YTD 2016 Gas…
  7. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 7
    Capital Budget 2016 Budget Detail Area Capital (MM) % of Total STACK Operated Drilling (3 gross STACK wells) 10.2 17% STACK DrillCo program (10 gross wells) 2.8 5% STACK Non-Operated Drilling 5.9 10% Recompletions 4.8 8% Land 32.8…
  8. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 8
    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 168 111 108 EURs Processed 843 Mboe 402 Mboe 557 Mboe Wet Gas…
  9. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 9
    Mid-Continent STACK Operator Map One of the most active horizontal plays in North America, currently 41 rigs running in the area Note: Rig data obtained from Drillinginfo as of 12/1/2016 2016 Gastar Exploration Inc. 11
  10. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 10
    DrillCo Joint Venture DrillCo Overview Announced development agreement with large global investment fund on 10/20/2016 Drilling program will target Meramec and Osage formations located in three townships totaling 18,000 net acres…
  11. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 11
    Mid-Continent Focused Operator Large, contiguous acreage position with multiple stacked horizontal targets Mid-Continent Asset Overview Mid-Continent Asset Map 81,500 net acres North STACK 54,400 net acres Meramec play key target…
  12. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 12
    STACK - Meramec Overview Activity Map(4) Meramec returns attractive at todays commodity price environment Meramec activity - 125 active permits and 261 completed wells in the area(1) Non-operated participation in 15 wells…
  13. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 13
    STACK Meramec Development GST Meramec Development Meramec Summary Economics(2) Deep River 30-1H EUR % Oil Well Cost IRR PV-10 Drilled to TD in 34 days 843 MBoe 43% 4.5MM 69% 4.7MM Peak 24-Hr IP 1,094 Boe/d (71% oil) Post Peak IP:30…
  14. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 14
    STACK - Osage Overview Activity Map(5) Offset operator IPs range up to 1,900 Boe/d Currently flowing back 1st Osage test well, the McGee 29-1H Non-operated participation in nine wells Osage activity 61 active permits and 158…
  15. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 15
    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 Currently flowing back 1st Oswego test well,…
  16. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 16
    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 four wells Woodford activity 37 active permits and 89…
  17. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 17
    WEHLU WEHLU-Hunton offers a substantial source of high return projects - Acreage 100% HBP 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…
  18. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 18
    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…
  19. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 19
    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:…
  20. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 20
    Financial Overview
  21. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 21
    Financial Strategy Continue to review strategic opportunities to reduce leverage and enhance liquidity Closed sale of non-core South acreage to enhance liquidity Executed a Development Agreement to focus on Meramec and Osage, will…
  22. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 22
    Capitalization and Liquidity Capitalization ( in millions) 9/30/2016 Pro-Forma(1) Cash 46.7 101.4 Long Term Debt Senior Secured Notes due 2018 (face value) 325.0 325.0 Revolving Credit Facility 99.6 84.7 Total Debt 424.6 409.7…
  23. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 23
    PDP Hedging Program Oil and NGLs Hedging Strategy 3,500 100 2,800 3,030 80.00 88 70.17 2,100 76 66.98 (Bbl/d) 1,400 1,764 64 700 52 283 0 40 (1) 2016 2017 2018 Volume Average Hedge Floor Price (/Bbl) (2) Downside…
  24. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 24
    Realized Prices Mid-Continent Realized Oil Prices Realized Gas Prices 100% 99% 100% 100% 100% 98% 99% 100.00 100% 6.00 100% 89% 80.00 94.80 80% 4.80 80% 4.75 88.84 60.00 60% 3.60 4.25 60% 40.00 46.18 40% 2.40 40% 2.57 37.87…
  25. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 25
    Production Costs Mid Continent (/Boe) Lease Operating Expense Transportation 12.00 Workover expense 0.50 10.17 0.44 9.48 9.60 0.05 8.85 9.06 0.40 0.39 0.86 1.98 7.20 0.30 10.12 4.80 0.20 9.09 8.20 6.87 2.40 0.10 0.02…
  26. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 26
    Key Investment Criteria High-Quality STACK Pure play Mid-Continent STACK operator Resource Large acreage position in coveted Mid-Continent STACK play Base Strong drilling results in the Meramec, Osage, Oswego, and Hunton Limestone oil…
  27. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 27
    Appendix
  28. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 28
    South STACK Divestiture South STACK Divestiture Overview South STACK Asset Map PSA Signed on 10/19/2016 Effective date of 08/01/2016 First Initial close on 11/21/2016 Received 46.4MM Additional 28.3MM placed in Escrow Purchase…
  29. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 29
    STACK Drilling Overview Well Results Post IP Production Averages(1) Peak 30 Day 60 Day 90 Day 180 Day 270 Day 360 Day Current 5 Day Well Rate Post Peak Post Peak Post Peak Post Peak Post Peak Post Peak Average(2) % Oil(3) (Boe/d)…
  30. Capital One Securities 2016 Energy Conference – Gastar Exploration, Ltd. – slide 30
    Hedge Detail Natural Gas Oil Period Contract Type Volume Hedged Price Period Contract Type Volume Hedged Price Dec - Dec 16 3-Way 2,000 MMBtu/d 4.00 / 3.25 / 4.58 Nov - Dec 16 3-Way 250 Bbl/d 85.00 / 65.00 / 95.10 Dec - Dec 16 3-Way…

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