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Southern Delaware Basin Acquisition – Halcon Resources Corp

Halcon Resources Corp · Jan 24, 2017 · 26 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. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 1
    Southern Delaware Basin Acquisitions Presentation January 2017
  2. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 2
    Acquisitions in the Southern Delaware Basin Pecos County Assets Acquisition Overview Acreage Position Purchase Price: 705 MM Current Production: 2,600 boe/d - 72% oil / 16% NGL / 13% gas Net Acreage: 20,748 Ward County Option: -…
  3. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 3
    Halcn Becomes a Bakken & Delaware Focused Operator Combined company is a Bakken and Delaware focused independent with a multi-year drilling inventory Bakken/Three Forks 118,000 Net Acres Total Net Acreage: (2) 154,000 575 Gross…
  4. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 4
    Transaction Rationale Key Acquisition Criteria Pecos & Ward County Asset Transactions 72% oil / 88% liquids Strategic Fit with HK team has significant experience in the Permian Current Asset Base Opportunity to leverage Bakken…
  5. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 5
    Multi-Year Inventory of Quality Locations Significant De-Risked Inventory with Upside Potential Gross Remaining Operated Locations (1) Multi-Bench Inventory (Pecos County Assets) 5,280 Future drilling Near Term Drilling (WC A/B)…
  6. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 6
    Pecos County Assets Geology Compelling Geological Setting with Significant Upside 15 Miles NW SE Wolfcamp A&B Gross Isopach Over 2,700 of Oil Saturated Interval NW Avalon 1st Bone Spring 2nd Bone Spring Datum: Top 3rd…
  7. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 7
    Pecos County Assets Acreage has been De-Risked by Recent Drilling Activity CURRENT OPERATOR POL Date EUR Bo/ft Offset Activity to Pecos County Acreage 1 CONNIE 1H 6/12/2015 90 2 BARBARA STATE 1H 9/1/2016 49 3 BERKLEY STATE EAST UNIT…
  8. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 8
    Ward County Assets Acreage is Adjacent to Successful Recent Offset Well Results Offset Activity to Ward County Acreage JAGGED PEAK ENERGY LLC POL Date EUR Bo/ft 1 UTL 28-17 7/20/2015 87 2 UTL L J BELDIN 1211-17 1/10/2016 72 3…
  9. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 9
    Delaware Basin Type Curves Wolfcamp A and B Wolfcamp A Type Well (7,500) (1) Wolfcamp B Type Well (7,500) (1) 800 1,200 Avg. EUR: 803 Mboe Avg. EUR: 975 Mboe Nornalized Oil Rate (Bo/d) 700 1,000 Nornalized Oil Rate (Bo/d)…
  10. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 10
    Recent Comparable Transactions Large, Contiguous Acreage Position at an Attractive Price Select Southern Delaware Transactions (1)(2) January 2017 December 2016 Parsley Energy / Apache Callon / Ameredev Purchase Price: 205 MM Purchase…
  11. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 11
    Acquisitions Financing & Pro Forma Capitalization Acquisition Funding & Highlights Pro Forma Capitalization for PIPE, Acquisitions and Divestiture Q4 '16 El Halcon Pecos County Purchase Price: 705 MM Face Value Actual HK Cash Flow…
  12. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 12
    Valuable Infrastructure Assets Already in Place in Pecos County Overview Locator Map Significant infrastructure in place, including a water handling and recycling system, fresh water wells and SWD options Recently constructed…
  13. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 13
    Pro Forma Preliminary 2017 Guidance Guidance is preliminary and subject to change 2017E 2017E Production (Boe/d) Capex (MM) Total 37,000 39,000 D&C Capex (1) 280 % Oil 80% % Bakken 65% % Gas 10% % Delaware 35% % NGL 10%…
  14. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 14
    Appendix
  15. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 15
    Bakken / Three Forks Property Highlights 100% of acreage is HBP Fort Berthold Area: 30,000 net acres 25,000 Operated (68% WI) 5,000 Non-Operated (2% WI) Williams County (Operated): 72,000 net acres (82% WI) Other Non-Op: 16,000…
  16. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 16
    Williams County Drilling 2017 Williams County Plan Borrud Pad Offset Activity Plan to drill a 5 well pad in Williams County in mid 2017 Represents first drilling by HK in this area in over a year HK Avg EURs: 676 Mboe HK plans to…
  17. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 17
    Operational Execution in the Williston Basin Operational Execution Operational Results D&C AFEs Reduced D&C AFE costs by 43% per well since 15Q1 (includes artificial lift and facilities) Average data points for 20 POLs in 2016 (14…
  18. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 18
    Williston Basin Fort Berthold Depth of Inventory in FBIR Avg. North FBIR Avg. Remaining Gross Operated Locations Estimated Wells / DSUs EUR DSU (Mboe) 12/30/16 60 WTI (2) 80 WTI (3) Strip (1) North FBIR 14 10 69 69 69 900…
  19. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 19
    FBIR Type Curve Economics IRR vs. Oil Price: FBIR 225% 200% 175% FBIR type curve has an IRR 150% of 83% at strip pricing (2) 125% IRR % 100% 75% 50% 25% 0% 40 45 50 55 60 65 70 75 80 /Bbl NYMEX Oil FBIR Type Curve…
  20. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 20
    FBIR Well Performance vs. Type Curve (1) (2) Note: See Cautionary Statements on page 3 for a discussion on risks associated with EURs. 22 (1) Program consists of 86 wells. (2) Formation: Middle Bakken and Three Forks
  21. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 21
    Williston Basin Williams County Depth of Inventory in Williams County Avg. Avg. Estimated Wells / DSUs Remaining Gross Operated Locations EUR DSU (Mboe) 12/30/16 60 WTI (2) 80 WTI (3) Strip (1) Tier 1 4-7 33 127 127 127…
  22. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 22
    Williams County Type Curve Economics IRR vs. Oil Price: Williams County 100% 90% 80% Tier 1 type curve has an IRR 70% of 30% at strip pricing (2) 60% IRR % 50% 40% 30% 20% 10% 0% 40 45 50 55 60 65 70 75 80 /Bbl NYMEX…
  23. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 23
    Williams County Tier 1 Well Performance vs. Type Curve (1) (2) (3) Note: See Cautionary Statements on page 3 for a discussion on risks associated with EURs. (1) Program consists of 20 wells. 25 (2) Slickwater completions, only.…
  24. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 24
    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…
  25. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 25
    Derivative Detail Oil Hedge Summary FY 2017 FY 2018 Volume Ceiling / Floor Volume Ceiling / Floor (1) (1) (1) (Bbls) Swap Price Purchased (Bbls) Swap Price Purchased (1) Collars 6,843,750 58.75 51.28 730,000 58.00 53.00 Swaps - - -…
  26. Southern Delaware Basin Acquisition – Halcon Resources Corp – slide 26
    Pro Forma Halcn Ownership Ownership Summary Basic Shares Basic Shares Employees Future MIP Net Fully Fully Diluted Holder Outstanding % Ownership Warrants (1) Options (2) Awards (3) Diluted Diluted % Ownership Other Common Equity…

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