Credit Suisse Energy Summit Brent Smolik Chairman, President & Chief Executive Officer February 14, 2017
EP Energy Corporation Overview Wolfcamp 4Q16E Results Large contiguous positions in 178,000 NET ACRES Adj. EBITDAX:252-256 MM three basins Oil Production:45.7 MBbls/d 452,000 total net acres1 Total Production: 82.5 Mboe/d 5,156…
High Quality Inventory 5,156 Total Drilling Locations…
Improved Financial Profile Maturity Profile (MM) As of 12/31/15 2,000 4.9 billion 1,500 Reduced total debt by 1billion 1,000 2,000 since YE15 1,222 500 800 497 Significantly extended maturities 0 350 2017 2018 2019 2020…
2017 Outlook 2017 Outlook 2017 Oil production (MBbls/d) 45 49 Total production (MBoe/d) 75 82 Oil & gas capital (MM)1 Capex range driven by an Wolfcamp 245 325 additional Wolfcamp rig Eagle Ford 260 270 Altamont 125 135 Total…
Wolfcamp: Significant Value Enhancement Recent Achievements EPE Wolfcamp Acreage1 Improved well performance Reduced capital and operating costs 50 miles University Lands (UL) sliding scale royalty agreement Increased…
Wolfcamp: Attributes in Southern Midland Basin Midland County 55 Miles South Reagan County North South GR Resis STOOIP GR Resis STOOIP 600 Gross 1,000 Gross N S Greater thickness and oil in place Larger number of…
Wolfcamp: Improved Results With Increased Subsurface Knowledge Good completion example Define sub-surface using Earth Model EPE Well EUR 1,237 MBOE Reservoir and petrophysical properties Mechanical properties 3D Seismic and 650…
Wolfcamp: Continuous Costs and Execution Improvement Gross Well Cost (MM) Gross Well Cost Per Foot /ft.1 6.2 407 5.3 357 4.6 296 2014 2015 2016 2014 2015 2016 Unit LOE /BOE Drilling Days Spud to Rig Release 7.71…
Wolfcamp: Favorable Cost Compared to Permian Peers Capex per Lateral Foot for Type Well (/lateral ft.) 976 840 733 640 667 673 Avg. 723 533 EPE Peer A Peer B Peer C Peer D Peer E Peer F Gross Capital to EUR for Type…
Wolfcamp: Updated Type Curve and Improved Returns 140,000 120,000 Cumulative Oil Production, Bbl 100,000 Significant inventory of 1,100 locations with 80,000 750 Mboe TC 60,000 40,000 Increased well returns 20,000…
Wolfcamp: Significant Growth Oil Production (MBbls/d) 11.3 9.3 7.0 6.8 1Q'16 2Q'16 3Q'16 4Q'16E Completions 5 5 13 21 Improved well performance and increased activities driving growth 14
Wolfcamp: JV Key Terms EPE Wolfcamp JV Key Terms 150 well program (two 75 well Primary objectives: tranches) Increases returns First wells on-line in Jan17 Accelerates activities Wellbore only interest Illuminates acreage value…
Wolfcamp: JV Increases Program Value Higher Returns Enhance program economics Increases near term cash flow and production Further illuminates acreage value of 20,000 per acre Accelerates development in a Benefit from:…
Wolfcamp: Growth Potential Wolfcamp Oil Production (MBbls/d) Highest program returns Currently two JV rigs active Expect to add 3rd rig mid-year 2017 8.6 Largest drilling inventory with 8.6 2,900+ locations 2016E 2017E…
Credit Suisse Energy Summit Brent Smolik Chairman, President & Chief Executive Officer February 14, 2017
Appendix 19
Reconciliation of Adjusted EBITDAX Three months ended Twelve months ended December 31, 2016 December 31, 2016 Low High Low High (in millions) Net loss (144) (147) (25) (28) Income tax expense 6 6 1 1 Interest expense, net of…
Updated Type Well Economics Drilling locations…
Leading Hedge Program Hedge Summary 2017 2018 Oil volumes (MMBbls) 12.8 3.3 Average floor price (/Bbl) 61.66 60.00 Natural Gas volumes (TBtu) 32.0 11.0 Average floor price (/MMBtu) 3.28 3.11 2017: Oil: 75% estimated oil…
2016 Completed Wells By Quarter Program 1Q 2Q 3Q 4Q FY Eagle Ford 16 8 10 5 39 Wolfcamp 5 5 13 21 44 Altamont 2 2 7 4 15 Total company 23 15 30 30 98 24
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