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Scotia Howard Weil 45th Annual Energy Conference – Energen Corp.

Energen Corp. · Mar 27, 2017 · 36 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. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 1
    ACCELERATING GROWTH IN THE PERMIAN BASIN SCOTIA HOWARD WEIL 4 5 TH A N N U A L E N E R G Y C O N F E R E N C E March 27-28, 2017 New Orleans, LA
  2. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 2
    ENERGEN: THE BIG PICTURE Increasing activity levels in Permian Basin in 2017 6 to 7rig program to drill and complete 59 gross/50 net horizontal wells Program also includes completing 61 gross/60 net horizontal uncompleted wells at…
  3. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 3
    ENERGEN (NYSE: EGN) Pure Permian Basin Operator Shares Outstanding: 97.1 mm Market Cap (3.23.17): 5.1 B YE16 Cash: 386 mm YE16 Net Debt: 165 mm YE16 Debt/EBITDAX: 0.6x Production 2016 (excluding asset sales) 54.6 mboepd 2017e…
  4. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 4
    2017 CAPITAL HIGHLIGHTS Drilling & Development Capital: 790 mm Production by Quarter Generation 3 frac designs 15% increase in pressure pumping costs (mboepd) Complete YE16 DUCs 6 to 7rig drilling and completion program Primary…
  5. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 5
    DRILLING & DEVELOPMENT CAPITAL Capital by Basin (mm) Capital Breakdown 5 14% 2% 345 440 84% Midland Basin Operated Drilling & Development Delaware Basin NonOperated/Other Central Basin/ARO Facilities 7
  6. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 6
    2017 DRILLING PROGRAM 2017 Horizontal Program Gross/Net Wells Avg. Lateral Length Average WI Midland Basin YE16 DUC Completions 44/43 9,600 98% New Drills 56/48 8,200 85% New Drill Completions 34/27 YE17 DUCs 22/20 Delaware Basin YE16…
  7. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 7
    PERMIAN BASIN GROWTH Production (excluding asset sales) 65.7 (mboepd) Delaware Basin Midland Basin 53.6 54.6 21.1 Central Basin/Other 10.3 44.7 12.1 37.8 13.3 30.8 11.6 7.9 31.6 35.3 36.5 20.3 9.7 13.9 13.2 12.3 11.1 9.9…
  8. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 8
    2017 HEDGE POSITION Hedge Volumes Avg. NYMEX Price Oil Swaps 6.1 mmbo 49.77 per barrel Oil 3way Collars 4.8 mmbo Call Price 62.18 per barrel Put Price 45.00 per barrel Short Put Price 35.00 per barrel When the NYMEX price is above…
  9. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 9
    2018 HEDGING UNDER WAY Hedge Volumes Avg. NYMEX Price Oil 3way Collars 5.9 mmbo Call Price 65.05 per barrel Put Price 50.00 per barrel Short Put Price 40.00 per barrel When the NYMEX price is above the call price, Energen receives…
  10. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 10
    2017 ESTIMATED IRRS Generation 3 EUR Range Internal Rates of Return (%) Delaware Basin Core DC&E (MM) (Gross MBOE) 45/bbl 55/bbl 65/bbl Wolfcamp A/B 10,000 lateral 7.9 1,500 2,000 63 103 88 143 116 191 7,500 lateral 6.8 1,200 1,500…
  11. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 11
    2017 EXPENSE GUIDANCE Per BOE, except as noted 2017e 2016 LOE (production costs, marketing & transportation) 7.60 8.10 7.86 Production & ad valorem taxes (% of revenues, excluding hedges) 6.6% 6.6% DD&A expense 17.6018.10* 21.45…
  12. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 12
    2017 EXPENSE GUIDANCE BY QTR. Lease Operating Expense Net SG&A (/boe at midpoint) (/boe at midpoint) 9.25 8.25 7.50 7.05 5.10 4.00 3.20 2.95 1Q17 2Q17 3Q17 4Q17 1Q17 2Q17 3Q17 4Q17 14
  13. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 13
    STRONG BALANCE SHEET Maturity Schedule of Notes 2017e Capitalization (mm) 400 Net debt at YE16 165 Plus: Total Capital Expenditures* 840 Less: Aftertax Cash Flows (includes working 569 capital adjustment) Net Debt at YE17 436 100 Net…
  14. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 14
    EGN FRAC DESIGN EVOLUTION Midland Basin Generation 1 Generation 2 Generation 3 (2013-2015) (2016) (2017) 1,2501,400 lbs./ft proppant 1,6001,700 lbs./ft proppant 1,7002,000 lbs./ft proppant 250300 stage spacing 200225 stage spacing…
  15. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 15
    GENERATION 3 FRAC DESIGN EXCELLENT EARLY RESPONSE Martin County, Midland Basin Tiger Unit SN 245252 201H Completed lateral length: 7,518 24hr peak rate: 1,791 boepd (91% oil) 30day avg. rate: 1,439 boepd (88% oil) Tiger Unit SN…
  16. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 16
    GEN 3 WELLS IN NORTHERN MB 120 30% average cumulative production uplift at 90 days for two Tiger Unit wells 100 Average of 2 Tiger Unit Gen 3 Wolfcamp B Wells CumulativeProduction(MBOE) Northern Midland Basin 7,500' 80…
  17. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 17
    GEN 3 WELL IN CORE DELAWARE 250 Cumulative production uplift at 90 days for Checkers 701H 15% 200 Checkers 701H Gen 3 Cumulative Production (MBOE) Wolfcamp B Core Delaware Basin 10,000' Wolfcamp A/B Type Curves 150…
  18. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 18
    YE16 PROVED RESERVES Reserve additions replace production (excluding 2016 asset sales) by 320% 63% of proved reserves are oil The WTI oil price used to calculate YE16 reserves declined 15% from prior year to 42.75/barrel; NGL prices…
  19. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 19
    INVENTORY: 3,545 NET LOCATIONS Midland Basin WC/SPB: 2,594 Net Delaware Basin WC: 951 Net Dawson: 14 Lea: 40 Howard: 249 New Mexico Martin: 854 Texas Loving: 324 Winkler: 31 Midland: 301 Glasscock: 903 Ward: 279 Upton:…
  20. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 20
    IDENTIFIED NET POTENTIAL 12.31.16 MIDLAND BASIN: 1.2 BILLION BOE Midland Net Operated Inventory: Type Curve Remaining Horizontal Net Wells Engineered Net Locations1 EUR Range2 Undeveloped Resource3 Basin Acreage Drilled to Date…
  21. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 21
    IDENTIFIED NET POTENTIAL 12.31.16 NORTH MIDLAND: 667 MMBOE Midland, Martin, Dawson Net Operated Wells Inventory: Type Curve Remaining Horizontal Net Engineered Net Locations1 EUR Range2 Undeveloped Resource3 & Howard Counties…
  22. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 22
    IDENTIFIED NET POTENTIAL 12.31.16 CENTRAL MIDLAND: 570 MMBOE Glasscock, Upton & Inventory: Type Curve Remaining Horizontal Net Operated Wells Net Engineered Net Locations1 EUR Range2 Undeveloped Resource3 Reagan Counties Drilled to…
  23. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 23
    IDENTIFIED NET POTENTIAL 12.31.16 DELAWARE BASIN: 783 MMBOE Inventory: Type Curve Remaining Horizontal Net Operated Wells Net Engineered Net Locations1 EUR Range2 Undeveloped Resource3 CORE Drilled to Date Acreage (Gross/Net)…
  24. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 24
    NORTH MB INVENTORY SPACING Inventory Spacing per 640acre Section* 4 250 4 350 8 450 250 6 250 6 300 Wolfcamp B 350 500 8 * Subject to change based on continued testing and analysis of spacing…
  25. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 25
    CENTRAL MB INVENTORY SPACING Inventory Spacing per 640acre Section* 400 6 200 68 275 650 Wolfcamp B 68 550 8 200 325 8 * Subject to change based on continued testing and analysis of spacing and frac…
  26. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 26
    DELAWARE INVENTORY SPACING Inventory Spacing per 640acre Section* 315 6 417 364 6 6 344 Wolfcamp BC 400 6 * Subject to change based on continued testing and analysis of spacing and frac designs NOTE:…
  27. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 27
    ACCELERATING ACTIVITY High quality, oil focused assets in core Delaware, Midland basins 3,545 net locations in Permian Basin Wolfcamp and Spraberry trends Toptier return potential Financial strength and flexibility 790 million…
  28. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 28
    NON-GAAP FINANCIAL MEASURES 30
  29. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 29
    ADJUSTED NET INCOME Adjusted Net Income is a NonGAAP financial measure (GAAP refers to generally accepted accounting principles) which excludes the effects of certain noncash marktomarket derivative financial instruments. Adjusted…
  30. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 30
    ADJUSTED EBITDAX Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) is a NonGAAP financial measure (GAAP refers to generally accepted accounting principles). Adjusted EBITDAX from…
  31. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 31
    PRODUCTION EXCLUDING ASSET SALES NonGAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding data associated with the divestitures provides analysts and investors useful information…
  32. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 32
    CY16, 4Q16, 4Q15 FINANCIALS The consolidated statement of income excluding certain divestments is a NonGAAP financial measure (GAAP refers to generally accepted accounting principles). Energen believes excluding information associated…
  33. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 33
    4Q16 FINANCIAL RESULTS 4Q16 Earnings Adjusted EPS: (0.27) vs budget of (0.27) Unbudgeted items: State deferred tax valuation allowance (0.04) & DD&A lookback adjustment (0.03) Largely offset by lowerthanexpected LOE, ad valorem…
  34. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 34
    4Q16 PRODUCTION By Basin (mboepd) By Commodity (mboepd) 53.5 52.2 53.5 52.2 11.3 10.4 32.0 33.4 33.2 32.9 9.7 9.1 9.0 8.9 11.8 9.7 4Q16 4Q16 Guidance Mdpt. 4Q16 4Q16 Guidance Mdpt. Central Basin/Other Midland Basin Gas…
  35. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 35
    4Q16 LOE & NET SG&A LOE (/boe) Net SG&A (/boe) 9.30 5.11 4.75 4.25 8.52 7.85 4Q16 4Q16 4Q15 4Q16 4Q16 4Q15 Guidance Guidance Mdpt. Mdpt. Excludes 5.02/boe for pension and pension settlement charges and RIF settlement…
  36. Scotia Howard Weil 45th Annual Energy Conference – Energen Corp. – slide 36
    FOR MORE INFORMATION JulieS.Ryland VicePresident InvestorRelations 2053268421 jrylandenergen.com www.energen.com 39

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