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Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp

EP Energy Corp · Mar 27, 2017 · 24 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 Investor Update – EP Energy Corp – slide 1
    Investor Update
  2. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 2
    EP Energy Corporation Overview Large contiguous positions in Wolfcamp three basins 178,000 NET ACRES1 452,000 total net acres1 5,156 drilling locations1 80% of inventory…
  3. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 3
    Investment Thesis Operational excellence Efficient business with low cost structure Ample financial flexibility to manage through volatility Quality assets not fully reflected in current equity value Eagle Ford & Altamont valued…
  4. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 4
    High Quality Inventory 5,156 Total Drilling Locations…
  5. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 5
    Efficient Cost Structure Gross Well Cost1 Wolfcamp (MM) 6.2 5.3 4.6 3.8 Adjusted Cash Operating Costs, Excluding Haynesville2 (MM) FY'14 FY'15 FY'16 Best 2H'16 119 Well 111 14 7 45 42 Eagle Ford 7.2 5.8 4.2 28…
  6. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 6
    Top Tier Operating Costs 10.00 Average LOE unit costs (1Q'15 - 4Q'16) Excludes Haynesville assets 8.00 (/Boe) 6.00 4.00 2.00 - Peer A Peer B EPE Peer C Peer D Peer E Peer F Peer G Peer H Peer I Note: Peers…
  7. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 7
    Solid Execution Across Asset Portfolio Wolfcamp Oil production growth volumes up 37% from 4Q15 Improved well performance, upgraded type curve One drilling rig in 2016 and completed 44 wells Eagle Ford Increased efficiencies in…
  8. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 8
    Wolfcamp: Return to Growth Oil Production (MBbls/d) 11.4 9.3 7.0 6.8 1Q'16 2Q'16 3Q'16 4Q'16 Improved well performance and increased activities driving growth 9
  9. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 9
    Wolfcamp: Recent Success 140,000 120,000 Cumulative Oil Production, Bbl Improved well performance 100,000 80,000 Increased returns 60,000 40,000 Higher NPV per well 20,000 0 1 45 89 133 177 221 265 309 353 397…
  10. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 10
    Wolfcamp: JV Increases Program Value Enhances program economics (single EPE Improved Returns on Capital well IRRs from 57% to 80%)(1) 90% 80% Increases near term cash flow and 70% production (75MM total carry) 60% BTAX IRR…
  11. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 11
    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 2016 2017E…
  12. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 12
    Wolfcamp: Significant Upside Value Increased type curve EUR to 750 Mboe Up from 400 Mboe in 2014 Drilling JV enhances IRR to 80% at 55 WTI 18 month pay-back period Increased pace of development Potentially complete 1,500 -…
  13. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 13
    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…
  14. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 14
    Wolfcamp: Efficient Production Operations 10.00 Average LOE unit costs (1Q'15 - 4Q'16) (/Boe) 8.00 6.00 4.00 2.00 - Peer A Peer B EPE Peer C Peer D Peer E Peer F Note: Peers include EGN, LPI, RSPP, FANG,…
  15. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 15
    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…
  16. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 16
    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…
  17. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 17
    Wolfcamp: Continuous Cost 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 11.0…
  18. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 18
    Wolfcamp: Enhanced Completions Increase Production Rates Oil Rate (BOPD) Proppant Loading (Lb/lat-ft) 2095 529 478 446 1620 382 380 332 1281 315 300 298 275 272 221 242 188 166 150 IP30 IP60 IP90 IP120 IP 150 Stage…
  19. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 19
    Wolfcamp: Marketing Advantages Production operations southeast of Midland hub Attractive quality crude oil production with Major Permian Basin Oil Pipelines < 45 API gravity 90% of crude oil production on pipeline Colorado…
  20. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 20
    Improved Financial Profile Maturity Profile (MM) As of 12/31/15 2,000 4.9 billion Reduced total debt by 1billion 1,500 since YE15 1,000 2,000 Significantly extended maturities 500 1,222 800 497 350 0 Retired or…
  21. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 21
    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 floored…
  22. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 22
    2017 Outlook 2017 Oil production growth from 2H16 Oil production (MBbls/d) 45 49 Total production (MBoe/d) 75 82 Includes two Wolfcamp rigs FY17 Oil & gas capital (MM)1 and a third rig mid-year Wolfcamp 245 325 Eagle Ford 260 270…
  23. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 23
    Updated Type Well Economics Drilling locations…
  24. Scotia Howard Weil 45th Annual Energy Conference Investor Update – EP Energy Corp – slide 24
    YE 2016 PV-10 and PV-10 Reconciliation In this presentation, we calculate the PV-10 of oil and gas reserves. The PV-10 of oil and gas reserves is defined as the value of our proved reserve amounts at December 31, 2016, calculated using…

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