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2017 RBC Global Energy and Power Conference – EP Energy Corp

EP Energy Corp · Jun 7, 2017 · 31 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. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 1
    RBC Capital Markets Global Energy & Power Conference June 7, 2017
  2. 2017 RBC Global Energy and Power Conference – 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. 2017 RBC Global Energy and Power Conference – 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. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 4
    High Quality Inventory 5,156 Total Drilling Locations…
  5. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 5
    Continued Oil Growth 2017 activities Oil Production (MBbls/d) 50.8 1H17: Increased Eagle Ford, 45.1 45.0 45.7 46.9 moderate Wolfcamp 2H17: Increase Wolfcamp, 32.4 22.2 23.9 moderate Eagle Ford 24.0 27.3 Full Year 2017 7.0…
  6. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 6
    Execution Efficiency Gross Well Cost1 (MM) Adjusted Cash Operating Costs (/Boe) Wolfcamp 6.2 5.3 4.9 4.6 Longer laterals 16.35 15.16 FY'14 FY'15 FY'16 2017E 2.78 2.61 3.28 3.19 4.20 Eagle Ford 7.2 3.99 5.8…
  7. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 7
    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…
  8. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 8
    Current Financial Profile Maturity Profile (MM) As of 12/31/15 2,000 4.9 billion Reduced total debt by 1billion 1,500 since YE 2015 1,000 2,000 Significantly extended maturities 500 1,222 800 497 350 0 Retired or…
  9. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 9
    Increased Financial Flexibility Extended 940MM of 2019-2021 maturities to 2025 Refinanced higher interest secured and unsecured notes with 8% secured debt Successfully completed semi-annual borrowing base redetermination…
  10. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 10
    Hedge Program Summary Hedge Summary 2017 2018 Oil volumes (MMBbls) 7.7 8.9 Average floor price (/Bbl) 60.52 60.00 Natural Gas volumes (TBtu) 26.1 18.3 Average floor price (/MMBtu) 3.28 3.07 Added 2018 price support 2017: Oil:…
  11. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 11
    Solid Execution Across Asset Portfolio Wolfcamp Step-change improvements in well production Significant inventory of future opportunities Eagle Ford Increased efficiencies in high return program Improved performance with enhanced…
  12. 2017 RBC Global Energy and Power Conference – 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. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 13
    Wolfcamp: Significant Scale Since 2010: Total capital spent 2.4 billion Total footage drilled: 898 miles Total proppant pumped: 3.25 Billion lbs Total fluid volume: 63.5 Million Bbls or 2.67 Billion gallons Total compression: 19,291…
  14. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 14
    Wolfcamp: Significant Performance Improvement Averaged 2 JV rigs and 2 frac crews Oil Production (MBbls/d) 11.4 11.1 Results supported by: 9.3 7.0 6.8 Latest generation wells beating 750 Mboe type curve Improved base…
  15. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 15
    Investing in Wolfcamp Growth Wolfcamp Oil Production Capital program (MBbls/d) Manage Eagle Ford & Altamont and maintenance capital levels Invest free cash in Wolfcamp growth Wolfcamp Highest program returns 8.6 8.6 Currently…
  16. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 16
    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…
  17. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 17
    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…
  18. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 18
    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 3.8 296 246 2014 2015 2016 Best 2016 2014 2015 2016 Best 2016 Well Well Unit LOE /BOE Drilling…
  19. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 19
    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…
  20. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 20
    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…
  21. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 21
    Refining Drilling Design Full Development 7 wells per bench Dean 21 per section Top Wolfcamp Potential for additional landing zones -- 770-- --- 1,540 --- 3-D seismic covering entire acreage position Identifies…
  22. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 22
    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…
  23. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 23
    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…
  24. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 24
    Wolfcamp: Improved Drilling Efficiencies Proven drilling performance 16 9,000 9,500 8,900 2017E capex per foot: 297 Average Lateral Length (Ft.) Rig Days (Spud to Rig Release) 14 9,000 Best wells 12 11.0 8,500 Spud to…
  25. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 25
    Wolfcamp: Improved Frac Crew Efficiencies Frac Crew Performance Improved efficiency 20.0 20.0 19.0 Less time between stages 18.0 18.0 16.0 16.0 More stages per day 14.0 14.0 13.2 More pumping hours per day 12.0 12.0…
  26. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 26
    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…
  27. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 27
    Eagle Ford: Capital Efficient Program 40 Efficient Capital Drives Oil Growth 250 225 32.4 30 27.3 200 Averaged 1 rig and 2 frac crews Capex (MM) 175 Oil (MBbls/d) 24.0 23.9 22.2 150 Resumed production growth 20 125 92…
  28. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 28
    Altamont: Consistent Results Oil Production Averaged 1 JV rig and picked up 2nd (MBbls/d) rig in late Feb. along with 1 frac crew 12.1 11.9 11.4 11.7 11.0 3 new well completions 16 recompletions Strong program returns…
  29. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 29
    New Altamont Drilling JV EPE Impact Altamont Acreage Enhances program economics Capital carry increases capex allocation options…
  30. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 30
    2017 Outlook 2017 Oil production (MBbls/d) 45 49 Total production (MBoe/d) 75 82 Oil production growth from 2H16 Oil & gas capital (MM)1 Favorable cost performance Wolfcamp 245 325 below low end of guidance range Eagle Ford 260…
  31. 2017 RBC Global Energy and Power Conference – EP Energy Corp – slide 31
    Updated Type Well Economics Drilling locations…

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