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Louisiana Energy Conference – Chaparral Energy, Inc

Chaparral Energy, Inc · May 31, 2017 · 43 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. Louisiana Energy Conference – Chaparral Energy, Inc – slide 1
    2017 Louisiana Energy Conference May 2017
  2. Louisiana Energy Conference – Chaparral Energy, Inc – slide 2
    General Overview
  3. Louisiana Energy Conference – Chaparral Energy, Inc – slide 3
    The New Chaparral Transforming into a premier pure-play STACK company Approximately 110,000 net acres Capitalize on strong pipeline of economic opportunities Deliver solid operating margins and returns, even in a volatile…
  4. Louisiana Energy Conference – Chaparral Energy, Inc – slide 4
    Recent Achievements Emerged from restructuring with a strong balance sheet Equitized 1.2 billion in debt and reduced annual interest expense by 110 million Enterprise Value: Approximately 1.2 billion Debt/Adjusted LTM EBITDA:…
  5. Louisiana Energy Conference – Chaparral Energy, Inc – slide 5
    Year End 2016 SEC Proved Reserves 131.3 MMBoe of Reserves(1) 74% Oil, 83% Liquids Reserves by Area 9% 22% 23% 75.2, 54.9, 17% 57% 42% 74% 55% 1.1, Of which, 60.5 MMBoe are 1% NBU PUDs PDP PDNP PUD OIL GAS NGL STACK EOR…
  6. Louisiana Energy Conference – Chaparral Energy, Inc – slide 6
    Transformed Debt Structure Total Debt and Annual Interest Expense Estimated to Be Lowered by Approximately 80% MM 1,800 1,207 1,678 Debt Reconciliation (millions) 1,600 March 21, YE 2016 2017 1,400 Senior Notes 1,207 0 1,200 RBL…
  7. Louisiana Energy Conference – Chaparral Energy, Inc – slide 7
    2017 Strategy STACK position provides significant growth potential Transition Chaparral to a Pursue strategic alternatives to monetize Enhanced Oil Recovery Pure-Play STACK (EOR) assets Company Retained CIBC Griffis & Small to…
  8. Louisiana Energy Conference – Chaparral Energy, Inc – slide 8
    EOR Assets Strategic Plan Monetize EOR assets as part of transition to pure-play STACK operator Data room: Approximately June Bids: Approximately July Ensure capital allocation to highest-return opportunities Provide ability to…
  9. Louisiana Energy Conference – Chaparral Energy, Inc – slide 9
    2017 Oil & Gas Capital Budget Summary (1) CAPEX Oil-weighted capital budget of 125 - 150 million (2) Approximately 85 million allocated to STACK Other, Approximately 50% allocated to Kingfisher 7% County and the Merge…
  10. Louisiana Energy Conference – Chaparral Energy, Inc – slide 10
    Production Growth 28,000 Boe/d Total Company(1) 26,000 25,050 25,407 23.6 Guidance High 23,857 24,000 23,254 22,481 22.4 Guidance Low 22,000 STACK 20,000 Series1 8.2 Guidance High Boe/d 18,000 9,000 7.7 Guidance Low 16,000 8,000…
  11. Louisiana Energy Conference – Chaparral Energy, Inc – slide 11
    Asset Overview
  12. Louisiana Energy Conference – Chaparral Energy, Inc – slide 12
    Asset Overview STACK Premier basin with industry-leading returns Large contiguous acreage position with exposure to all current economic reservoir targets Multi-year drilling inventory supporting significant future growth Play is…
  13. Louisiana Energy Conference – Chaparral Energy, Inc – slide 13
    STACK Overview ALFAFA WOODS Asset Overview GARFIELD Approximately 110,000 acres WOODWARD MAJOR 8.0 MBoe/d in Q1 2017 Attributes/Characteristics DEWEY STACK KINGFISHER Chaparral acreage is primarily located in the…
  14. Louisiana Energy Conference – Chaparral Energy, Inc – slide 14
    One Petroleum System STACK Attributes N REGIONAL STACK CROSS SECTION 60 MILES S STACK MERGE GARFIELD COUNTY KINGFISHER COUNTY CANADIAN COUNTY GRADY COUNTY Stacked reservoirs proximal to the world-class Woodford source rock Efficient…
  15. Louisiana Energy Conference – Chaparral Energy, Inc – slide 15
    Recent STACK Transactions Significant A&D activity demonstrates value of Chaparrals acreage position Staghorn & Payrock transactions were primarily in the black oil, normal pressure window of the play 1 2 3 4 Sales Package/Seller…
  16. Louisiana Energy Conference – Chaparral Energy, Inc – slide 16
    STACK Meramec Overview SCHOEPPEL 16-20-12 1H BIGHORN 18-09-33 1H THE DUDE 1UMH-12 CHARLENE 2305 1-29H (Chesapeake) (Staghorn) (Chaparral) (Sandridge) Meramec Overview Spud Date: 7/16/16 Spud Date: 7/11/16 Spud Date: 2/15/16 Spud Date:…
  17. Louisiana Energy Conference – Chaparral Energy, Inc – slide 17
    STACK Osage Overview FARBER 2007 1MH-6 HEDGES 6-21-5W 1MH REDWOOD 2105 1MH-3 (Chaparral) (White Star) (Chaparral) Osage Overview Spud Date: 12/12/15 Spud Date: 9/15/14 Spud Date: 11/18/15 EVELYN 1706 5-18MH Peak IP-30: 497 Boe/d Peak…
  18. Louisiana Energy Conference – Chaparral Energy, Inc – slide 18
    STACK Woodford Overview REDHEAD 1H-9XX STILES 1407 1-4H SMITH D 34-21N-4W 1WH (Newfield) (Marathon) (White Star) Spud Date: 5/2/15 Spud Date: 2/17/14 Spud Date: 5/9/14 Woodford Overview Peak IP-30: 1,139 Boe/d Peak IP-30: 713 Boe/d…
  19. Louisiana Energy Conference – Chaparral Energy, Inc – slide 19
    STACK Oswego Overview DU (TRIFECTA) 1OH-14 DU OOID 1OH-24 HASTY 3-18-6 1H (Chaparral) (Chaparral) (Chesapeake) Spud Date: 3/10/14 Spud Date: 6/24/13 Spud Date: 5/28/16 Oswego Overview Peak IP-30: 788 Boe/d Peak IP-30: 1,454 Boe/d Peak…
  20. Louisiana Energy Conference – Chaparral Energy, Inc – slide 20
    Currently Identified Drilling Inventory by Play Extensive operated drilling inventory STACK Operated Drilling Inventory by Type 152-rig years 3,500 Kingfisher County Osage, Meramec and Oswego essentially 1.5 rigs 3 rigs 4 rigs 5…
  21. Louisiana Energy Conference – Chaparral Energy, Inc – slide 21
    Operational Excellence Drilling and Completions Lowest-cost Meramec Operator Strong, Effective Focus on Cost Reduction/Control Best-in-class D&C cost per Meramec well on a like- 1Q 13 - 1Q 15: 50% D&C cost reduction for-like basis…
  22. Louisiana Energy Conference – Chaparral Energy, Inc – slide 22
    2017 D&C Cost Performance Chaparral 2017 YTD STACK Meramec D&C Chaparral 2017 YTD STACK Osage D&C 4 of 7 wells at or below Type Curve D&C Cost of 3.5 2 of 3 wells at Type Curve D&C Cost of 3.3 million million 2017 YTD Average: 3.39…
  23. Louisiana Energy Conference – Chaparral Energy, Inc – slide 23
    Operational Excellence Lease Operating Costs An approximate 40% LOE reduction for new STACK drill wells from 2014 to 2016 Thousands Cumulative Early Time LOE(1) per New Well 200 150 100 50 - 2014 2015 2016 2014 2015 2016…
  24. Louisiana Energy Conference – Chaparral Energy, Inc – slide 24
    Non-Core Legacy Asset Overview Mature, lower decline legacy fields Low maintenance capital Provides free cash flow to fuel STACK growth Potential strategic alternatives Net Production(1) Gross Margin(1) Net Proved Reserves…
  25. Louisiana Energy Conference – Chaparral Energy, Inc – slide 25
    Financial Overview
  26. Louisiana Energy Conference – Chaparral Energy, Inc – slide 26
    Financial Strategy Maintain strong balance sheet Converted all long-term debt to equity As of March 31, 2017, approximately 122 million liquidity, which includes approximately 104 million available on revolver Maintain capital…
  27. Louisiana Energy Conference – Chaparral Energy, Inc – slide 27
    Credit Facility Overview Common Equity Approximately 45 million shares issued and outstanding at emergence 150 million outstanding at emergence Matures March 2021 ABR Loans: ABR + 6.75% Term Loan LIBOR Loans: LIBOR + 7.75% (1%…
  28. Louisiana Energy Conference – Chaparral Energy, Inc – slide 28
    Strong Financial Position and Liquidity Chaparral Capitalization and Liquidity Strong financial position to support accelerated STACK drilling program ( in Millions) As Reported 3/31/2017 No near-term debt maturities until 2021…
  29. Louisiana Energy Conference – Chaparral Energy, Inc – slide 29
    Hedging Hedging Strategy Ensures Revenue to Execute Capital Plan Oil Positions Natural Gas Positions 12,000 30,000 25,785 9,832 10,000 25,000 Volumes (MMBtu/d) 8,000 20,000 Volumes (bbls/d) 50.00 - 60.50 6,298…
  30. Louisiana Energy Conference – Chaparral Energy, Inc – slide 30
    Why Chaparral Why Chaparral Peer Leading Balance Sheet Strong Management Execution-focused Team with Excellent STACK Player Track Record Deep Inventory of High-return Drilling Prospects 30
  31. Louisiana Energy Conference – Chaparral Energy, Inc – slide 31
    Appendix
  32. Louisiana Energy Conference – Chaparral Energy, Inc – slide 32
    STACK Meramec Single Well Economics Type Curve Parameters EUR: 578 MBoe Oil %IP-30: 59% D&C Cost(1): 3.5 million Oil EUR: 233 MBbls Oil %EUR: 40% IP (30-day): 442 Bo/d Initial Decline: 85% b Factor: 1.2 Well Head Gas EUR:…
  33. Louisiana Energy Conference – Chaparral Energy, Inc – slide 33
    STACK Osage Kingfisher Single Well Economics Type Curve Parameters EUR: 540 MBoe Oil % IP-30 : 67% D&C Cost(1): 3.3 million Oil EUR: 235 MBbls Oil %EUR: 44% IP (30-day): 403 Bo/d Initial Decline: 80.7% b Factor: 1.1 Well…
  34. Louisiana Energy Conference – Chaparral Energy, Inc – slide 34
    STACK Osage Garfield Single Well Economics Type Curve Parameters EUR : 599 MBoe Oil % IP-30 : 46% D&C Cost(1): 3.3 million Oil EUR: 174 MBbls Oil %EUR: 29% IP (30-day): 259 Bo/d Initial Decline: 83.6% b Factor: 1.4 Well Head…
  35. Louisiana Energy Conference – Chaparral Energy, Inc – slide 35
    STACK Woodford Black Oil Single Well Economics Type Curve Parameters EUR: 575 MBoe Oil % IP-30 : 55% D&C Cost(1): 4 million Oil EUR:233 MBbls Oil %EUR: 41% IP (30-day):298 Bo/d Initial Decline:73% b Factor: 1.1 Well Head…
  36. Louisiana Energy Conference – Chaparral Energy, Inc – slide 36
    STACK Oswego Single Well Economics Type Curve Parameters EUR: 290 MBoe Oil % IP-30 : 81% D&C Cost(1): 2.7 million Oil EUR: 231 MBbls Oil %EUR: 80% IP (30-day): 483 Bo/d Initial Decline: 85% b Factor: 1.1 Well Head Gas EUR:…
  37. Louisiana Energy Conference – Chaparral Energy, Inc – slide 37
    2017 Guidance 2017 Guidance Company Production: 8.2 - 8.6 MMBoe Oil and Natural Gas Capital: 135 - 160 million Lease operating expense(LOE): 10.50 - 11.00 per Boe General and Administrative(G&A)(1): 3.40 - 4.20 per Boe…
  38. Louisiana Energy Conference – Chaparral Energy, Inc – slide 38
    Contact Information Contact Information Investors Joe Evans Chief Financial Officer joe.evanschaparralenergy.com 405-426-4590 Media Brandi Wessel Manager Communications brandi.wesselchaparralenergy.com 405-426-6657…
  39. Louisiana Energy Conference – Chaparral Energy, Inc – slide 39
    Executive Team K. Earl Reynolds, Chief Executive Officer and Director Mr. Reynolds joined Chaparral in 2011 as an executive vice president and chief operating officer before being named president in 2014 and chief executive officer in…
  40. Louisiana Energy Conference – Chaparral Energy, Inc – slide 40
    Board of Directors Robert F. Heinemann, Chairman Mr. Heinemann was named to the board in 2017. During his career, Mr. Heinemann worked for Berry Petroleum Company, as a director and as its president and chief executive officer, as…
  41. Louisiana Energy Conference – Chaparral Energy, Inc – slide 41
    Board of Directors Samuel Langford, Director Mr. Langford was named to Chaparrals board in 2017. He continues to serve as the principal for Langford Upstream Advisory, L.L.C., a position he has held since 2013. Prior to that time, he…
  42. Louisiana Energy Conference – Chaparral Energy, Inc – slide 42
    Reconciliations (in thousands) 2016 2015 2014 Reconciliations Net (loss) income (415,720) (1,333,844) 209,293 Interest expense 64,242 112,400 104,241 Income tax (benefit) expense (102) (177,219) 124,443 Depreciation, depletion and…
  43. Louisiana Energy Conference – Chaparral Energy, Inc – slide 43
    THANK YOU

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