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2Q 2017 Earnings Update – Energen Corp.

Energen Corp. · Aug 8, 2017 · 39 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. 2Q 2017 Earnings Update – Energen Corp. – slide 1
    Gen 3 Frac Design Driving Significant Outperformance 2 Q 1 7 Q U A R T E R LY E A R N I N G S C A L L August 8, 2017
  2. 2Q 2017 Earnings Update – Energen Corp. – slide 2
    Energen: 2Q17 Highlights New Gen 3 Wells Delivering Outstanding Results in All Key Areas Strong 24hour and 30day IP rates on 45 gross and net wells turned to production in 2Q17; 78% were multizone pattern wells completed in batches…
  3. 2Q 2017 Earnings Update – Energen Corp. – slide 3
    2Q17 Production By Basin (mboepd) By Commodity (mboepd) 71.1 72.5 71.1 72.5 62.2 62.2 22.9 23.4 52.8 52.8 19.8 45.1 12.8 44.9 40.6 33.3 40.5 41.3 31.8 34.2 12.8 13.5 8.9 10.5 10.6 11.1 13.5 13.9 8.3 8.2 7.7 7.9 1Q17a…
  4. 2Q 2017 Earnings Update – Energen Corp. – slide 4
    Updated Quarterly Production By Basin (mboepd) By Commodity (mboepd) 41.3 40.6 42.1 53.4 47.9 45.1 31.8 31.9 26.2 33.3 23.4 12.8 13.5 12.9 13.7 13.913.9 14.7 8.3 7.9 8.0 7.8 10.6 8.9 Midland Delaware CBP/Other Oil…
  5. 2Q 2017 Earnings Update – Energen Corp. – slide 5
    29% Annual Production Growth; 37% Midland, Delaware Production Growth Total 2017 production estimate: 70.6 mboepd Total 2017 Midland and Delaware production estimate: 62.6 mboepd 4Q17 to 4Q16 exit rate estimated at 53% Production…
  6. 2Q 2017 Earnings Update – Energen Corp. – slide 6
    2Q17 LOE & SG&A LOE* (/boe) SGA (/boe) 8.68 7.25 4.29 6.66 3.35 3.00 1Q17a 2Q17 June 2Q17a 1Q17a 2Q17 June 2Q17a Guidance Mdpt Guidance Mdpt LOE/boe down 8.1% from guidance SG&A/boe down 10.4% from guidance LOE/boe drops…
  7. 2Q 2017 Earnings Update – Energen Corp. – slide 7
    Energen Continues to Cut Costs; Compares Favorably with Permian Peers LOE per Boe1 (/Boe) Dark = 2015A Adjusted SG&A per Boe (/Boe) Dark = 2015A Light = 2016A Light = 2016A (19%) (29%) (25%) (7%) 8.01 7.71 6.37 6.46 5.81 4.52…
  8. 2Q 2017 Earnings Update – Energen Corp. – slide 8
    EGN Frac Design Evolution Delaware Basin Generation 1 Generation 2 Generation 3 (2012-2014) (2015) (2016-2017) 1,000 lbs./ft proppant 1,330 lbs./ft proppant 1,8002,400 lbs./ft proppant 240 stage spacing 260 stage spacing 200 stage…
  9. 2Q 2017 Earnings Update – Energen Corp. – slide 9
    45 Wells Turned to Production in 2Q17 Avg. Avg. Peak 24Hr IP Avg. Peak 30Day IP Completed Area Wells Lateral Boepd/ Boepd/ % Length Boepd % Oil Boepd 1,000 1,000 Oil Wolfcamp A (8) Delaware Basin 18 9,466 2,338 247 59 1,889…
  10. 2Q 2017 Earnings Update – Energen Corp. – slide 10
    Delaware Basin Gen 3 Wolfcamp A/B Wells 500 31% average cumulative production uplift over 1.75 mmboe EUR type curve at 270 days for 8 Wolfcamp A 450 and 12 Wolfcamp B wells; 9 of 20 are multizone pattern wells completed in batches…
  11. 2Q 2017 Earnings Update – Energen Corp. – slide 11
    North Midland Basin Gen 3 Spraberry Pattern Wells 150 40% average cumulative production uplift over 1.2 mmboe EUR type curve at 90 days for 4 Middle Spraberry, 3 Jo Mill, and 4 Lower Spraberry; all 11 are multizone pattern wells…
  12. 2Q 2017 Earnings Update – Energen Corp. – slide 12
    North Midland Basin Gen 3 Wolfcamp A/B Pattern Wells 300 11% average cumulative production uplift over 1.2 mmboe EUR type curve at 240 days for 3 Wolfcamp 275 A and 7 Wolfcamp B wells; 7 of 10 are multizone pattern wells completed…
  13. 2Q 2017 Earnings Update – Energen Corp. – slide 13
    Central Midland Basin Gen 3 Wolfcamp A/B Pattern Wells 200 21% average cumulative production uplift over 1.2 mmboe EUR type curve at 170 days for 7 Wolfcamp A and 9 Wolfcamp B wells; all 16 are multizone pattern wells completed in…
  14. 2Q 2017 Earnings Update – Energen Corp. – slide 14
    Central Midland Basin Gen 3 Lower Spraberry Pattern Wells 150 47% average cumulative production uplift over 850 mboe EUR type curve for northern Midland Basin Lower Spraberry wells at 160 days for 2 Lower Spraberry wells; both are…
  15. 2Q 2017 Earnings Update – Energen Corp. – slide 15
    Midland Gen 3 Pattern Wells Completed in Batches at Original Reservoir Pressure Outperforming Offset Pattern Wells of Peers and All Operators In combination with its Gen 3 frac design, Energens practice of completing multizone…
  16. 2Q 2017 Earnings Update – Energen Corp. – slide 16
    Midland Gen 3 Wells Performing At or Above Those of Peers and All Operators with Proppant Loads of 1,700-2,500 lbs/ft Energens performance versus Permian peers and all operators is even more notable given Energens focus on multizone…
  17. 2Q 2017 Earnings Update – Energen Corp. – slide 17
    Midland Gen 3 Pattern Wells Outperforming Those of Peers and All Operators with Proppant Loads of 1,700-2,500 lbs/ft Energen believes multizone pattern wells should be completed in batches at the original reservoir pressure. Energens…
  18. 2Q 2017 Earnings Update – Energen Corp. – slide 18
    Delaware Gen 3 Wells Outperforming Those of Peers and All Operators with Proppant Loads of 1,700-2,500 lbs/ft Energens performance versus Permian peers and all operators is even more notable given Energens focus on multizone pattern…
  19. 2Q 2017 Earnings Update – Energen Corp. – slide 19
    Drilling & Development Capital 2017e Capital by Basin 2017e Capital Breakdown (850-900mm) (850-900mm) 5 13% 4% 405 490 83% Operated Drilling & Development Midland Basin Delaware Basin NonOperated/Other Central…
  20. 2Q 2017 Earnings Update – Energen Corp. – slide 20
    2017 Drilling Program 2017 Operated Horizontal Program Gross/Net Wells Avg. Lateral Length Average WI Midland Basin YE16 DUC Completions 44/43 9,600 98% New Drills 54/46 8,425 86% New Drill Completions 39/32 YE17 DUCs 15/14 Delaware…
  21. 2Q 2017 Earnings Update – Energen Corp. – slide 21
    Hedge Position ROY17 In last six months of 2017, approximately 69% of estimated oil production hedged Hedge Volumes Avg. NYMEX Price Oil Swaps 4.0 mmbo 50.68 per barrel Oil 3way Collars 2.4 mmbo Call Price 62.18 per barrel Put…
  22. 2Q 2017 Earnings Update – Energen Corp. – slide 22
    2018 Hedges Hedge Volumes Avg. NYMEX Price Oil 3way Collars 13.5 mmbo Call Price 60.04 per barrel Put Price 45.47 per barrel Short Put Price 35.47 per barrel When the NYMEX price is above the call price, Energen receives the call…
  23. 2Q 2017 Earnings Update – Energen Corp. – slide 23
    Expense Guidance Per BOE, except as noted 3Q17e 4Q17e 2017e LOE (production costs, marketing & transportation) 7.00 7.30 6.85 7.15 7.05 7.45 Production & ad valorem taxes (% of revenues, ex. hedges) 6.4% 6.3% 6.5% DD&A expense*…
  24. 2Q 2017 Earnings Update – Energen Corp. – slide 24
    Strong Balance Sheet Maturity Schedule of Notes 2017e Capitalization (mm) 400 Net debt at YE16 165 Plus: Total Capital Expenditures* 1,085 1,135 Less: Aftertax Cash Flows (includes working 515 capital adjustment) Net Debt at YE17 735…
  25. 2Q 2017 Earnings Update – Energen Corp. – slide 25
    Premium Permian Basin Acreage Energens Permian Footprint (7/1/2017) Platform (117,574 gross acres/83,885 net acres) Midland Basin (118,727 gross acres/94,037 net acres) Delaware Basin (91,071 gross acres/61,690 net acres) 26
  26. 2Q 2017 Earnings Update – Energen Corp. – slide 26
    Identified Inventory: 4,116 Net Locations on 147,428 Net Acres Midland Basin (WC/SPB/Cline): Delaware Basin (WC, BS, Avalon, BC): 2,629 Net Locations on 87,230 net acres 1,487 Net Locations on 60,198 net acres Dawson: 15 Lea:…
  27. 2Q 2017 Earnings Update – Energen Corp. – slide 27
    Identified Net Potential 7.1.17 Midland Basin: 1.3 Billion BOE Inventory: Type Curve Remaining Horizontal Midland Net Operated Wells Net Engineered Net Locations1 EUR Range2 Undeveloped Resource3 Drilled to Date Acreage Basin…
  28. 2Q 2017 Earnings Update – Energen Corp. – slide 28
    Identified Net Potential 7.1.17 North Midland Basin: 699 MMBOE Midland, Martin, Dawson Net Operated Wells Inventory: Type Curve Remaining Horizontal Net Engineered Net Locations1 EUR Range2 Undeveloped Resource3 & Howard Counties…
  29. 2Q 2017 Earnings Update – Energen Corp. – slide 29
    Identified Net Potential 7.1.17 Central Midland Basin: 614 MMBOE Glasscock, Upton & Inventory: Type Curve Remaining Horizontal Net Operated Wells Net Engineered Net Locations1 EUR Range2 Undeveloped Resource3 Reagan Counties…
  30. 2Q 2017 Earnings Update – Energen Corp. – slide 30
    Identified Net Potential 7.1.17 Delaware Wolfcamp Shale: 970 MMBOE Inventory: Type Curve Remaining Horizontal Net Operated Wells Net Engineered Net Locations1 EUR Range 2 Undeveloped Resource 3 Drilled to Date Acreage Central…
  31. 2Q 2017 Earnings Update – Energen Corp. – slide 31
    Identified Net Potential 7.1.17 Delaware Other Plays: 203 MMBOE Inventory: Type Curve Remaining Horizontal Net Operated Wells Net 1 Engineered Net Locations EUR Range 2 Undeveloped Resource3 Other Plays Drilled to Date Acreage…
  32. 2Q 2017 Earnings Update – Energen Corp. – slide 32
    Inventory Spacing Northern Midland Basin Inventory Spacing per 640acre Section* 4 249 387 4 405 8 252 Dean Wolfcamp A 243 6 6 317 Wolfcamp B 374 8 439 1 Mile * Subject to change based…
  33. 2Q 2017 Earnings Update – Energen Corp. – slide 33
    Inventory Spacing Central Midland Basin Inventory Spacing per 640acre Section* 388 6 185 266 68 613 68 8 637 201 387 8 1 Mile * Subject to change based on continued testing and analysis of spacing…
  34. 2Q 2017 Earnings Update – Energen Corp. – slide 34
    Inventory Spacing Delaware Basin Wolfcamp Shale Inventory Spacing per 640acre Section* 417 6 364 6 344 Wolfcamp BC 6 400 6 1 Mile * Subject to change based on continued testing and analysis of spacing and…
  35. 2Q 2017 Earnings Update – Energen Corp. – slide 35
    Inventory Spacing Delaware Basin Other Inventory Spacing per 640acre Section* 106 226 4 795 6 257 4 316 442 4 3rd Bone Spring 609 Shale 6 4 294 159 1 Mile * Subject to change based on…
  36. 2Q 2017 Earnings Update – Energen Corp. – slide 36
    Investment Highlights Gen 3 wells outperforming type curves and other operators wells High quality, oil focused assets in Delaware and Midland basins 4,116 net locations identified in key Permian Basin trends Toptier asset base…
  37. 2Q 2017 Earnings Update – Energen Corp. – slide 37
    Non-GAAP Financial Measures Per unit LOE excluding the Central Basin Platform is a NonGAAP financial measure (GAAP refers to generally accepted accounting principles). This information is useful in comparing the company and other oil…
  38. 2Q 2017 Earnings Update – Energen Corp. – slide 38
    Non-GAAP Financial Measures Per unit SG&A including capitalized costs is a NonGAAP financial measure (GAAP refers to generally accepted accounting principles). This information is useful in comparing the company with other oil and gas…
  39. 2Q 2017 Earnings Update – Energen Corp. – slide 39
    For More Information JulieS.Ryland VicePresident InvestorRelations 2053268421 jrylandenergen.com www.energen.com 40

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