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2Q 2017 Earnings Update – Gastar Exploration, Ltd.

Gastar Exploration, Ltd. · Aug 3, 2017 · 26 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 – Gastar Exploration, Ltd. – slide 1
    Investor Presentation August 2017
  2. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 2
    Corporate Overview 89,900 net surface acres: 63,200 core STACK surface acres(1) Mid-Continent STACK Play STACK STACK Optionality STACK Oswego 12,900 net acres(2) STACK Meramec 22,000 net acres(2) WEHLU + WEHLU STACK Osage…
  3. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 3
    Key Investment Criteria Pure play Mid-Continent STACK operator STACK (Sooner-Trend-Anadarko-Canadian-Kingfisher) is one of the most coveted assets in N. America High-Quality STACK Resource Base Strong drilling results in the Meramec,…
  4. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 4
    Mid-Continent Net Production Net Daily Production(1) 8.0 6.8 High 6.4 6.0 6.0 5.9 6.2 Low 20% 23% 23% 4.8 4.3 Mboe/d 21% 71% 74% 72% 3.2 54% 48% 49% 71% 50% 1.6 1.1 6% 54% 29% 28% 48% 26% 29% 46% 0.0…
  5. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 5
    2017 Capital Budget Original 2017 Budget Detail New 2017 Budget Detail Area Capital (MM) % of Total Area Capital (MM) % of Total STACK DrillCo Drilling 5.1 6% STACK DrillCo Drilling 8.6 7% STACK Operated Drilling 34.1 41% STACK Operated…
  6. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 6
    STACK Play - Overview Overview Five prospective formations across acreage position Multiple formations may be stacked depending on specific area Multiple benches within prospective formations Offers large quantity of drilling…
  7. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 7
    Summary Target Economics Based on Wright & Co. proved reserve type curve projections(1) Meramec WEHLU Upper Hunton WEHLU Lower Hunton Gross locations per 640 6 3 3 Number of net drilling locations 195 111 108 EURs Processed 490…
  8. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 8
    STACK Regional Activity 2012-2013 2014-2015 2016-2017 +356 +475 98 wells completed 454 wells completed 929 wells completed Note: Obtained from Drillinginfo as of 8/2/2017 2017 Gastar Exploration Inc. 11
  9. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 9
    Mid-Continent STACK Operator Map One of the most active horizontal plays in North America, currently 43 rigs running in the area Note: Rig data obtained from Drillinginfo as of 8/2/2017 2017 Gastar Exploration Inc. 12
  10. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 10
    STACK Overview Large, contiguous acreage position with multiple stacked horizontal targets Mid-Continent Asset Overview Mid-Continent Asset Map 89,900 net surface acres(1) 63,200 core STACK 26,700 WEHLU and WEHLU East Meramec and…
  11. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 11
    Meramec Overview Overview Activity Map(4) 21 horizontal operated Meramec wells drilled 19 producing Non-operated participation in 14 wells 9 producing Meramec activity - 97 active permits and 412 completed wells in the area(1)…
  12. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 12
    Osage Overview Overview Activity Map(4) 13 horizontal operated Osage wells drilled 4 - Producing 5 - Flowback 4 - WOC Non-operated participation in 12 wells 9 producing Osage activity 95 active permits and 247 completed wells…
  13. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 13
    Oswego Overview Overview Activity Map(4) 1 horizontal operated Oswego well drilled 1 producing Non-operated participation in 3 wells 3 producing Offset operator IPs up to 2,100 Boe/d (93%+ oil) A growing horizontal target in the…
  14. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 14
    Woodford Overview Overview Activity Map(4) Non-operated participation in 3 wells 3 producing Woodford activity 19 active permits and 195 completed wells in the area(1) Offset operator IPs up to 1,500 Boe/d (80%+ oil) Other…
  15. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 15
    WEHLU Overview WEHLU-Hunton offers a substantial source of high return projects - Acreage 100% HBP WEHLU-Upper Hunton Overview WEHLU Map Seven well average results: Peak rate of 568 Boe/d (86% oil) 8 PUDs on northern WEHLU acreage…
  16. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 16
    Northern Hunton Development Northern Hunton Development Northern Hunton Activity Map Established position in 2012 to focus on Lower Hunton development Took over operatorship with closing of acquisition in December 2015 39…
  17. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 17
    Appendix
  18. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 18
    Financial Overview
  19. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 19
    Capital Structure Summary Capitalization 250MM 8.5% Term Loan ( in millions) 6/30/2017 Maturity date March 3, 2022 Early redemption subject to certain make-whole and Cash 38.7 repayment premium provisions Interest payments,…
  20. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 20
    Ownership Summary Top-20 Holders(1) Current Ownership Summary(1) Firm / Person Shares Held (MM) % of Total Outstanding Ares Ares Management, LP 56.7 27% Management, LP Gastar directors and executive officers(2) 6.6 3% 56.7 Retail /…
  21. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 21
    Financial Strategy No financial maintenance covenants Ability to retain cash for drilling by PIK of interest expense Debt Structure Largest equity holder is holder of all current debt Flexibility on ability to hedge additional…
  22. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 22
    PDP Hedging Program Oil and NGLs Hedging Strategy 3,500 100 3,057 2,800 67.66 80 2,650 2,100 51.61 48.24 60 (Bbl/d) 1,850 1,400 40 700 20 0 0 2017 2018 2019 Volume Average Hedge Floor Price (/Bbl) Downside Hedged % (1)…
  23. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 23
    Hedge Detail Natural Gas Oil Period Contract Type Volume Hedged Price Period Contract Type Volume Hedged Price Aug - Dec 17 3-Way 5,000 MMBtu/d 3.00 / 2.35 / 4.00 Aug - Dec 17 3-Way 280 Bbl/d 80.00 / 65.00 / 97.25 Aug - Sep 17 Swap 2,300…
  24. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 24
    Realized Prices Mid-Continent Realized Oil Prices Realized Gas Prices 98% 99% 100.00 102% 101% 101% 110% 6.00 100% 99% 89% 91% 80.00 88% 4.80 80% 88.84 60.00 66% 3.60 4.25 60% 40.00 46.18 47.28 44% 2.40 40% 2.76 40.12 2.57…
  25. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 25
    Production Costs Mid Continent (/Boe) Lease Operating Expense Transportation 12.00 Workover expense 0.75 0.70 9.48 9.55 9.60 8.85 8.96 0.60 0.39 1.42 1.04 0.49 1.98 7.20 0.45 4.80 9.09 0.30 7.93 8.13 6.87 2.40 0.15 0.02…
  26. 2Q 2017 Earnings Update – Gastar Exploration, Ltd. – slide 26
    Earthquake Seismicity Map Low seismicity around Gastar leasehold Gastar recently re- completed a SWD well in the Wilcox to mitigate limitations of disposing in the Arbuckle Other operators are following this trend GST:…

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