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Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd.

Gastar Exploration, Ltd. · Sep 26, 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. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 1
    Investor Presentation September 2017
  2. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 2
    Corporate Overview
  3. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 3
    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…
  4. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 4
    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,…
  5. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 5
    Mid-Continent Net Production Production growth weighted to late 2017; fracing resumed in late September 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…
  6. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 6
    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 9.9 8% STACK Operated Drilling 34.1 41% STACK Operated…
  7. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 7
    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…
  8. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 8
    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…
  9. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 9
    STACK Regional Drilling Activity: 2012-2017 2012-2013 2014-2015 2016-2017 +356 +530 98 wells completed 454 wells completed 984 wells completed Note: Obtained from Drillinginfo as of 9/12/2017 2017 Gastar Exploration Inc. 11
  10. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 10
    Mid-Continent STACK Operator Map One of the most active horizontal plays in North America, currently 78 rigs running in the area Note: Rig data obtained from Drillinginfo as of 9/12/2017 2017 Gastar Exploration Inc. 12
  11. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 11
    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) STACK 63,200 net acres 63,200 core STACK 26,700 WEHLU and…
  12. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 12
    Meramec Overview Overview Activity Map(4) 23 horizontal operated Meramec wells drilled 19 - Producing 4 - WOC Non-operated participation in 14 wells 10 producing Meramec activity - 126 active permits and 437 completed wells in…
  13. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 13
    Meramec Activity Map Note: Other operator production rates obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar Exploration Inc. 2017…
  14. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 14
    Osage Overview Overview Activity Map(4) 13 horizontal operated Osage wells drilled 4 - Producing 5 - Flowback 4 - WOC Non-operated participation in 12 wells 10 producing Osage activity 107 active permits and 261 completed…
  15. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 15
    Osage Activity Map Note: Other operator production rates obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar Exploration Inc. 2017…
  16. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 16
    Drilling Days Overview Significantly improved drilling efficiency; now moving focus to enhanced completions Drilling Days Vs. Depth (Days) 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 0 Average Days 1,500 Surface to TD…
  17. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 17
    Oswego Overview Overview Activity Map(4) 1 horizontal operated Oswego well drilled 1 producing Non-operated participation in 4 wells 3 producing Offset operator IPs up to 2,100 Boe/d (93%+ oil) A growing horizontal target in the…
  18. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 18
    Oswego Activity Map Note: Other operator production rates obtained from third-party company data, investor presentations, public filings and other sources that have not been independently verified by Gastar Exploration Inc. 2017…
  19. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 19
    Woodford Overview Overview Activity Map(4) Non-operated participation in 3 wells 3 producing Woodford activity 70 active permits and 206 completed wells in the area(1) Offset operator IPs up to 1,500 Boe/d (80%+ oil) Other…
  20. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 20
    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…
  21. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 21
    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…
  22. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 22
    Financial Overview
  23. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 23
    Financial Strategy No financial maintenance covenants or near-term maturities 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…
  24. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 24
    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,…
  25. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 25
    Ownership Summary Top-20 Holders(1) Current Ownership Summary(1) Firm / Person Shares Held (MM) % of Total Outstanding Retail / Other Ares Ares Management, LP 56.7 26% 57.7 Management, LP Fir Tree Incorporated 16.2 7% 26% 56.7 Blackrock…
  26. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 26
    PDP Hedging Program Oil and NGLs Hedging Strategy 3,500 3,156 100 2,999 2,800 2,650 80 60.92 2,100 51.57 48.24 60 (Bbl/d) 1,400 40 700 20 0 0 2017 2018 2019 Volume Average Hedge Floor Price (/Bbl) Downside Hedged % (1)…
  27. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 27
    Appendix
  28. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 28
    Hedge Detail Natural Gas Oil Period Contract Type Volume Hedged Price Period Contract Type Volume Hedged Price Oct - Dec 17 3-Way 5,000 MMBtu/d 3.00 / 2.35 / 4.00 Sep - Dec 17 3-Way 280 Bbl/d 80.00 / 65.00 / 97.25 Oct - Dec 17 Swap…
  29. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 29
    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…
  30. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 30
    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…
  31. Johnson Rice 2017 Energy Conference – Gastar Exploration, Ltd. – slide 31
    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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