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Q3 2017 Presentation – Energen Corp.

Energen Corp. · Nov 8, 2017 · 40 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. Q3 2017 Presentation – Energen Corp. – slide 1
    Gen 3 Frac Design Driving Significant Outperformance 3 Q 1 7 Q U A R T E R LY E A R N I N G S C A L L November 8, 2017
  2. Q3 2017 Presentation – Energen Corp. – slide 2
    Gen 3 Performance Tops 3Q17 Highlights New Gen 3 Wells Delivering Outstanding Results in All Key Areas Average cumulative production uplift of 80 Gen 3 wells, 78% of which are multi-zone pattern wells completed in batches, performing…
  3. Q3 2017 Presentation – Energen Corp. – slide 3
    Gen 3 Performance Drives Production Beat By Basin (mboepd) By Commodity (mboepd) 81.3 81.3 72.5 74.8 72.5 74.8 28.7 23.4 26.2 49.0 45.1 47.9 41.3 40.6 44.8 15.7 13.5 12.9 13.9 13.9 16.6 7.9 8.0 7.9 2Q17a 3Q17 Guidance…
  4. Q3 2017 Presentation – Energen Corp. – slide 4
    4Q17 Production Guidance Increased 5% By Basin (mboepd) By Commodity (mboepd) 44.8 45.4 54.0 41.3 49.0 45.1 32.4 31.8 28.7 33.3 23.4 12.8 15.7 14.9 16.6 16.8 13.5 13.9 8.3 7.9 7.9 7.8 10.6 8.9 Midland Delaware…
  5. Q3 2017 Presentation – Energen Corp. – slide 5
    YOY Production Growth Now Estimated at 34% Total 2017 production estimate: 73.2 mboepd Total 2017 Midland and Delaware production estimate of 65.2 mboepd reflects 43% YOY growth 4Q17 to 4Q16 exit rate estimated at 60% Production…
  6. Q3 2017 Presentation – Energen Corp. – slide 6
    3Q17 LOE, SG&A Decline Significantly LOE* (/boe) SGA (/boe) 7.15 6.66 5.95 3.25 3.00 2.87 2Q17a 3Q17 Guidance 3Q17a 2Q17a 3Q17 Guidance 3Q17a Mdpt Mdpt LOE/boe down 17% from guidance SG&A/boe down 12% from guidance LOE/boe…
  7. Q3 2017 Presentation – Energen Corp. – slide 7
    Energen Continues to Cut Costs; Compares Favorably with Permian Peers LOE per Boe1 (/Boe) Dark = 2015A Adjusted SG&A per Boe1 (/Boe) Dark = 2015A Light = 2016A Light = 2016A (19%) (29%) (25%) (7%) 8.01 7.71 6.37 6.46 5.81 4.52…
  8. Q3 2017 Presentation – Energen Corp. – slide 8
    26 Wells Turned to Production in 3Q17 Avg. Avg. Peak 24-Hr IP Avg. Peak 30-Day IP Completed Area Wells Lateral Boepd/ Boepd/ Length Boepd % Oil Boepd % Oil 1,000 1,000 Wolfcamp A (6) Delaware Basin 7 8,851 2,806 317 55 2,204 249…
  9. Q3 2017 Presentation – Energen Corp. – slide 9
    Delaware Basin Gen 3 Wolfcamp A/B Wells 600 21% average cumulative production uplift over 1.75 mmboe EUR type curve at 340 days for 14 Wolfcamp 550 A and 13 Wolfcamp B wells; 15 of 27 are multi-zone pattern wells completed in…
  10. Q3 2017 Presentation – Energen Corp. – slide 10
    North Midland Basin Gen 3 Spraberry Pattern Wells 225 40% average cumulative production uplift over 1.2 mmboe EUR type curve at 175 days for 5 Middle Spraberry, 4 Jo Mill, and 9 Lower Spraberry; 16 of 18 are multi-zone pattern wells…
  11. Q3 2017 Presentation – Energen Corp. – slide 11
    North Midland Basin Gen 3 Wolfcamp A/B Pattern Wells 300 6% average cumulative production uplift over 1.2 mmboe EUR type curve at 250 days for 6 Wolfcamp 275 A and 11 Wolfcamp B wells; 13 of 17 are multi-zone pattern wells completed…
  12. Q3 2017 Presentation – Energen Corp. – slide 12
    Central Midland Basin Gen 3 Wolfcamp A/B Pattern Wells 250 11% average cumulative production uplift over 1.2 mmboe EUR type curve at 250 days for 7 Wolfcamp 225 A and 9 Wolfcamp B wells; all 16 are multi-zone pattern wells completed…
  13. Q3 2017 Presentation – Energen Corp. – slide 13
    Central Midland Basin Gen 3 Lower Spraberry Pattern Wells 200 45% average cumulative production uplift over 850 mboe EUR type curve for northern Midland Basin Lower Spraberry wells at 240 days for 2 Lower Spraberry wells; both are…
  14. Q3 2017 Presentation – Energen Corp. – slide 14
    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 multi-zone…
  15. Q3 2017 Presentation – Energen Corp. – slide 15
    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 multi-zone…
  16. Q3 2017 Presentation – Energen Corp. – slide 16
    Midland Gen 3 Pattern Wells Outperforming Those of Peers and All Operators with Proppant Loads of 1,700-2,500 lbs/ft Energen believes multi-zone pattern wells should be completed in batches at the original reservoir pressure.…
  17. Q3 2017 Presentation – Energen Corp. – slide 17
    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 multi-zone pattern…
  18. Q3 2017 Presentation – Energen Corp. – slide 18
    2017e Drilling & Development Capital Unchanged 2017e Capital by Basin 2017e Capital Breakdown (850-900mm) (850-900mm) 5 13% 5% 405 490 82% Operated Drilling & Development Midland Basin Delaware Basin…
  19. Q3 2017 Presentation – Energen Corp. – slide 19
    2017 Drilling Program Targets 106 Net Completions Avg. Completed 2017 Operated Horizontal Program Gross/Net Wells Average WI Lateral Length Midland Basin YE16 DUC Completions 44/43 9,600 98% New Drills 55/47 New Drill Completions 35/29…
  20. Q3 2017 Presentation – Energen Corp. – slide 20
    Hedge Position 4Q17 In last three months of 2017, approximately 64% of estimated oil production hedged Hedge Volumes Avg. NYMEX Price Oil Swaps 2.0 mmbo 50.68 per barrel Oil 3-way Collars 1.2 mmbo Call Price 62.18 per barrel Put…
  21. Q3 2017 Presentation – Energen Corp. – slide 21
    2018 - 2019 Hedges 2018 2019 Hedge Avg. NYMEX Hedge Avg. NYMEX Volumes Price Volumes Price Oil 3-way Collars 13.5 mmbo Oil 3-way Collars 1.4 mmbo Call Price 60.04/bbl Call Price 58.61/bbl Put Price 45.47/bbl Put Price 45.00/bbl…
  22. Q3 2017 Presentation – Energen Corp. – slide 22
    Key Expenses in 2017 Revised Downward Per BOE, except as noted 4Q17e 2017e Prior 2017e LOE (production costs, marketing & transportation) 6.55 - 6.85 6.70 - 7.00 7.05 - 7.45 Production & ad valorem taxes (% of revenues, ex. hedges)…
  23. Q3 2017 Presentation – Energen Corp. – slide 23
    Energen Maintains Strong Balance Sheet Maturity Schedule of Notes 2017e Capitalization (mm) 400 Net debt at YE16 165 Plus: Total Capital Expenditures* 1,115 1,165 Less: After-tax Cash Flows (includes working 562 capital adjustment) Net…
  24. Q3 2017 Presentation – Energen Corp. – slide 24
    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:…
  25. Q3 2017 Presentation – Energen Corp. – slide 25
    Working to Enhance Shareholder Value Gen 3 wells continue to outperform 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…
  26. Q3 2017 Presentation – Energen Corp. – slide 26
    Appendix 27
  27. Q3 2017 Presentation – Energen Corp. – slide 27
    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 1,800-2,400 lbs./ft proppant 240 stage spacing 260 stage spacing 200 stage…
  28. Q3 2017 Presentation – Energen Corp. – slide 28
    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) 29
  29. Q3 2017 Presentation – Energen Corp. – slide 29
    Identified Net Potential 7.1.17 Midland Basin: 1.3 Billion BOE Inventory: Type Curve Remaining Horizontal Midland Net Operated Wells Net Engineered Locations1 EUR Range2 Undeveloped Resource3 Drilled to Date Acreage Basin…
  30. Q3 2017 Presentation – Energen Corp. – slide 30
    Identified Net Potential 7.1.17 North Midland Basin: 699 MMBOE Midland, Martin, Dawson Net Operated Wells Inventory: Type Curve Remaining Horizontal Net Engineered Locations1 EUR Range2 Undeveloped Resource3 & Howard Counties Drilled…
  31. Q3 2017 Presentation – Energen Corp. – slide 31
    Identified Net Potential 7.1.17 Central Midland Basin: 614 MMBOE Glasscock, Upton & Inventory: Type Curve Remaining Horizontal Net Operated Wells Net Engineered Locations1 EUR Range2 Undeveloped Resource3 Reagan Counties Drilled to…
  32. Q3 2017 Presentation – Energen Corp. – slide 32
    Identified Net Potential 7.1.17 Delaware Wolfcamp Shale: 970 MMBOE Inventory: Type Curve Remaining Horizontal Net Operated Wells Net Engineered Locations1 EUR Range2 Undeveloped Resource3 Drilled to Date Acreage Central (Gross/Net)…
  33. Q3 2017 Presentation – Energen Corp. – slide 33
    Identified Net Potential 7.1.17 Delaware Other Plays: 203 MMBOE Inventory: Type Curve Remaining Horizontal Net Operated Wells Net Engineered Locations1 EUR Range2 Undeveloped Resource3 Other Plays Drilled to Date Acreage (Gross/Net)…
  34. Q3 2017 Presentation – Energen Corp. – slide 34
    Inventory Spacing: Northern Midland Basin Inventory Spacing per 640-acre Section* 4 249 249 4 387 387 8 405 405 252 Dean 252 Wolfcamp A 6 243 243 6 317 317 Wolfcamp B 374 374 8 439…
  35. Q3 2017 Presentation – Energen Corp. – slide 35
    Inventory Spacing: Central Midland Basin Inventory Spacing per 640-acre Section* 6 388 185 6-8 266 6-8 613 8 637 201 8 387 1 Mile * Subject to change based on continued testing and analysis of…
  36. Q3 2017 Presentation – Energen Corp. – slide 36
    Inventory Spacing: Delaware Basin WC Shale Inventory Spacing per 640-acre Section* 6 417 6 364 6 344 Wolfcamp BC 6 400 1 Mile * Subject to change based on continued testing and analysis of spacing…
  37. Q3 2017 Presentation – Energen Corp. – slide 37
    Inventory Spacing: Delaware Basin Other Inventory Spacing per 640-acre Section* 4 106 226 6 795 257 4 316 4 442 3rd Bone Spring 6 609 Shale 4 294 159 1 Mile * Subject to change based on…
  38. Q3 2017 Presentation – Energen Corp. – slide 38
    Non-GAAP Financial Measures Per unit LOE excluding the Central Basin Platform is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). This information is useful in comparing the company and other oil…
  39. Q3 2017 Presentation – Energen Corp. – slide 39
    Non-GAAP Financial Measures Per unit SG&A including capitalized costs is a Non-GAAP financial measure (GAAP refers to generally accepted accounting principles). This information is useful in comparing the company with other oil and…
  40. Q3 2017 Presentation – Energen Corp. – slide 40
    For More Information Julie S. Ryland Vice President Investor Relations 205-326-8421 jrylandenergen.com www.energen.com 41

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