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4Q 2017 Quarterly Earnings Call – Energen Corp.

Energen Corp. · Feb 20, 2018 · 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. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 1
    Strong Execution Driving Growth and Value 4 Q 1 7 Q U A R T E R LY E A R N I N G S C A L L February 20, 2018
  2. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 2
    Execution Continues to Deliver Superior Results Strong Execution Leads to Excellent Results in 4Q17 4Q17 production beat guidance by 14% and surpassed 3Q17 by 20% 4Q17 oil production grew to 58.1 mbopd and exceeded guidance by 8%…
  3. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 3
    Focus on Value Creation Bringing Value Forward in CY18 Drilling & development capital estimated to range from 1.1B to 1.3B Plans include drilling approximately 130 gross/120 net horizontal wells and completing approximately 123…
  4. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 4
    Another Production Beat in 4Q17 By Basin (mboepd) By Commodity (mboepd) 97.4 97.4 85.7 85.7 81.3 81.3 37.4 28.7 32.4 58.1 49.0 54.0 51.7 44.8 45.4 19.4 15.7 14.9 16.6 16.8 20.0 7.9 7.8 8.2 3Q17a 4Q17 Guidance 4Q17a…
  5. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 5
    2017 Production Grows 39% Total 2017 production: 76.1 mboepd Delaware Basin production grows approximately 150% YOY in 2017 Midland Basin production exceeds 42 mboepd in 2017 Production (mboepd) 76.1 25.6 53.6 54.6 Growth rate…
  6. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 6
    4Q17 Expenses Beat Guidance Midpoints LOE (/boe) Net SG&A (/boe) 7.85 6.70 6.02 (4.94*) 4.25 2.85 2.58 4Q16a 4Q17 Guidance 4Q17a 4Q16a 4Q17 Guidance 4Q17a Mdpt Mdpt LOE/boe down 10% from guidance SG&A/boe down 9% from…
  7. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 7
    Focus on Cost Reductions, Operating Efficiencies Drive Decline in YOY Expenses Midland/Delaware LOE (/boe) Net SG&A (/boe) 6.23 5.28 4.32 3.05 2016 2017 2016 2017 Note: 2016 excludes asset sales 8
  8. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 8
    CY17 Ends with Strong Balance Sheet Maturity Schedule of Notes 2017 Capitalization (mm) 400 Net debt at YE16 165 Plus: Total Capital Expenditures* 1,189 Less: After-tax Cash Flows 571 Net Debt at YE17 783 Net Debt/EBITDAX at YE17 1.20…
  9. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 9
    YE17 Proved Reserves Increase 40% Reserve additions replaced production by 415% 2017 proved developed F&D cost totaled 8.38 per boe1 Value of PDP reserves increased from 1.1B to 2.7B Delaware Basin proved reserves jumped 177% due to…
  10. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 10
    Identified Inventory 4,023 Net Locations on 148,987 Net Acres Midland Basin (WC, SPB, Cline): Delaware Basin (WC, BS, Avalon, BC): 2,431 Net Locations on 88,298 net acres 1,592 Net Locations on 60,689 net acres Dawson: 15 Lea:…
  11. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 11
    25 Wells Turned to Production in 4Q17 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 (4) Delaware Basin 5 6,297 2,529 402 74 1,716 272…
  12. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 12
    2018 Delaware Basin Program Type Curves, EURs Updated 600 New Ryder Scott Composite Curve for 2018 Delaware Basin program features 2.2 MMBOE EUR, up from prior 550 midpoint of possible EURs of 1.75 MMBOE (59% oil). Higher EURs and…
  13. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 13
    2018 NMB Wolfcamp A/B Program Type Curves, EURs Updated 350 New Ryder Scott Composite Curve for 2018 North Midland Basin Wolfcamp A/B wells features 1.2 MMBOE EUR (67% oil). 325 Updated shape of curve reflects acceleration, which is…
  14. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 14
    2018 NMB Lower Spraberry Program Type Curves, EURs Updated 300 New Ryder Scott Composite Curve for 2018 North Midland Basin Lower Spraberry wells features 1.15 MMBOE EUR (73% 275 oil). Updated shape of curve reflects acceleration,…
  15. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 15
    2018 NMB Middle Spraberry/Jo Mill Program Type Curves, EURs 275 New Ryder Scott Composite Curve for 2018 North Midland Basin Middle Spraberry and Jo Mill wells features 1.3 MMBOE 250 EUR (72% oil). Higher EURS driving higher IRRs.…
  16. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 16
    2018 CMB Wolfcamp A/B Program Type Curves, EURs Updated 300 New Ryder Scott Composite Curve for 2018 Central Midland Basin Wolfcamp A/B wells features 1.3 MMBOE EUR 275 (48% oil); Wolfcamp A has higher oil mix at 50% as compared with…
  17. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 17
    Attractive IRRs Support 2018 Program DB Wolfcamp A/B NMB 5-Zone Average CMB Wolfcamp A/B 160% 140% 80% 140% 120% 70% 120% 100% 60% 10,000 Lateral 100% 50% 80% IRR IRR IRR 80% 40% 60% 60% 30% 40% Gross EUR: 40%…
  18. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 18
    2018 Drilling & Development Capital Estimated to Range from 1.1B - 1.3B Drilling & Development Capital: 1.1B-1.3B Capital Breakdown* Hz new drills: approximately 130 gross/120 net wells Hz completions: approximately 123 gross/113…
  19. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 19
    Production Estimated to Increase to 103.5-110.5 MBOEPD in 4Q18 Production by Commodity* (mboepd) 107.0 89.5 91.0 93.0 2018 Operated Horizontal Program First Production/Flow Back (Gross/Net) Midland Delaware 66.5 Basin Basin…
  20. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 20
    2018e YOY Production Growth: 25% Five-year total production CAGR: approximately 20% Delaware Basin estimated to grow 48% YOY in 2018 (at guidance midpoint) Production (mboepd) 95.0 76.1 38.0 25.6 54.6 53.6 12.1 10.3 44.7…
  21. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 21
    Attractive Per-Unit Expenses Expected in 2018 Per BOE, except as noted 2018e 2017 LOE (production costs, marketing & transportation) 6.40 - 6.60 6.61 Production & ad valorem taxes (% of revenues, excluding hedges) 6.2% 6.0% DD&A expense…
  22. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 22
    Energen Maintains Strong Balance Sheet Maturity Schedule of Notes 2018e Capitalization (mm) 400 Net debt at YE17 783 Plus: Total Capital Expenditures 1,100 1,300 Less: After-tax Cash Flows 877 Net Debt at YE18 1,006 1,206 Net…
  23. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 23
    2018 - 2019 Hedges Help Minimize Risk 2018 2019 Hedge Avg. NYMEX Hedge Avg. NYMEX % Hedged 2 Volumes Price Volumes Price Oil 3-way Collars 13.5 mmbo 65% Oil 3-way Collars 5.4 mmbo Call Price 60.04/bbl Call Price 61.53/bbl Put…
  24. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 24
    Three-Year Outlook Drives Further Value Outlook for 2018-2020 underscores Companys commitment to bringing value forward by developing its top-tier Permian inventory and operating efficiently Drilling & development capital estimated…
  25. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 25
    Providing Strong Platform for Value Creation as Permian Pure-Play Solid execution leads to superior results in 2017 Continued execution in 2018-2020 drives growth and value Oil-focused inventory 4,000 net locations in key Permian…
  26. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 26
    Appendix 27
  27. 4Q 2017 Quarterly Earnings Call – 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. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 28
    Premium Permian Basin Acreage Energens Permian Footprint (12/31/2017) Basin Gross Acres Net Acres Delaware 93,897 62,313 Midland 118,922 95,105 Platform 116,334 82,578 29
  29. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 29
    Identified Net Potential 12.31.17 Midland Basin: 1.3 Billion BOE Inventory: Remaining Horizontal Midland Net Operated Wells Net Engineered Locations1 Undeveloped Resource2 Drilled to Date Acreage Basin (Gross/Net) (Net MMBOE)…
  30. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 30
    Identified Net Potential 12.31.17 North Midland Basin: 695 MMBOE Midland, Martin, Dawson Net Operated Wells Inventory: Type Curve Remaining Horizontal Net Engineered Locations1 EUR per 10002 Undeveloped Resource 3 & Howard Counties…
  31. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 31
    Identified Net Potential 12.31.17 Central Midland Basin: 626 MMBOE Inventory: Type Curve Remaining Horizontal Glasscock, Upton & Net Operated Wells Net 1 2 Engineered Locations EUR per 1000 Undeveloped Resource3 Drilled to Date…
  32. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 32
    Identified Net Potential 12.31.17 Delaware Wolfcamp Shale: 1.1 Billion BOE Inventory: Type Curve Remaining Horizontal Net Operated Wells Net Engineered Locations1 EUR per 1000 2 Undeveloped Resource3 Drilled to Date Acreage Texas…
  33. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 33
    Identified Net Potential 12.31.17 Delaware Other Plays: 250 MMBOE Inventory: Type Curve Remaining Horizontal Net Operated Wells Net Engineered Locations1 EUR per 1000 2 Undeveloped Resource3 Other Plays Drilled to Date Acreage…
  34. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 34
    Inventory Spacing: Northern Midland Basin Inventory Spacing per 640-acre Section* 249 4 249 387 387 4 405 405 8 252 252 Dean Wolfcamp A 243 243 6 6 317 317 Wolfcamp B 374 374 8…
  35. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 35
    Inventory Spacing: Central Midland Basin Inventory Spacing per 640-acre Section* 388 6 185 266 6-8 613 6-8 8 637 201 387 8 1 Mile * Subject to change based on continued testing and analysis of…
  36. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 36
    Inventory Spacing: Delaware Basin WC Shale Inventory Spacing per 640-acre 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…
  37. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 37
    Inventory Spacing: Delaware Basin Other Inventory Spacing per 640-acre 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…
  38. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 38
    Non-GAAP Financial Measures Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Natural Gas Reserves (GAAP) / PV-10 (non-GAAP): The standardized measure of discounted future net cash flows (SMOG) is the…
  39. 4Q 2017 Quarterly Earnings Call – Energen Corp. – slide 39
    For More Information Julie S. Ryland Vice President Investor Relations 205-326-8421 jrylandenergen.com www.energen.com 40

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