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1Q 2018 Earnings Presentation – Halcon Resources Corp

Halcon Resources Corp · May 2, 2018 · 25 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. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 1
    Halcn Resources Investor Presentation May 2018
  2. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 2
    Halcn Resources Overview Halcn has built a premier 60,000 acre position in the Delaware Basin for less than 19,000/net acre (1) Delaware Basin Overview Total Company Acreage Position Monument Draw (Ward County) Net Acreage:…
  3. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 3
    2018 Execution Focused on Development, Delineation & Gaining Scale 2018 Plan Highlights Q4 17 to Q4 18 Production Growth Rig Plan 30,000 Significant YOY 24,000 25,000 Growth Growing to 4 rigs in May 18 20,000 Rigs allocated…
  4. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 4
    Focus on Long Lateral Development Average Completed Lateral Length (CLL) 12,000 Halcn is focused on drilling long Avg. CLL (2H '17 1Q '18)(1) laterals in all areas in 2018 10,000 9,567 8,853 Peer Avg: 7,375 ft. Nearterm impact:…
  5. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 5
    Well Protected on Takeaway and Basis Blowout Risk Oil Takeaway Gas Takeaway Basis Hedges in Place NearTerm Oil Takeaway: Primary Plan MidCush Oil Basis Hedges: 85% of HKs oil production is currently on LT contracts in place in all…
  6. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 6
    2018 Development Plan Monument Draw Well Layout & 2018 Preliminary Drilling Plan Key Considerations Vast majority of drilling locations planned to be at 10,000 CLL or greater Units with 15,000 laterals: 0.5 Units with 12,500…
  7. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 7
    2018 Development Plan Hackberry Draw Well Layout & 2018 Preliminary Drilling Plan Key Considerations Majority of longterm development planned to be 10,000 CLL Actively working with offset operators to block up 1280 acre units…
  8. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 8
    2018 Development Plan West Quito Draw 2018 Preliminary Drilling Plan Key Considerations Actively working to form units to drill 10,000 lateral length wells Expect 8 wells spud and 4 wells POL in 2018 All 10,000 laterals Spud:…
  9. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 9
    Wolfcamp Type Curves 10,000 Lateral Monument Draw (2Stream) 1 2,000 30.0 24.4 240% D&C: 12.5 MM 200% Normalized Rate 1,500 2Stream EUR: 1.9 Mmboe (80% Oil, 20% Gas) 18.7 20.0 160% IRR (%) 2Stream 30Day Peak IP: 1,434…
  10. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 10
    Monument Draw WC Performance vs. Type Curve Monument Wolfcamp Type Curve (1.9 Mmboe EUR) Offset Operator Wells HK Drilled and Completed Wells 12 Note: See Cautionary Statements on page 3 for a discussion on risks associated with…
  11. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 11
    Hackberry Draw WC Performance vs. Type Curve Legacy wells underperformed type curve from 50 to 300 days due to timeliness of artificial lift installations and inefficient gas lift design Hackberry Wolfcamp Type Curve (1.5 Mmboe…
  12. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 12
    First Year Cumulative Oil Production Wolfcamp 419,576 319,999 255,999 232,339 209,788 174,255 Monument Draw WC West Quito Draw WC Hackberry Draw WC Oil (Bbls) Combined (Boe) West Quito Draws Projected First…
  13. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 13
    Multiple Targets Across All Acreage Monument Draw Type Log West Quito Draw Type Log Hackberry Draw Type Log 3,600 1st & 2nd BS 2,630 Shale Top Seal 3,520 3rd BS Shale 3rd BS Sand Deep Woodford Deep…
  14. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 14
    Decades of Drilling Inventory Gross Remaining Operated Locations (1)(2) Derisked base case drilling inventory Additional targets 948 56 2,055 201 117 438 1,107 139 156 2 WC Zones 3rd BS 2 WC Zones 3rd BS 2 WC Zones…
  15. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 15
    Halcn Field Services Cost Benefits of HKOwned Water Infrastructure Infrastructure Map 1.20 1.00 1.00 0.80 0.60 0.45 0.40 0.40 0.18 0.20 0.00 Water Sourcing Costs (/Bbl) Water Disposal Costs (/Bbl) HKOwned 3rd Party…
  16. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 16
    Halcn Field Services Water Handling and Recycling Water Handling Capacity vs. Forecast (1) Continuing to develop produced water recycling and injection capabilities throughout each asset (see previous slide) Maintaining…
  17. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 17
    Oil & Gas Marketing & Takeaway Monument Draw West Quito Draw Hackberry Draw Current: Current: Current: Oil Marketing & Takeaway All oil sold via truck to single buyer All oil sold via truck to single buyer 70% sold via pipeline…
  18. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 18
    Full Year 2018 Guidance Q2 2018 Q4 2018 Full Year 2018 Production (Boe/d) Total 13,000 14,000 23,000 25,000 15,000 20,000 % Oil 68% 72% % Gas 14% 16% % NGL 14% 16% Capex(1) (MM) D&C Capex 425 475 Infrastructure, Seismic…
  19. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 19
    Pro Forma Capitalization Highlights Pro Forma Capitalization Simple capital structure West Pro Forma Face Value Actual Quito Draw Adjusted HK No nearterm debt maturities Capitalization (MM) 3/31/2018 Acquisition 3/31/2018…
  20. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 20
    Investment Highlights 60,000 net acres in the oily window of the Delaware Basin (70% oil) Significant Inventory Over 2,000 gross operated locations with an average lateral length of 9,500 ft. Manageable HBP requirements…
  21. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 21
    Appendix
  22. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 22
    Commodity Hedges NYMEX WTI Costless Collars 65.00 58.77 25,000 56.26 55.98 56.87 56.42 60.00 20,000 55.00 50.00 15,000 52.76 49.01 48.96 50.08 49.43 45.00 10,000 40.00 13,000 14,000 35.00 5,000 9,000 10,000 10,673 30.00…
  23. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 23
    Basis Hedges Midland WTI Basis Swaps 25,000 (1.27) (1.27) (1.50) 20,000 (3.02) (2.50) 15,000 (3.50) 10,000 5,000 12,000 (4.50) 8,000 2,647 (5.50) Q2 '18 Q3 '18 Q4 '18 Q2'18Q4'18 FY 2019 Hedged Volume (Bbl/d) Average…
  24. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 24
    Ownership Summary Ownership Summary as of 3/31/18 Basic Shares Basic Shares Employee Net Fully Fully Diluted Holder Outstanding % Ownership Warrants (1) Options (2) Diluted Diluted % Ownership Other Common Equity Holders 154,379,981…
  25. 1Q 2018 Earnings Presentation – Halcon Resources Corp – slide 25
    Contact Information Quentin Hicks SVP Finance and Investor Relations 832.538.0557 qhickshalconresources.com

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