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June 2018 Investor Presentation – Halcon Resources Corp

Halcon Resources Corp · Jun 19, 2018 · 23 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. June 2018 Investor Presentation – Halcon Resources Corp – slide 1
    Halcn Resources Investor Presentation June 19, 2018
  2. June 2018 Investor 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. June 2018 Investor Presentation – Halcon Resources Corp – slide 3
    Issues of Focus for Investors Issue HK Response 380 MM of current pro forma liquidity Borrowing base recently increased by 100 MM and expect further increase in fall Cash Flow and Liquidity 150 MM of liquidity in all future periods…
  4. June 2018 Investor Presentation – Halcon Resources Corp – slide 4
    Why HK is a Compelling Investment Opportunity HK Trades at Significant Discount to Peers Adjusted TEV(1)/2019 EBITDA Price / 2019 CFPS 6.4x 6.2x 6.1x 6.0x 5.7x 5.5x 5.2x 5.5x 5.4x 4.6x 4.8x 4.6x 3.6x 2.2x EGN EGN…
  5. June 2018 Investor Presentation – Halcon Resources Corp – slide 5
    2nd Half 2018 Plan Focused on Development, Delineation & Gaining Scale 2018 Plan Highlights 2H 2018 Midland Prices (/Bbl) 58.00 57.14 Reduced Rig Plan 2H 18 Midland prices Recently decided to drop a rig given weaker recent…
  6. June 2018 Investor Presentation – Halcon Resources Corp – slide 6
    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:…
  7. June 2018 Investor Presentation – Halcon Resources Corp – slide 7
    Well Situated with Takeaway and Protected from Basis Blowout Oil Takeaway Gas Takeaway Basis Hedges in Place NearTerm Oil Takeaway: Primary Plan MidCush Hedges Currently in Place: 85% of HKs oil production is currently on LT firm…
  8. June 2018 Investor Presentation – Halcon Resources Corp – slide 8
    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…
  9. June 2018 Investor Presentation – Halcon Resources Corp – slide 9
    Monument Draw WC Performance vs. Type Curve Monument Wolfcamp Type Curve (1.9 Mmboe EUR) Offset Operator Wells HK Drilled and Completed Wells 11 Note: See Cautionary Statements on page 3 for a discussion on risks associated with…
  10. June 2018 Investor Presentation – Halcon Resources Corp – slide 10
    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…
  11. June 2018 Investor Presentation – Halcon Resources Corp – slide 11
    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…
  12. June 2018 Investor Presentation – Halcon Resources Corp – slide 12
    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…
  13. June 2018 Investor Presentation – Halcon Resources Corp – slide 13
    Decades of Drilling Inventory Gross Remaining Operated Locations (1) 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 (West…
  14. June 2018 Investor Presentation – Halcon Resources Corp – slide 14
    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…
  15. June 2018 Investor Presentation – Halcon Resources Corp – slide 15
    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…
  16. June 2018 Investor Presentation – Halcon Resources Corp – slide 16
    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…
  17. June 2018 Investor Presentation – Halcon Resources Corp – slide 17
    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…
  18. June 2018 Investor Presentation – Halcon Resources Corp – slide 18
    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…
  19. June 2018 Investor Presentation – Halcon Resources Corp – slide 19
    Appendix
  20. June 2018 Investor Presentation – Halcon Resources Corp – slide 20
    Commodity Hedges NYMEX WTI Costless Collars 59.37 65.00 25,000 56.26 55.98 56.87 56.42 60.00 20,000 55.00 53.17 50.00 15,000 50.08 49.01 48.96 49.43 45.00 10,000 40.00 15,504 35.00 13,000 10,673 5,000 9,000 10,000 30.00…
  21. June 2018 Investor Presentation – Halcon Resources Corp – slide 21
    Basis Hedges Midland WTI Basis Swaps 25,000 (3.02) (3.95) (1.27) 20,000 (5.00) (8.22) 15,000 (11.69) (11.69) (10.00) 10,000 12,000 (15.00) 5,000 8,000 8,000 8,000 8,000 4,000 (20.00) Q2 '18 Q3 '18 Q4 '18 Q2'18Q4'18…
  22. June 2018 Investor Presentation – Halcon Resources Corp – slide 22
    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…
  23. June 2018 Investor Presentation – Halcon Resources Corp – slide 23
    Contact Information Quentin Hicks EVP Finance, Capital Markets and Investor Relations 303.802.5541 QHicksHalconResources.com

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