Skip to main content August 2018 Enercom Conference – Chaparral Energy Investor Presentation | Shale Experts
Loading...
Pm

August 2018 Enercom Conference – Chaparral Energy

Chaparral Energy · Aug 19, 2018 · 37 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. August 2018 Enercom Conference – Chaparral Energy – slide 1
    ENERCOM Conference August 2018 NYSE: CHAP NYSE:CHAP 0
  2. August 2018 Enercom Conference – Chaparral Energy – slide 2
    Company Overview NYSE: CHAP 2
  3. August 2018 Enercom Conference – Chaparral Energy – slide 3
    Chaparral Story High-growth, pure-play STACK oil company 13.2 MBoe/d Q2 2018 STACK production 35 - 45% projected 2018 STACK production growth Premier, contiguous acreage position 119,000 acres in world-class STACK resource play…
  4. August 2018 Enercom Conference – Chaparral Energy – slide 4
    2018 Strategy Transitioned to pure-play STACK operator with 2017 asset sale PURE-PLAY STACK Delineation and de-risking of Canadian (Merge) and Garfield acreage COMPANY Continue to rationalize non-core legacy assets RETURNS…
  5. August 2018 Enercom Conference – Chaparral Energy – slide 5
    Recent Chaparral Highlights Recorded STACK production growth of: 7% Q1 2018 to Q2 2018 44% Q2 2017 to Q2 2018 Grew STACK reserves by 58% from year-end 2016 to year-end 2017 Replaced 604% of 2017 STACK production at 7.26/Boe F&D…
  6. August 2018 Enercom Conference – Chaparral Energy – slide 6
    Operational Overview NYSE: CHAP 6
  7. August 2018 Enercom Conference – Chaparral Energy – slide 7
    STACK/Merge Attributes World-class Woodford source rock Favorable Geology +700 feet of saturated hydrocarbon column Multiple reservoirs development opportunities Robust service sector support Extensive Infrastructure Numerous…
  8. August 2018 Enercom Conference – Chaparral Energy – slide 8
    STACK Geology Osage Heat Map1 Meramec Heat Map2 Chaparral Chaparral Scale Scale Core Tier 1 Tier 2 Core Tier 1 Tier 2 1 Heat map integrates major factors affecting well performance in the Osage: 1.Osage hydrocarbon pore…
  9. August 2018 Enercom Conference – Chaparral Energy – slide 9
    STACK Break-Even Economics Oil Economics WTI Basin Breakeven Estimates1 45 40 35 30 25 Delaware STACK Midland SCOOP Eagle Ford Bakken Niobrara Oil Economics Chaparral Counties of Focus1 45 35 25 15 Canadian…
  10. August 2018 Enercom Conference – Chaparral Energy – slide 10
    Highly Profitable Breakeven Acreage 6 2 3 8 Recent Operated Performance 7 5 1 No. Well Name Spud Date IP-30 Boe/d Liquids 1 BARBEE 2105 1LMH-4 12/17/2017 1,122 69% 4 2 GLOCK 2205 1LMH-15 2/9/2018 913 61% 3 DOGWOOD 2205 1LMH-28…
  11. August 2018 Enercom Conference – Chaparral Energy – slide 11
    Core STACK & Merge Type Curve Overview STACK Osage, Meramec & Merge Miss Merge North South Lower Upper Meramec Miss Woodford Woodford Osage Osage Lateral Length (ft.) 4,800 4,800 4,800 4,800 4,800 4,800 Well Cost (mm) 4.0 4.5 4.4…
  12. August 2018 Enercom Conference – Chaparral Energy – slide 12
    STACK & Merge Overview 16,000 STACK/Merge Production 14,000 12,000 10,000 Boe/d 8,000 13,198 14,000 6,000 12,300 10,260 10,379 9,188 4,000 7,475 8,169 2,000 - Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3…
  13. August 2018 Enercom Conference – Chaparral Energy – slide 13
    Osage Well Performance Strong recent operated well performance for Upper and Lower Osage type curve areas Actual oil results are in-line or exceeding current type curve expectations Type curve rates-of-return 53% - 90%1 Upper…
  14. August 2018 Enercom Conference – Chaparral Energy – slide 14
    Meramec Well Performance Excellent recent operated well performance for Merge Miss and STACK Meramec type curve areas Actual oil results are in-line or exceeding current type curve expectations Type curve rates-of-return 77% -…
  15. August 2018 Enercom Conference – Chaparral Energy – slide 15
    Operational Excellence Drilling and Completions Strong, Effective Focus on Cost Control Chaparral Osage and Meramec D&C represents best-in-class in normal pressure STACK Low well cost and consistent production results produce…
  16. August 2018 Enercom Conference – Chaparral Energy – slide 16
    STACK Drilling Joint Venture Joint venture between Chaparral and Bayou City Energy (BCE) Accelerate development of 119,000 STACK acres 20 wells drilled, 17 producing as of Q2 2018 BCE funds 100% of D&C cost STACK 100 million…
  17. August 2018 Enercom Conference – Chaparral Energy – slide 17
    2018 Capital Budget Objectives & Guidance Capital Program Objectives 2018 Guidance Range Production (MBoe/d) Delineate Garfield and Canadian (Merge) County position Total Company 19.0 - 20.0 Q3 Total Company 19.0 - 20.0 Drill at…
  18. August 2018 Enercom Conference – Chaparral Energy – slide 18
    Financial Overview NYSE: CHAP 18
  19. August 2018 Enercom Conference – Chaparral Energy – slide 19
    Financial Strategy Maintain balance sheet strength Target net debt to adjusted EBITDA ratio of approximately 2.5x or less Supplement cash flow with proceeds from non-core asset sales Development plan funding available due to ample…
  20. August 2018 Enercom Conference – Chaparral Energy – slide 20
    Financial Position and Liquidity Highlights Chaparral Liquidity Closed on a 300 million senior ( in Millions) Q2 2018 Actual Actual unsecured notes offering on June 29, 2018 Cash and Cash Equivalents 68 Revolving Credit Facility…
  21. August 2018 Enercom Conference – Chaparral Energy – slide 21
    Crude Oil Marketing Crude Oil Acreage in close proximity to Cushing and in-state refineries Premium price due to gravity and quality of barrel Substantial capacity to market via truck or existing pipeline Evaluating pipeline…
  22. August 2018 Enercom Conference – Chaparral Energy – slide 22
    Natural Gas & NGL Marketing Natural Gas and NGL Midstream super system, with multiple plants and residue outlets Two Bcf of incremental capacity to North Texas, eastern and southeastern U.S. and Gulf Coast markets (mid-year 2018 and…
  23. August 2018 Enercom Conference – Chaparral Energy – slide 23
    Commodity Realizations Crude Oil Differentials Oil & NGL Realizations as % of WTI Proximity to numerous markets provides better CHAP 97% 95% 93% 96% 98% 100 100% net back as compared to other basins WTI Average Daily Settle 90…
  24. August 2018 Enercom Conference – Chaparral Energy – slide 24
    Why Chaparral Strong Balance Sheet Experienced Execution-focused, Management with Pure-play STACK Excellent Track Operations Record Deep Inventory of High-return Drilling Prospects NYSE: CHAP 24
  25. August 2018 Enercom Conference – Chaparral Energy – slide 25
    Appendix NYSE: CHAP 25
  26. August 2018 Enercom Conference – Chaparral Energy – slide 26
    Hedging Summary Hedge Positions1 2H 2018 2019 2020 2021 Crude Oil Swaps Hedge Volume (BBL) 1,030,400 1,562,200 1,547,000 543,300 Average Price (/BBL) 58.21 55.90 49.54 44.34 Crude Oil Collars Hedge Volume (BBL) 92,000 Average…
  27. August 2018 Enercom Conference – Chaparral Energy – slide 27
    Year-End 2017 Proved Reserves Grew STACK year-end 2017 reserves by 58% Replaced 604% of 2017 STACK production at 7.26/Boe F&D cost 76.3 MMBoe of Reserves1 39% Oil, 63% Liquids Reserves by Area 24% 25.6 39% 26.9 49.4 1.1 49.7…
  28. August 2018 Enercom Conference – Chaparral Energy – slide 28
    Non-Core Legacy Asset Overview Mature legacy fields Low-maintenance capital Provides free cash flow to fuel STACK growth Potential strategic alternatives Net Production1 Gross Margin1 Net Proved Reserves Area Boe/d % Oil…
  29. August 2018 Enercom Conference – Chaparral Energy – slide 29
    Recent Transactions Support CHAP Acreage Valuation Significant A&D activity demonstrates value of Chaparrals acreage position Staghorn, PayRock, Alta Mesa and Longfellow transactions were primarily in the black oil, normal…
  30. August 2018 Enercom Conference – Chaparral Energy – slide 30
    STACK Type Curve Assumptions STACK Meramec Lower Osage Upper Osage North Woodford South Woodford Merge Miss Well Cost Assumptions Well Costs (mm) 4.0 3.9 4.1 4.4 4.4 4.5 Well Costs (/ft) 833 813 854 917 917 938 Type Curve…
  31. August 2018 Enercom Conference – Chaparral Energy – slide 31
    STACK Meramec and Merge Miss Overview Spud Peak IP-301 Liquids1 Lateral Lease Operator Date Boe/d % Length 1 SLIMER 1707 1UMH-23 CHAPARRAL 9/5/2017 713 85% 4,839 2 HIGH VALLEY 1807 1UMH-36 CHAPARRAL 8/19/2017 682 77% 4,588 3 BIG…
  32. August 2018 Enercom Conference – Chaparral Energy – slide 32
    STACK Osage Type Curves Overview Spud Peak IP-301 Liquids1 Lateral Lease Operator Date Boe/d % Length 1 DOGWOOD 2205 1LMH-28 CHAPARRAL 3/15/2018 862 57% 4,844 2 COTTONWOOD 2205 1UMH-34 CHAPARRAL 3/1/2018 766 59% 4,741 3 GLOCK 2205…
  33. August 2018 Enercom Conference – Chaparral Energy – slide 33
    STACK Woodford Type Curves Overview Spud Peak IP-301 Liquids1 Lateral Lease Operator Date Boe/d % Length 1 CUTTHROAT 1307 1WH-13 CHAPARRAL 2/11/2017 588 76% 4,225 2 GLACIER 11-14-12-6 1HX JONES 12/31/2017 463 63% 9,890 3 ACADIA…
  34. August 2018 Enercom Conference – Chaparral Energy – slide 34
    Reconciliations Successor Three Months Three Months Ended Ended (in thousands) June 30, 2018 June 30, 2017 Net (loss) income (21,993) 21,365 Interest expense 1,739 5,051 Income tax expense 37 Depreciation, depletion, and…
  35. August 2018 Enercom Conference – Chaparral Energy – slide 35
    Reconciliations STACK F&D and Reserve Replacement 2017 Metrics Calculation STACK Production (MBoe) 3,464 (A) Proved Reserves (MBoe) STACK Extensions and Discoveries 20,927 (B) STACK Revisions 597 (C) (excluding price revisions)…
  36. August 2018 Enercom Conference – Chaparral Energy – slide 36
    Contact Information Chaparral Energy, Inc. 701 Cedar Lake Boulevard Oklahoma City, OK 73114 Investors Media Joe Evans Brandi Wessel Chief Financial Officer Manager Communications joe.evanschaparralenergy.com…
  37. August 2018 Enercom Conference – Chaparral Energy – slide 37
    ENERGIZING Americas Heartland NYSE: CHAP NYSE: CHAP chaparralenergy.com 38

From the store

Browse maps, data & reports in the Shale Experts store