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Investor Presentation – Chaparral Energy

Chaparral Energy · Nov 13, 2018 · 42 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. Investor Presentation – Chaparral Energy – slide 1
    Investor Presentation November 2018 NYSE: CHAP NYSE:CHAP 0
  2. Investor Presentation – Chaparral Energy – slide 2
    Company Overview NYSE: CHAP 2
  3. Investor Presentation – Chaparral Energy – slide 3
    Chaparral Growth Story Evolution 7,000-acre Kingfisher County Acquisition Emerged from Q2/Q3 2018 Chapter 11 New CEO & Independent BOD Late 2017 Q1 2018 Dual Strategy - EOR Focused Constrained Balance Sheet Increased 2018…
  4. Investor Presentation – Chaparral Energy – slide 4
    Chaparral Story High-growth, pure-play STACK oil company 15.7 MBoe/d Q3 2018 STACK production 45 - 55% projected 2018 STACK production growth Premier, contiguous acreage position 127,000 acres in world-class STACK resource play…
  5. Investor Presentation – Chaparral Energy – slide 5
    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…
  6. Investor Presentation – Chaparral Energy – slide 6
    Recent Chaparral Highlights Recorded STACK production growth of: 19% Q2 2018 to Q3 2018 53% Q3 2017 to Q3 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…
  7. Investor Presentation – Chaparral Energy – slide 7
    Operational Overview NYSE: CHAP 7
  8. Investor Presentation – Chaparral Energy – slide 8
    STACK/Merge Attributes World-class Woodford source rock Favorable Geology +700 feet of saturated hydrocarbon column Multiple reservoir development opportunities Robust service sector support Extensive Infrastructure Numerous…
  9. Investor Presentation – Chaparral Energy – slide 9
    One Petroleum System STACK Attributes N Stacked reservoirs proximal to the world-class Woodford source rock STACK Efficient hydrocarbon stratigraphic trap creates a continuous petroleum system Play attributes are identical only…
  10. Investor Presentation – Chaparral Energy – slide 10
    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…
  11. Investor Presentation – Chaparral Energy – slide 11
    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…
  12. Investor Presentation – Chaparral Energy – slide 12
    Highly Profitable Breakeven Acreage 11 2 Recent Operated Performance 10 No. Well Name Spud Date IP-30 Boe/d Liquids 9 8 3 1 1 BARBEE 2105 1LMH-4 12/17/2017 1,122 69% 5 2 GLOCK 2205 1LMH-15 2/9/2018 913 61% 4 3 DOGWOOD 2205…
  13. Investor Presentation – Chaparral Energy – slide 13
    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…
  14. Investor Presentation – Chaparral Energy – slide 14
    STACK & Merge Overview STACK/Merge Production 18,000 16,000 14,000 12,000 Boe/d 10,000 8,000 16,750 15,663 12,300 13,198 6,000 10,260 10,379 9,188 4,000 7,475 8,169 2,000 - 1 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017…
  15. Investor Presentation – Chaparral Energy – slide 15
    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: 85% to…
  16. Investor Presentation – Chaparral Energy – slide 16
    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: 55% - 100%1 Upper…
  17. Investor Presentation – Chaparral Energy – slide 17
    Recent Canadian County Merge Spacing Test Denali pad is a Canadian county Merge Miss 3 well partial section spacing test Average initial production for the 3 wells is 50% oil (75% liquids) and through 70 days is 40% above type…
  18. Investor Presentation – Chaparral Energy – slide 18
    Spacing Tests in Progress Upper Meramec Lower Meramec King Koopa Osage Section 3 Meramec and 2 Osage wells (Q4-2018 anticipated first production) Upper Meramec Lower Meramec Foraker Section Woodford Given…
  19. Investor Presentation – Chaparral Energy – slide 19
    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…
  20. Investor Presentation – Chaparral Energy – slide 20
    2018 Capital Budget Expectations Capital Program Objectives Delineate Garfield and Canadian (Merge) County position Drill at least five wells on Kingfisher County acquisition acreage Increase 3-D seismic and lease acquisitions Begin…
  21. Investor Presentation – Chaparral Energy – slide 21
    2018 Updated Guidance Updated Guidance Highlights 2018 Guidance Range Production (MBoe/d) Increased full year STACK production guidance 7% Total Company 20.25 - 20.75 Q4 Total Company 21.25 - 22.25 Q4 STACK guidance: STACK 14.25…
  22. Investor Presentation – Chaparral Energy – slide 22
    Financial Overview NYSE: CHAP 22
  23. Investor Presentation – Chaparral Energy – slide 23
    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…
  24. Investor Presentation – Chaparral Energy – slide 24
    Financial Position and Liquidity Highlights Chaparral Liquidity Closed on a 300 million senior ( in Millions) Q3 2018 unsecured notes offering on June 29, Actual Actual 2018 Cash and Cash Equivalents 49 Paid down all outstanding…
  25. Investor Presentation – Chaparral Energy – slide 25
    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…
  26. Investor Presentation – Chaparral Energy – slide 26
    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…
  27. Investor Presentation – Chaparral Energy – slide 27
    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 27
  28. Investor Presentation – Chaparral Energy – slide 28
    Appendix NYSE: CHAP 28
  29. Investor Presentation – Chaparral Energy – slide 29
    Hedging Summary Hedge Positions1 Q4 2018 2019 2020 2021 Crude Oil Swaps Hedge Volume (BBL) 515,200 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) 46,000 Average…
  30. Investor Presentation – Chaparral Energy – slide 30
    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…
  31. Investor Presentation – Chaparral Energy – slide 31
    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…
  32. Investor Presentation – Chaparral Energy – slide 32
    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…
  33. Investor Presentation – Chaparral Energy – slide 33
    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…
  34. Investor Presentation – Chaparral Energy – slide 34
    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…
  35. Investor Presentation – Chaparral Energy – slide 35
    STACK Osage Type Curves Overview Spud Peak IP-301 Liquids1 Lateral Lease Operator Date Boe/d % Length 1 PEAR 2106 1LMH-23 CHAPARRAL 5/6/2018 1,326 87% 4,892 2 DOGWOOD 2205 1LMH-28 CHAPARRAL 3/15/2018 1,182 54% 4,844 3 COTTONWOOD…
  36. Investor Presentation – Chaparral Energy – slide 36
    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…
  37. Investor Presentation – Chaparral Energy – slide 37
    Commodity Realizations Crude Oil Differentials Oil & NGL Realizations as % of WTI Proximity to numerous markets provides better CHAP 97% 95% 93% 96% 99% 100 100% net back as compared to other basins WTI Average Daily Settle 90…
  38. Investor Presentation – Chaparral Energy – slide 38
    STACK Drilling Joint Venture Joint venture between Chaparral and Bayou City Energy (BCE) Accelerate development of 127,000 STACK acres 20 wells drilled and producing as of Q3 2018 Key driver in de-risking Garfield 50% and…
  39. Investor Presentation – Chaparral Energy – slide 39
    Reconciliations Successor Three Months Three Months Ended Ended (in thousands) Sept 30, 2018 Sept 30, 2017 Net (loss) income (12,068) (19,115) Interest expense 4,205 5,283 Income tax expense 37 Depreciation, depletion, and…
  40. Investor Presentation – Chaparral Energy – slide 40
    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)…
  41. Investor Presentation – Chaparral Energy – slide 41
    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…
  42. Investor Presentation – Chaparral Energy – slide 42
    ENERGIZING Americas Heartland NYSE: CHAP NYSE: CHAP chaparralenergy.com 43

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