Skip to main content 1Q 2019 Earnings Presentation – Chaparral Energy | Shale Experts
Loading...
Pm

1Q 2019 Earnings Presentation – Chaparral Energy

Chaparral Energy · May 9, 2019 · 35 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 2019 Earnings Presentation – Chaparral Energy – slide 1
    Investor Presentation May 2019 NYSE: CHAP 0
  2. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 2
    Company Overview NYSE: CHAP 2
  3. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 3
    Chaparral Story High-growth, pure-play STACK/Merge oil company 15.9 MBoe/d Q1 2019 STACK production 20.8 MBoe/d Q1 2019 total production Premier, contiguous acreage position 132,000 acres in world-class STACK Play Primarily in black…
  4. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 4
    Recent Chaparral Highlights Recorded STACK production growth of: 30% Q1 2018 to Q1 2019 Completed 11-well cube style, co-development Foraker spacing test in Canadian County Three wells with first sales in late March with average…
  5. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 5
    2019 Strategy PURE-PLAY Accelerate development in Canadian County Merge STACK/MERGE Define optimal spacing across de-risked acreage COMPANY Continue operated delineation and development of acreage position RETURNS Focus…
  6. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 6
    2019 Guidance FY 2018 FY 2019 YoY Guidance Highlights Actual Guidance Change Production (MBoe/d) Maintaining capital discipline in volatile Total Company 20.5 25.0 - 27.0 commodity environment Q2 Total Company 26.0 - 27.5 Reducing…
  7. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 7
    Operational Overview NYSE: CHAP 7
  8. 1Q 2019 Earnings 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. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 9
    Oil Price Breakevens for U.S. Shale Plays 55 50 45 40 35 30 Eagle Ford Northern STACK Southern Southern SCOOP Northern Bakken Eagle Ford Niobrara (Oil) Delaware Midland Delaware Midland (Gas & Cond.) Source: Credit…
  10. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 10
    Continuous Petroleum System STACK/Merge Attributes N Stacked reservoirs proximal to the world-class Woodford source rock Efficient hydrocarbon stratigraphic trap creates a continuous petroleum STACK system Play attributes are…
  11. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 11
    Strong Culture of Continuous Learning Science and technology driven collaborative approach Process of continuous improvement drives results Science Learnings Technology Results Execution Key Spacing Principals Development…
  12. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 12
    Systematic Approach to Spacing Development Canadian Kingfisher Denali King Koopa Meramec partial spacing test Meramec/Osage partial spacing test Minimal inter-well communication Minimal inter-well communication Parent at pre-infill…
  13. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 13
    Canadian County Foraker Test Execution Estimated Avg. Cost: 4.3mm Avg. AFE Estimate: 4.4mm Average D&C Capex First operated cube style, co-development 5.0 4.7 spacing test 4.2 4.3 Gross Capital (mm) 4.0 All wells placed on…
  14. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 14
    Canadian County Foraker Test Well Performance Initial Well Performance East pad 3-well average 30-day IP of 1,292 Boe/d Currently significantly outperforming type curve Two Merge Miss (Meramec) wells with average 30-day IP rate of…
  15. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 15
    STACK/Merge Overview STACK/Merge Production 25 23.0 23.0 21.5 20 21.0 15 MBoe/d 14.5 10 9.5 5 7.3 0 2016 2017 2018 FY 2019E STACK Production Guidance Range Q2 2019 Guidance (Low) Q2 2019 Guidance (High)…
  16. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 16
    Operational Excellence Drilling and Completions Strong, Effective Focus on Cost Control Chaparral Osage and Meramec D&C represents top tier in normal pressure STACK D&C Cost Comparison (/lateral foot) 1,400 1,200 1,000 D&C…
  17. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 17
    Drilling and Completions Increased Efficiencies Drilling Completions Avg. Feet/Day Avg. Stages/Day 1,000 8 7 Feet Drilled per Day Frac Stages per Day 750 6 5 500 4 3 250 2 1 0 0 1H18 2H18 1Q19 1H18 2H18 1Q19…
  18. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 18
    Financial Overview NYSE: CHAP 18
  19. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 19
    Financial Strategy Maintain balance sheet strength Target net debt to adjusted EBITDA ratio of approximately 2.5x or less Development plan funding available due to ample liquidity 11 million in cash as of Q1 2019 plus 30 million…
  20. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 20
    Financial Position and Liquidity Highlights Chaparral Liquidity 325 million borrowing base ( in Millions) Actual Q1 2019 reaffirmed in spring 2019 redetermination Cash and Cash Equivalents 11 Closed on 300 million senior Revolving…
  21. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 21
    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 21
  22. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 22
    Appendix NYSE: CHAP 22
  23. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 23
    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 Majority of oil marketed…
  24. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 24
    Natural Gas & NGL Marketing Natural Gas and NGL Midstream super system, with multiple plants and residue outlets Residue and NGL agreements with midstream operators who have firm transportation Approximately 50/50 NGL markets and…
  25. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 25
    Commodity Realizations Oil & NGL Realizations as % of WTI Crude Oil Differentials 96% 99% 97% 80 93% 100% Proximity to numerous markets provides better CHAP 90% WTI Average Daily Settle 70 net back compared to other basins…
  26. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 26
    Hedging Summary Hedge Positions1 Q2-Q4 2019 2020 2021 Crude Oil Swaps Hedge Volume (BBL) 1,935,200 2,007,000 689,300 Average Price (/BBL) 56.06 50.56 46.24 Crude Oil Collars Hedge Volume (BBL) 195,000 Average Ceiling Price (/BBL)…
  27. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 27
    Core STACK & Merge Type Curve Overview STACK Osage, Meramec & Merge Miss North South Lower Upper Meramec Merge 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 4.4…
  28. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 28
    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…
  29. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 29
    Year-End 2018 Proved Reserves Grew STACK year-end 2018 reserves by 50% Replaced 519% of 2018 STACK production at 7.80/Boe F&D cost 94.8 MMBoe of Reserves1 34% Oil, 61% Liquids Reserves by Area 1.9 27% 34% 53.6 74.1 20.7 39.3…
  30. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 30
    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…
  31. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 31
    STACK Drilling Joint Venture Joint venture between CHAP and Bayou City Energy (BCE) Accelerate development of 132,000 STACK acres Key driver in de-risking Garfield and Canadian County Merge 27 wells completed as of Q1 2019 Three…
  32. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 32
    Reconciliations Three Months Three Months Ended Ended (in thousands) Mar 31, 2019 Mar 31, 2018 Net (loss) income (103,540) (11,442) Interest expense 4,564 1,371 Depreciation, depletion, and amortization 23,715 21,106 Loss on…
  33. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 33
    Reconciliations STACK Drillbit F&D and Reserve Replacement 2017 Metrics 2018 Metrics Calculation Total Company Production (MBoe) 8,399 7,490 STACK Production (MBoe) 3,464 5,279 (A) Proved Reserves (MBoe) Total Company Proved…
  34. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 34
    Contact Information Chaparral Energy, Inc. 701 Cedar Lake Boulevard Oklahoma City, OK 73114 Investors Media Scott Pittman Brandi Wessel Chief Financial Officer Manager Communications investor.relationschaparralenergy.com…
  35. 1Q 2019 Earnings Presentation – Chaparral Energy – slide 35
    ENERGIZING Americas Heartland NYSE: CHAP NYSE: CHAP chaparralenergy.com 36

From the store

Browse maps, data & reports in the Shale Experts store