UBS Global Oil & Gas Conference J. R. Sult Executive Vice President & Chief Financial Officer May 20, 2014
Reconnect with December 2013 Analyst Day We Will be Recognized as the Premier Independent E&P Company by: Living our values Investing in our people Continuous improvement in operating and capital efficiency Driving profitable…
Executing on 2014 Priorities Accelerated Eagle Ford and Bakken rig activity 20% each; 100% for Oklahoma Woodford 28-Rig program underpinned by 2.4 BBOE of 2P unconventional resource, doubled since 2011, and over 4,500 total net well…
Optionality Across Three Highest Value Resource Plays Growing resource and 10+ year inventory Positioned in three high-value, liquids-rich unconventional Bakken 1.0 Total Resource BBOE resource plays Total Resource 800 MMBOE…
Optionality Across Three Highest Value Resource Plays Strong incremental well economics driving capital allocations 2014 CAPEX 5.9 B North America E&P Resource Corporate 2% Plays 3.6B Oil Sands Mining 5% Eagle Ford 64% North…
Eagle Ford Doubled 2P resource since acquisition Initial 2P Resource Grew 2P well inventory from 900 net 469 net MMBOE to 2,300 net (3,300 gross) Gross EF well inventory 51% High GOR oil 160 acre 22% Gas condensate 80 acre 27% Low…
Eagle Ford Production data supports bias towards higher relative recovery Developing high value gas condensate and select high GOR oil at 40-acre equivalent spacing Improved completion efficiency and well performance at closer…
Growing Confidence in Austin Chalk Early Austin Chalk wells competitive with Eagle Ford Near Term Austin Chalk Well Plans Not your Fathers Austin Chalk Direct contact with EF reservoir Organic content presence = partial self…
Eagle Ford Focus on capital and operating efficiency Ft/Day TD 1,500 Continuously improving cycle times Competitor Average 1,110 16,847 Average Drill Rate, Ft/Day1 MRO Average 1,435 17,369 Top quartile driller in core…
Bakken 2P Resource growth 80% since 2011 YE 2011 2P Resource 345 net MMBOE Grew well inventory from 450 net to 1,300 net over last 2 years (2,300 gross) 370,000 net acres Bakken Three Forks Future growth opportunities to capture…
Bakken Three Fork First Bench contribution growing 25% of 2P resource TF1 economics consistent with Middle Bakken Gross MRO operated well counts 71 of 414 currently producing wells MOUNTRAIL 45 wells planned for 2014 Pilot tests…
Bakken Three Forks First Bench co-development and high density pilots Four pilot locations in core producing areas Testing 320-acre spacing for co- Wolding Spacing Unit development (4 MB and 4 TF per 1280-acre Myrmidon 7 wells…
Bakken Three Forks lower benches additional potential MRO planned TF 2nd bench locations Initial focus on Myrmidon area CLR Rollefstad Federal Spacing Unit Myrmidon MRO 2nd Bench Plans Myrmidon MB, TF1, TF2 and TF 3 Six wells…
Bakken Operational Excellence & Best-in-Class Drilling Efficiency 1,400 Best-in-class across North Dakota in drilling efficiency 1,200 Average Drill Rate (Ft/day)1 1,000 Improving cycle times every year 800 96% operational…
Oklahoma Resource Basins 2P Resource more than doubled since 2011 YE 2011 2P Resource Grew 2P well inventory from 530 to 300 net MMBOE 960 net over last 2 years (3,500 gross) 210,000 net acres Woodford Future growth opportunities…
Oklahoma Resource Basins SCOOP and STACK plays growing potential Stacked reservoirs on 35% of currently held acres with further growth potential STACK MRO exposed to entire Woodford Shale play in the Southern Miss Trend Anadarko…
Oklahoma Resource Basins SCOOP well performance improving 250,000 2013 Improved understanding of geo-steering, 2012 landing intervals and stimulation design 200,000 2011 Cumulative BOE1 Completion optimization 150,000 158%…
Oklahoma Resource Basins Beyond Woodford - additional horizons showing promise Southern Miss Trend Southern Miss Trend BOECKMAN 1-13H MCKPHERSON 1-11H Multiple play types ROSEMARY 1-14H Stacked pay potential with Woodford MIKE…
Oklahoma Resource Basins Early capture of operating and capital efficiency SCOOP Activity 400 Continuously improving cycle times Avg Drill Rate (Ft/day)1 year on year 300 Competitive capital efficiency 200 Increasing…
Unconventional Resource Plays Accelerated Resource Development to Grow Profitable Volumes 200 Oklahoma Resource Basins Bakken Eagle Ford Available for Sale Net MBOED 150 100 50 0 1Q 2012 2Q 2012 3Q 2012 4Q…
Focused Strategy Targeting High Impact Oil Renewed global exploration portfolio Actively exploring in 4 proven or emerging oil-prone provinces Focused on expertise Deepwater reservoirs, rift basin deposits, fractured carbonates…
2014 Drilling Schedule Program Tests Significant Oil Potential 2014 J F M A M J J A S O N D Country Well Q1 Q2 Q3 Q4 Kurdistan Jisik-1* 45% WI TD Testing Kenya Sala-1 50% WI Ethiopia Shimela-1 20% WI Ethiopia Gardim 20%…
Strategic Imperatives Living our values Investing in our people Continuous improvement in operating and capital efficiency Driving profitable and sustainable growth Rigorous portfolio management Quality and material resource…
Appendix
Single Well Economics for Resource Plays Excluding acreage acquisition costs ANADARKO/WOODFORD BAKKEN EAGLE FORD SCOOP SCOOP XL Cana Myrmidon Hector High GOR Condensate Condensate Condensate Condensate MB or TF1 MB Oil Gross IP…
Eagle Ford Completion design enhancements driving improved well performance Improvements in stimulation design outpacing impacts from downspacing 2013 wells at 40 & 60 acre spacing exhibit higher IP than 2011 wells at 80 - 160 acre…
Oklahoma Resource Basins Doubling activity to start growth ramp Increased activity by 100% relative to 2013 25 Drilling 20 to 25 gross company operated Gas wells in 2014 NGL Moved to 4 rig program 20 Oil Focused on growing SCOOP…
Rigorous Portfolio Management To accelerate shareholder value Dispositions 4.8 B Transaction value closed (2010 to date) MM 2010 Angola 32 1,300 2011 Norway Gudrun 85 2011 DJ Basin farm down 270 2011 GOM Stones 89 2012 GOM…
Rigorous Portfolio Management Simplify portfolio while providing higher rate of growth Operated Alvheim Marketing of North Sea assets in 2014 2012 Production 2012 2P Resource 2% 19% 5% 1% 97% 76% Operated Brae Norway UK…
Rigorous Portfolio Management Marketing of North Sea assets in 2014 Production Increases growth rate and 750 accelerates cash flows 500 Simplifies and concentrates MBOED portfolio 250 Timing reflective of asset 0 maturity…
Material Source Of Earnings & Cash Flow International Production outlook 2013 1Q 3Q International Production Operations Long-life, reliable assets Liquids weighted, Brent based Norway United Kingdom Total Sales (MBOED): 81…
Stable, Long-Lived Cash Flow with Near-Term Upside Equatorial Guinea World-class integrated gas business Primary B3 Compression project in execution phase Condensate Mid-2016 start-up Oil-prone, near-field exploration upside…
Near-Field, Oil-Prone Exploration Opportunity Equatorial Guinea block A12, Sub Area B amplitude driven play Total gross resource potential: 500 MMBOE Within multiple prospects MRO operated (80% to 100% WI) 2014 Program targeting…
Three Discoveries in World-Class Hydrocarbon Basin Exploration discoveries transitioning towards development in Kurdistan Region of Iraq Underexplored world-class hydrocarbon basin Fractured carbonates Turkey 3 Discoveries to date…
Diaman-1B Confirms Working Hydrocarbon System Emerging deepwater pre-salt play in Gabon Gabon deepwater pre-salt play 12 BBOE gross resource potential Diaba block (MRO 21.25% WI, TOTAL operator) Rabi Kounga Field (900 MMBOE) 3 BBOE…
Exploration Update Growing position at low cost in East Africa rift trend - Kenya Tertiary and Cretaceous East Africa rift Muglad Basin 1,950 MMBO disc Melut Basin 1,780 MMBO disc systems 3 to 8 BBO gross resource potential…
Exploration Update Growing position at low cost in East Africa rift trend - Ethiopia Tertiary rift systems Muglad Basin 1,950 MMBO disc Melut Basin 1,780 MMBO disc Multi-million acre blocks with several independent sub-basins…
High Impact GOM Inboard Paleogene Portfolio 8 Inboard Paleogene prospects 6 MRO operated Average 60% WI Petronius Provides farm down / trade opportunities 2014 Paleogene activity Perseus Shenandoah appraisal well Appomattox FPS…
Superior Properties of Inboard Paleogene Trend Gulf of Mexico emerging oil play Play characteristics Large structures Shenandoah Bigfoot TLP Channel Laterally extensive, thick sandstones Solomon High net to gross sand thickness…
Long-Life Resource and Value Provider Canadian Oil Sands Oil Sands Mining Delivers a stable, non-declining production base out to 2059 Total potential net resource base of 1.8B SCO after royalty High value accretive growth…
Significant Growth and Upside Potential Libya Tremendous resource base across 13 million acres Estimated 2012 2P net resource 1.1 BBOE 6.5% Net revenue margin terms National Oil Company (NOC) alignment on near- term growth…
Loading...
