Credit Suisse Energy Summit Brent Smolik President and Chief Executive Officer EP Energy Corporation February 11, 2014
Cautionary Note Regarding Hydrocarbon Quantities EP Energy has provided internally generated estimates for proved reserves in this February 11, 2014 presentation in accordance with SEC guidelines and definitions. Unless otherwise noted,…
EP Energy Today Develop high-return, low-risk, repeatable drilling inventory in multiple premier oil basins Capital focused on three core oil programsEagle Ford, Wolfcamp and Altamont Extensive, Oil- all concentrated positions with…
Narrow Focus in Premier Basins Large Scale for Efficient Operations Eagle Ford Shale Wolfcamp Shale Net Acres: 96,126 Net Acres: 138,130 Proved Reserves (MMBoe): 270 Proved Reserves (MMBoe): 70 3Q 2013 Net Daily Production…
Significant Value Uplift From Growing Reserve Base MMboe Year-end PV-10 Value1 6.4 Billion 8.9 Billion 147.3 (0.7) 3.8 547.5 428.7 (31.6) 2012 Production Additions Revisions other Price revisions 2013 than price 2013 Oil &…
A New High Growth Company Oil Production Growth1 Oil Reserve Growth2 (MBbls/d) (MMBbls) 50 - 54 293 258 37 179 24 105 12 2011 2012 2013 2014E 2010 2011 2012 2013 3Q13 Well positioned for continued growth as oil…
Outstanding Execution and Cost Reduction Gross Well Cost Total Well Cost per Foot1 Rig Days Stimulation (MM) (/ft.) (Spud to Rig Release) (Stages per day) 703 8.7 Eagle Ford 9.9 15 8.3 569 14 6.5 7.4 498 12 6.3 419 4.7 8…
Eagle Ford World Class Core Position In Volatile Oil Window Program Highlights Geographic Overview 80,000 acres in central area Peak Month Oil (Bbls/d) EPE EOG EPE (LaSalle Co.), 10,000 in north area EPE acreage Storey Reed 09H…
Eagle Ford Rapidly Improving Rates and EURs Key Highlights Eagle Ford Production Curve Evolution 250 Improving performance 2013 EUR results1 9% greater than Eagle Eagle Ford Ford Type Curve Current Type Curve 2011 2012 2013…
Wolfcamp Derisked Oil Position Program Highlights Geographic Overview 138,000 net acres EPE acreage EPE PXD PXD University Central 8-12-2H University 10-1 2H Rocker B 15 EPE active rigs Largest oil inventory in portfolio Fairway…
Wolfcamp Bullseye of the Southern Midland Basin Premier acreage in Southern Midland Basin - Thickest part of the basin - Highest organic content - Highest oil in place 1,000 of stacked pay Wolfcamp A, B, C Thickness…
Altamont EPE in Unique Geology Key Highlights Cross Section1 Up to 4,500 of gross stacked A A EPE Acreage pay interval West Tavaputs Monument Butte Altamont/Bluebell/Cedar Rim Thickest, highest pressure in the source rock…
Altamont Advantaged Position in Basin Program Highlights Geographic Overview 171,000 net acres in unique Peak Month Oil (Bbls/d) EPE EPE EPE Penfield 2-10C4 Ute 2-14A3 Ute 2-13A3 northern portion of Uinta Basin EPE acreage IP-24:…
Altamont Growing Oil Market Infrastructure Solid history of growth in basin without having to constrain production due to marketing bottlenecks First multi-year rail transaction in 2010 Long-term sales contracts with volumetric…
Significant Upside Potential Across Portfolio Further well cost reduction from efficiency gains and lower service costs in developing plays Improve costs, EURs Completion and production optimization for further and IPs production and…
Returns Focused Capital Allocation 2014E Capital: 2.0 Billion1 Type-Curve IRR3 35-40 well completions 58% 135-145 well Altamont completions 13% 36% 30% Eagle Ford Wolfcamp 52% 95-105 well 35% completions Eagle Ford…
Dynamic Hedge Program Cash Flow Protection Strong hedge portfolio protects cash flow 10 change in WTI price results in 10 MM - 20 MM change in annual EBITDAX for 2014 and 2015 Target hedging levels of over 50 percent of expected…
Exciting Growth in 2014 Programs well positioned for growth Continued production 40 percent increase in oil volumes growth1 15 percent increase in total equivalent production Budget up 4 percent, with a 20 percent increase in well…
Credit Suisse Energy Summit Brent Smolik President and Chief Executive Officer EP Energy Corporation February 2014
Appendix
Non-GAAP Disclosures Disclosure of Non-GAAP Financial Measures The Securities and Exchange Commissions Regulation G applies to any public disclosure or release of material information that includes a non-GAAP financial measure. In the…
PV-10 Reconciliation PV10 is considered a nonGAAP measure derived from the standardized measure of discounted future net cash flows of our oil and natural gas properties, which is the most directly comparable GAAP financial measure. Our…
2014 Outlook Summary Capital program ( billion) Drilling and Completion 1.73 Facilities, lease and seismic 0.20 G&A, interest and other 0.07 Total 2.00 Total production (MBboe/d) 94.5 102.5 Oil production (MBbls/d) 50 - 54 Average…
Favorable Well Economics Eagle Ford Wolfcamp Altamont Haynesville Central North Long Short Vertical 1 Horizontal Holly Non-Holly Lateral Length (ft) 5,600 5,600 7,500 4,500 NA 3,960 4,500 4,500 IP30 (Boe/d) 692 223 373 253 525 613…
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