Skip to main content Company Presentation – Halcon Resources Corp | Shale Experts
Loading...
Pm

Company Presentation – Halcon Resources Corp

Halcon Resources Corp · Mar 31, 2014 · 58 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. Company Presentation – Halcon Resources Corp – slide 1
    Company Presentation March 2014
  2. Company Presentation – Halcon Resources Corp – slide 2
    Halcn Resources 2014 FOCUS QUALITY 90% of D&C 90% of D&C Capex Directed Capex Directed Towards Two Towards SWEET De-Risked Core SPOTS in Two Plays Core Plays No Additional Growth Assets Funding Required Already In Place to…
  3. Company Presentation – Halcon Resources Corp – slide 3
    Oil-Biased Core Asset Base Significant Resource Opportunity Key Statistics (1) (2) Total Proved Reserves: 136 MMBoe Bakken/Three Forks 142,000 Net Acres % Proved Developed: 40% 90.5 MMBoe Proved Reserves (1) % Oil: 84% %…
  4. Company Presentation – Halcon Resources Corp – slide 4
    2013 Pro Forma Proved Reserves Reconciliation Proved PF Proved Proved Reserves Reconciliation (MMBoe) Reserves Reserves As of 12.31.12 108.8 82.8 Extensions, discoveries and additions 69.7 69.7 Purchases 3.2 - Sales (23.3) -…
  5. Company Presentation – Halcon Resources Corp – slide 5
    On Track to Deliver What we have done has lead to this Built a formidable oil company in two years by Three scalable, repeatable, oil-biased core acquiring assets, leasing property and drilling in resource plays with deep drilling…
  6. Company Presentation – Halcon Resources Corp – slide 6
    2014 Objectives Deliver significant growth in reserves, production and cash flow while maintaining capital discipline Direct 90% of D&C capex to SWEET SPOT acreage in Williston Basin and El Halcn Commence drilling in what we…
  7. Company Presentation – Halcon Resources Corp – slide 7
    Core Growth Assets in Place Inventory Highlights Potential Gross Operated Drilling Inventory 4,000 gross operated locations in core areas 3,950 30+ years of inventory drilling (125 wells/year) Assumptions: 2,150 Middle Bakken:…
  8. Company Presentation – Halcon Resources Corp – slide 8
    Drilling Allocated to Most Economic Areas D&C Capex by Area ( in millions) 950 35% Lower vs. 2013 Other TMS 1% 10% El Halcn Williston Basin 40% 90% of Total D&C Allocated to SWEET SPOT Acreage 90% of Bakken 49% D&C…
  9. Company Presentation – Halcon Resources Corp – slide 9
    ...Leading to Above Average Production Growth Growth Assets in Place and De-Risked Pro Forma Production Growth (MBoe)/d) (1) 40.0 Actual PF Production 24.9 +61% Guidance Midpoint 15.0 +65% PF 2012 PF 2013 2014…
  10. Company Presentation – Halcon Resources Corp – slide 10
    Focus on Reducing Operating Expenses Lease Operating Expense (/Boe) (1) Cash G&A (/Boe) (1) 11.44 8.99 9.00 8.00 (21%) (11%) 2013 2014E 2013 2014E 12 (1) 2014E based on midpoint of guidance range.
  11. Company Presentation – Halcon Resources Corp – slide 11
    Bakken / Three Forks Inventory Growing and Type Curve Estimates Revised Higher Key Highlights Currently operating four drilling rigs 2014 Outlook Expect to operate an average of four drilling rigs Expect to spud 40-50 gross…
  12. Company Presentation – Halcon Resources Corp – slide 12
    Successful Downspacing Tests Cameron/Torreys Development Plan McKenzie County, ND HK 87.5% WI Producing MB Well Producing TF Well FB 152-94-15A-22-7H 24 HR IP: 2,631 Boe/d Future Infill Locations (1) FB 152-94-22D-15-2H (MB)…
  13. Company Presentation – Halcon Resources Corp – slide 13
    Downspacing Success = Increased Drilling Inventory Potential Gross Operated Drilling Inventory Increase to Current Inventory +92% +27% +24% +144% 80 805 30 25 305 25 90 30 490 +109% 225 330 80 165 +230% 235 50 150…
  14. Company Presentation – Halcon Resources Corp – slide 14
    Field Optimization = Improved Economics Single Well Drill vs. 4 Well Batch Drill on Pad Site Average Spud to Total Depth Drilled Days FBIR (Bakken) Williams Co. (Bakken) (293) (390) 100% 100% (143) (78) (30) (400) 39.7 75% 22.0…
  15. Company Presentation – Halcon Resources Corp – slide 15
    Positive FBIR Type Curve Revision EUR Increases by 39% Investment Sensitivity to Completed Well Cost (1) Type Curve Details 120% 12.0 IRR PV-10 Oil (MBbl) 687 Gross EUR 100% 10.0 80% 8.0 Gas (MMcf) 687 PV-10 ( MM) IRR…
  16. Company Presentation – Halcon Resources Corp – slide 16
    FBIR Slickwater Wells Outperforming = Upside 175,000 150,000 SLICKWATER WELLS 125,000 Cumulative Oil Production (Bbl) 100,000 75,000 50,000 25,000 0 - 10 20 30 40 50 60 70 80 90 100 110 120 130 140…
  17. Company Presentation – Halcon Resources Corp – slide 17
    Significant Williams County Type Curve Revision EUR Increases by 43% Investment Sensitivity to Completed Well Cost (1) Type Curve Details 50% 5.0 IRR PV-10 Oil (MBbl) 415 Gross EUR 40% 4.0 Gas (MMcf) 373 PV-10 ( MM) 30%…
  18. Company Presentation – Halcon Resources Corp – slide 18
    El Halcn Eagle Ford Shale AGAIN Key Highlights 100,000 net acres leased target achieved Acreage in SWEET SPOT of play 1,000+ future locations to drill assuming 800 spacing 1,150+ future locations to drill assuming 660 spacing…
  19. Company Presentation – Halcon Resources Corp – slide 19
    Positive El Halcn Type Curve Revision EUR Increases by 22% Investment Sensitivity to Completed Well Cost (1) Type Curve Details 60% 6.0 IRR PV-10 Oil (MBbl) 420 Gross EUR 50% 5.0 40% 4.0 Gas (MMcf) 189 PV-10 ( MM) IRR…
  20. Company Presentation – Halcon Resources Corp – slide 20
    Geology Overview Eagle Ford Shale Key El Halcn Technical Facts - 100-300 Organic Rich Shale Target - 6,500-10,500 Depth Range - 7-10% GRI Measured Porosity - 2-4% TOC by Weight - Pressure gradient: 0.55-0.65 psi/ft HK Lease Area…
  21. Company Presentation – Halcon Resources Corp – slide 21
    El Halcn (East TX Eagle Ford Shale) Isopach HK Acreage Located in SWEET SPOT of Play 23
  22. Company Presentation – Halcon Resources Corp – slide 22
    Rapid Production Growth Expected to Continue El Halcn 2013 Net Daily Production Growth 7,138 4,989 1,649 744 1Q13 2Q13 3Q13 4Q13 24
  23. Company Presentation – Halcon Resources Corp – slide 23
    Continuing to Optimize Completion & Well Design Recent production results support 1,500 lbs/ft to be optimum sand loading Completion Testing increased stage spacing while holding sand loading constant Design Also evaluating increasing…
  24. Company Presentation – Halcon Resources Corp – slide 24
    While Driving Drilling Performance Improvements El Halcn 2013 Results (45 wells) 2013 Average: Field Costs and Ft/Day Avg. Drilling Days : 15.97 days spud to TD Avg. Ft/ Day Avg. Feet/Day: 1,225 4.50 Avg. Drilling Cost 1,500 Avg.…
  25. Company Presentation – Halcon Resources Corp – slide 25
    Tuscaloosa Marine Shale (TMS) New Core Play Established - 307,000 Net Acre Position Scalable Shale Play with Significant Upside Potential Black oil reservoir in Louisiana and Mississippi (94% oil, 42 gravity) Proximity to Gulf Coast…
  26. Company Presentation – Halcon Resources Corp – slide 26
    Geologic Setting Further Extension of the Eagle Ford Shale HK Lease Area Play Outline KEY TMS TECHNICAL FACTS - Stratigraphic equivalent to Eagle Ford Shale play - 140-190 organic rich shale target - 11,500-14,500 depth…
  27. Company Presentation – Halcon Resources Corp – slide 27
    HK Acreage Position 307,000 Net Acres MISSISSIPPI 5 miles Western TMS Acreage 71,514 net acres HK Planned 2014 Drilling Activity LOUISIANA Eastern TMS Acreage 235,491 net acres STRUCTURE BASE TMS TMS Producing…
  28. Company Presentation – Halcon Resources Corp – slide 28
    Activity Map GDP ECA 5 miles CMR/Foster Creek 20- Anderson 17H-1 7H-1 IP: 897 Boe/d GDP IP: 546 Boe/d ECA Crosby 12H-1 Anderson 18H-1 IP: 1,087 Boe/d ECA IP: 1,028 Boe/d Anderson 17H-2 IP: 891 Boe/d ECA Horseshoe Hill…
  29. Company Presentation – Halcon Resources Corp – slide 29
    Not All Clay is Bad TMS Clay Distribution Total clay content is high, but % of swelling clays (smectite) is low Total clay and smectite in TMS is very similar to East % Volume TX Eagle Ford Shale (El Halcn) 31
  30. Company Presentation – Halcon Resources Corp – slide 30
    N High Stand with Sea Level Rise Phase Sea Level Rise Phase MFS Progradating Deltas S N Stratigraphy of the Tuscaloosa Halcon Acreage Lower Tuscaloosa Upper Tuscaloosa Fluvial Sands Deltaic sands Austin Chalk S…
  31. Company Presentation – Halcon Resources Corp – slide 31
    West to East TMS Cross Section Amoco Prod. Co. Wagner & Brown Bass Enterprises Prod. Co. Goodrich Texaco Artonish Pltn 2-8 Ventress LT Rex Timber 25-7 Crosby 12-1H Griffin W K 8 Wilkinson Co., Mississippi Wilkinson Co., Mississippi…
  32. Company Presentation – Halcon Resources Corp – slide 32
    -100 400 0.2 20 0.6 0 160 40 T2N R1W S12 ft) Depth(ft) 0 -20 GOODRICH CROSBY 12-1H Log and Core 1 GDP 12,210 Crosby Minerals 12-1H Wilkinson Co., Mississippi AT90 0 0.2 20 80 12000 C2 AF10 PHIS_SS DTR 0 40 0.2 20…
  33. Company Presentation – Halcon Resources Corp – slide 33
    TOC and Porosity Similar Properties Across Trend 90 MILES CORE TOTAL % POROSITY CORE TOC BY VOLUME RAPIDES PARISH WILKINSON CO. AMITE CO. E. LOUISIANA MISSISSIPPI MISSISSIPPI LOUISIANA 35
  34. Company Presentation – Halcon Resources Corp – slide 34
    Well Performance Improving Rapidly Historical Industry Practice Current Industry Practice Halcn Planned Practice Shorter lateral: 2,000 5,000 Longer lateral: 6,000+ Longer lateral: 7,200+ Lateral placement varied, trial and error…
  35. Company Presentation – Halcon Resources Corp – slide 35
    HK Type Curve Methodology HK has analyzed all Effective Normalized to Cluster As is EUR/Ft(1) 7,200 horizontal TMS wells drilled Well Lateral Qi Di Qf Df Life Spacing Proppant Length (Yrs) (Lbs/Ft) to date (Ft) (Ft) Bo/Ft…
  36. Company Presentation – Halcon Resources Corp – slide 36
    TMS Base Case Type Curve Detail Investment Sensitivity to Completed Well Cost (1) Type Curve Details IRR PV-10 Oil (MBbl) 566 Gross EUR 80% 7.0 60% 6.0 Gas (MMcf) 229 PV-10 ( MM) IRR % 40% 5.0 Total (MBoe) 605…
  37. Company Presentation – Halcon Resources Corp – slide 37
    TMS High Case Type Curve Detail Investment Sensitivity to Completed Well Cost (1) Type Curve Details IRR PV-10 Oil (MBbl) 742 Gross EUR 120% 11.0 100% 10.0 Gas (MMcf) 300 PV-10 ( MM) IRR % Total (MBoe) 792 80%…
  38. Company Presentation – Halcon Resources Corp – slide 38
    Projected Costs Projected Well Cost (MMs) Initial Delineation Phase First wells in the program Spud to rig release = 48 days Transition to Multi-Well Pad Development Multi-rig program, majority of wells still drilled from single…
  39. Company Presentation – Halcon Resources Corp – slide 39
    Learning Curve Utilizing rig and crew from successful El Halcn area Focus on reducing chances of hole instability problems Drill the intermediate section (vertical) with oil based mud Drilling Set intermediate casing +/- 100 into the…
  40. Company Presentation – Halcon Resources Corp – slide 40
    TMS Conclusions 1 TMS represents one of the most attractive emerging crude oil resource plays in North America Scaled, concentrated, highly operated position and favorable lease terms provide for efficient resource 2 development…
  41. Company Presentation – Halcon Resources Corp – slide 41
    Financial Highlights 1 Fund growth and capital expenditures prudently Control capital spending (e.g. avoid short-term HBP obligations) Direct capital to highest return assets 2 Focus on liquidity Expect borrowing base to…
  42. Company Presentation – Halcon Resources Corp – slide 42
    No Near-term Debt Maturities Debt Maturity Schedule Senior 1,400 Notes Senior 8.875% Notes 1,200 Aggregate Principal Amount 9.75% 1,000 (MM) 800 600 Senior Senior Notes 400 Convertible Notes (1) 9.25% 200…
  43. Company Presentation – Halcon Resources Corp – slide 43
    Active Hedging Program to Protect Cash Flow Designed to support capital program and protect cash flow Target 80% of expected production over the next 18-24 months Average Floor Price: 89 in 2014; 87 in 2015 Hedged Oil Production…
  44. Company Presentation – Halcon Resources Corp – slide 44
    Ample Liquidity to Fund Capital Program Pro Forma Capitalization ( in Millions) HK Non-Core East Texas Pro Forma HK 12.31.2013 Asset Divestiture 12.31.2013 Ca s h a nd Ca s h Equi va l ents 2.8 450.0 452.8 Revol vi ng Credi t Fa ci…
  45. Company Presentation – Halcon Resources Corp – slide 45
    Halcn Resources 2014 FOCUS QUALITY 90% of D&C 90% of D&C Capex Directed Capex Directed Towards Two Towards SWEET De-Risked Core SPOTS in Two Plays Core Plays No Additional Growth Assets Funding Required Already In Place to…
  46. Company Presentation – Halcon Resources Corp – slide 46
    Appendix
  47. Company Presentation – Halcon Resources Corp – slide 47
    2014 Operating and Financial Guidance Summary 1Q14E 2014E Production (Boe/d) Total Low 34,000 38,000 High 36,000 42,000 % Oil 85% % NGLs 5% % Gas 10% Operating Costs and Expenses (/Boe) Lease Operating & Workover Low 8.00 High…
  48. Company Presentation – Halcon Resources Corp – slide 48
    2013 Pro Forma Production Reconciliation 1Q13 2Q13 3Q13 4Q13 2013 Actual (Boe/d) 26,022 29,165 37,707 40,217 33,329 Acquisition Impact (Boe/d) (1) 1,147 965 169 - 566 Closed 5.7.13 Gasco El Halcn 307 161 - - 116 Closed 7.15.13…
  49. Company Presentation – Halcon Resources Corp – slide 49
    Halcn Ownership (in thousands) Basic Dilutive Securities Fully Diluted Owner Shares Percent Conv. Debt (1) Conv. Preferred (2) Warrants (3) Options Shares Percent (4) HALRES LLC - - 64,371 - 36,667 - 101,038 17.3% Insiders/Affiliates…
  50. Company Presentation – Halcon Resources Corp – slide 50
    2013 Proved Reserves Reconciliation Oil Gas NGL Total Proved Reserves Reconciliation (MBbls) (MMcf) (MBbls) MBoe As of 12.31.12 87,378 96,145 5,383 108,785 Extensions, discoveries and additions 61,160 25,364 4,344 69,731 Purchases…
  51. Company Presentation – Halcon Resources Corp – slide 51
    Derivative Detail as of 2.12.14 Oil Hedge Summary FY 2014 FY 2015 FY 2016 Volume Ceiling / Floor Volume Ceiling / Floor Volume Ceiling / Floor (Bbls) Swap Price (1) Purchased (1) Floor Sold (1) (Bbls) Swap Price (1) Purchased (1)…
  52. Company Presentation – Halcon Resources Corp – slide 52
    Oil Hedging Details as of 2.12.14 The following table details the expected impact to pretax income (in millions, except prices) from the settlement of our derivative contracts at various NYMEX oil prices Oil Prices (/Bbl) Period…
  53. Company Presentation – Halcon Resources Corp – slide 53
    Williston Basin: Operating Details Key Stats Net Acres 142,000 % Operated 75% Avg. WI in operated acreage 94% Avg. WI in operated wells 75% Avg. NRI in operated wells 60% Avg. NRI in non-op wells 3% 4Q13 production (Boe/d)…
  54. Company Presentation – Halcon Resources Corp – slide 54
    El Halcn: Operating Details Key Stats Net Acres 100,000 % Operated 100% Avg. WI in operated acreage 68% Avg. WI in operated wells 70% Avg. NRI in operated wells 53% 4Q13 production (Boe/d) 7,138 % of total PF 4Q13 21% Operated…
  55. Company Presentation – Halcon Resources Corp – slide 55
    Oil & Gas Marketing Avg. NYMEX 2014 Marketing Highlights 4Q13 HK Oil Differentials by Area (1) Oil Price 97.57 Williston Basin 98% 99% Oil Marketing 98% 95% 89% Expect 85-90% of production to be connected to 85% pipeline…
  56. Company Presentation – Halcon Resources Corp – slide 56
    El Halcn Cross Section 58
  57. Company Presentation – Halcon Resources Corp – slide 57
    Management Team with History of Success Together Floyd Wilson Chairman & Chief Executive Officer 40+ years of industry experience CEO & founder of three prior public companies - Petrohawk Energy Corporation - 3TEC Energy…
  58. Company Presentation – Halcon Resources Corp – slide 58
    Contact: Scott M. Zuehlke, VP Investor Relations 1000 Louisiana St., Suite 6700 Houston, TX 77002 832-538-0314 szuehlkehalconresources.com www.halconresources.com

From the store

Browse maps, data & reports in the Shale Experts store