J.P. Morgan High Yield Conference Miami, Florida February 2012
Company Representatives Mark Fischer Joe Evans Chief Executive Officer Chief Financial Officer & President & Executive Vice President Earl Reynolds Diane Montgomery Chief Operating Officer Vice President & Executive Vice…
Chaparral Overview Founded in 1988, Based in Oklahoma City Core areas Mid-Continent (Oklahoma) and Permian Basin (W. Texas) Oil-weighted producer (60% oil; 40% gas); R/P ratio 18 years Third largest oil producer in Oklahoma Stable…
Operating Areas As of December 31, 2011 (SEC) Sold 11/30/11 Company Total Core Area December 2011 proved reserves 156.3 MMBoe Growth Area 2011 average daily production 23.7 MBoe/d Williston Basin Acreage (gross / net): 1,178,489 /…
Strong Record of Reserve and Production Growth Chaparrals reserve replacement ratio averaged 422% per year since 2002 Year-End SEC Reserves (MMBOE) (1) Annual Production (MMBOE) 2003 2011 CAGR = 15% 2003 2011 CAGR = 16% 8.7 180…
Financial Position to Execute Strategy Strong Financial Position Current Maturity Profile ( in mm)1 No debt maturities before 2017 Hedge positions in place to secure cash flow 325 400 300 in near term Budget CAPEX within free…
Capital Budget (millions) Key Drilling Areas MM *99% of Capital Program is Oil Focused Northern OK Mississippi 42 Horizontal Anadarko Cleveland Sand 27 2012 2012 Anadarko Granite Wash 21 Component 2008 2009 2010 2011P Budget %…
Resource Potential 9
Substantial Resource Potential for both Near Term and Long Term Growth Near Term Conventional Drilling (ROR 50% - 75%) Anadarko Granite Wash Anadarko Cleveland Sand Unconventional Resource Play Drilling (ROR 35% - 75%) Northern…
Well Positioned for Near-Term and Long Term Growth NOMP 120 Million Barrels Key near-term growth driver Shallow oil target Attractive F&D costs Extensive history of vertical drilling EOR 200 Million Barrels Long-term growth…
NOMP: A Key Near-Term Focus Area More than 250,000 Net Acres Wildhorse Concession gives Chaparral exclusive rights to 138,000 acres Drilled 14 wells to date 17 wells planned in 2012 Play Economics: IP rates: 200 500 Boe/d…
NOMP: Recent Results NOMP West Approximately 40,000 Net Acres Significant industry activity in the play Drilled 9 wells to date (2 Waiting on Completion) Average IP 590 Boepd 46% Oil NOMP East 218,000 Net Acres In de-risking…
A Growing Mid-Continent Chaparral: CO2 EOR Company 14
Long Life EOR Assets in Four Key Growth Areas Burbank Panhandle Area 200+ MMBOe Potential Reserves Area Low Geologic Risk Attractive Economics ROR 25% to 40% Central ROI 2.5:1 to 3.5:1 Oklahoma Area Capital Requirements - 75-125…
Currently Owned CO2 Development Potential and Infrastructure Coffeyville Fertilizer Plant Arkalon Ethanol Plant Koch Fertilizer Plant Agrium Fertilizer Plant Total OOIP 3,735 MMBO Existing CELLC CO2 Pipelines Existing…
EOR 2012 Capital Budget(1) Budget by Category (mm) 2011 2012 Actual Budget Infrastructure / Pipelines 14 90 2012 Field Projects Drilling 17 Panhandle Area 13 Enhancements / CO2 52 24 Camrick Area 16.4 MM Purchases Farnsworth Unit…
PROCESSING RATE: The Key to Improved Rate of Return Hovey Morrow Unit (HMU) HMU Model: Processing Rate v. Reserve Recovery 25% hcpv Inj./Yr BOPD 10% hcpv Inj./Yr Time CO2 Injection initiated Sep07 Processing Rates…
North Burbank CO2 Development 19
Burbank Area Potential CO2 Projects Burbank Area: Net Potential: 100 MMBoe, 51% of total Total OOIP 1,163 MMBO Primary Production 239 MMBO Secondary Recovery 211 MMBO Tertiary Potential 119 MMBO Net Tertiary Potential 100…
BURBANK in Perspective Primary Development Secondary Development Tertiary Development BOPD Business Plan 110 Years 21
Other Recently Installed CO2 Injection Projects 22
EOR: Strong Growth Currently Active Projects 60 3,000 Forecast 50 2,500 40 2,000 30 1,500 CO2 Inj., MMscf/D EOR 20 1,000 Total Oil, nBOPD Base non-EOR 10 500 0 - Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12…
Other Developing Drilling Plays 25
Bone Spring / Avalon Chaparral Energy, LLC Avalon Shale Position 19,000 Net Acres in West and Central Loving County, TX Upper and Lower Avalon Production Surrounding Acreage Block Over 80 Potential Avalon Drill Sites IP: 508 boe/d…
Panhandle Marmaton Units average 30 day IP + 238 BOE/D BEAVER Units average reserves 130 MBOE (76% oil, 14% NGL, 10% gas) Units average CWC: 2.8 MM Johnston 1H-24 Total 2012 Budgeted CAPEX: 5 MM to drill three wells Average…
More than 700 Million BOE Potential 800 107 719 Near-term + Long-term 700 strategy yields significant 136 600 value increase 70% Oil 500 200 MMBOE 400 Near-term focus on NOMP 300 120 De-risk play, unlock value Production…
Financial Performance, Projections and Credit Statistics 29
2011 Estimates and 2012 Preliminary Guidance Operating Statistics 2012 2011 Estimates Preliminary Guidance Capital Expenditures 336 million 330 million Production 8.7 MMBoe 8.8 - 9.0 MMBoe General and Administrative 4.84/Boe 5.00…
Hedge Portfolio % of Total Proved Reserves Hedged (As of Feb. 22, 2012) 10.00 Gas Basis Hedges % Gas Price TP Feb-Dec 2012 0.30 41% 7.02 7.24 69.94 7.34 68.40 69.10 (3-way) 90.46 Note: 1) Dollars represent average…
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