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Deutsche Bank Leveraged Finance Conference – Forest Oil Corp.

Forest Oil Corp. · Oct 2, 2013 · 25 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. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 1
    Deutsche Bank Leveraged Finance Conference October 2, 2013
  2. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 2
    Forest Oil Snapshot Texas Panhandle Area Year End 2012 Proved Reserves 1.1 Tcfe* 10% 43% Ark-La-Tex Area 47% Permian Basin Southern - Eagle Ford Shale Western - Texas Panhandle Area Ark-La-Tex Area 2Q 2013 Production 211…
  3. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 3
    Capital and Drilling Plan 2013 Average Rig Count by Area Total Capital Budget of 355 3 375 million* Drilling capital of 315 - 325 million 2 Will average six drilling rigs for 1 2013 as Eagle Ford Shale - activity increases Eagle…
  4. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 4
    Oil Production and Reserve Growth Oil Production * Oil Reserves * ( Bbls/d ) ( Mbo ) 8,000 35,000 7,000 30,000 6,000 25,000 5,000 20,000 7,500 4,000 30,440 5,880 15,000 3,000 22,834 3,521 10,000 2,000 3,088 9,114…
  5. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 5
    Strategic Objectives Exploit and develop higher-return oil growth opportunities Maintain a capital budget that preserves balance sheet liquidity and financial flexibility Return to growth as second half average net sales volumes are…
  6. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 6
    Eagle Ford Area of Activity Running four drilling rigs in the field Currently in the process of holding acreage with expectation that all acreage will be held by mid-2014 Gonzales Focus on sweet spots and downspacing efforts after…
  7. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 7
    Eagle Ford Transaction Overview Overview Benefits Industry partner pays 90 Establishes a partnership with million drilling carry to earn industry leading service and 50% working interest technology company Accelerated program to hold…
  8. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 8
    Meaningful Production Acceleration* 3,000 2,500 2,000 Cumulative MBBls 1,500 Production is tracking projections 1,000 500 Cumulative net production of 290 Mbbls since beginning of program 0 Initial Plan…
  9. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 9
    Eagle Ford Production Growth Significant Uptick in Volumes 1 2 Rig Program Accelerated drilling Gross production Boe/d Gross Production Net Production program statistics begins 4,300 Boepd avg. in 2Q13 2,700 Boepd avg. in 1Q13…
  10. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 10
    2012 Wells: Production vs. Type Curve 2012 Program Results* 120,000 100,000 Forest Oil Type Curve (300 mmboe) Cumulative Production (boe) 80,000 60,000 40,000 20,000 0 121 151 181 211…
  11. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 11
    2013 Wells: Production vs. Type Curve 2013 Program Results Tracking Type Curve* Forest Oil Type Curve (300 mmboe) * Well results are normalized for non-producing days FOREST OIL CORPORATION 11
  12. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 12
    Eagle Ford Shale Maximizing Efficiencies Utilizing pad drilling to improve drilling & completion efficiencies Four-well pad is being drilled in 56 days as compared to 84 days for four single-well sites Recent completed well cost 6…
  13. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 13
    Completion Optimization Current target FOREST OIL CORPORATION 13
  14. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 14
    Eagle Ford Well Costs 2011 & 2012 2013 Avg. Cost 8.1 MM Avg. Cost 5.9 MM 12.0 35 30 10.0 25 8.0 20 Frac Stages MM 6.0 15 4.0 10 2.0 5 0.0 0 FOREST OIL CORPORATION 14
  15. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 15
    Eagle Ford Midstream Gathering System Entered into agreement with industry partner to build out gathering system No upfront capital from Forest No throughput commitment Eliminates trucking and efficiently consolidates the…
  16. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 16
    Economic Sensitivity of Eagle Ford Accretive Economics at Current Prices* 70 60 50 40 ROR - % 30 20 10 0 4,500 5,000 5,500 6,000 6,500 7,000 Capex - M 70/bbl 80/bbl 90/bbl 100/bbl * Based on Forest Type…
  17. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 17
    Texas Panhandle Divestiture Review Forest received several unsolicited offers for the Texas Panhandle assets A marketed process to pursue the sale of the Panhandle assets is underway A successful sale should be a transformational event…
  18. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 18
    Acreage in the Heart of the Play Forest is one of the top acreage holders in the Texas Panhandle with approximately 100,000 net acres Forest acreage is located in desirable area based on recent transaction history, 6 billion in…
  19. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 19
    Virgilian Texas Panhandle Area Opportunity Set Douglas Ss YE2012 Wash Virgil Douglas Group Tonkawa Ss Geologic Interval Gross Locations Lansing Missouri Wash Cottage Grove Ss Missourian Douglas 62 Hogshooter Ls…
  20. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 20
    East Texas Liquids Rich Play Total acreage position of 152,000 gross acres (111,000 net); 30,000 net acres within the liquids-rich trend FST targeting liquids-rich Cotton Valley and other oil objectives Most recent horizontal…
  21. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 21
    Permian Basin Provides Optionality Acreage position of 68,250 gross acres (63,500 net) located in Reeves and Pecos Counties Exposure to numerous oil objectives with both vertical and horizontal drilling opportunities Horizontal…
  22. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 22
    Hedging Program Summary Derivative 2nd Half 2013 2014 2015 Natural gas swaps (Bbtu/d) 133.4 80.0 - Weighted average price (per MMBtu) 4.01 4.34 - Oil swaps (MBbls/d) 6.0 3.5 - Weighted average price (per Bbl) 96.92 95.34 - Natural…
  23. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 23
    Attractive Debt Maturity Profile (MM) 1,200 Total Senior Notes: 1.5 Billion 1,000 Average Rate: 7.3% 7.25% 1,000 Average Maturity: 6.4 Years Revolver: 130 Million 800 Average Rate: 1.8% Maturity: 3.0 Years 500 600 7.50%…
  24. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 24
    Investment Highlights Quality asset base with dominant operating position in three core areas Focused capital plan allows Forest to concentrate on higher return oil and liquids-rich growth opportunities Eagle Ford Shale development plan…
  25. Deutsche Bank Leveraged Finance Conference – Forest Oil Corp. – slide 25
    Forest Oil Corporation 707 Seventeenth Street, Suite 3600 Denver, CO 80202 303.812.1400 Website: www.forestoil.com TWITTER.COM/FORESTOIL FACEBOOK.COM/FORESTOIL FOREST OIL CORPORATION LINKEDIN.COM/FORESTOIL

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