Skip to main content INVESTOR PRESENTATION – Magnum Hunter Resources Corp. | Shale Experts
Loading...
Pm

INVESTOR PRESENTATION – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Jan 13, 2015 · 43 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. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION Investor Presentation January 2015
  2. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 2
    Who We Are Magnum Hunter Resources is an exploration and production company focused in two of the most prolific unconventional resource shale plays in North America; the Marcellus and Utica Current management team assumed leadership…
  3. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 3
    Where We Operate A natural gas focused company with assets based in the heart of the Marcellus and Utica Shale plays A 200+ mile gas gathering system strategically located in Ohio and West Virginia moving over 400,000 MMBtu/d 80,500…
  4. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 4
    Production Growth 2013 Production increased 92% to 14,831 Boepd(1) compared to 7,739 Boepd in 2012 Full-year 2014 estimated production increased 65% compared to 2013 (2) 32,500 14,831 7,739 4,895 1,276 (1) (2) 2010…
  5. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 5
    2014 Production Profile 45,000 32,500 40,000 20,090 35,000 16,219 15,829 30,000 25,000 16,840 Boe/D 17,416 16,396 18,549 18,433 16,783 20,000 16,388 14,566 15,000 10,000 5,000 - January February…
  6. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 6
    Proved Reserve Growth Consistency Track record of proved reserve growth since inception Approximately 79.8 MMBoe of proved reserves at June 30, 2014 (37.7% oil/liquids) Expect to significantly increase proved reserves in the Utica…
  7. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 7
    Reserves Summary 3P reserves and contingent resource potential of 1,024 MMBoe Extensive inventory of low-risk development drilling locations in the Marcellus Shale and Williston Basin Significant exploration potential in the wet/dry…
  8. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 8
    Growth Plan Continues EBITDAX Revenue 450 325.0 400 350 300 280.4 250 ( MM) 200 175.0 150 140.4 112.4 100 76.2 66.5 50.4 50 28.6 4.2 0 2010 2011 2012 2013 2014 Note: 2014 Revenue and EBITDAX reflects…
  9. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 9
    Breakdown of Capital Expenditures 2014 Estimated Capital Expenditures Appalachia Williston Eureka Hunter 23% 13% 65% Total: 450 Million Note: Includes 4Q 2014 CapEx estimates
  10. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 10
    Substantial Leasehold Inventory Developed Undeveloped (1) (2) As of September 30, 2014 Acreage Acreage Total Acreage Gross Net Gross Net Gross Net (3) Appalachian Basin Marcellus Shale 58,334 57,908 28,066 22,651 86,400 80,559…
  11. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 11
    Appalachian Division Overview Overview Areas of Operation Proved Reserves and PV-10 Total proved reserves of 64.1 MMBoe as of 6/30/14 Proved producing reserves of 30.0 MMBoe as of 6/30/14 PV-10 of 622.9 million as of 6/30/14…
  12. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 12
    Marcellus Shale Recent Well Results Marcellus Operated Well Results IP 30-day avg. rate (Mcfe/d) IP 24-hr avg. rate (Mcfe/d) Frac Stages () Recently Completed Wells 18,000 17,028 17,116 16,847 16,000 14,000 12,854 12,832…
  13. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 13
    NGL Uplift in Appalachia Following the startup of the Mobley Processing Plant in December 2012, Magnum Hunter has realized an uplift in NGLs on a per wellhead Mcf basis between 0.50 - 1.00 The Company has 200 MMcf/d of dedicated…
  14. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 14
    Economic Sensitivity of Marcellus Magnum Rich Assumptions for 2014 Case: CAPEX: 7.0 million per well EUR: 11.0 Bcfe (includes NGL) 2014 Case 16 14 IRR: 88% 12 IRR: 75% Single Well NPV-10 ( MM) IRR: 63% 10 IRR: 52% 8…
  15. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 15
    Marcellus Shale NOBLE MHR - Ormet 9 Pad MONROE MHR/Eclipse - McIntire Pad MHR - Ormet 15 Pad Mark West Mobley MHR/Eclipse - Stalder Pad WETZEL Facility Fractionation Eclipse/MHR - Herrick Pad Eureka - Carbide Compression…
  16. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 16
    Results Indicate Best Shale Play in US Shale Play Comparison Chart Ohio/West Va./Penn. Wyoming/Colorado Texas N. Dakota Utica Shale / Parameter Point Pleasant DJ Basin Niobrara Eagle Ford Bakken Lithology Calcareous Shale…
  17. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 17
    Major Players in the Utica: Who They Are Company Ticker Net Acres EV (MM) Acres/EV Chesapeake Energy CHK 1,000,000 34,063 29 Chevron CVX 600,000 233,468 3 Anadarko Petroleum APC 267,000 57,360 5 Devon Energy DVN 195,000 30,153 6…
  18. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 18
    Utica Asset Transactions Announced Total Transaction Implied Date Buyer(s) Seller(s) Value (MM) Acreage / Acre Feb-14 GPOR Rhino 185 8,200 22,561 Jan-14 American Energy Partners, LP Paloma Partners 442 26,000 17,000 Jan-14 American…
  19. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 19
    Stalder Pad Drilling Locations Magnum Hunter announced the initial production results from the first Utica horizontal well on the MHR - Stalder 3UH 32.5 MMCF 97% Methane Stalder Pad on 2/14/14 Tested at a peak rate of 32.5 MMCF of…
  20. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 20
    Stewart-Winland Pad Drilling Locations The Stewart-Winland Pad located in Tyler County, WV has seven planned Tyler County, West Virginia laterals Magnum Hunter Acreage MHR / JV Partner Acreage Four wells have been drilled and…
  21. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 21
    Ormet Pad Drilling Locations The Ormet Pad located in Monroe County, Ohio has twelve additional potential laterals Three Marcellus wells have been drilled and are flowing to sales on the 9H Pad Three Utica wells have been drilled…
  22. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 22
    Utica Shale Recent Well Results Note: MHR currently owns approximately 118,000 net acres in the Utica Shale; following the MNW acquisition, MHRs acreage position will be in excess of 130,000 net acres. 24
  23. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 23
    Best in Class Dry Gas Utica Peak Peak Rate Rate Lateral Well Name County Operator (MMcfe/d) (Boe/d) % Gas Length Stages Stewart Winland 1300U Tyler, WV MHR 46.5 7,750 100% 5,289 22 Bigfoot 9H Belmont, OH RICE 41.7 6,948 100% 6,957 40…
  24. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 24
    New Marcellus/Utica Production Planned in 2015 (2) (2) MHR Working MHR Net Estimated Gross Production Estimated Net Production Anticipated (1) Well Name Location Interest Revenue Interest Boe/d (3) Mcfe/d Boe/d (3) Mcfe/d Timing…
  25. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 25
    Eureka Hunter Highlights Strategically located asset base Northern West Virginia (Primary: Tyler, Ritchie, Wetzel, Pleasants, Doddridge Location Secondary: Marion, Harrison, Lewis, Monongalia) Southeastern Ohio (Monroe, Washington)…
  26. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 26
    New Strategic Partner In early October 2014, an affiliate of Morgan Stanley Infrastructure Inc. (MSI) purchased all convertible preferred and common equity interests in Eureka Hunter Holdings, LLC, previously owned by ArcLight…
  27. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 27
    Contracted vs. Gathered Volumes Eureka Hunter Pipeline 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 High Pressure Reservation Volume (MMBtu/d) Magnum Hunter 87,950 92,339 75,000 75,000 83,500 96,000 111,400 Third-Parties…
  28. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 28
    Eureka Hunter Utica Exposure MARSHALL Clairington MarkWest Hub Seneca Blue Racer Berne Blue Racer Natrium Ormet Wells NOBLE MONROE PENN W.V. Farley Units Stalder Units WETZEL MORGAN MarkWest Dominion Mobley Eureka…
  29. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 29
    Eureka Hunter Utica Exposure 32
  30. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 30
    How Do We Measure Up Gathering Capacity Marcellus / Utica Operations Summit Midstream mcf/d, 1050 Eureka Hunter mcf/d, 1500 Crestwood Midstream mcf/d, 700 Markwest Midstream mcf/d, 1000 EQT Midstream mcf/d, 1940…
  31. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 31
    Appalachia Differentials Appalachia Net Demand Overview 12.0 Seasonal winter demand to drive better pricing in Q4 2014 and Q1 2015 10.0 8.0 Pricing improvements in 2015+ expected as year- over-year demand is positive 6.0 New…
  32. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 32
    Midstream Outlook Proposed Interstates Pipeline Project Receipt Area Delivery Area Capacity Rate In Service Domion Transmission Lebanon West Cadiz Plant-Harlem Springs Lebanon 350,000 Tariff Nov-13 ANR 2014 Lebanon Reversal Lebanon…
  33. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 33
    TransTex Hunter TransTex Hunter, LLC (TransTex) founded in 2006; acquired by Eureka Hunter in April 2012 Designs and fabricates gas treating plants out of its 10-acre fabrication yard Assets for gas treating, processing, dehydration…
  34. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 34
    Drilling Fleet Overview Current fleet of six (6) drilling rigs with one (1) Schramm TXD 500 on order One (1) Schramm TXD 500 (new rig on order) Rig 7 o Spud first well (Stalder Pad) on July 1, 2013 o Contract Rate of 24,000/day o…
  35. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 35
    Alpha Hunter Growth Continues 35 30 Revenues ( in millions) 25 20 15 10 5 0 (1) 2010 2011 2012 2013 2014 Revenues Note: This information constitutes forward-looking statements and is subject to the…
  36. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 36
    Williston Basin Overview Areas of Operation Overview Proved Reserves and PV-10 Total proved reserves of 15.5 MMBoe as of 6/30/14 Proved producing reserves of 7.5 MMBoe as of 6/30/14 1P PV-10 of 292.5 million as of 6/30/14 PDP…
  37. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 37
    Financial Strategy Capital spending driven by rates of return across all operating areas 2015 capital budget will focus predominately on high return areas in the Appalachian Basin Limited overhead expansion required to meet growth…
  38. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 38
    Adjusted EBITDAX Reconciliation (1) FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 Net income (loss) from continuing operations ( 22.3) ( 76.7) ( 119.7) ( 204.1) Unrealized (gain) loss on derivatives 3.1 4.2 ( 10.9) 17.1 Net interest…
  39. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 39
    Non-Core Divestiture Overview Focused on divesting non-core assets to redeploy capital into Utica / Marcellus Over 700 million raised since beginning of 2013 Asset Sales Value (MM) Completed in 2013 Eagle Ford Sale 401.0 Gain on…
  40. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 40
    Crude Oil and Natural Gas Hedges Crude Oil 2014 2015 2016 NYMEX Average (1) 94.03 90.56 88.08 Weighted-Average Hedge Price With Ceilings 100.90 115.93 - Weighted-Average Hedge Price With Floors 85.00 85.00 - Weighted-Average…
  41. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 41
    MHR Net Asset Value* Assumptions Valuation ( in thousands) Low High Low High (1) Total Proved Reserves PV-10 (6/30/2014) 916,253 916,253 /acre (2) Undeveloped Acreage Low High Williston Basin U.S. 42,700 3,000 5,000 128,100 213,500…
  42. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 42
    A Focused Company on the Right Path Proven management and technical team in place committed to proper capital allocation for future growth Successful proven track record in the development and highgrading of key resource plays in…
  43. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 43
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets Maxim Group Canaccord Genuity MLV Partners Capital One Southcoast RBC Capital Markets…

From the store

Browse maps, data & reports in the Shale Experts store