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Corporate Update – Forest Oil Corp.

Forest Oil Corp. · Jan 1, 2014 · 30 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. Corporate Update – Forest Oil Corp. – slide 1
    Corporate Update January 2014
  2. Corporate Update – Forest Oil Corp. – slide 2
    Forest Oil Snapshot Ark-La-Tex 239,000 Gross Acres Permian Basin Ark-La-Tex 162,000 Net Acres 2013E 97 mmcfe/d 62,900 Gross Acres 2014E 87.5 mmcfe/d 60,250 Net Acres Permian Basin Eagle Ford 55,000 Gross Acres 27,500 Net Acres Eagle…
  3. Corporate Update – Forest Oil Corp. – slide 3
    2013 Accomplishments Improved financial position and operational focus through a series of asset divestitures that raised over 1.3 billion of proceeds Closed the sale of our Texas Panhandle Area assets for proceeds of 1 billion Announced…
  4. Corporate Update – Forest Oil Corp. – slide 4
    Strategic Objectives Execution of Eagle Ford drilling program Transition to full-scale development in early 2014 Concentrate on most productive areas while determining optimal drilling density to increase development inventory Target…
  5. Corporate Update – Forest Oil Corp. – slide 5
    2014 Detailed Guidance Guidance Guidance Capital Expenditures & Guidance Guidance Production Low High Expenses Low High Average Net Sales Volumes 120 130 E&D Capital Budget ( million) 260 270 (mmcfe/d) Total Capital Budget ( million)…
  6. Corporate Update – Forest Oil Corp. – slide 6
    Capital and Drilling Plan 2014 Average Rig Count by Area Total Capital Budget of 290 310 million Drilling capital of 260 - 270 million Eagle Ford, 80 gross (40 net) wells Ark-La-Tex, 10 Gross (7 net) wells Eagle Ford drilling…
  7. Corporate Update – Forest Oil Corp. – slide 7
    Volumes Component Summary Natural Gas Production (mmcf/d) Oil & Liquids Production (bbls/d) 106 9,000 94 90 78 71 5,500 3,611 1,848 1,507 2010 2011 2012 2013 * 2014 * 2010 2011 2012 2013 2014* Oil NGLs Oil…
  8. Corporate Update – Forest Oil Corp. – slide 8
    Oil Volume Growth Significant Oil Growth in 2014 (bbls/d) 6,800 3,465 2,040 1,010 390 2010 2011 2012 2013E * 2014E * Expect 2014 Oil Production Growth of 90% to 100% * Based on current mid-point of guidance and…
  9. Corporate Update – Forest Oil Corp. – slide 9
    Production Summary Production Summary (mmcfe/d) 125 114 114 112 113 109 1Q13 2Q13 3Q13 4Q13* 2013* 2014* Ark-La-Tex Eagle Ford Ark-La-Tex Eagle Ford * Based on current mid-point of guidance and internal estimates…
  10. Corporate Update – Forest Oil Corp. – slide 10
    Lower Cost Structure Lower Costs Projected Post Texas Panhandle Sale G&A Expense ( mm) Interest Expense ( mm) 150 45 44 142 40 120 29 60 2011 2012 2013* 2014* 2011 2012 2013* 2014* * Based on current mid-point of…
  11. Corporate Update – Forest Oil Corp. – slide 11
    Eagle Ford FOREST OIL CORPORATION 11
  12. Corporate Update – Forest Oil Corp. – slide 12
    Eagle Ford Overview Contiguous acreage position of 55,000 gross (27,500 net) acres within oil window in Gonzales County, TX Over 600 drilling locations* remaining holding a gross unrisked resource of nearly 200 mmboe (100 mmboe net)…
  13. Corporate Update – Forest Oil Corp. – slide 13
    Eagle Ford Well Results Solid Results Across Acreage Position (2011 2013)* Tinsley-Raeke 01H 778 boe/d Bouldin Trust 01H 586 boe/d Tinsley-Lawley 01H 535 boe/d Bouldin Trust 02H 399 boe/d Tinsley 01H 410 boe/d Tinsley-Cook 01-01H 455…
  14. Corporate Update – Forest Oil Corp. – slide 14
    Eagle Ford Well Results 2013 Well Performance EUR 300 mboe (90% oil) * Excludes six wells drilled in northeastern section of acreage shown on previous page FOREST OIL CORPORATION 14
  15. Corporate Update – Forest Oil Corp. – slide 15
    Eagle Ford Target Zone Target Zone Thickness 130 FOREST OIL CORPORATION 15
  16. Corporate Update – Forest Oil Corp. – slide 16
    Eagle Ford Production Growth Net Daily Production Volumes (boe/d) 3,400 3,300 6,250 2,300 2,300 1,900 1,800 2,600 1,200 950 1,600 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13* 2012 2013* 2014* 2014 Eagle Ford…
  17. Corporate Update – Forest Oil Corp. – slide 17
    Eagle Ford Maximizing Efficiencies Utilizing two-well and four-well pad drilling to improve drilling & completion efficiencies Development wells drilled on existing pads cost significantly less than the initial wells Recently completed…
  18. Corporate Update – Forest Oil Corp. – slide 18
    Eagle Ford Well Costs 2011 & 2012 2013 Avg. Cost 8.1 MM Avg. Cost 5.9 MM 12.0 10.0 8.0 3Q - 5.75 million avg. 6.0 MM 4.0 2.0 0.0 Well Costs Continue Trending Lower FOREST OIL CORPORATION 18
  19. Corporate Update – Forest Oil Corp. – slide 19
    Eagle Ford Well Costs* Lowest Amongst Peers 9.0 8.0 7.0 6.0 5.0 mm 4.0 3.0 2.0 1.0 0.0 FST Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Peer Group Average * Source: Recent…
  20. Corporate Update – Forest Oil Corp. – slide 20
    Eagle Ford Midstream System Entered into agreement with industry partner to build out gathering system No upfront capital from Forest No throughput commitment All facilities expected to become fully operational by July 2014 Provides…
  21. Corporate Update – Forest Oil Corp. – slide 21
    Eagle Ford Economics Economic Sensitivity * 60 50 40 ROR - % 30 20 10 0 4,500 5,000 5,500 6,000 6,500 Well Cost M 80/bbl 90/bbl 100/bbl * Based on Forest Type Curve and rate of return is based on…
  22. Corporate Update – Forest Oil Corp. – slide 22
    Ark-La-Tex & Permian Basin FOREST OIL CORPORATION 22
  23. Corporate Update – Forest Oil Corp. – slide 23
    Ark-La-Tex Acreage Position Total Acreage* 239,000 Gross Acres Arkoma 162,000 Net Acres 61,000 Gross Acres 35,000 Net Acres East Texas 140,000 Gross Acres 103,000 Net Acres North Louisiana 10,000 Gross Acres 9,400 Net…
  24. Corporate Update – Forest Oil Corp. – slide 24
    East Texas Liquids-Rich Play Total acreage position of 140,000 gross acres (103,000 net); 30,000 net acres within the liquids-rich trend Most recent horizontal liquids-rich Cotton Valley wells online with an average 30-day gross…
  25. Corporate Update – Forest Oil Corp. – slide 25
    East Texas Liquids-Rich Results Consistent Results with 40% Liquids Component 2012 - 2013 2012 - 2013 30-Day Avg. IP Rate of 8.5 mmcfe/d 40% Average Liquids 42% 41% 10.1 40% 40% 9.8 9.9 9.7 39% 39% 9.2 35% 7.1 5.9 1Q12…
  26. Corporate Update – Forest Oil Corp. – slide 26
    Permian Basin Provides Optionality Forest Leasehold Acreage position of 62,900 Forest Wolfbone wells gross acres (60,250 net) Hz Wolfbone wells located in Reeves and Pecos Arabella Counties Atlantic Clayton Williams Concho Exposure…
  27. Corporate Update – Forest Oil Corp. – slide 27
    Hedging Program Summary Provides Downside Protection for Cash Flow Derivative 2014 2015 NYMEX Strip & Hedge Prices Natural Gas ( /mmbtu )* Natural gas swaps (bbtu/d) 70.0 20 5.00 4.75 Weighted avg price (per mmbtu) 4.375 4.20…
  28. Corporate Update – Forest Oil Corp. – slide 28
    Attractive Debt Maturity Profile (mm) 1,000 Total Senior Notes: 800 million Average Rate: 7.3% Average Maturity: 5.9 Years 750 578 7.25% 500 222 250 7.50% - 2013 2014 2015 2016 2017 2018 2019 2020 Fixed Debt…
  29. Corporate Update – Forest Oil Corp. – slide 29
    Investment Highlights Asset base that is concentrated in two core areas of the Eagle Ford and Ark-La-Tex Eagle Ford positioned to move to full-scale development in 2014 Set to deliver double digit volume growth underpinned by significant…
  30. Corporate Update – Forest Oil Corp. – slide 30
    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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