Skip to main content WELLS FARGO – Chaparral Energy, Inc Investor Presentation | Shale Experts
Loading...
Pm

WELLS FARGO – Chaparral Energy, Inc

Chaparral Energy, Inc · Dec 9, 2014 · 51 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. WELLS FARGO – Chaparral Energy, Inc – slide 1
    Wells Fargo December 2014
  2. WELLS FARGO – Chaparral Energy, Inc – slide 2
    Chaparral: Overview
  3. WELLS FARGO – Chaparral Energy, Inc – slide 3
    2014 3Q Highlights Q3 production volume increase of 12% year over Q3 2014 Production by year to 30.1 Mboe/d (Proforma for asset sales Q3 Product growth was 30%) 15% Q3 capital expenditures of 184 million 55% 30% Exceptional…
  4. WELLS FARGO – Chaparral Energy, Inc – slide 4
    Strong Track Record of Growth Overview EBITDA (mm) Core Operating Area Mid-Continent Region 500 389 346 Key Plays NOMP, Panhandle Marmaton, 450 337 Woodford and EOR 400 313 350 288 Oil Focused (Reserves 68% oil / liquids)…
  5. WELLS FARGO – Chaparral Energy, Inc – slide 5
    Mid-Continent Focus The Next Untold Story Our Position 500,000 net surface acres Portfolio poised to deliver double digit growth Oil-rich portfolio with focus on high return, oil leveraged plays Significant inventory of repeatable…
  6. WELLS FARGO – Chaparral Energy, Inc – slide 6
    Why Mid-Continent The Next Untold Story Mid-Continent Advantages as Se ow Prolific hydrocarbon all Sh producing basin Numerous reservoirs with An ad ark stacked pay potential for oB horizontal drilling as in Am…
  7. WELLS FARGO – Chaparral Energy, Inc – slide 7
    Leader Among Mid-Continent Peers in Oil Production Percentage of 3Q 2014 Oil Production 300 60% 50% 40% 30% 55% 42% 39% 20% 38% 28% 28% 10% 0% Chap MPO NFX SD* JONE XEC Sources: Company 3rd Quarter filings…
  8. WELLS FARGO – Chaparral Energy, Inc – slide 8
    Favorable Reserve Life Comparison Long reserve life index of 14.3x Deep inventory of low-risk development drilling 27 year drilling life with 10 rigs running in NOMP and Marmaton only EOR Development R/P Comparison with Average…
  9. WELLS FARGO – Chaparral Energy, Inc – slide 9
    High Netbacks and All-in Returns are Key Focus Disciplined allocation of capital across the portfolio targets highest return projects Average EBITDA / BOE 50.00 40.00 30.00 46.69 43.07 20.00 38.09 38.09 36.24 33.71 33.58…
  10. WELLS FARGO – Chaparral Energy, Inc – slide 10
    Low PDP Decline Rate Large and stable base of PDP asset value Inclining EOR production profile and low decline portfolio of legacy production provides support and asset protection to multi-year growth inventory in a down pricing…
  11. WELLS FARGO – Chaparral Energy, Inc – slide 11
    Core Plays NOMP/ Meramec Marmaton and Oswego Net Surface Acres: 252,833 Net Surface Acres: 104,000 (Marmaton), 109,718 (Oswego) Gross Drilling Locations: 2,548 Gross Drilling Locations: 730 (Marmaton), 1,107 (Oswego) Marmaton…
  12. WELLS FARGO – Chaparral Energy, Inc – slide 12
    Stacked High Quality Oil Plays NOMP, Oswego & Woodford Much of Chaparrals Mid-Continent acreage is located within a stacked pay environment NOMP 252,883 Prospective Acres Woodford 164,206 Prospective Acres Oswego 109,718…
  13. WELLS FARGO – Chaparral Energy, Inc – slide 13
    Multiple Mid-Continent Pay Zones Industry Horizontal Drilling Targets 15
  14. WELLS FARGO – Chaparral Energy, Inc – slide 14
    Horizontal Drilling Inventory and Play Resource Potential Inventory Life (NOMP and Panhandle Marmaton) Number of Rigs 10 15 20 Inventory Life (Years) 27 18 14 Total (2) Oil Rich (3) Gas Rich (3) Play Net Acres(1) Gross…
  15. WELLS FARGO – Chaparral Energy, Inc – slide 15
    Capital Budget (mm) 2014 Capital Allocation Q3 2014 2014B Key Drilling Areas Capital (*) Wells YTD Revised Allocation Component 2011 2012 2013 2014 Budget % NOMP 156 43-47 Drilling 172 239 269 294 396 59% Panhandle Marmaton 134…
  16. WELLS FARGO – Chaparral Energy, Inc – slide 16
    Expected Returns in our Core Areas Play IRRs (1) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% *Chaparrals Plays in red (1) Selected data from Credit Suisse Research and Analytics using futures strip as of 9/24/2013 (2)…
  17. WELLS FARGO – Chaparral Energy, Inc – slide 17
    Over 1 BBOE Reserve and Inventory Upside Potential 1200 84 1,018 1000 198 800 76 57 MMboe 220 600 400 225 200 158 0 2013 Proved NOMP/ Woodford Marmaton Oswego EOR Other Total Reserves Meramec…
  18. WELLS FARGO – Chaparral Energy, Inc – slide 18
    NOMP Resource Potential
  19. WELLS FARGO – Chaparral Energy, Inc – slide 19
    Northern Oklahoma Mississippi Play (NOMP) Overview NOMP Asset Map 252,883 net acres including the Meramec shale Principally carbonate in north, and develops into carbonate/shale sequence as the play moves south Multiple…
  20. WELLS FARGO – Chaparral Energy, Inc – slide 20
    NOMP Carbonate Economics NOMP TYPE CURVES(1) EUR = 352 MBOE Type Curve Parameters 250 1400 % EUR per Yr. Yr. 1 18% OIL BOPD EUR: 352 Mboe 1200 200 Yr. 2 9% Oil %: 4050% GAS MCFD Yr. 3 6% 1000 D&C cost: 3.3 3.7 million Yr. 4…
  21. WELLS FARGO – Chaparral Energy, Inc – slide 21
    NOMP/Meramec Well Performance OPERATOR WELL 30DAY IP 1 CHAPARRAL GLADYS 3H25 1,292 Boe/d 2 1 6 12 2 9 1 3 2 CHAPARRAL KUDU 1H21 513 Boe/d 6 12 3 CHAPARRAL CENTIPEDE 1H15 876 Boe/d 4 9 3 5 10 4 CHAPARRAL LEE 1MH1 711 Boe/d 7 84…
  22. WELLS FARGO – Chaparral Energy, Inc – slide 22
    NOMP 2013 and 2014 YTD Results 13 13 14 400 346 11 12 350 Type Curve: 10 9 6 300 329 7 Number of Wells 30Day IP Rate (BOEPD) 5 250 8 6 0 200 6 6 150 4 7 100 6 6 6 2 3 50 0 0 < 200 200 - 350 350 - 500…
  23. WELLS FARGO – Chaparral Energy, Inc – slide 23
    NOMP Growth Production (Boe) / Day Net Acres* 6,810 7,000 300 253 6,000 250 210 3,097 5,000 175 3,865 200 Boe/Day Net Acres (000) 4,000 150 3,000 1,715 100 2,000 1,363 3,713 576 50 2,150 1,000…
  24. WELLS FARGO – Chaparral Energy, Inc – slide 24
    Marmaton Resource Potential
  25. WELLS FARGO – Chaparral Energy, Inc – slide 25
    Marmaton Play Overview Marmaton Asset Map The Marmaton Play is another key oil resource consisting of multiple carbonate benches with ongoing development Largest operator in play 104,000 net acres Non-Core 730 unrisked…
  26. WELLS FARGO – Chaparral Energy, Inc – slide 26
    Marmaton Economics Panhandle Marmaton TYPE CURVES(1) Type Curve Parameters EUR = 143 MBOE 300 250 EUR: 143 Mboe % EUR per Yr. OIL BOPD Liquids 93% / Oil %: 80% Yr. 1 24% 250 Yr. 2 12% 200 D&C cost: 3.0 3.4 million GAS MCFD 200…
  27. WELLS FARGO – Chaparral Energy, Inc – slide 27
    Marmaton Well Performance Marmaton Well Performance OPERATOR WELL 30-DAY IP 1 CHAPARRAL NORA 491H 580 BOEPD 4 3 2 CHAPARRAL THOMAS 1HX35 1072 BOEPD 6 3 CHAPARRAL 4 RED CATTLE 123H 622 BOEPD 5 4 CHAPARRAL KILE 17H 1414 BOEPD…
  28. WELLS FARGO – Chaparral Energy, Inc – slide 28
    Oswego Play
  29. WELLS FARGO – Chaparral Energy, Inc – slide 29
    Oswego Play Overview Oswego Asset Map The Oswego Play is an exciting resource for Chaparral Oswego is Marmaton age and is prevalent across Chaparral acreage Successful historical vertical play 109,718 Net Acres 1,100 unrisked…
  30. WELLS FARGO – Chaparral Energy, Inc – slide 30
    Oswego (Dover) OSWEGO (DOVER) CURVES(1) EUR = 331 MBOE Type Curve Parameters 250 200 OIL BOPD 180 EUR: 331 Mboe 200 160 Oil %: 88% GAS MCFD 140 D&C cost: 3.3 3.7 million 150 120 BOPD MCFD 100 Oil 100 80 % EUR per Yr…
  31. WELLS FARGO – Chaparral Energy, Inc – slide 31
    Oswego (Non-Dover) OSWEGO (NON-DOVER) CURVES(1) EUR = 196 MBOE Type Curve Parameters 140 140 OIL BOPD EUR: 196 Mboe 120 120 Oil %: 86% GAS MCFD 100 100 D&C cost: 3.3 3.7 million BOPD MCFD 80 80 Oil 60 % EUR per Yr 60…
  32. WELLS FARGO – Chaparral Energy, Inc – slide 32
    Oswego Well Performance OPERATOR WELL 30 DAY IP 1st Production Year CHAPARRAL DOVER UNIT (OOID) 1OH-24 1,500 BOEPD 2013 CHAPARRAL DOVER UNIT (TRIAD) 1OH-12 244 BOEPD 2014 CHAPARRAL DOVER UNIT (LITHIUM) 1OH - 28 252 BOEPD 2014 CHAPARRAL…
  33. WELLS FARGO – Chaparral Energy, Inc – slide 33
    Woodford Shale Play
  34. WELLS FARGO – Chaparral Energy, Inc – slide 34
    Woodford Shale Play Overview Woodford Asset Map The Woodford Shale Play is a material resource play and provides significant upside The Woodford Shale Play consists of well defined productive regions 164,000 net acres…
  35. WELLS FARGO – Chaparral Energy, Inc – slide 35
    Woodford Well Performance Woodford Well Performance 10 10 OPERATOR WELL 30DAY IP 13 11 11 8 1 DEVON ROTHER 124H 1,404 BOEPD 8 14 9 9 2 CIMAREX BOMHOFF 1H11X 1,757 BOEPD 12 2 4 7 3 CENTRAL 3 CIMAREX DRAPER 125H 3,228 BOEPD…
  36. WELLS FARGO – Chaparral Energy, Inc – slide 36
    Central Woodford Economics Central Woodford TYPE CURVES(1) Type Curve Parameters EUR = 246 MBOE 200 700 EUR: 246 Mboe 180 OIL BOPD Oil %: 6070% 600 160 GAS MCFD D&C cost: 3.2 3.7 million 140 500 120 Oil BOPD MCFD 400…
  37. WELLS FARGO – Chaparral Energy, Inc – slide 37
    CO2 EOR is a Major Part of Chaparrals Growth Story
  38. WELLS FARGO – Chaparral Energy, Inc – slide 38
    Leader in the CO2 EOR Industry Chaparral is the third-most active CO2-EOR operator in the U.S. of Active Producer CO2-EOR Projects 33 25 8 7 6 5 4 4 3 3 3 3 Others 32 Total 136 Source: April 2014 Oil & Gas…
  39. WELLS FARGO – Chaparral Energy, Inc – slide 39
    CO2 EOR Focused Areas Overview CO2 Project Inventory 9 Units Injecting (1P Reserves) 39 Inventory (2P & 3P Reserves) CO2 Infrastructure 473 Miles CO2 supply 100% Anthropogenic 76 MMscf/d Financials CO2 EOR Business Unit…
  40. WELLS FARGO – Chaparral Energy, Inc – slide 40
    Proven Track Record of CO2 EOR Performance CO2 Production at Oct. 2014 Uplift Field Injection Start of Production (BOPD) EUR Start Injection (MMBOe) (BOPD) Panhandle Area Camrick 2001 103 1,171 8.0 N. Perryton 2006 21 640 3.4…
  41. WELLS FARGO – Chaparral Energy, Inc – slide 41
    Total EOR Uplift Growth 3,704 4,000 2,757 Uplift Net BO/Day 3,000 2,185 1,624 2,000 1,000 - 2011 2012 2013 2014E 43
  42. WELLS FARGO – Chaparral Energy, Inc – slide 42
    North Burbank CO2 EOR Development
  43. WELLS FARGO – Chaparral Energy, Inc – slide 43
    Burbank Area Overview North Burbank Overview Burbank Area Asset Map Chaparrals North Burbank unit is its largest EOR field CO2 injection started in June 2013 Oklahomas largest unit with over 820 Mmbo OOIP and 320Mmbo…
  44. WELLS FARGO – Chaparral Energy, Inc – slide 44
    North Burbank CO2-EOR Flood 1,000,000 1,000,000 Primary Development 100,000 100,000 Secondary Development Tertiary Development Gross Boe/D 10,000 10,000 Waterflood CO2 EOR +13000 1,000 1,000 100 100 1920…
  45. WELLS FARGO – Chaparral Energy, Inc – slide 45
    North Burbank Unit Gross Production Facility Constraints being remedied. 47
  46. WELLS FARGO – Chaparral Energy, Inc – slide 46
    Financial Overview
  47. WELLS FARGO – Chaparral Energy, Inc – slide 47
    Financial Metrics per BOE Production (Boe) / Day LOE / Boe 35,000 30,099 29,500 24,914 26,691 16.00 30,000 23,713 4,088 3,570 14.00 25,000 3,729 12.00 2,129 3,415 Boe/day 9,634 8,499 20,000 10.00 /BOE 9,032 9,247…
  48. WELLS FARGO – Chaparral Energy, Inc – slide 48
    Hedge Portfolio % of Total Proved Reserves Hedged (as of Sept 30, 2014) Percentage of 2Q 4Q14E Production Hedged 100% 90% 80% 70% 60% 50% 96% 40% 73% 68% 30% 64% 64% 20% 10% 25% 0% CHAP NFX SD JONE MPO XEC…
  49. WELLS FARGO – Chaparral Energy, Inc – slide 49
    Financial Flexibility to Execute Strategy Current Maturity Profile (mm) No senior note maturities before 2020 600 400 Hedge positions in place to secure cash flow in 500 325 300 near term 400 As of November 1, 2014 our borrowing…
  50. WELLS FARGO – Chaparral Energy, Inc – slide 50
    2014 Guidance Operating Statistics 2014 Guidance Capital Expenditures (MM) 656 - 683 Production (MMBoe) 10.6 11.0 General and Administrative 5.00 - 5.50/Boe Lease Operating Expense 12.75 -13.25/Boe 52
  51. WELLS FARGO – Chaparral Energy, Inc – slide 51
    Thank you 2014 Chaparral Energy

From the store

Browse maps, data & reports in the Shale Experts store