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January 2015 Investor Presentation – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Jan 20, 2015 · 27 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. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 1
    Integrity Teamwork Transparency January 2015 Investor Presentation
  2. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Market Cap(1): 1.0 billion Wattenberg Field(2) Arkansas 20,000 6,000 Enterprise Value(1): 1.8 billion Boe/d Boe/d Resilient asset base at lower prices 0 0 Q4 Q3 Q4 Q3 2011 2014 2011 2014 Low cost…
  3. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 3
    Strong Growth and Cash Flow Track Record Sales Volumes(1) (Boe/d) Adjusted EBITDAX(3) (thousands) 25,000 120,000 100,000 20,000 80,000 15,000 60,000 10,000 40,000 5,000 20,000 0 - 2010 2011 2012 2013 Q1 '14 Q2 '14 Q3 '14 Q1 Q2…
  4. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 4
    Wattenberg Niobrara Resilient to Low Oil Prices WTI Oil Breakeven Price ( per Bbl) at 3.60/MMBtu Natural Gas Breakeven analysis as of October 28, 2014 Breakeven Data Source: Credit Suisse Equity Research U.S. Upstream Deep Dive…
  5. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 5
    Managing through the Bottom of the Cycle Discretionary Deployment of Capital Majority of leasehold is HBP 20 million required to maintain leases not intending to drill in 2015 No long term rig, frac or sand commitments Disciplined…
  6. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 6
    Cutting Spending Increasing Production Capital Expenditures Budget Annual Daily Avg. Sales Volumes 700 32,000 600 30,000 500 28,000 400 26,000 300 24,000 200 100 22,000 - 20,000 2014 2015 2014 2015 Wattenberg Arkansas 2-Stream…
  7. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 7
    De-Risking & Delineation is Largely Complete Wattenberg Field HZ Wells Drilled 2011 2012 2013 2014 2015 Plan 3% 3% 2% 1% 3% 7% 8% 10% 13% 29% 31% 13% 9% 100% 91% 81% Wattenberg 65% Field 31% Niobrara B Niobrara C Codell XRL…
  8. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 8
    Deep Organic Development Inventory 30 Years of Wattenberg 3P Inventory (2,000 net locations) Wattenberg Wattenberg Arkansas Cotton Valley Niobrara B North Park Codell 5-acre spacing Basin Niobrara Wattenberg Niobrara…
  9. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 9
    Contiguous Position Aids Full Development 70,000 net acres in Extension Area Zero exposure to urban population Near established infrastructure Blocky acreage attractive for long laterals Prospective for Up to Five Stacked Pay…
  10. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 10
    Evolution of Greater Wattenberg Development 2012 2015 2012 Niobrara B bench productive across acreage 2013 Niobrara C productive across acreage; Codell productive across 15,000 net acres 2014 Niobrara B / C bench stacking…
  11. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 11
    Concentrated Land Position in Wattenberg LEGEND Current BCEI Leasehold 126,400 gross (70,100 net) acres Horizontal Wells North Block: 25,700 net BCEI BBG/EOG NBL CRZO Central Block: 35,500 net PDCE OTHER South Block: 8,900…
  12. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 12
    2015 Rockies Drilling Program 1 Goal: Leverage Existing Infrastructure; Minimize Non-Well Capital 70+ wells into 8 shared facilities LEGEND Large Centralized Battery 2015 Planned Drill Pad Future Salt Water Disposal Well…
  13. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 13
    Increased Confidence in 40-Acre Downspacing 30,000 354 Mboe Type Curve 25,000 20,000 BOE 15,000 10,000 Super-Section December 2014 5,000 18-stage frac 28-stage frac 374 451 Boe/d Boe/d 0 IP30(1) IP30(1) 0 10…
  14. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 14
    Strong Corporate Proved & 3P Reserves Growth BCEI 3-Stream 3P Reserves: 558 MMBoe Company Net 3P Reserves (MMBoe)(1) (1) Codell Wattenberg 1P Wattenberg inventory life of 30 years at current pace 7% 14% Arkansas BCEI Tangible…
  15. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 15
    Wattenberg Hz Niobrara B Target Type Well Type Well Economics 4,000 9,000 3-Stream EUR(1) (MBoe) 354 687 Cost per Well 4.0 MM 6.75 MM NPV-10 at 60/BO 530,000 2.3 MM ROR Sensitivity to WTI Crude Oil Price(2) 45% 40% 35%…
  16. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 16
    Crude Oil Pipeline Infrastructure Expanding Rail Capacity by YE 2015 Operator Capacity Timing Multiple 120,000 Bbl/d Existing Plains 35,000 Bbl/d 2015 Q3 ARB Midstream 70,000 Bbl/d 2015 Q4 Pipeline Capacity by YE 2017 Operator…
  17. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 17
    Significant Gas Processing Upgrades 18
  18. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 18
    Mid-Continent Operations (Arkansas) Conventional Cotton Valley: 6,500 8,800 feet ERA SYSTEM SERIES GROUP FORMATION CENOZOIC EOCENE Claiborne PALEOCENE Wilcox Low-risk infill development down to 5-acre spacing TERTIARY CRETACEOUS…
  19. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 19
    Lenticular Oil-Weighted Cotton Valley Sands Pin-Point Fracture Technology Focused completion technology Improved recovery of OOIP Highly repeatable Dorcheat Unit 37 25-30 sand/shale sequences Each zone individually pressured…
  20. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 20
    Strict Focus on Cash Operating Costs Unit Cash Operating Costs (/Boe)(1) Unit Revenue & Cash Margins (/Boe)(1) 25 80 77.54 71.85 72.95 20 6.06 68.47 66.64 7.82 60 74% 4.98 6.54 76% 15 68% 68% 71% 4.61 7.51 6.86 40 6.87 10…
  21. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 21
    Significant Production Hedged at 81/Bbl in 2015 Effective Floor Prices 2014 2015 2016 Crude Oil 11,400 Bbl/d 90.59 10,000 Bbl/d 80.75 5,500 Bbl/d 77.80 Natural Gas 28,000 Mcf/d 4.19 15,000 Mcf/d 3.58 Volume Fixed Price Volume Floor…
  22. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 22
    BCEI Attractive Relative to Basin Peers Unit EBITDAX 2014 Production Growth 60 60% Consensus Production EBITDAX / Boe (MRQ) Peer Group 50% 50 Avg: 39.34 40% Peer Group 40 Avg: 30% Growth 20% 30 20% 10% 20 0%…
  23. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 23
    Investment Recap Company Headquarters Investor Relations 410 17th Street, Suite 1400 James Masters Contiguous Denver, Colorado 80202 (720) 440-6121 Acreage (720) 440-6100 jmastersbonanzacrk.com Resilient Maximizing Assets to…
  24. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 24
    Wattenberg Horizontal Niobrara Economics(1) Target Three-Stream SRL 354 and XRL 687 MBoe Type Curves 700 SRL 354: 650 30-day Avg: 30-day 458 boepd Avg: 458 boepd 60-day Avg: 60-day 400 boepd Avg: 400 boepd 600 90-day Avg:…
  25. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 25
    Legacy Acreage Correlation to Wells Ranch Niobrara A Bench Thinner and resistivity less developed A Niobrara B Bench Similar thickness and resistivity A Niobrara C Bench Slightly thinner lower chalk bench; similar resistivity…
  26. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 26
    Reconciliation to Adjusted EBITDAX Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by management and external users of the Companys consolidated financial statements, such as industry analysts, investors,…
  27. January 2015 Investor Presentation – Bonanza Creek Energy, Inc. – slide 27
    Reconciliation to Cash Margin We define unhedged cash margin per Boe as oil and natural gas revenues, less (1) lease operating expense, (2) oil and natural gas taxes, and (3) cash G&A expense (excludes stock-based compensation), divided…

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