Skip to main content EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. Investor Presentation | Shale Experts
Loading...
Pm

EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Feb 19, 2014 · 61 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. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION EnerComs The Oil & Services Conference 12 February 2014
  2. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 2
    Who We Are Magnum Hunter Resources is an exploration and production company focused in three of the most prolific unconventional resource shale plays in North America; the Marcellus, Utica and Williston/Bakken Shale Current…
  3. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 3
    Where We Operate A well-balanced and concentrated asset base in large shale plays Secure footholds in West Virginia, Ohio, Kentucky, and North Dakota 152,000 Net Acres Williston Basin 83,000 Net Bakken / Three Forks Sanish…
  4. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 4
    Production Growth 2012 production increased 139% to 13,152 Boepd compared to 5,510 Boepd in 2011 Production increased 93% from 7,702 Boepd for the nine months ended 2012 to 14,894 Boepd(1) for the nine months ended 2013 Year-end 2014…
  5. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 5
    Proved Reserve Growth Consistency Track record of proved reserve growth since inception Approximately 75.9 MMBoe of proved reserves at December 31, 2013 (46% oil/liquids) Anticipate continuing to consistently add proven reserves with…
  6. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 6
    3P Reserves & Contingent Resources Summary 3P reserves and contingent resource potential of 848 MMBoe Extensive inventory of low-risk development drilling locations in the Williston Basin and Marcellus Shale Significant exploration…
  7. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 7
    Outlook for Shale Gas and Oil Production and Reserve Development in the U.S. 6
  8. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 8
    Shale Gas Provides Largest Source of Growth in U.S. Natural Gas Supply History 2014 Projections 35 Gas Production (trillion cubic feet) 30 25 20 Shale Gas 15 Tight Gas 10 Lower 48 onshore conventional 5 Alaska…
  9. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 9
    U.S. Exports of Natural Gas Exceed Imports History 2014 Projections 40 Net exports, 2040 (12%) Total production 30 Gas Production (trillion cubic feet) Net imports, 2011 (8%) Total consumption 20 10 Net imports…
  10. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 10
    U.S. Oil and Natural Gas Proved Reserves 70 450 400 60 Proved Reserves (trillion cubic fee) 350 Proved Reserves (billion barrels) 50 300 40 250 Natural Gas Reserves 30 200 150 20 Oil Proved Reserves 100 10…
  11. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 11
    Marcellus/Utica 10
  12. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 12
    Marcellus Shale General Overview The Marcellus Shale is a Middle Devonian-age black, low density, carbonaceous shale that is located in parts of New York, Pennsylvania, Ohio, Virginia, West Virginia and Maryland Recent estimates…
  13. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 13
    Marcellus Gas Production 5,000,000 4,500,000 4,000,000 3,500,000 Gas Production (MMcf) 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  14. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 14
    Utica Shale General Overview The Utica Shale extends approximately 170,000 square miles throughout the Appalachia Basin in the United States and Canada Ordovician-aged organic rich black shale with interbedded limestone with target…
  15. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 15
    Appalachian Division Overview Overview Areas of Operation Proved Reserves MHR areas of operations Total proved reserves of 53.4 MMBoe as of 12/31/13 Proved producing reserves of 30.2 MMBoe as of 12/31/13 Acreage Position…
  16. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 16
    Marcellus Operations Marcellus Well Results IP 24-hr avg. rate (Mcfe/d) IP 30-day avg. rate (Mcfe/d) Frac Stages () 10,500 10,400 10,000 9,700 9,700 9,600 9,500 9,471 9,563 8,340 7,998 7,078 6,542 6,337 6,361 5,800 5,618…
  17. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 17
    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 0.75 - 1.25 The Company has 200 MMcf/d of dedicated…
  18. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 18
    Economic Sensitivity of Marcellus High Case: Base Case: CAPEX: 6.5 million per well CAPEX: 6.5 million per well EUR: 11.7 Bcfe (includes NGL) EUR: 7.8 Bcfe (includes NGLs) High Case Base Case 18 IRR: 105% 16 IRR: 94% 14 IRR:…
  19. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 19
    Marcellus Shale Note: MHR owns approximately 83,000 net acres in the Marcellus Shale. 18
  20. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 20
    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…
  21. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 21
    Most Leveraged to the Utica 70 64 60 50 41 40 30 29 29 29 19 Average: 15 20 15 12 10 7 7 6 6 6 5 3 1 0 Net Utica Acres / Enterprise Value Source: Company presentations, Bloomberg, state data, Baird 20
  22. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 22
    Utica Asset Transactions Announced Total Transaction Implied Date Buyer(s) Seller(s) Value (MM) Acreage / Acre 01/29/14 American Energy Partners, LP Hess Corporation 924 74,000 12,486 08/09/13 Undisclosed company(ies) EnerVest, Ltd.…
  23. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 23
    First Utica Pad Farley First Utica horizontal well in Washington County spud April 10, 2013 Farley Pad is designed to handle 10 horizontal wells A vertical pilot, and subsequent horizontal well was drilled, logged, cored, and cased…
  24. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 24
    Farley Pad Drilling Locations 23
  25. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 25
    Stalder Pad Drilling Locations MHR - Stalder Pad Eighteen Planned Laterals 0 200 0 Magnum Hunter Acreage Magnum Hunter/Eclipse JV Acreage Marcellus Horizontal Well Utica Horizontal Well PETRA 9/9/2013 4:06:37 PM 24
  26. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 26
    Utica Shale Recent Well Results Antero Myron 3H MUSKINGUM Antero Wayne 2H Antero Wayne 3HA Antero Wayne 4H Fracking 1331 bbls/d + 1503 bbls NGL/d 1905 bbls/d + 2018 bbls NGL/d 1922 bbls/d + 1907 bbls NGL/d Waiting On Completion +…
  27. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 27
    Eureka Hunter - Midstream Overview Strategically Positioned Assets In the heart of Wet Marcellus WV and Dry Utica of eastern Ohio 100 miles of primarily 20 1135 MAOP gathering system currently in the ground Assets and Business 350+…
  28. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 28
    Eureka Construction - Growth Timeline Miles 2013 100 Cumulative miles of pipeline built Initial 15 miles of 16 pipe built southward to Ritchie 90 County 80 Dec-2010 Mar-2013 Completes first 6 miles Jan-2013 Carbide Gathering 70 of…
  29. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 29
    Pipeline Map and Projects MW Seneca REX / TETCO / DTI EUREKA CLARINGTON COMPRESSION Blue Racer Natrium Blue Racer Berne TRIAD ORMET CRESCENT LINE DTI Hastings MW Mobley EHP Carbide Mobley Residue Line - TCO…
  30. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 30
    Contracted vs. Gathered Gas Volumes Eureka Hunter Pipeline 2012 Avg. Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 High Pressure Reservation Volume (MMBtu/d) Magnum Hunter 40,000 87,950 87,950…
  31. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 31
    Eureka - Projected Throughput Mmbtu/day 1,400,000 1,200,000 1 BCF / DAY 1,000,000 Producer 7 800,000 Producer 6 Producer 5 600,000 Producer 4 Producer 3 500,000 Producer 2 400,000 Producer 1 200,000 0 *…
  32. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 32
    Marcellus & Utica A Tale of Two Pipes Specific Qualities of Gas Marcellus - rich gas , has to be processed Utica Sweet, pipeline quality gas Two Distinct Systems Needed Cannot commingle two streams Dry could be used to blend…
  33. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 33
    Eureka Hunter Pipeline - Construction Challenging Terrain Welding Up Pipeline Strung Pipe Before Connection Being Lowered 32
  34. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 34
    Bakken 33
  35. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 35
    Tight Oil Development Spurs Increase in U.S. Crude Oil Production History 2014 Projections 8 7 Total Oil Production (million barrels per day) 6 5 Lower48 onshore 4 3 2 Lower48 offshore 1 Alaska 0 2000 2005 2010…
  36. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 36
    Tight Oil Formations Account for Significant Portion of Total U.S. Production 2014 3 Oil Production (million barrels per day) Other 2 Eagle Ford 1 Bakken Permian Basin Alaska 0 2008 2013 2018 2023 2028 2033…
  37. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 37
    U.S. Crude Oil Reserves, Production and Imports 6 35 30 5 Production and Imports (billion barrels) Proved Reserves (billion barrels) 25 4 20 3 15 2 10 1 5 0 0 1981 1985 1989 1993 1997 2001 2005 2009 2013 Crude…
  38. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 38
    Bakken Shale General Overview The Bakken Formation is an oil field that is predominantly located in North Dakota, Montana and Saskatchewan, Canada Technological developments in hydraulic fracturing have enabled the production of this…
  39. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 39
    North Dakota Oil Production 900 800 700 600 Production (MBbl/d) 500 400 300 200 100 0 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 North Dakota Crude Oil Production Source:…
  40. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 40
    North Dakota Rig Count 250 200 150 Rig Count 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Rigs Source: Baker Hughes 39
  41. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 41
    North Dakota Oil Boom Ripples Economy The oil boom in the Bakken Shale formation, which sits mostly in North Dakota, has led to strong growth in employment and record low unemployment in its core area Average weekly wages there have…
  42. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 42
    Williston Basin Overview Areas of Operation Overview Proved Reserves Total proved reserves of 20.8 MMBoe as of 12/31/13 Proved producing reserves of 9.1 MMBoe as of 12/31/13 Acreage 152,000 net acres in the Williston Basin…
  43. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 43
    Ambrose/Divide County 2014 Activity Areas of Operation Overview 2014 Ambrose Field Drilling Program 15-20 gross, 6-9 net wells Targeting Three Forks Sanish and Middle Bakken Prolific Two-mile Lateral Wells IP 24-hour rates up to…
  44. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 44
    Williston Basin Economics Sensitivity North Dakota West (High Case) North Dakota West (Base Case) CAPEX: 6.4 million per well CAPEX: 6.4 million per well EUR: 550 MBOE EUR: 350 MBOE Differential: (8) Differential: (8) North Dakota -…
  45. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 45
    Eagle Ford 44
  46. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 46
    Eagle Ford Shale General Overview The Eagle Ford Shale Formation extends through South Texas and Mexico Contains estimates of: Approximately 3.4 Billion barrels of recoverable oil(1) Approximately 20.8 Trillion cubic feet of…
  47. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 47
    Eagle Ford Activity at Night Undeveloped Mexico 46
  48. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 48
    Texas Rig Count 1000 900 800 700 600 Rig Count 500 400 300 200 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Texas Rig Count Source: Baker Hughes 47
  49. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 49
    Eagle Ford Production Summary 1,000,000 3,500 900,000 3,000 800,000 Bbl/d of Oil and Condensate Production 700,000 2,500 MMcf/d of Natural Gas Production 600,000 2,000 500,000 1,500 400,000 300,000 1,000…
  50. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 50
    MHR Eagle Ford Shale Execution On September 30, 2009, Magnum Hunter acquired 2,000 acres through an acquisition of Sharon Resources now Eagle Ford Hunter, Inc. for 2.35 million and began to acquire more acreage In May 2010, Magnum…
  51. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 51
    MHR Eagle Ford Shale Execution MHR EOG Snipe Hunter 1H 41,131 gross (19,417 net) acres in Hilcorp/Marathon 24hr IP 2,033 Boe/d Gonzales and Lavaca Counties, TX Weber Operator for 75% of the acreage with 50% WI Conoco Phillips Hawg…
  52. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 52
    Economic Sensitivity of Eagle Ford CAPEX: 8.5MM + 0.3MM (ESP) Gonzales County, Eagle Ford 30-Day IP: 900 Boe/d Price Sensitivity EUR: 450 MBoe 10.5 IRR: 83% IRR: 75% 9.0 IRR: 66% IRR: 58% 7.5 Single Well NPV-10 (MM) IRR:…
  53. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 53
    Summary 52
  54. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 54
    Financial Strategy Capital spending driven by rates of return across all operating areas Focus on development of existing acreage in our core areas 2014 capital budget will focus predominately on high return areas in the Appalachian…
  55. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 55
    Crude Oil and Natural Gas Hedges Crude Oil 2014 2015 2016 NYMEX Average (1) 92.84 85.83 80.99 Weighted-Average Hedge Price With Ceilings 100.90 115.93 - Weighted-Average Hedge Price With Floors 85.00 85.00 - Weighted-Average…
  56. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 56
    Non-Core Divestiture Summary Aggressively pursuing in excess of 400 million of non-core asset sales to enhance our financial flexibility to focus capital on high return oil/liquids projects Internal technical team evaluating portfolio…
  57. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 57
    MHR Net Asset Value* Assumptions Valuation ( in thousands) Low High Low High (1) Total Proved Reserves PV-10 (12/31/2013) 922,100 922,100 /acre (2) Undeveloped Acreage Low High Williston Basin U.S. 52,200 3,000 5,000 156,600…
  58. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 58
    Stock Performance Since January 2013 10.00 Stalder 2014 CapEx Results 3Q 2013 9.00 Budget Results 8.50 8.00 Warrants Payment Issued of accrued 7.00 YE 2012 Preferred Reserves Fire Dividends 6.00 PWC Borrowing Base 10-K YE…
  59. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 59
    A Focused Company on the Right Path Proven management and technical team in place committed to proper capital allocation for future growth Geographically diversified asset base in three of the most prolific shale plays in the US…
  60. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 60
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets RBC Capital Markets Canaccord Genuity Robert W. Baird & Co. Capital One Southcoast, Inc.…
  61. EnerComs The Oil & Services Conference 12 – Magnum Hunter Resources Corp. – slide 61
    Appendix Net Asset Value Although Magnum Hunter does not consider Net Asset Value and Net Asset Value Per Share to be non-GAAP financial measures, as defined in SEC rules, Magnum Hunter uses Net Asset Value as an estimate of fair value.…

From the store

Browse maps, data & reports in the Shale Experts store