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INVESTOR PRESENTATION – Resolute Energy Corp

Resolute Energy Corp · Dec 11, 2013 · 53 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 – Resolute Energy Corp – slide 1
    Energy Corporation Resolute Energy is a regionally diversified growth oriented E&P company Investor presentation focused on long-lived (NYSE: REN) domestic oil producing assets December 2013
  2. INVESTOR PRESENTATION – Resolute Energy Corp – slide 2
    Resolute overview Company history Market capitalization1 658.9 million SEC PV102 1.26 billion 2004 Resolute formed Long term debt3 685.0 million Aneth Field: Assets acquired from Shares outstanding1 76.8 million 2005…
  3. INVESTOR PRESENTATION – Resolute Energy Corp – slide 3
    Our operating areas Pro forma proved reserves are 89% liquids Areas of operation Proved reserves by area1 Wyoming properties Aneth Field Denver headquarters properties 2013 capital expenditures by area2 Permian…
  4. INVESTOR PRESENTATION – Resolute Energy Corp – slide 4
    Reserves and production overview Year-end 2012 SEC case: Proved reserves: 78.8 MMBoe PV10 1.13 billion R/P ratio of 23 years 1 2012 SEC reserve report 2012 proved reserve characteristics SEC proved PV10: 1.13 billion…
  5. INVESTOR PRESENTATION – Resolute Energy Corp – slide 5
    Company overview In the Permian Basin Resolute completed meaningful acquisitions at year- end 2012 and in March 2013 We assumed operating responsibilities on most of the acquired properties in the second quarter We began drilling in…
  6. INVESTOR PRESENTATION – Resolute Energy Corp – slide 6
    December 2013 operations update From press release dated December 10, 2013 Field level estimates for October and November exceed 12,500 Boe per day Aneth production has returned to levels experienced before the intentional reduction…
  7. INVESTOR PRESENTATION – Resolute Energy Corp – slide 7
    Resolute potential Net upside from identified projects Total net Net resource reserves and Proved reserves Area potential resource (MMBoe)1 (MMBoe) potential (MMBoe) Aneth Field 56 10 17 66 73 Permian Basin 24 48 183 72 -…
  8. INVESTOR PRESENTATION – Resolute Energy Corp – slide 8
    Permian Basin
  9. INVESTOR PRESENTATION – Resolute Energy Corp – slide 9
    Permian Basin introduction In Q2 2011 Resolute acquired acreage and began drilling in Reeves County in the Delaware Basin (Reeves County) Resolute subsequently acquired a small producing asset in the Midland Basin (OTB) Resolute…
  10. INVESTOR PRESENTATION – Resolute Energy Corp – slide 10
    Permian Basin Year-end 2012 SEC case: Proved reserves: 12.6 MMBoe PV10 195 million Acquired reserves of 9.2 MMBoe in Q4 2012 Meaningful drilling opportunities 80 potential horizontal locations 135 recompletions Three horizontal…
  11. INVESTOR PRESENTATION – Resolute Energy Corp – slide 11
    Permian Basin Transformational asset base Permian Basin map 46,300 gross (24,800 net) acres1 1,000 acres acquired since Denton September 30 67% oil (based on Q3 production) 60% proved developed OTB and Big Spring Q3 net…
  12. INVESTOR PRESENTATION – Resolute Energy Corp – slide 12
    Gardendale stratigraphic column Horizontal zones Midkiff 1818H Primary horizontal target is the Lower Clearfork Wolfcamp B Positive offset results 1st Spraberry Positive reservoir characteristics 2nd Spraberry Secondary…
  13. INVESTOR PRESENTATION – Resolute Energy Corp – slide 13
    Gardendale overview Successful horizontal program Gardendale 4,700 gross and net acres1 Midland Midkiff 1818H Collecting microseismic data (vertical and horizontal) Refining petrophysical models and integrating seismic to refine…
  14. INVESTOR PRESENTATION – Resolute Energy Corp – slide 14
    Gardendale well activity Nearby industry results Gardendale Nearby Wolfcamp B activity1 24 hr IP rate 30 day IP rate (Boe per day) (Boe per day) Midkiff 1818H 1 Parks Bell 3304H (B. Spraberry) Resolute horizontal 539 N/A…
  15. INVESTOR PRESENTATION – Resolute Energy Corp – slide 15
    Gardendale horizontal wells Type curve and economics1 Gardendale horizontal wells Gross capital 7.1 million per well 30 day IP 400 1,000 Boe per day EUR (gross) 300 600 MBoe Btu per Mcf 1,300 Rate of return2 25% 45% Locations…
  16. INVESTOR PRESENTATION – Resolute Energy Corp – slide 16
    Gardendale vertical development overview Completed 2013 vertical drilling plan Gardendale Resolute drilled eighteen vertical wells in 2013 All eighteen wells have been spud and are in varying stages of production operations…
  17. INVESTOR PRESENTATION – Resolute Energy Corp – slide 17
    Reeves County overview Potential horizontal development Reeves County 28,400 gross (11,700 net) acres1 Recently acquired an additional 3,200 net acres Appaloosa Vertical drilling program commenced in Q2 2011 19 gross (10.5 net)…
  18. INVESTOR PRESENTATION – Resolute Energy Corp – slide 18
    Reeves County horizontal activity Resolute potential horizontal locations Delaware Basin Horizontal location 8 Resolute James 2 1401H Cimarex BHP completed spud 7/13 3/13 6 9 Resolute LH Meeker C21 1501H 7 10 Cimarex…
  19. INVESTOR PRESENTATION – Resolute Energy Corp – slide 19
    Nearby horizontal activity Offset results1 Well name Zone Reported production rates Lateral length One day IP: Oil: 635 Bbl/day EOG 1 Wolfcamp A NGL: 480 Bbl/day 4,100 HR 56-1001H Gas: 3,100 Mcf/day One day IP: Oil: 377 Bbl/day…
  20. INVESTOR PRESENTATION – Resolute Energy Corp – slide 20
    Delaware Basin horizontal wells Type curve and economics1 Delaware Basin horizontal wells Gross capital 7.0 8.0 million per well 30 day IP 250 700 Boe per day EUR (gross) 500 1,000 MBoe Btu per Mcf 1,230 Rate of return2 20% 40%…
  21. INVESTOR PRESENTATION – Resolute Energy Corp – slide 21
    OTB and Big Spring Area overview OTB and Big Spring 1 mile 4,400 gross (2,200 net) acres1 OTB Howard More than 90% HBP Vertical Wolfberry asset Martin Big Spring 41 gross (24.9 net) producing wells1 Horizontal activity is…
  22. INVESTOR PRESENTATION – Resolute Energy Corp – slide 22
    OTB and Big Spring vertical Wolfberry Midland Basin Wolfberry development Targeting Mississippian at 10,500 feet through Wolfcamp at 8,500 feet Spraberry Typically a seven stage completion (not including Spraberry) Drill and…
  23. INVESTOR PRESENTATION – Resolute Energy Corp – slide 23
    Broader Big Spring area opportunity inventory Inventory of high rate of return projects Behind pipe Spraberry at 7,000 to 8,000 feet Anticipate completing the Spraberry after de-pressuring deeper zones approximately eighteen months…
  24. INVESTOR PRESENTATION – Resolute Energy Corp – slide 24
    Denton Field overview Acquired producing asset in 2012 Denton Field Siluro-Devonian carbonate field discovered in 1949 Highly faulted and fractured anticline Cumulative production through December 2012: 110 MMBbl oil and 100 Bcf…
  25. INVESTOR PRESENTATION – Resolute Energy Corp – slide 25
    Permian Basin potential Significant growth from horizontal activity Net Proved Area resource reserves Inventory (Average WI%) potential (MMBoe)1 (MMBoe) Gardendale (100% WI) Vertical 14 40 locations 2.3 3.8 Horizontal 28…
  26. INVESTOR PRESENTATION – Resolute Energy Corp – slide 26
    Aneth Field
  27. INVESTOR PRESENTATION – Resolute Energy Corp – slide 27
    Aneth Field introduction Foundation asset Aneth Field 1.5 billion barrels OOIP 43,000 gross acres 719 wells1 390 producers 329 injectors Produced 430 MMBbl of oil through 2012 Q3 2013 production (99% oil) 11,168 Boe per day…
  28. INVESTOR PRESENTATION – Resolute Energy Corp – slide 28
    Aneth Field overview Year-end 2012 SEC case: Proved reserves: 59 MMBoe PV10 819 million R/P ratio of 26 years Gross production since acquisition Oil production (Bbl/day)2 Percent Unit Acquisition Jul 2013 change Aneth 2,939…
  29. INVESTOR PRESENTATION – Resolute Energy Corp – slide 29
    Aneth Field introduction Foundation asset Aneth Field gross proved oil production forecast 16,000 Fields like Aneth are rare: 14,000 2013 Excellent current economics 12,000 and cash flow 10,000 Large CO2 recovery project,…
  30. INVESTOR PRESENTATION – Resolute Energy Corp – slide 30
    Aneth Field cash flow Free cash flow from Aneth funds growth Aneth Field cash flow Expected 2013 net production (Boe per day) 6,400 6,700 2012 net operating margin (/Boe) 47.06 Operating cash flow ( million) 110 115 Forecast…
  31. INVESTOR PRESENTATION – Resolute Energy Corp – slide 31
    Aneth Unit CO2 project area performance Production increase of 119% CO2 project area oil production (gross) 4,000 3,500 Production has increased 119% from inception of our Aneth Unit CO2 flood 3,000 Oil production…
  32. INVESTOR PRESENTATION – Resolute Energy Corp – slide 32
    DC IIC project area waterflood Exceptional results from waterflood reinitiation DC IIC waterflood pair (gross) Total capital per well pair 1.8 million 110 Boe per Initial incremental production day Total reserves 60.1 MBO…
  33. INVESTOR PRESENTATION – Resolute Energy Corp – slide 33
    Ratherford CO2 flood development projects Two project areas sum of DC IIC and DC I PhiH Ratherford Unit DC IIC project area Resource potential is not included in proved reserves Resource potential of 11 MMBbl net to Resolute from…
  34. INVESTOR PRESENTATION – Resolute Energy Corp – slide 34
    Aneth Field other opportunity inventory High rate of return projects Infill laterals (gross) New drills (gross) 0.8 1.2 million 1.8 2.3 million Gross capital Gross capital per project per project 30 day IP 30 65 Boe per day 30 day IP…
  35. INVESTOR PRESENTATION – Resolute Energy Corp – slide 35
    Aneth Field potential Net upside from identified projects Proved Net resource Project type/area reserves Inventory potential (MMBoe)1 (MMBoe) Aneth Unit (62% WI) Vertical wells and CO2 projects 29 Horizontal wells 2 New drills…
  36. INVESTOR PRESENTATION – Resolute Energy Corp – slide 36
    Wyoming
  37. INVESTOR PRESENTATION – Resolute Energy Corp – slide 37
    Hilight Field Year-end 2012 SEC case: Proved reserves: 3.5 MMBoe PV10 27 million 1,491 Boe per day Q3 net production Free cash flow, attractive unit economics Low reinvestment requirement Organic growth potential from behind pipe…
  38. INVESTOR PRESENTATION – Resolute Energy Corp – slide 38
    Hilight Field Excellent cash flow and exploration upside Hilight Field 49,600 gross (45,400 net) acres1 100% HBP T46N-R72W T46N-R71W T46N-R70W RESOLUTE JAYSON UNIT T46N-R69W 100% operated RESOLUTE GRADY UNIT W 12% oil…
  39. INVESTOR PRESENTATION – Resolute Energy Corp – slide 39
    Nearby Turner/Frontier well activity First horizontal well producing Turner prospect area T45N-R72W T45N-R71W T45N-R70W The Castle well tested 24 hour peak production of 1,134 Boe Castle 3-21TH per day1,2 (90% oil) RESOLUTE…
  40. INVESTOR PRESENTATION – Resolute Energy Corp – slide 40
    Turner/Frontier well activity Actively permitting Turner/Frontier locations Turner/Frontier prospect area Extended production results from recent Devon completions may increase acreage in T45N-R72W T45N-R71W T45N-R70W Hilight Field…
  41. INVESTOR PRESENTATION – Resolute Energy Corp – slide 41
    Turner/Frontier horizontal Type curve and economics Turner/Frontier horizontal well Gross capital 5.8 7.3 million per well 30 day IP 320 660 Boe per day EUR (gross) 230 350 MBoe Rate of return1 14% 60% Locations 40 Gross…
  42. INVESTOR PRESENTATION – Resolute Energy Corp – slide 42
    Resolute potential Net upside from identified projects Total net Net resource reserves and Proved reserves Area potential resource (MMBoe)1 (MMBoe) potential (MMBoe) Aneth Field 56 10 17 66 73 Permian Basin 24 48 183 72 -…
  43. INVESTOR PRESENTATION – Resolute Energy Corp – slide 43
    Key investment highlights Well-positioned to execute growth plan High quality base of long-lived oil producing properties Portfolio of significant organic development opportunities Exploration projects poised to provide…
  44. INVESTOR PRESENTATION – Resolute Energy Corp – slide 44
    Financial overview
  45. INVESTOR PRESENTATION – Resolute Energy Corp – slide 45
    Financial data Leverage1: Debt to EBITDA 4.1x Debt to total market cap 51.0% Substantial liquidity: Five year bank revolver 415 million reserve-based credit line2 285 million drawn3 Downside commodity price protection Crude…
  46. INVESTOR PRESENTATION – Resolute Energy Corp – slide 46
    Resolute investor contacts
  47. INVESTOR PRESENTATION – Resolute Energy Corp – slide 47
    Resolute investor contacts HB Juengling Vice President Investor Relations (hbjuenglingresoluteenergy.com) Theodore Gazulis Executive Vice President and Chief Financial Officer (tgazulisresoluteenergy.com) Corporate headquarters:…
  48. INVESTOR PRESENTATION – Resolute Energy Corp – slide 48
    Appendix
  49. INVESTOR PRESENTATION – Resolute Energy Corp – slide 49
    2013 production and cost guidance 43% production growth, improved cash margin 2012 2013 Improvement vs. actual adjusted range 20121 Projected total production (MBoe) 3,409 4,500 5,230 43% Boe per day 9,313 12,325 14,325 43%…
  50. INVESTOR PRESENTATION – Resolute Energy Corp – slide 50
    Margins/cost structure 1 2012 2013 Pro forma ( in millions, except as noted) Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 YTD YTD Q3 2013 Sales volumes Total MBoe 762 858 862 927 3,409 1,047 1,193 1,058 3,298 3,471 2 2 2 2 Revenue including hedging…
  51. INVESTOR PRESENTATION – Resolute Energy Corp – slide 51
    Margins/cost structure per Boe 1 2012 2013 Pro forma ( per Boe) Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 YTD YTD Q3 2013 2 3 3 3 3 3 Adjusted revenues 72.16 68.43 69.73 70.10 70.04 68.77 68.95 73.67 70.41 70.08 Expenses Operating expenses 4 22.34…
  52. INVESTOR PRESENTATION – Resolute Energy Corp – slide 52
    EBITDA 1 2012 2013 Pro forma ( in millions) Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 YTD YTD Q3 2013 Net income (loss) (0.7) 22.8 (2.5) (1.6) 18.0 (3.1) 9.0 (2.7) 3.3 5.8 Adjustments: Interest 1.2 3.7 4.6 6.0 15.5 8.1 7.2 6.8 22.0 23.5 Taxes…
  53. INVESTOR PRESENTATION – Resolute Energy Corp – slide 53
    Quarterly prices and volumes 1 2012 2013 Pro forma Q1 Q2 Q3 Q4 Q1 Q2 Q3 YTD Q3 2013 Average prices: Oil ( per Bbl) 96.16 85.19 85.00 81.86 87.16 88.31 100.64 91.47 NGL ( per Bbl) - 44.38 31.06 41.43 35.31 30.42 33.18 33.20 Gas (…

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