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September 2014 Investor Presentation – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Sep 8, 2014 · 25 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. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 1
    Integrity Teamwork Transparency September 2014 Investor Presentation
  2. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Wattenberg Field Market Cap(1): 2.5 billion Q2 2014: 17,061 Boe/d Enterprise Value(1): 3.2 billion 104% Y/Y Rapidly growing 50% Y/Y forecasted in 2014(2) Strong oil-weighted production & reserves 70%…
  3. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 3
    Strong Growth and Cash Flow Track Record Production(1) (Boe/d) Adjusted EBITDAX(3) (thousands) 25,000 100,000 20,000 80,000 15,000 60,000 10,000 40,000 5,000 20,000 0 - 2007 2008 2009 2010 2011 2012 2013 Q1 '14 Q2 '14 Q1 Q2…
  4. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 4
    Deep Organic Development Inventory 25 Years of Wattenberg 3P Inventory (3,500 gross locations) Wattenberg Wattenberg Niobrara B Arkansas Cotton Valley North Park Niobrara C Arkansas 5-acre spacing Basin Niobrara Brown Dense…
  5. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 5
    Wattenberg Niobrara a Premier Oil Resource Play Basin IRRs 80% 74% 71% 70% 66% 65% Stacked Pays Low D&C Costs 63% 62% 60% 55% 53% Oil-weighted Near-term Catalysts 51% 51% 50% 43% 41% 39% 40% 35% 32% 32% 32% 29% 29% 28% 27% 27%…
  6. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 6
    2014 CapEx Accelerating Wattenberg Value Wattenberg Field HZ Wells Drilled 2014 Budgeted Capex 140 2014 Drilling Program Non-Operated 575 - 625 million 121 Operated Wells 120 19 Non-Operated Wells Niobrara A 100 Arkansas XRL 14%…
  7. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 7
    Top Tier Production Growth; Focus on Costs Wattenberg HZ Well First Production Schedule(1) Q2 Production on plan: 22,849 Boe/d 40 35 30 Steady completions schedule in Q2 Q4 25 promotes linear growth 20 15 Annual guidance…
  8. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 8
    Stacked Pay Zones a Multiplier Effect on Value 4th largest leaseholder in Wattenberg Field 70,000 net acres in Extension Area 60% crude oil; liquids-rich natural gas Contiguous acreage attractive for long laterals Prospective…
  9. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 9
    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…
  10. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 10
    Increasing Asset Value through Innovation Dramatically Improved 40-Acre IPs NEW 28-Stage Completion 500 480 463 400 21% 396 300 305 52% 200 100 IP30 IP60 IP30 IP60 - Avg. Nio B: 18 Stage Nio B: 28 Stage 2014 MRL & XRL…
  11. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 11
    Reserves Growing by Acquisition & Technology (1) 308 MMBoe Net HZ Risked 3P Reserves 30% Increase in 3P Reserves over 2012 No 3P reserves currently associated with recent acquisition Inventory life of 25 years at current…
  12. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 12
    Wattenberg Hz Niobrara B Target Type Well Type Well Economics EUR 313 MBoe; 62% crude oil(1) Initial 30-day Rate 458 Boe/d Cost per Well 4.2 MM NPV-10 at 90/BO 4.2 MM Payout 1.5 years ROR Sensitivity to Oil Price(2) (1) EUR…
  13. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 13
    Mid-Continent Operations (Arkansas) Provides free cash flow; allocated to Wattenberg ERA SYSTEM SERIES GROUP FORMATION CENOZOIC EOCENE Claiborne PALEOCENE Wilcox Cotton Valley: 6,500 8,800 feet TERTIARY CRETACEOUS GULFIAN Midway…
  14. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 14
    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…
  15. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 15
    Financial Overview 16
  16. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 16
    Oil Weighted Production Results in High Margins Unit Cash Operating Costs (/Boe) Unit Revenue & Cash Margins (/Boe) 25 80 77.54 4.34 71.85 72.95 20 6.06 68.93 68.47 7.82 60 4.98 15 8.63 4.61 7.51 6.86 40 6.87 10 6.34 57.74…
  17. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 17
    Production Hedged at 90/Bbl in 2014 2014 2015 2016 Crude Oil 11,400 Bbl/d 90.65 10,000 Bbl/d 88.21 5,500 Bbl/d 85.00 Natural Gas 28,000 Mcf/d 4.19 15,000 Mcf/d 4.00 Volume Fixed Price Volume Floor Price Ceiling Price (1)…
  18. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 18
    BCEI Attractive Relative to Basin Peers Unit EBITDAX 2014 Production Growth 70 60% Consensus Production EBITDAX / Boe (MRQ) 60 Peer Group 50% Avg: 40% Peer Group 50 41.25 Avg: 30% Growth 21% 40 20% 30 10% 20 0%…
  19. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 19
    Investment Recap Company Headquarters Investor Relations 410 17th Street, Suite 1400 James Masters Increasing Denver, Colorado 80202 (720) 440-6121 NAV (720) 440-6100 jmastersbonanzacrk.com Impressive 50% Y/Y Cash Production…
  20. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 20
    Appendix 21
  21. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 21
    Wattenberg Horizontal Niobrara Economics(1) Target 313 MBoe Type Curve 600 30-day Avg: 458 boepd 550 60-day Avg: 400 boepd 90-day Avg: 355 boepd 500 450 400 350 Boe/d 300 250 200 150 100 50 0 0 12 24 36 48 60…
  22. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 22
    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…
  23. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 23
    DJ Basin Midstream Infrastructure Capacity Crude Pipelines and Rail Projects Operator Origination Termination Hub Timing (Bbl/d) White Cliffs Pipeline SemGroup 75,000 Platteville, CO Cushing, OK Existing White Cliffs Expansion SemGroup…
  24. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 24
    Easing High Line Pressures in Wattenberg BCEI Considerations High line pressures caused by constrained gas processing capacity Legacy vertical wells impacted more than newer horizontal wells 95% of BCEI production in Q2 2014 came…
  25. September 2014 Investor Presentation – Bonanza Creek Energy, Inc. – slide 25
    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,…

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