Skip to main content 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. Investor Presentation | Shale Experts
Loading...
Pm

11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Feb 3, 2015 · 54 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. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION Investor Presentation February 2015
  2. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 2
    Who We Are Magnum Hunter Resources is an exploration and production company focused in two of the most prolific unconventional resource shale plays in North America; the Marcellus and Utica Current management team assumed leadership…
  3. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 3
    Where We Operate A natural gas focused company with assets based in the heart of the Marcellus and Utica Shale plays A 200+ mile gas gathering system strategically located in Ohio and West Virginia moving over 400,000 MMBtu/d…
  4. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 4
    Production Growth 2013 Production increased 92% to 14,831 Boepd(1) compared to 7,739 Boepd in 2012 Full-year 2014 estimated production increased 65% compared to 2013 (2) 32,500 14,831 7,739 4,895 1,276 (1) (2) 2010…
  5. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 5
    2014 Production Profile 45,000 40,000 40,000 33,938 35,000 30,067 29,677 30,000 25,000 21,369 Boe/D 20,673 20,925 20,086 19,970 20,041 20,000 17,925 14,566 15,000 10,000 5,000 - January February…
  6. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 6
    Proved Reserve Growth Consistency Track record of proved reserve growth since inception Approximately 83.8 MMBoe of proved reserves at December 31, 2014 (70.2% natural gas) Expect to significantly increase proved reserves in the Utica…
  7. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 7
    Reserves Summary Extensive inventory of low-risk development drilling locations in the Marcellus Shale and Williston Basin Significant exploration potential in the wet/dry gas window of the Utica Shale in Ohio and West Virginia…
  8. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 8
    Growth Plan Continues EBITDAX Revenue 450 400.0 400 350 300 280.4 250 ( MM) 200 175.0 150 140.4 112.4 100 76.2 66.5 50.4 50 28.6 4.2 0 2010 2011 2012 2013 2014 Note: 2014 Revenue and EBITDAX reflects…
  9. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 9
    Breakdown of Capital Expenditures 2014 Estimated Capital Expenditures Appalachia Williston Eureka Hunter 23% 13% 65% Total: 450 Million Note: Includes 4Q 2014 CapEx estimates
  10. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 10
    Substantial Leasehold Inventory Developed Undeveloped As of September 30, 2014 Acreage (1) Acreage (2) Total Acreage Gross Net Gross Net Gross Net Appalachian Basin (3) Marcellus Shale 58,334 57,908 28,066 22,651 86,400 80,559 Utica…
  11. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 11
    Appalachian Division (Ohio, West Virginia and Kentucky) 11
  12. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 12
    Appalachian Division Overview Overview Areas of Operation Proved Reserves and PV-10 Total proved reserves of 75.9 MMBoe as of 12/31/14 Proved producing reserves of 50.3 MMBoe as of 12/31/14 PV-10 of 765.7 million as of 12/31/14…
  13. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 13
    Marcellus Shale Recent Well Results Marcellus Operated Well Results IP 30-day avg. rate (Mcfe/d) IP 24-hr avg. rate (Mcfe/d) Frac Stages () Recently Completed Wells 18,000 17,028 17,116 16,847 16,000 14,000 12,854 12,832…
  14. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 14
    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 0.50 - 1.00 The Company has 200 MMcf/d of dedicated…
  15. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 15
    Economic Sensitivity of Marcellus Magnum Rich Assumptions for 2014 Case: CAPEX: 7.0 million per well EUR: 11.0 Bcfe (includes NGL) 2014 Case 16 14 IRR: 88% 12 IRR: 75% Single Well NPV-10 ( MM) IRR: 63% 10 IRR: 52% 8…
  16. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 16
    Marcellus Shale NOBLE MHR - Ormet 9 Pad MONROE MHR/Eclipse - McIntire Pad MHR - Ormet 15 Pad Mark West Mobley MHR/Eclipse - Stalder Pad WETZEL Facility Fractionation Eclipse/MHR - Herrick Pad Eureka - Carbide Compression…
  17. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 17
    Results Indicate Best Shale Play in US Shale Play Comparison Chart Ohio/West Va./Penn. Wyoming/Colorado Texas N. Dakota Utica Shale / Parameter Point Pleasant DJ Basin Niobrara Eagle Ford Bakken Lithology Calcareous Shale…
  18. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 18
    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…
  19. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 19
    Utica Asset Transactions Announced Total Transaction Implied Date Buyer(s) Seller(s) Value (MM) Acreage / Acre Feb-14 GPOR Rhino 185 8,200 22,561 Jan-14 American Energy Partners, LP Paloma Partners 442 26,000 17,000 Jan-14 American…
  20. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 20
    Stalder Pad Drilling Locations Magnum Hunter announced the initial production results from the first Utica horizontal well on the MHR - Stalder 3UH 32.5 MMCF 97% Methane Stalder Pad on 2/14/14 Tested at a peak rate of 32.5 MMCF of…
  21. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 21
    Pad Drilling in Appalachia 21
  22. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 22
    Stewart-Winland Pad Drilling Locations The Stewart-Winland Pad located in Tyler County, WV has seven planned Tyler County, West Virginia laterals Four wells have been drilled and Magnum Hunter Acreage MHR / JV Partner Acreage…
  23. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 23
    Fracing Operations 23
  24. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 24
    Ormet Pad Drilling Locations The Ormet Pad located in Monroe County, Magnum Hunter Acreage Ohio has twelve additional potential Magnum Hunter / JV Acreage laterals Marcellus Horizontal Well Utica Horizontal Well Three Marcellus…
  25. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 25
    Utica Shale Recent Well Results M Antero Wayne 4H Antero Myron 3H 1922 bbls/d + 1907 bbls NGL/d Frac In Progress Chevron - Connor 6H + 14.2 mmcf/d (5698 boe/d) Waiting On Completion Gulfport McCort 2-28H 24 Hour IP: 25 mmcf/d 1009…
  26. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 26
    Best in Class Dry Gas Utica Peak Peak Rate Rate Lateral Well Name County Operator (MMcfe/d) (Boe/d) % Gas Length Stages Stewart Winland 1300U Tyler, WV MHR 46.5 7,750 100% 5,289 22 Bigfoot 9H Belmont, OH RICE 41.7 6,948 100% 6,957 40…
  27. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 27
    New Marcellus/Utica Production Planned in 2015 (2) (2) MHR Working MHR Net Estimated Gross Production Estimated Net Production Anticipated (1) Well Name Location Interest Revenue Interest Boe/d (3) Mcfe/d Boe/d (3) Mcfe/d Timing…
  28. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 28
    Eureka Hunter Midstream 28
  29. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 29
    Eureka Hunter Highlights Strategically located asset base Northern West Virginia (Primary: Tyler, Ritchie, Wetzel, Pleasants, Doddridge Location Secondary: Marion, Harrison, Lewis, Monongalia) Southeastern Ohio (Monroe, Washington)…
  30. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 30
    New Strategic Partner In early October 2014, an affiliate of Morgan Stanley Infrastructure Inc. (MSI) purchased all convertible preferred and common equity interests in Eureka Hunter Holdings, LLC, previously owned by ArcLight…
  31. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 31
    Contracted vs. Gathered Volumes Eureka Hunter Pipeline 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 High Pressure Reservation Volume (MMBtu/d) Magnum Hunter 87,950 92,339 75,000 75,000 83,500 96,000 111,400 Third-Parties…
  32. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 32
    Eureka Hunter Utica Exposure MARSHALL Clairington MarkWest Hub Seneca Blue Racer Berne Blue Racer Natrium Ormet Wells NOBLE MONROE PENN W.V. Farley Units Stalder Units WETZEL MORGAN MarkWest Dominion Mobley Eureka…
  33. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 33
    Eureka Hunter Utica Exposure 33
  34. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 34
    How Do We Measure Up Gathering Capacity Marcellus / Utica Operations Summit Midstream mcf/d, 1050 Eureka Hunter mcf/d, 1500 Crestwood Midstream mcf/d, 700 Markwest Midstream mcf/d, 1000 EQT Midstream mcf/d, 1940…
  35. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 35
    Appalachia Differentials Appalachia Net Demand Overview 12.0 Seasonal winter demand to drive better pricing in Q4 2014 and Q1 2015 10.0 8.0 Pricing improvements in 2015+ expected as year- over-year demand is positive 6.0 New…
  36. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 36
    Midstream Outlook Proposed Interstates Pipeline Project Receipt Area Delivery Area Capacity Rate In Service Domion Transmission Lebanon West Cadiz Plant-Harlem Springs Lebanon 350,000 Tariff Nov-13 ANR 2014 Lebanon Reversal Lebanon…
  37. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 37
    Eureka Hunter Pipeline - Construction Challenging Terrain Welding Up Pipeline Strung Pipe Before Connection Being Lowered 37
  38. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 38
    TransTex Hunter TransTex Hunter, LLC (TransTex) founded in 2006; acquired by Eureka Hunter in April 2012 Designs and fabricates gas treating plants out of its 10-acre fabrication yard Assets for gas treating, processing, dehydration…
  39. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 39
    TransTex Hunter Amine Plants 39
  40. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 40
    Alpha Hunter Drilling 40
  41. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 41
    Drilling Fleet Overview Current fleet of six (6) drilling rigs with one (1) Schramm TXD 500 on order One (1) Schramm TXD 500 (new rig on order) Rig 7 o Spud first well (Stalder Pad) on July 1, 2013 o Contract Rate of 24,000/day o…
  42. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 42
    Alpha Hunter Growth Continues 35 30 Revenues ( in millions) 25 20 15 10 5 0 (1) 2010 2011 2012 2013 2014 Revenues Note: This information constitutes forward-looking statements and is subject to the…
  43. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 43
    Alpha Hunter Experience Company of Wells Drilled Bretagne 1 CNX Gas 8 Consol 3 Central WV Oil & Gas 1 Dominion 34 Eagle Ford Hunter 15 Eclipse 32 EQT 246 EXCO Resources 57 Green Hunter Water 4 Hildreth 7 PetroEdge 1 Rex…
  44. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 44
    Williston Basin Assets (Non-Core Assets) 44
  45. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 45
    Williston Basin Overview Areas of Operation Overview Proved Reserves and PV-10 Total proved reserves of 7.9 MMBoe as of 12/31/14 Proved producing reserves of 5.2 MMBoe as of 12/31/14 Total Proved PV10 of 143.5 million as of…
  46. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 46
    Financial Overview 46
  47. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 47
    Financial Strategy Capital spending driven by rates of return across all operating areas 2015 capital budget will focus predominately on high return areas in the Appalachian Basin Limited overhead expansion required to meet growth…
  48. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 48
    Adjusted EBITDAX Reconciliation (1) FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 Net income (loss) from continuing operations ( 22.3) ( 76.7) ( 119.7) ( 204.1) Unrealized (gain) loss on derivatives 3.1 4.2 ( 10.9) 17.1 Net interest…
  49. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 49
    Non-Core Divestiture Overview Focused on divesting non-core assets to redeploy capital into Utica / Marcellus Over 700 million raised since beginning of 2013 Asset Sales Value (MM) Completed in 2013 Eagle Ford Sale 401.0 Gain on…
  50. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 50
    Crude Oil and Natural Gas Hedges Crude Oil 2014 2015 2016 (1) NYMEX Average 94.03 90.56 88.08 Weighted-Average Hedge Price With Ceilings 100.90 115.93 - Weighted-Average Hedge Price With Floors 85.00 85.00 - Weighted-Average…
  51. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 51
    MHR Net Asset Value* Assumptions Valuation ( in thousands) Low High Low High (1) Total Proved Reserves PV-10 (12/31/2014) 909,300 909,300 /acre Undeveloped Acreage (2) Low High Williston Basin U.S. 42,700 3,000 5,000 128,100…
  52. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 52
    A Focused Company on the Right Path Proven management and technical team in place committed to proper capital allocation for future growth Successful proven track record in the development and highgrading of key resource plays in…
  53. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 53
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets Maxim Group Canaccord Genuity MLV Partners Capital One Southcoast RBC Capital Markets…
  54. 11th Annual IPAA OGIS Florida Investor Forum – Magnum Hunter Resources Corp. – slide 54
    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