J.P. Morgan High Yield Leveraged Finance Conference February 24-26, 2014
Company Overview Company Snapshot Focusing on Liquids-Rich Targets Across Current Asset Base Proved Reserves(1): 2.0 Tcfe Q413E Production: 543 MMcfe/d West Division Q413E Production: 190 MMcfe/d Operated Rigs: 10 Proved…
Corporate Strategy Maximize dollars at the drill bit Optimize Capital Focus on projects with higher liquids content to improve returns Program Reduce costs and improve efficiencies in the field Add Additional Delineate the…
Preliminary 2013 Key Operational Highlights 2013 Operated Wells Drilled(1) Allocated 90+% of capital to the drill bit Balanced approach between delineation efforts in the East Texas Greater Green River, Powder River and Midcon with…
2014E Capital Plan Drill Bit Focused(1) (MM) 2014 Base Capital Plan 729 MM Other 58 Total D&C capital of 671 MM (8%) Rig count consistent with 2013 activity levels Expect to spud 127 gross operated wells during D&C 671 2014…
2014E Production Guidance 549-589 545-595 600 85-92 85-95 578 77 500 95-105 97-104 87 365-395 367-394 413 400 (MMcfe/d) (MMcfe/d) 300 200 100 0 Gas Oil NGL Total Note: All numbers independently…
Asset Overview
West Division Overview Overview Map Williston Williston Basin Bakken oil / horizontal infill Q413E Production: 4.0 MBoe/d Acreage: 180,000 development Powder River Basin Exploration and development of NORTH DAKOTA multiple…
Greater Green River Ft. Union Overview Overview Map Liquids-rich gas play with high impact potential Currently targeting three intervals of stacked sand in the Ft. Union reservoir with approximately 1,000 of gross interval 11-21…
Ft. Union Reducing Drill Days and Cost Average Days Spud to Total Depth(1) Average Drilling Cost Spud to Total Depth(1) 80 10 8.9 70 67 8 60 50 6 5.2 MM Days 40 36 4 30 20 2 10 0 - 2012 2013 2012 2013…
Powder River Basin Powder River Zones (Competitors Drilling) Overview Overview Map SUSSEX SS. Multiple pay basin characterized by both conventional SHANNON SS. (Shannon, Sussex, Frontier) and unconventional (Mowry, (BBG) JOHNSON…
Powder River Basin North Tree Field Overview Seven producing horizontal Shannon oil wells Development Map HZ pad development via short (1 mile) and long (2 mile) laterals with TVD of 10,500 First sales expected on ten wells in Q114…
Williston Basin Overview Ambrose Field (Divide County) Development Spud 35 gross operated horizontal wells in 2013 D&C well costs down nearly 10% from 2012 to 2013 One rig program focused on horizontal pad infill development (Middle…
East Division Overview Overview Map Mid-Continent East Targeting liquids-rich intervals across acreage position Q413E Production: 102 MMcfe/d Testing pad drilling approach in the Granite Wash; cost Acreage: 335,000 structure key to…
Mid-Continent West Granite Wash Overview Overview Map Targeting liquids-rich stacked pay in the Granite Wash with 12 distinctive producing horizons Spud 16(1) single well HZ pads in 2013 Pounds HEMPHILL Transitioning from single…
Mid-Continent East Marmaton Overview Overview Map Eleven horizontal operated wells producing Texas Continue developing through 2014 while delineating Lee 2-11H Leon 3-10H Roger Mills First Sales play further south / down…
East Texas Cotton Valley Overview Overview Map Spud 22 HZ wells at SE Carthage in 2013 D&C well costs down nearly 10% from 2012 to 2013 Harrison Gregg Werner Husband 3, 4 & 5 Continue development of the liquids-rich CV B and C…
Cotton Valley B & C Reducing Well Costs Drilling & Completion Costs(1) (MM) Average spud to total depth times have 6.5 6.1 been reduced from 31 days in 2012 to 25 6.0 days in 2013 (20% reduction) 5.6 5.5 Multi-well pad…
Financial Position Balance Sheet Committed to improving leverage Maintain adequate liquidity position Simple capital structure with no near term maturities Access equity capital to delever with a growth focused acquisition or…
Debt Maturity Profile and Liquidity Highlights Debt Maturity Profile and Liquidity (MM) Sufficient liquidity, no near term maturities January 31, 2014, we had borrowings of 2020 2,250 344 million on our revolver(1) Debt Tranches…
Current Hedge Position As February 5, 2014 Natural Gas Swaps & Collars Oil Swaps NGL Swaps Wtd Avg Year Bbls/d(1) Swap Price Year Bbls/d(1) Swap Price Year MMBtu/d(1) Floor 2014 308,000 4.15 2014 16,500 90.63 2014 7,500 35.62…
Adjusted EBITDA Reconciliation Three Months Nine Months Twelve Months Ended Ended Ended September 30, 2013 September 30, 2013 September 30, 2013 Net income (loss) 6,657 31,472 (1,096,163) Interest expense, net - - - Provision…
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