Fourth Quarter and FullYear 2014 Earnings Conference Call & Webcast February 26, 2015 NYSE: PVA
Opening Remarks Eagle Ford production reached record levels in 4Q14 and was 33% higher than 4Q13; sharply higher in January 2015 YE14 Eagle Ford 3P reserves increased significantly to 1.1 BBOE, with a pretax PV10 of 3.0 B1 YE14…
4Q14 Highlights Production was 21,300 BOEPD including 17,500 BOEPD from the Eagle Ford Production up 2% from pro forma 3Q14 and up 18% over pro forma 4Q13 Eagle Ford production up 3% from 3Q14 and up 33% from 4Q13 Including the…
4Q14 Production Variance Impacted by Completion Delays and ShutIn Wells in November We experienced some completion delays and frac offset shutin issues in the Eagle Ford which could not be fully recovered from by YE14 No well…
2015 Strategy 4Q14 liquidity of 470 MM; 20% or 100 MM, borrowing base reduction expected Preserve Financial Liquidity, Balance 2015 outspend of 150 to 190 MM Sheet and Acreage Leverage ratio expected to remain below 4.0x covenant…
Increased Production With Reduced Capital Program Our reduced 2015 capital program is still expected to produce strong production growth as compared to 2014 MM BOEPD 1 6 (1) Pro forma volume in 2014 for the sale of MS assets…
Eagle Ford Drilling Inventory Inventory of Drilling Locations Increasing Due to Leasing and Downspacing Due to acquisitions and leasing efforts, our acreage position currently stands at 139,694 gross (101,954 net) acres We have…
Operations 8
4Q14 Operations Summary Pure Play Focused on the Eagle Ford Shale 101,954 net acres in Gonzalez and Lavaca Counties, TX Pro Forma Production Volumes by Region (MBOEPD) Highly contiguous position with proven success and ability to grow…
Upper Eagle Ford Results to Date 1 1 1 1 1 IP IP30 Cumulative No. of Total Lateral Proppant IP IP30 IP Total % Total % Total Total Days % Frac Proppant Length per Stage Stage Stage Well Name Date (BOEPD) Oil (BOEPD) Oil (BOE) (BOEPD)…
Recent Lower Eagle Ford Results 1 1 1 1 1 IP IP30 Cumulative No. of Total Lateral Proppant IP IP30 IP Total % Total % Total Total Days % Frac Proppant Length per Stage Stage Stage Well Name Date (BOEPD) Oil (BOEPD) Oil (BOE) (BOEPD)…
Well Performance Has Improved Over Time Average Gross Cumulative Production per Eagle Ford Well by Drilling Year 12
Well Cost Reductions We have lowered our AFEs by 920K, primarily by reducing completion costs We are targeting another 1MM per well, or 12% to 14%, in future cost reductions due to market conditions 10 2String Well Design1 10…
Gonzales County Type Curve Barrels of Oil per Frac Stage 520 MBOE 22 stages 14 (1) Based 12/31/14 internal reserve estimates.
Shiner 6Pack Type Curve Barrels of Oil per Frac Stage 611 MBOE 22 stages 15 (1) Based 12/31/14 internal reserve estimates.
Upper Eagle Ford Type Curve Barrels of Oil per Frac Stage 810 MBOE 22 stages 16 (1) Based 12/31/14 internal reserve estimates.
Financial 17
2015 Capital Allocation Capital Expenditures Reduced 60% Strikes balance between liquidity and leverage 2015 Capital Guidance 295 345 MM Focused on highest IRR project areas 4% Upper Eagle Ford 1% 5% 6% Peach Creek and Rock…
2014 Performance Financial Liquidity 96% Increase in Financial Liquidity During 2014 Through asset sales and a preferred stock offering, we were able to nearly double liquidity during 2014, despite 477 MM of cash flow outspend In…
Credit Facility and Debt Maturities No NearTerm Maturities Revolving Credit Facility1 LongTerm Debt Maturity Schedule2 MM MM (1) 2015E based on February 2015 bank price deck of 50.00/barrel and 3.00/Mcf for 2015, escalating to…
WellHedged Liquids Production in 2015 2015 oil production is about 83% hedged at oil prices below 90 per barrel Taking into account estimated NGL production, we are still about 62% hedged for 2015, or 5th among 20 selected peer E&P…
Oil Hedges a Material Part of 2015 Cash Flow Latest oil hedges: 11,992 BOPD is hedged for 2015 at an average floor price of 90.20 4,000 BOPD is hedged for 2016 at an average floor price of 88.12 We expect to realize 120 MM in hedge…
Q&A 24
Appendix 25
YE14 Proved Reserves Summary Proved Reserves at December 31, 2014(1) Oil Oil and Natural Gas Equivalent Condensate Liquids Natural Gas Reserves Reserves Reserves Reserves (MMBOE) (MMBbls) (MMBbls) (Bcf) Proved reserves at…
Derivatives Current Derivative Positions as of 2/25/15 Weighted Average Price Instrument Type Average Volume Per Day Floor/ Swap Ceiling Natural gas: (MMBtu) ( / MMBtu) ( / MMBtu) First quarter 2015 Swaps 5,000 4.50 Crude oil:…
Adjusted EBITDAX Reconciliation NonGAAP Reconciliation Year ended December 31, 2010 2011 2012 2013 2014 Adjusted EBITDAX dollars in millions Net income (loss) from continuing operations (65.3) (132.9) (104.6) (143.1) (409.6)…
Loading...
