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December 2013 Investor Presentation – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · Dec 3, 2013 · 31 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. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 1
    Investor Presentation Expanding the Runway December 2013
  2. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Wattenberg Field (Niobrara & Codell) Market Cap(1): 1.8 billion North Park Basin (Niobrara) Enterprise Value(1): 2.2 billion (2) 31.9 MMBoe 1P(2) 0.5 MMBoe 1P 59% Oil Public Float: 78% 100% Oil Rapidly…
  3. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 3
    Impressive Growth Track Record Proved Reserves(1) (MBoe) Production(1) (Boe/d) (2) +62% 60,000 16,000 +21% 14,000 50,000 12,000 40,000 10,000 30,000 8,000 6,000 20,000 4,000 10,000 2,000 0 - 2007 2008 2009 2010…
  4. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 4
    Dramatic Year-Over-Year Increases 3Q13 compared to 3Q12 Corporate 88% Increase in Production (1) 17,656 Boe/d 119% Increase in Adjusted EBITDAX (2) 86.7 million 3Q13 compared to 3Q12 Rocky Mtns 135% Increase in Rocky Mtn…
  5. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 5
    Oil Weighted Production and Reserves Production by Commodity (MBoe/d)(1) Revenue by Commodity (MM)(1) 9 11 4% 1.4 15% 16 5% Crude Oil 7% Crude Oil 1.1 Mid-Con Dry Gas Mid-Con Dry Gas 12% 6.1 65% 0.8 Rockies Wet Gas Rockies Wet…
  6. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 6
    Strong Organic Growth Inventory 350 MMBoe of resource potential(1) 17 years of Wattenberg inventory (1,500 locations) at current drilling pace Wattenberg Wattenberg Niobrara B Arkansas Cotton Valley North Park Niobrara C Arkansas…
  7. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 7
    Wattenberg Niobrara a Premier Oil Resource Play Basin IRRs 80% 74% 73% 69% 70% 63% 62% 60% 57% 53% 48% 48% 46% 50% 38% 36% 40% 35% 33% 30% 30% 30% 30% 27% 27% 26% 25% 24% 24% 22% 22% 20% 10% 0% Futures Strip as of…
  8. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 8
    Capital Expenditures Focused on Wattenberg Wattenberg Field (87 operated wells) 2013 Capex(1): 460-475MM Niobrara B (4,000): 56 wells Niobrara B (9,000): 2 wells Niobrara B (40-acre test): 6 wells Niobrara C: 4 wells 80% 20%…
  9. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 9
    Wattenberg Field BCEI in Wattenberg Field since 1999 Located in Extension Area 60% crude oil with associated liquids-rich natural gas Prospective for Codell and all benches of the Niobrara Contiguous acreage position…
  10. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 10
    Horizontal Niobrara/Codell Oil Focused Wells Ranch 40-acre and 80-acre pads testing Niobrara A, B, C and Codell Extended reach laterals Development & Testing Program LEGEND Vert…
  11. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 11
    BCEI Niobrara B Bench Well Performance 12
  12. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 12
    Wattenberg Hz Niobrara B Target Type Well EUR 313,000 Boe; 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 based on internal…
  13. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 13
    Wattenberg Expanding Resource Recovery Codell Codell prospective on 15,000 net acres Three wells currently producing: 539 Boe/d (71% crude) Avg. IP30 Niobrara C Bench Present on all BCEI Wattenberg acreage Five wells currently…
  14. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 14
    Drilling Super-Section Test in 4th Quarter Testing Future Development Concepts 15 downspaced and stacked 4,000 laterals Spacing configuration testing Pad 1: Stacked 80-acre Niobrara B Bench and Codell wells with offset Niobrara C…
  15. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 15
    Wattenberg 3P Reserves & Location Inventory 247 MMBoe Net 3P Reserves Proved Reserves 60% crude oil / 40% wet gas 32 MMBoe 32 MMBoe booked at YE2012 13 MMBoe PD 19 MMBoe PUD 107 MMBoe 108 MMBoe 215 MMBoe unbooked at YE2012…
  16. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 16
    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…
  17. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 17
    Dorcheat-Macedonia Economics Type Well Economics 10-acre 5-acre EUR(1) 148,000 Boe 118,000 Boe % Oil & Liquids 65% 65% Cost per Well 1.8MM 1.8MM NPV-10 1.8MM 1.3MM Payout 1.6 years 1.8 years Risked Locations 120 gross(2) 213…
  18. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 18
    Cotton Valley Lenticular Oil 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 Potential…
  19. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 19
    Financial Overview 20
  20. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 20
    Oil Weighted Production Result in High Margins Unit Cash Operating Costs (/Boe) Unit Revenue & Cash Margins (/Boe) 25 80 77.54 4.34 3.49 4.35 70.70 68.83 20 67.43 66.93 60 4.98 3.90 15 8.63 9.12 7.93 40 6.87 6.75 10 57.74…
  21. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 21
    Current Hedge Positions 7,400 Bbl/d hedged at a minimum price of 88.98/Bbl in 2013 7,500 Bbl/d hedged at a minimum price of 88.27/Bbl in 2014(1) 1,500 Bbl/d hedged at a minimum price of 80.00/Bbl in 2015(1) Less than 2% gas…
  22. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 22
    Financial Summary Simplicity & Transparency = Successful Outcomes Balanced approach to capital allocation Achieve best-in-class growth via an expanding Wattenberg development program Fund oily growth with oily cash flow and prudent…
  23. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 23
    Expanding the Runway Total Resource Potential of 350 MMBoe Maintain peer leading production growth rates Accelerate development with increasing activity levels Ability to fund acceleration while maintaining a strong balance…
  24. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 24
    Corporate Information Company Headquarters Investor Relations 410 17th Street, Suite 1400 James Masters Investor Relations Manager Denver, Colorado 80202 (720) 440-6121 (720) 440-6100 Main jmastersbonanzacrk.com (720) 305-0804…
  25. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 25
    Appendix 26
  26. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 26
    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…
  27. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 27
    BCEI 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…
  28. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 28
    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…
  29. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 29
    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 94% of BCEI production in Q3 2013 came…
  30. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 30
    Dorcheat-Macedonia Type Curve(1)(2) 140 120 Recompletions opening additional Cotton Valley oil pay zones up hole 100 80 Boe/d 60 40 20 0 0 12 24 36 48 60 Months 10-acre 5-acre (1) The type curve shows the…
  31. December 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 31
    Reconciliation to Adjusted EBITDAX We define adjusted EBITDAX as net income, plus (1) exploration expense, (2) depreciation, depletion and amortization expense, (3) impairment of oil and gas properties, (4) stock-based compensation…

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