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May 2013 Investor Presentation – Bonanza Creek Energy, Inc.

Bonanza Creek Energy, Inc. · May 14, 2013 · 36 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. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 1
    Investor Presentation Expanding the Runway May 2013
  2. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 2
    Bonanza Creek Overview Wattenberg Field (1) Market Cap : 1.4 billion North Park Basin (Niobrara & Codell) Enterprise Value(1): 1.6 billion (Niobrara) 31.9 MMBoe 1P(3) Public Float(2): 73% 0.5 MMBoe 1P (3) 59% Oil 100% Oil…
  3. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 3
    Impressive Growth Track Record Proved Reserves(1) (MBoe) Production(1) (Boe/d) +62%(2) 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 2011…
  4. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 4
    Dramatic Year-Over-Year Increases 1Q13 as compared to 1Q12 76% Increase in Production (1) 12,307 Boe/d 47% Increase in Adj. Net Income (2) 16.2 million (0.40/sh) 66% Increase in Adjusted EBITDAX (2) 52.3 million…
  5. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 5
    Oil Weighted Reserves & Production Reserve Mix By Commodity (MMBoe)(1) Reserve Mix By Category (MMBoe)(1) Wet Gas GPM: 4.0 6.5 23.8 12% Crude Oil 45% Mid-Con Dry Gas PD 13.2 25% 30.2 PUD 57% Rockies Wet Gas Mid-Con NGLs 29.2…
  6. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 6
    Strong Organic Growth Inventory 350 MMBoe of resource potential(1) 9 primary opportunities in various stages of development and evaluation Wattenberg Wattenberg Niobrara B Arkansas Cotton Valley North Park Niobrara C Arkansas…
  7. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 7
    Doubling Activity in Wattenberg Field in 2013 Wattenberg Field 2013 Capex: 400 million Niobrara B (4,000): 56 wells Niobrara B (9,000): 2 wells Niobrara B (40-acre test): 6 wells Niobrara C: 4 wells Codell: 4 wells 80% 20% Other:…
  8. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 8
    Wattenberg Niobrara a Premier Oil Resource Play Basin IRRs 60% 56% 54% 53% 51% 50% 44% 43% 40% 37% 36% 36% 35% 34% 31% 31% 30% 28% 26% 23% 22% 22% 21% 19% 18% 18% 20% 17% 16% 16% 13% 12% 12% 9% 9% 10% 6% 5% 0%…
  9. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 9
    Wattenberg Field Locator Map BCEI has operated in Wattenberg Field since 1999 Located in Extension Area 60% crude oil; liquids-rich natural gas Better economics than Gas Window Prospective for Codell and all benches of…
  10. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 10
    Wattenberg Niobrara & Codell Oil Focused NBL - Wells Ranch(1) 40-acre downspacing A bench / C bench / Codell Extended reach laterals OOIP / section of 74 MMBoe Niobrara B Bench (38 wells) Avg. IP30: 496 Boe/d (76% oil)…
  11. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 11
    BCEI Niobrara B Bench Well Performance 12
  12. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 12
    Niobrara B Bench Performance Improvement BCEI Reported Average IP30 Rates 510 40 Technical Improvements 500 35 Increased frac stages from 16 to 18 490 30 Increases reservoir wellbore communication 480 25 Wellcount Boe/d…
  13. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 13
    Wattenberg Expanding Resource Recovery Niobrara C Bench Present on all Wattenberg acreage BCEIs first Niobrara C Bench well: IP30 rate: 444 Boe/d (79% crude oil) IP60 rate: 383 Boe/d (74% crude oil) IP90 rate: 340 Boe/d (70% crude…
  14. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 14
    Wattenberg HZ First Production Schedule 30 Non-Operated Gross Non-Operated Net Operated Gross Operated Net 25 20 Wells Completed 15 10 5 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Actual Plan C Bench Wells (4…
  15. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 15
    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 80/BO 4.2 MM Payout (Years) 1.5 ROR Sensitivity to Oil Price(2) (1) EUR based on…
  16. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 16
    Wattenberg 3P Reserves & Location Inventory 247 MMBoe Net 3P Reserves Proved Reserves 32 60% crude oil / 40% wet gas MMBoe 32 MMBoe booked at YE2012 13 MMBoe PD 19 MMBoe PUD 107 MMBoe 108 MMBoe 215 MMBoe unbooked at…
  17. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 17
    Mid-Continent Operations (Arkansas) Provides free cash flow; reallocated to Wattenberg ERA SYSTEM SERIES GROUP FORMATION CENOZOIC EOCENE Claiborne PALEOCENE Wilcox Cotton Valley: 6,500 8,800 feet TERTIARY CRETACEOUS GULFIAN Midway…
  18. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 18
    Dorcheat-Macedonia Economics Type Well Economics 10-acre 5-acre EUR 148,000 Boe(1) 118,000 Boe % Oil & Liquids 65% 65% Cost per Well 1.8MM 1.8MM NPV-10 1.8MM 1.3MM Payout (Years) 1.6 1.8 Risked Locations 120 gross(2) 219 gross…
  19. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 19
    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…
  20. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 20
    Financial Overview 21
  21. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 21
    Oil Weighted Production Result in High Margins Unit Cash Operating Costs (/Boe) Unit Revenue & Cash Margins (/Boe) 30 80 70 25 5.71 60 76.68 3.49 66.93 70.70 20 4.35 65.70 67.43 3.43 50 8.19 3.90 15 9.12 40 7.93 7.76 6.75 30…
  22. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 22
    Current Hedge Positions 6,000 Bbl/d hedged at a minimum price of 88.45/Bbl in 2013 4,200 Bbl/d hedged at a minimum prices of 87.34/Bbl in 2014 Less than 2% gas production hedged in 2013 Oil Hedging: Fixed Price Swaps Oil Hedging:…
  23. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 23
    Financial Summary Simplicity & Transparency = Successful Outcomes 24 Balanced approach to capital allocation Fund oily growth with oily cash flow and prudent balance sheet use Maintain block & tackle growth in the Mid-Continent with…
  24. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 24
    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…
  25. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 25
    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…
  26. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 26
    Appendix 27
  27. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 27
    Experienced Management Team Founder of predecessor companies Mike Starzer Prior: Executive and Engineering roles at Unocal and Berry Petroleum President & CEO B.S. in Petroleum Engineering, Colorado School of Mines; M.S. in…
  28. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 28
    Experienced Management Team Joined in 2011 bringing expertise in corporate law, administration, M&A, federal Chris Humber securities laws and stock exchange rules SVP & General Counsel Prior: Kendall, Koenig and Oelsner; Hogan &…
  29. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 29
    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…
  30. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 30
    DJ Basin Midstream Infrastructure Capacity Crude Pipelines and Rail Projects Operator Origination Termination Hub Timing (Bbl/d) White Cliffs Pipeline SemGroup 70,000 Platteville, CO Cushing, OK Existing White Cliffs Expansion SemGroup…
  31. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 31
    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 75% of BCEI production comes from…
  32. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 32
    North Park Basin Niobrara(1) EUR 211,000 Boe Initial 30-day Rate 304 Boe/d % Oil 90% Cost per Well 5.1 MM NPV-10 at 80/BO 2.1 MM NPV-10 at 100/BO 3.9 MM 2014-2015 development opportunity EVALUATING No natural gas takeaway…
  33. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 33
    Dorcheat-Macedonia Type Curve(1) 140 Recompletions opening additional 120 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…
  34. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 34
    Mid-Continent Gas Processing Facilities General Overview Approximately 150 miles of gathering lines Nevada Processes minor quantities of third party natural gas Facilities interconnect into the CenterPoint Energy pipeline system…
  35. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 35
    Reconciliation to Adjusted Net Income Adjusted net income and adjusted net income per diluted share exclude (1) unrealized gain or loss in fair value of commodity derivatives and (2) stock-based compensation expense. The amounts included…
  36. May 2013 Investor Presentation – Bonanza Creek Energy, Inc. – slide 36
    Reconciliation to Adjusted EBITDAX We define adjusted EBITDAX as net income, plus (1) exploration expense, (2) depletion, depreciation and amortization expense, (3) stock-based compensation expense, (4) interest expense, (5) unrealized…

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