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Permian Acquisition – QEP Resources, Inc.

QEP Resources, Inc. · Dec 9, 2013 · 15 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. Permian Acquisition – QEP Resources, Inc. – slide 1
    QEP Announces Permian Acquisition December 9, 2013
  2. Permian Acquisition – QEP Resources, Inc. – slide 2
    TRANSACTION SUMMARY QEP has agreed to acquire assets in the northern Midland Basin for 950 MM Currently producing 6,700 Boepd (68% oil) Estimated net proved reserves based on internal estimates of 47 MMBoe (32% PDP) Up to 300 MMboe…
  3. Permian Acquisition – QEP Resources, Inc. – slide 3
    PERMIAN BASIN - ACREAGE LOCATION Vertical Rigs Deepest part of the Midland Basin Horizontal Rigs Andrews, TX Best Midland Basin horizontal well 24 hr. IP: 3,605 Boepd Midland, TX 10 miles Deepest part of the…
  4. Permian Acquisition – QEP Resources, Inc. – slide 4
    FAVORABLE TRANSACTION COMPARED TO PERMIAN PLAYERS 10.0x EV/2015 EBITDA (consensus/estimated ) 9.0x 8.0x 7.0x 6.0x Permian 5.0x Acquisition 4.0x 3.0x 2.0x 400,000 EV/Flowing Boe (third quarter/current) 350,000 300,000…
  5. Permian Acquisition – QEP Resources, Inc. – slide 5
    STRATEGIC RATIONALE Entry into a world-class light oil play The Permian Basin is a premier North American oil basin with over 29 billion barrels of oil produced to date Acreage located in the deepest part of the basin with multiple…
  6. Permian Acquisition – QEP Resources, Inc. – slide 6
    FINANCIALLY ATTRACTIVE TRANSACTION Attractive transaction multiples: < 4.0x 2015E EBITDA 20 per proved Boe 140,000 per run-rate production (Boepd) Meaningful inventory with up to 975 horizontal and vertical locations providing 10+…
  7. Permian Acquisition – QEP Resources, Inc. – slide 7
    QEP STRATEGY FOR TARGETING THE PERMIAN BASIN QEPs New Ventures team has been actively evaluating the Basin and potential associated with new drilling and completion technology Basin Attributes Regional mapping and analysis identified…
  8. Permian Acquisition – QEP Resources, Inc. – slide 8
    VERTICAL PRODUCING WELLS WITH HORIZONTAL POTENTIAL 2 rigs currently drilling vertical wells 264 existing operated vertical PDP wells* Atokaberry average vertical well EUR of 213 MBoe No producing horizontal wells on Martin/Andrews…
  9. Permian Acquisition – QEP Resources, Inc. – slide 9
    STACKED HORIZONTAL DRILLING TARGETS N. Midland Basin Type log Estimated Original Oil in Place U. Spraberry 40 MMBO/Sq. Mile Estimated 300+ MMBO per M. Spraberry 60 MMBO/Sq. Mile square mile of original oil in L. Spraberry place…
  10. Permian Acquisition – QEP Resources, Inc. – slide 10
    ACQUISITION ACREAGE CROSS SECTION N High degree of reservoir continuity across acreage cline shale Top Spraberry Middle Spraberry Lower Spraberry Jo Mill Lower Spraberry Shale Top Dean Top Wolfcamp Top Wolfcamp B…
  11. Permian Acquisition – QEP Resources, Inc. – slide 11
    NET PERMIAN PRODUCTION FORECAST 40,000 Horizontal Resource 35,000 Horizontal 3P Vertical 30,000 PDP Net Production (Boepd) 25,000 20,000 15,000 10,000 5,000 - 4Q13 2014 2015 2016 2017 2018 12
  12. Permian Acquisition – QEP Resources, Inc. – slide 12
    WHY THIS ACQUISITION MAKES SENSE FOR QEP World class oil asset Low risk, high growth opportunity Adds 10+ years of drilling opportunities Increases oil production weighting Financially attractive and accretive transaction…
  13. Permian Acquisition – QEP Resources, Inc. – slide 13
    QEPS REPOSITIONING Meaningful presence in two premier North American oil plays Williston Pinedale ND Permian Anticline Leading position in two liquids- WY Williston Basin rich gas assets Pinedale Uinta Basin Lower Mesaverde…
  14. Permian Acquisition – QEP Resources, Inc. – slide 14
    SIGNIFICANT IMPROVEMENT IN OIL WEIGHTING 2015E Production % Liquids for QEP and Pro Forma Versus Peers 100.0% 90.0% 80.0% 70.0% 60% increase 60.0% % Liquids 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% QEP PF…
  15. Permian Acquisition – QEP Resources, Inc. – slide 15
    KEY TAKEAWAYS Focused on shareholder value creation Accretive, low-risk, high-growth acquisition E&P portfolio repositioning Midstream separation (acquisition has no impact on plans) Permian acquisition and planned asset sales focus…

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