Skip to main content Howard Weil Energy Conference 2013 – SM Energy Company Investor Presentation | Shale Experts
Loading...
Pm

Howard Weil Energy Conference 2013 – SM Energy Company

SM Energy Company · Mar 18, 2013 · 35 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. Howard Weil Energy Conference 2013 – SM Energy Company – slide 1
    41st Annual Howard Weil Energy Conference Tony Best, CEO March 18, 2013
  2. Howard Weil Energy Conference 2013 – SM Energy Company – slide 2
    Key Messages 2012 was a record year. Proved reserves increased by 40% to 293 MMBOE; now 53% liquids. Drilling reserve replacement of 411%; drilling F&D costs of 10.44 per BOE. Annual production increased by 29% to 36.5 MMBOE;…
  3. Howard Weil Energy Conference 2013 – SM Energy Company – slide 3
    Reserve Metrics Drilling F&D decreased by approximately 39% in 2012 to 10.44 per BOE. Reserve replacement increased to 411% in 2012. Reserve Replacement % Reserve Metrics F&D /BOE 30.00 411% 450% 400% 25.00 350% 20.00…
  4. Howard Weil Energy Conference 2013 – SM Energy Company – slide 4
    2012 Proved Reserves 350 300 250 126.9 MMBOE 47% 53% 200 Liquids/ Liquids/ 69.2 53% Gas 47% Gas 150 100 140.7 166.5 50 Beginning Ending Proved Proved Reserves Reserves 0 Beginning Proved Ending Proved Reserves…
  5. Howard Weil Energy Conference 2013 – SM Energy Company – slide 5
    Operated Eagle Ford - 2012 Net Production Solid 2012 year of production 50 growth in operated Eagle Ford. MBOE/d 45.2 40.6 25 34.5 30.1 29.7 Proved reserves grew 127% to 0 4Q11 1Q12 2Q12 3Q12 4Q12 143.9 MMBOE…
  6. Howard Weil Energy Conference 2013 – SM Energy Company – slide 6
    Operated Eagle Ford 2012 over 2011 What changed in the operated Eagle Ford year over year Increased undrilled resource Total undrilled resource increased 85 MMBOE. Increased undrilled locations Down-spacing in oily Area 1 adds 128…
  7. Howard Weil Energy Conference 2013 – SM Energy Company – slide 7
    Operated Eagle Ford - 2013 SM Energy is currently shipping above its firm transportation. Production in March is regularly exceeding 300 MMcf/d of gross wet gas. The Company is regularly utilizing interruptible transportation for…
  8. Howard Weil Energy Conference 2013 – SM Energy Company – slide 8
    Eagle Ford Condensate Corporate Reported Oil SM Energy reports its Eagle Ford shale Production condensate as oil production. 100% Approximately 1/3 of the Companys total 80% 32% 38% reported oil production is condensate. 60% 40%…
  9. Howard Weil Energy Conference 2013 – SM Energy Company – slide 9
    Eagle Ford Economic Sensitivities Facts: AREA 1 ECONOMICS At current natural gas and ethane 80% 70% prices, the decision to reject or 60% not reject ethane is not 50% economically significant. IRR 40% Butanes and natural…
  10. Howard Weil Energy Conference 2013 – SM Energy Company – slide 10
    Non-operated Eagle Ford Net Production Operational Highlights SM Energy anticipates that the 18 16 operators drilling program will run approximately 8 drilling rigs. MBOE/d 14 12 10 SM Energy expects to be 8 14.0 15.5…
  11. Howard Weil Energy Conference 2013 – SM Energy Company – slide 11
    Bakken/Three Forks Net Production Operational Highlights The Company is currently operating 14 4 rigs in its Bakken/Three Forks 12 program. 10 MBOE/d 8 The Companys program is focused 6 11.0 11.9 on infill drilling in its…
  12. Howard Weil Energy Conference 2013 – SM Energy Company – slide 12
    Other Activity Permian Mississippian The Company is currently running 2 operated rigs. 2013 program is focused on delineation and well design optimization. Permian Shale SM Energy has 120,000 net acres with shale potential.…
  13. Howard Weil Energy Conference 2013 – SM Energy Company – slide 13
    Financial Position 4Q12 TOTAL BOOK DEBT MATURITIES CAPITALIZATION (in millions) (in millions) 3,000 2013 2,500 2015 1,415 2,000 2017 1,500 Total borrowing base 1.55 B; 1.0 B in commitments 400 2019 1,000 50% 350 Debt to 2021…
  14. Howard Weil Energy Conference 2013 – SM Energy Company – slide 14
    Revolving Credit Facility Borrowing base (in millions) currently 1.55 1,500 billion. 550 SM Energy 1,000 maintains lender 660 commitments at 500 1.0 billion. 340 0 Substantial December 31, 2012 liquidity available…
  15. Howard Weil Energy Conference 2013 – SM Energy Company – slide 15
    Production Outlook SM Energy grew production by approximately 29% in 2012 over 2011. Production growth in 2013 estimated to be 20%. Production growth in 2014 and 2015 estimated to be 15%. Compounded annual growth of 26% over 5 year…
  16. Howard Weil Energy Conference 2013 – SM Energy Company – slide 16
    Conclusions The Company created a significant amount of value in 2012 through its drilling programs. SM Energy has a deep and economic inventory to drive growth into the future. Management is committed and highly incentivized…
  17. Howard Weil Energy Conference 2013 – SM Energy Company – slide 17
    APPENDIX 18
  18. Howard Weil Energy Conference 2013 – SM Energy Company – slide 18
    Guidance as of 2/21/13 1Q13 FY 2013 Production (MMBOE) 9.9 10.4 42.5 44.5 Average daily production (MBOE/d) 110 116 116.5 122 LOE (/BOE) 4.68 4.92 4.92 5.22 Transportation (/BOE) 4.32 4.50 4.80 5.10 Production taxes (% of…
  19. Howard Weil Energy Conference 2013 – SM Energy Company – slide 19
    2013 Capital Budget ( in millions) Non Drilling 2013 capital budget of 200 - Drilling 300 300 1.5 billion Non- Other Operated Operated, 1,200 Other, 25 65 Approximately 90% of drilling and Operated Permian, completion…
  20. Howard Weil Energy Conference 2013 – SM Energy Company – slide 20
    4Q12 Regional Realizations Benchmark NYMEX WTI OIL (Bbl) 87.95 Hart Composite NGL (Bbl) 41.58 NYMEX Henry Hub Gas (MMBTU) 3.40 Production Volumes STGC Rockies Mid-Con Permian SM Total Oil (MBbls) 928 1,453 128 367 2,876 Gas (MMcf)…
  21. Howard Weil Energy Conference 2013 – SM Energy Company – slide 21
    2012 Proved Reserve Roll-Forward BCFE 2,500 53% Liquids/ 900.2 1.6 16.9 91.9 47% Gas 72.7 218.9 2,000 47% Liquids/ 53% Gas 1,760.6 1,500 1,259.2 761.5 1,000 415.2 1,743.8 Proved Developed Proved Undeveloped 500 844.0 999.1…
  22. Howard Weil Energy Conference 2013 – SM Energy Company – slide 22
    Production Update Average Daily Volumes Fourth quarter 820 production grew 6% from the MMCFE/d 620 420 third quarter. 557 556 620 660 220 Growth driven 20 primarily by 1Q12 2Q12 3Q12 4Q12 Eagle Ford shale 100% Product Mix…
  23. Howard Weil Energy Conference 2013 – SM Energy Company – slide 23
    Operated Eagle Ford Map Area 1A: Net Acreage: 26,108 Area 1A 450 Dev. Spacing: 450; 52 ac/well Gross/Net Locations: 483/483 Expected EUR: 3.6 BCFE/well 38% Oil, 31% Gas, 31% NGL Area 1B 625 Area 1B: Net Acreage: 22,179 Dev.…
  24. Howard Weil Energy Conference 2013 – SM Energy Company – slide 24
    Operated Eagle Ford Resource Potential AREA 1A AREA 1B AREA 2 AREA 3 AREA 4 AREA 5 Acreage (ac) 26,108 22,179 22,657 38,293 10,288 25,279 Exp. EUR/well 3.6 BCFE 3.6 BCFE 5.0 BCFE 8.0 BCFE 3.9 BCFE 3.9 BCFE Spacing 52 72 103 103 103 143…
  25. Howard Weil Energy Conference 2013 – SM Energy Company – slide 25
    Operated Eagle Ford Area 1 Type Curve (First 24 Months) 360 6,000 Gas Type 30 Day IP b Di Dt 300 Curve (Mcf/d) factor (%) (%) 5,000 Oil/NGL (Bbls/d) AREA 1 1,566 1.4 69 10 Gas (Mcf/d) 240 4,000 NGL (BBLS/D) 180 3,000 OIL…
  26. Howard Weil Energy Conference 2013 – SM Energy Company – slide 26
    Operated Eagle Ford Area 3 Type Curve (First 24 Months) 750 6,000 Gas Type 30 Day IP b Di Dt 625 Curve (Mcf/d) factor (%) (%) 5,000 Oil/NGL (Bbls/d) AREA 3 4,892 1.0 56 10 500 4,000 Gas (Mcf/d) NGL (BBLS/D) 375 3,000 OIL…
  27. Howard Weil Energy Conference 2013 – SM Energy Company – slide 27
    Eagle Ford NGLs Composite NGL Barrel Composite NGL Barrel With No C2 Rejection Current Level of C2 Rejection (by volume) (by volume) 12% 14% 9% 10% 33% 44% 8% 10% 26% 31% Ethane (C2) Propane (C3) Ethane (C2) Propane…
  28. Howard Weil Energy Conference 2013 – SM Energy Company – slide 28
    Bakken/ Three Forks Map Gooseneck Three Forks: Net Acreage: 35,688 Dev. Spacing: 380 acres/well Operated Gross/Net Locations: 105/72 Non-op Gross/Net Locations: 74/10.7 Expected EUR:** 380 MBOE/well 93% Oil, 7% Gas…
  29. Howard Weil Energy Conference 2013 – SM Energy Company – slide 29
    Bakken/Three Forks Resource Potential Gooseneck Raven/Bear Den - Raven/Bear Den Bakken Three Forks Acreage (ac) 35,688 44,842* 44,842* Exp. EUR/well** 380 MBOE 458 MBOE 395 MBOE Spacing (ac/well) 320 320 320 DCC/well (MM) 6.9…
  30. Howard Weil Energy Conference 2013 – SM Energy Company – slide 30
    Non-Operated Bakken/Three Forks Resource Potential Gooseneck Raven/Bear Den - Raven/Bear Den Bakken Three Forks Acreage (ac) 35,688 44,842* 44,842* Exp. EUR/well 380 MBOE 458 MBOE 395 MBOE Spacing (ac/well) 320 320 320…
  31. Howard Weil Energy Conference 2013 – SM Energy Company – slide 31
    Three Forks Operated Gooseneck Type Curve (First 24 Months) 800 200 Oil Type 30 Day Max b Di Dt 700 Curve IP (Bo/d) facto (%) (%) 175 r Oil/NGL (Bbls/d) 600 150 Gas (Mcf/d) 500 Three Forks 358 1.2 62.1 10 125 400 100…
  32. Howard Weil Energy Conference 2013 – SM Energy Company – slide 32
    Operated Bakken/Three Forks Raven/Bear Den Type Curve (First 24 Months) 800 800 Oil Type 30 Day IP b factor Di Dt 700 Curve (Bo/d) (%) (%) 700 BAKKEN - OIL (BBLS/D) Oil/NGL (Bbls/d) 600 Bakken 671 1.4 80 10 600 Gas (Mcf/d)…
  33. Howard Weil Energy Conference 2013 – SM Energy Company – slide 33
    Oil Derivative Position* Oil Swaps - NYMEX Equivalent Oil Collars - NYMEX Equivalent Ceiling Floor Bbls /Bbl Bbls /Bbl /Bbl 2013 2013 Q1 734,000 92.38 Q1 755,000 107.36 79.87 Q2 1,093,000 93.72 Q2 620,000 109.08 76.65 Q3 758,000…
  34. Howard Weil Energy Conference 2013 – SM Energy Company – slide 34
    Gas Derivative Position* Natural Gas Swaps - NYMEX Equivalent Natural Gas Collars - NYMEX Equivalent Ceiling Floor MMBTU /MMBTU MMBTU /MMBTU /MMBTU 2013 2013 Q1 8,611,000 4.43 Q1 1,330,000 5.55 4.49 Q2 7,205,000 4.08 Q2 1,910,000…
  35. Howard Weil Energy Conference 2013 – SM Energy Company – slide 35
    NGL Derivative Position* Natural Gas Liquid Swaps - Mont. Belvieu Bbls /Bbl 2013 Q1 496,000 49.72 Q2 552,000 53.13 Q3 375,000 60.17 Q4 342,000 59.77 2013 Total 1,765,000 2014 Q1 208,000 75.87 Q2 0 Q3 0 Q4 0 2014 Total…

From the store

Browse maps, data & reports in the Shale Experts store