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EnerCom Oil & Gas Conference – WPX Energy, Inc.

WPX Energy, Inc. · Aug 13, 2013 · 47 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. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 1
    EnerCom Oil & Gas Conference Ralph Hill, President & Chief Executive Officer August 13, 2013
  2. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 2
    Premier WPX Portfolio Piceance Basin Bakken Shale Marcellus Shale San Juan Powder River Apco* 3,010 Bcfe Proved 80.0 MMboe Proved 322 Bcfe Proved 423 Bcfe Proved 236 Bcfe Proved 25 MMboe Proved 12,039 Bcfe 3P 173.4 MMboe 3P 2,023 Bcfe…
  3. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 3
    Recent Highlights Oil discovery in New Mexicos Mancos/Gallup play exceeds expectations First 5 wells produced an average IP rate of 789 Boepd On pace to drill 12 - 14 wells in 2013 Estimated resource potential of 66 MMboe Expected…
  4. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 4
    Significant Cost Structure Improvements by the End of 2014 2013 run rate savings of 47MM - 68MM* Willow Creek improved processing fee and tier margin sharing Piceance gathering rate change Van Hook gathering system 2 - 4 Bbl savings…
  5. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 5
    Exploration Activities Result in San Juan Oil Discovery Commencing commercial operations 2013 one-rig program Plan to drill a total of 12 - 14 wells in 2013 4 exploratory wells drilled Included science and testing in pilot holes All…
  6. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 6
    Leveraging Experienced San Juan Team to Rapidly Develop the Mancos/Gallup WPX has long history in the basin 31 years of continuous operation in the San Juan Basin Drilled and operate 880 wells, hold joint interest in another 2,400…
  7. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 7
    San Juan Mancos Gallup Horizontal Wells First Full Month of Production Reported to State 16,000 WPX Wells 14,000 Other Producers *191H Not yet reported to state 12,000 10,000 Barrels of Oil First Full Month 8,000…
  8. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 8
    Preeminent Piceance Position Superior acreage position WPX vs. Offset Operator Increased drilling plan Well D&C and Lifting Costs Added 2 drilling rigs to fleet total 7 2,500 Arresting production decline Spud 51 wells in 2Q with 7…
  9. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 9
    Aggressively Delineating Niobrara Focused plan Valley Acreage and 3D Seismic Coverage Proving up acreage Repeatability and improving costs Delineating well spacing 2013 Spud and density Evaluating new horizons Discovery 2013…
  10. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 10
    Williston Superior Well Performance Continues 9 wells put on 1st sales 7 Middle Bakken (Light Blue) 2 Three Forks Longs (Dark Blue) Spud 11 wells with 4 rigs 3 Middle Bakken 8 Three Forks Longs Wells continue to perform at or above…
  11. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 11
    WPX is 1 Middle Bakken Producer after 180 and 365 Days 38 total companies operate Middle Bakken long laterals 180- and 365-Day Cumulative Production (Based on productive days) greater than 5,000 160,000 26 companies with greater than…
  12. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 12
    Williston Basin Ranked by F&D Cost (including WPX) Assumed Avg. EUR Area F&D Cost1* (Mboe) 1 Southern Antelope 11.96 920 Sanish and Parshall 12.63 634 WPX Energy FBIR 15.09 729 Nesson Anticline 15.35 456 Fort Berthold 15.43…
  13. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 13
    2013 Path to Greater Shareholder Value Maintain disciplined natural gas development Added two rigs in Piceance, arresting production decline Grow oil production 30% Williston production growth 2013 efficiencies drive 2014 production…
  14. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 14
    Appendix
  15. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 15
    Key Statistics by Basin 2013 Net Current 2012 3P Gross Proved Additional Acreage Rig Count Production Oil/NGL Drilling Reserves 3P Reserves Resource (YE2012) (Op) (MMcfe/d) Focused Locations (YE2012 Bcfe) (YE2012 Bcfe) Potential…
  16. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 16
    2012 Year-End Domestic Reserves 2012 SEC Case Year-End 2012 Before Price Changes* Gas NGL Oil Equivalent Gas NGL Oil Equivalent Bcf Mbbl Mbbl Bcfe Bcf Mbbl Mbbl Bcfe Piceance Basin 2,339 103,094 8,755 3,010 2,773 124,204 11,025…
  17. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 17
    Contractual Cost Structure Improvements Effective Financial Run Contract Description Income Statement Start Date Rate Impact (1) Willow Creek Change in fee and margin % 1Q13 25MM - 40MM Expense (Gathering & Processing) Piceance…
  18. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 18
    Piceance Continuous Improvements Major cost savings made in Ryan Gulch Drilling cycle time improvements Completion design improvements New infrastructure Continued improvement in Valley Ruthless attention to efficiencies…
  19. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 19
    WPX Positioned for Rapid Growth When Natural Gas Prices Recover Weve done it before We are ready to do it again 12% CAGR 1,000 Well Count 450 1,000 424 450 400 900 Avg. Rig Count 400 900 400 370 800 Net Op Bcfe 350 800 350…
  20. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 20
    Piceance Composite NGL Barrel and Realized Price (2nd Quarter, 2013) Product NGL Product /Gal Mix (1) Ethane 38% .27 Propane 29% .89 Iso-Butane 8% 1.24 Normal Butane 7% 1.21 Natural Gasoline 18% 1.99 *Included in…
  21. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 21
    Piceance Cryo Capacity Willow Creek Modified processing agreement with a revenue sharing component Mont Belvieu priced products via Overland Pass Pipeline Volume dedication yields advantaged OPPL T&F rates Enterprise Meeker…
  22. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 22
    2013 Niobrara Program Niobrara discovery well drilled in 2012 Produced 1.4 Bcf in first 180 days IP 16 MMcf/d 7,300 psi Currently producing 4.4 MMcf/d 2,300 psi Niobrara 2013 planned activity Drilled our 2nd Niobrara horizontal well…
  23. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 23
    WPX Has Drilled the Top Niobrara Shale Well IP Flow Operator Well County, State Location/Basin Comp. Date 2,667 Boepd (1) 701-4 HN1 WPX Energy Williams GM Garfield, Colo. Piceance Dec. 2012 (16 MMcfpd) 1,831 Boepd EOG Resources,…
  24. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 24
    Piceance Basin Green: Highlands Yellow: Valley Net Acreage: 216,829(1) Average rigs running in 2013: 6.6 Remaining 3P drilling locations: 10,424(1) Composition: 80% Gas/20% Liquids (1) Acreage and drilling locations are based on…
  25. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 25
    Capturing Williston Efficiencies Fully transitioned to pad drilling SIMOPS implemented drilling while producing, remote fracs conducted Spud to rig release days down 35% 3Q 12 to 2Q 13 Spud 11 wells with 4 rigs in Q2 Last 2 wells 22…
  26. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 26
    Williston Positioned for Continued Growth Efficiencies driving additional spuds in 2013 without increasing rig count 7 additional spuds 11 more wells on 1st sales Oil exit rate increases by 2,000 Bopd to 15,000 Bopd at year-end Spud to…
  27. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 27
    Dunn County Middle Bakken Well Performance WPX is one of the top performers in Dunn County with 41.0% of wells in the top quartile 400,000 Well Performance Detail % of Wells in Top Operator Total Wells Top Quartile Wells Quartile…
  28. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 28
    Dunn County Three Forks Well Performance 400,000 Well Performance Detail % of Wells in Operator Total Wells Top Quartile Wells Top Quartile 350,000 WPX ENERGY WILLISTON LLC 1 1 100.0% KODIAK OIL & GAS USA INCORPORATED 7 4 57.1%…
  29. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 29
    Bakken Netback Price Analysis Estimated Volume % Sales Outlets (Jul - Sep 2013) Basin-Priced Sales 50% Rail Deals 38% Enbridge Capacity 12% Total Sales Outlets 100% Assumed 3rd quarter total netback of WTI less 8 - 10 per barrel…
  30. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 30
    Williston Basin Acreage: 83,756 Net Acreage: (1) 84,205 (1) Averagerigs Average rigsrunning runningin in2013: 2013: 4 4 Remaining 3P drilling locations: 478(1) Remaining drilling Composition: locations: 478 (1) Oil focused…
  31. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 31
    Marcellus Growing Production Volumes Production results Net production increased 33% Record production day of 100 MMcf/d at end of June vv Growing production despite infrastructure constraints vv Remedial work at Williams Dunbar…
  32. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 32
    Pennsylvania Net Acreage: 114,067(1) Average rigs running in 2013: 1 Remaining 3P drilling locations: 561(1) Composition: Dry Gas (1) Acreage and drilling locations are based on YE 2012. EnerCom Oil & Gas Conference -…
  33. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 33
    Apco Recent Highlights Argentina Vaca Muerta Exposure Neuqun Basin activity in progress Neuquen Basin (Vaca Muerta acreage) Chevron YPF activity encouraging sign Entre Lomas 96,000 net acres of future development Bajada del Palo…
  34. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 34
    Argentina Asset Map Noreste Basin Acambuco: 1.5% WI Entre Lomas: Agua Amarga: 23% WI, 40.7% Stock Interest 23% WI, 40.7% Stock Interest in Petrolera. in Petrolera Effective Interest 52.8% Effective Interest 52.8% Nequen…
  35. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 35
    Colombia Asset Map Valle Medio Del Magdalena Basin Llanos 40 Block 163,000 acres Turpial Block 100,000 acres Llanos Orientales Basin Llanos 32 Block 111,000 acres Block Basin EnerCom Oil & Gas Conference -…
  36. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 36
    CVX-YPF First Phase of Vaca Muerta Development to Take Place Nearby Apcos Acreage Chevron/YPF deal encourages Vaca Muerta development 97,607 Acres Apco Neuquen Properties YPF CVX/YPF 1st Phase Development for VM 0 13 26…
  37. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 37
    Domestic Price Realization for 2013 Gas (/Mcf) NGL (/Bbl) Oil (/Bbl) Q1 13 Q2 13 Q1 13 Q2 13 Q1 13 Q2 13 Weighted Average Sales Price 3.12 3.78 37.27 37.41 89.23 88.62 Revenue Adjustments(1) (0.27) (0.33) (9.06) (7.20) 0.54 (0.86)…
  38. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 38
    2nd Quarter Results 2Q YTD Dollars in millions, except production numbers 2013 2012 2013 2012 Daily Production Gas (MMcf/d) 1,007 1,142 1,014 1,137 Oil (Mbbl/d) 21.1 18.5 21.5 17.3 NGLs (Mbbl/d) 21.3 31 20.3 30.8 Equivalent…
  39. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 39
    2013 Consolidated Guidance Annual Production Low Base High Capital Expenditures (in millions) Low Base High Gas MMcf/d 1,008 1,028 1,039 Piceance 320 340 380 Oil Mbbl/d 21.7 21.7 21.8 Bakken** 360 370 415 NGLs Mbbl/d* 20.5 20.8 20.9…
  40. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 40
    Impact of Ethane Rejection on 2013 Production Guidance 2013 planned volumes impacted by approximately 3% due to assumed ethane recovery level Maximum Ethane 2013 Plan Ethane Minimum Ethane Recovery Recovery Recovery Natural Gas…
  41. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 41
    Summary of Hedges As of 7/26/2013 Volume Weighted Avg. Price Natural Gas 3Q-4Q 2013 (Bbtu/d) (/MMBtu) Swaps 470 3.61 Crude Oil Volume Weighted Avg. Price Swaps 3Q-4Q 2013 (Bbl/d) (/Bbl) 10,326 101.84 Natural Gas Volume…
  42. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 42
    WPX 2nd Quarter Liquidity At 06/30/13, 359 million letters Liquidity (millions) of credit outstanding under Cash and cash equivalents 06/30/13 90 bilateral agreements Less: Total revolver borrowings Apco Oil and Gas (49) at 06/30/13…
  43. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 43
    Non-GAAP
  44. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 44
    Reconciliation Adjusted Income (Loss) from Continuing Operations (Unaudited) (Dollars in million, except per share amounts) 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr YTD Income (loss) from continuing operations…
  45. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 45
    Consolidated Statements of Operations and EBITDAX Reconciliations (Unaudited) Dollars in million, except per share amounts 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr YTD Revenues: Product revenues: Natural gas…
  46. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 46
    Domestic Statements of Operations (Unaudited) Dollars in million, except per share amounts 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr YTD Revenues: Product revenues: Natural gas sales 353 307 327 359 1,346 263 310…
  47. EnerCom Oil & Gas Conference – WPX Energy, Inc. – slide 47
    International Statements of Operations (Unaudited) Dollars in million, except per share amounts 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Year 1st Qtr 2nd Qtr YTD Revenues: Product revenues: Natural gas sales 4 5 4 5 18 4 6 10 Oil…

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