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Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc.

QEP Resources, Inc. · Dec 5, 2012 · 39 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. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 1
    The Resource Growth Company QEP Resources, Inc.
  2. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 2
    LTM ADJUSTED QEP Energy EBITDA 1.40 B * (Exploration & Production) 3.6 Tcfe proved reserves 18% 4-yr production CAGR QEP Field Services (Gathering and NGL extraction) 78% 1.37 Bcfpd processing 2,000 miles of gathering lines…
  3. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 3
    2013 Guidance Adjusted EBITDA Adjusted EBITDA 1,525 to 1,675 MM (MM/yr) 325 to 330 Bcfe production Capital investment 1,625 to 1,775 MM Approximately 47% of natural gas 1,600* volumes hedged in 2013 with a weighted 1,387 1,413*…
  4. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 4
    1.44 B 1.52 B* 1.7 B* 1% Corporate 1% 7% Field Services 11% Bakken/PRB 7% Uinta MSV/GR Oil 17% 29% 51% Pinedale 2% GW/Tonk/Marm/Cana 20% 9% Haynesville 25% 24% 8% 16% 29% 20% 15% 6% 2% 2011 Capital 2012 Capital 2013…
  5. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 5
    Powder 2011YE 2009 Reserves* Reserves* River Basin 3,614 2,747 Bcfe Bcfe Pinedale Anticline Northern: 2,312 Bcfe Bakken/TFS Uinta Basin Southern: 1,302 Bcfe Northern Region Marmaton, 3Q 2012 2009 Production Production…
  6. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 6
    WILLISTON BASIN* (Bakken/TFS) Probable (Bcfe): 186 PINEDALE Possible (Bcfe): 152 Probable (Bcfe) 1,012 Resource Potential (Bcfe): 264 Possible (Bcfe): 214 Resource Potential (Bcfe): 806 POWDER RIVER BASIN GREATER GREEN Probable…
  7. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 7
    45% Production growth per debt-adjusted diluted share (2007 11 CAGR) 18% 18% 16% 15% 14% 12% 11% 11% 11% 10% 8% 6% 6% 3% 3% 1% 1% -2% -6% -17% WLL PXP XCO FST SWN BBG XEC DVN COG SM PXD…
  8. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 8
    25.0% Avg Return on Capital Employed 2007-2011 (Cashflow from Operations / Gross PP&E) 20.0% QEP 15.0% Peer Average 10.0% 5.0% 0.0% (20%) (10%) 0% 10% 20% 30% 40% 50% Production Growth per Debt-Adjusted Diluted…
  9. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 9
    2011 average production cash cost structure 5.00 versus 46 E&P peers (/Mcfe) (LOE + transportation/gathering/processing + production taxes + G&A + interest + preferred dividends) 4.00 QEP Resources 2.06/Mcfe 3.00 2.00 1.00…
  10. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 10
    Net Production Proved Reserves (Bcfe/yr) 318* 328* (Bcfe) 275 3,614 229 3,031 2,747 190 171 2,218 140 1,868 *Guidance midpoint (as of October 30, 2012) 11
  11. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 11
    % Liquids of Total Net % Liquids of Total Proved 31%* Production Reserves 24% 22%* 14% 14% 13% 12% 11% 11% 11% 9% 8% *Guidance midpoint (as of October 30, 2012) 12
  12. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 12
    Dry Gas Liquids Liquids + fee-based revenues 28% 35% 57% 72% 65% 43% 4Q12 E&P-only 4Q12 Total 4Q12 Total Production Production** Revenues** * Guidance midpoint (as of October 30, 2012) ** E&P + Midstream 13
  13. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 13
    QEP net production (Boepd) Approx. Eastern field boundary *Q4 2012F Fat Cat 20,000 15,000 10,000 5,000 * 0 South Antelope Fort Berthold Bakken Formation wells 20 Miles Three Forks Formation wells Operated focus area…
  14. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 14
    Number of operated wells as of Q3 2012: 2 Bakken 28 Three Forks 1 Dual zone P. Levang 14-23 5,000 to 12,500-ft laterals WOC 11 MM (long lateral) well costs Proved + probable reserves of approximately 125 MMBoe Average EUR of…
  15. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 15
    Number of operated wells as of Q3 2012: 31 Bakken Fort Berthold Reservation 8 Three Forks 5,000 to 12,500-ft laterals 11 MM (long lateral) well costs Proved reserves of 43.2 MMBoe* 2-well pad Eastern edge (drilling) being defined…
  16. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 16
    QEP net production (MMcfepd) QEP PDP well 320 280 Other operators (No QEP interest) 240 200 QEP leasehold 160 120 80 40 1 Mile Proved reserves 1.53 Tcfe* 526 PUD locations on a combination of 5 and 10-acre density * Up…
  17. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 17
    64 61 Average Days Spud to TD 45 42 35 28 23 17 13.8 13.2 Record 8.6 days 18
  18. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 18
    Geologic Age Formation Proved reserves of 204 Bcfe* UTAH Green River TERTIARY 136 PUD locations on 40-acre Uinta Wasatch Basin spacing* Mesaverde Vertical wells to average TD of 11,000' Blackhawk CRETACEOUS 2.3 MM average well…
  19. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 19
    Pad 1 RW 23-23B 24 Wells 20-acre bottom hole locations Pad 2 RW 44-22B Future possible 10-acre bottom hole 16 Wells locations Estimated 20-acre drainage ellipses Estimated 10-acre drainage ellipses As of September 30, 2012…
  20. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 20
    Multiple stacked oil targets 4,500-ft laterals Hardy 16-14-74-39SXH Peak 24-hour rate: 6.5 - 7.0 MM average well cost 579 Boe Completed 7/2012 Average Sussex EUR: 450 to 525 WI: 46% Mboe/horizontal well Sussex Hardy 4-23-39-74SXH…
  21. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 21
    QEP net production Dewey Co. 60 (MMcfepd) Blaine Co. 50 40 30 20 Kingfisher Co. 10 Custer Co. 0 Proved reserves 303 Bcfe* 86 PUD locations* TIER II: 3,360 additional potential locations 43,300 net acres Caddo Co.…
  22. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 22
    60 59 QEP net production 58 57 1 2 3 2 4 C&M RR CO 2 5 7 6 8 9 BLK C&M B&B B&B 1 (MMcfepd) BLK 4 BLK 3 GO MCROHAN 1 BLK E 50 B&B 53 54 B&B BLK 2 55 56 BLK 5 4 2 1 1 3 2 1 6 5 4 PARRIS 40 BLK E…
  23. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 23
    BOSSIER WEBSTER QEP net production HARRISON TX LA CADDO (MMcfepd) BIENVILLE 360 300 240 180 PANOLA 120 60 0 DE SOTO RED RIVER RUSK CV/Hosston Haynesville NATCHITOCHES SHELBY Proved reserves 685 Bcf* 98 PUD…
  24. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 24
    Gross Avg. Net NYMEX Avg. Remaining Gross Finding Price Play Working Locations (as EUR Cost 10% BTAX Interest of Nov. 2012) (Bcfe/well) (/Mcfe) ROR** Pinedale 1,000 60% 4.6 1.06 2.05 Bakken + Three Forks Reservation 450 77% 640*…
  25. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 25
    WY NW Louisiana CO2 treating / blending capacity: 600 MMcfpd Gathering: 179 miles W. Green River Basin UT Interstate pipeline connections: 4 Processing capacity: 840 MMcfpd CO Gathering: 886 miles Rendezvous transmission: 21 miles…
  26. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 26
    Field Services EBITDA (MM/yr) 320 Own and operate gathering, treating, and NGL extraction assets in core QEP producing areas Maximizes margins on QEP production 204 170 163 Iron Horse II processing plant in the Uinta Basin,…
  27. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 27
    NGL Volumes (Average Bpd) 11,700 9,251 7,800 6,629 6,537 5,746 5,835 4,891 3,013 Total Field Services NGL Actuals Total Field Services NGL Forecast QEP Energy Blacks Fork Complex only NGL Forecast 28
  28. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 28
    High-quality assets with a proven execution strategy Acreage in core of high-quality, repeatable resource plays Concentrated, contiguous QEP-operated land positions Track record as low-cost leader Williston Basin acquisition adds…
  29. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 29
    The Resource Growth Company QEP Resources, Inc.
  30. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 30
    Gas, oil and NGL derivatives (as of 10/26/12) (prices before deducts) 1.3 MMBbls Oil 97.42 / Bbl 0.4 MMBbls Oil 5.1 MMBbls Oil 87.50 115.36 / Bbl 98.48 / Bbl 0.2 MMBbls Ethane & Propane, 43.01 / Bbl 105.9 Bcf Gas 46 Bcf Gas 4.93…
  31. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 31
    1,500 1,500 MM Revolving Credit 2.00% 1,250 1,000 6.875% 5.25% 750 625.0 650.0 5.375% 300 MM Term Loan 500.0 500 2.82% 176.8 MM 300.0 Senior Notes 6.80% 6.80% 250 6.05% 134.0 136.0 0 2013 2014 2015 2016 2017 2018…
  32. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 32
    Production Type Curve Capital Return Price Sensitivity 7,000 100% 6,000 6.9 Bcfe 5.4 Bcfe 80% 5,000 BTAX ROR MCFEPD 60% 4,000 4.6 Bcfe 3,000 40% 2,000 3.4 Bcfe 20% 1,000 2.3 Bcfe 0 0% 0 20 40 60 80 100 120 3.00…
  33. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 33
    Production Type Curve Capital Return Price Sensitivity 800 40% 740 MBoe Daily Rate (BOEPD) 600 30% BTAX ROR 640 MBoe 400 20% 520 MBoe 200 10% 0 0% 0 20 40 60 80 100 120 75.00 80.00 85.00 90.00 95.00 Months on…
  34. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 34
    Production Type Curve Capital Return Price Sensitivity 2,500 100% 1,035 MBoe Daily Rate (BOEPD) 2,000 80% 920 MBoe BTAX ROR 1,500 60% 840 MBoe 1,000 40% 500 20% 0 0% 0 20 40 60 80 100 120 65.00 75.00 85.00 95.00…
  35. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 35
    Production Type Curve Capital Return Price Sensitivity 3,000 100% 80% BTAX ROR 2,000 60% MCFED 40% 1,000 20% 0 0% 0 20 40 60 80 100 120 3.00 3.50 4.00 4.50 5.00 5.50 6.00 Months on Production NYMEX Gas Price…
  36. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 36
    Production Type Curve Capital Return Price Sensitivity 6,000 60% 5,000 50% BTAX ROR 4,000 40% 3.7 Bcf & 86 MBo MCFED 3,000 30% 5.3 Bcf & 26 MBo 2,000 20% 5.5 Bcf 1,000 10% 0 0% 0 20 40 60 80 100 120 3.00 3.50 4.00…
  37. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 37
    Production Type Curve Capital Return Price Sensitivity 10,000 100% 8,000 80% 8 Bcf 7 Bcf BTAX ROR 6,000 60% MCFPD 6 Bcf 5 Bcf 4,000 40% 2,000 20% 0 0% 0 20 40 60 80 100 120 3.00 3.50 4.00 4.50 5.00 5.50 6.00…
  38. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 38
    Red Wash Processing Northern Complex UT CO Utah assets, Red Wash and Iron Horse Stagecoach/Iron Horse Processing Processing Complex Complexes 39
  39. Wells Fargo Securities 11th Annual Pipeline MLP & Energy Symposium – QEP Resources, Inc. – slide 39
    Southwest Wyoming assets and Gobblers Knob Blacks Fork Processing Complex Blacks Fork Processing Complex Clear Creek Storage (100% ownership/capacity) Emigrant Vermillion Trail Cryo Processing Plant Plant 40

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