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Investor Presentation – QEP Resources, Inc.

QEP Resources, Inc. · Sep 9, 2013 · 40 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. Investor Presentation – QEP Resources, Inc. – slide 1
    Investor Presentation September 2013
  2. Investor Presentation – QEP Resources, Inc. – slide 2
    QEP AT A GLANCE Diversified upstream portfolio Proved reserves of 3.9 Tcfe at YE 2012 in multiple US basins Product diversity - crude oil represented 44% of 2nd quarter 2013 QEP Energy revenues and 18% of Energys production volumes…
  3. Investor Presentation – QEP Resources, Inc. – slide 3
    ITS BEEN A BUSY 12 MONTHS Closed on 1.4 billion upstream acquisition in the core of the Williston Basin in Q3 2012 Focused upstream portfolio High-graded asset portfolio with 200 million in announced asset sales (YTD) with no…
  4. Investor Presentation – QEP Resources, Inc. – slide 4
    QEPM IPO OVERVIEW Transaction Overview Units outstanding (MM) 54.5 Units sold to public (MM) (includes greenshoe) 23.0 Unit price at IPO (Pre-IPO range 19-21) 21 First day of trading August 9th Net cash proceeds to QEPM (MM) 451…
  5. Investor Presentation – QEP Resources, Inc. – slide 5
    QEP IMPLIED VALUATION All figures in millions except multiples QEP Resources ownership of QEP Midstream Partners, LP (57.8%)1 715 Remaining QEP Field Services Adjusted EBITDA2 187 Est. Enterprise Value (EV) of remaining QEP Field…
  6. Investor Presentation – QEP Resources, Inc. – slide 6
    QEP ENERGY ASSET OVERVIEW QEP Resources 2012 Proved Reserves 15% Pinedale ND Anticline 18% WY Williston Basin 67% Uinta Basin Vermillion Natural Gas Oil NGL CO UT QEP Energy 2Q 2013 Production Revenues Northern Region…
  7. Investor Presentation – QEP Resources, Inc. – slide 7
    STRONG RESERVE GROWTH ON HIGH QUALITY ASSETS Reserve growth on a 20:1 gas to oil ratio (2008 12 CAGR) 40% 30% Mean 12% 20% 10% 0% -10% -20% QEP Resources 27% 2012 price-related revisions as a percentage of 2011 proved…
  8. Investor Presentation – QEP Resources, Inc. – slide 8
    LOW COST STRUCTURE 2012 average production cash cost structure versus 60 E&P peers (/Mcfe) (LOE + transportation/gathering/processing + production taxes + G&A + interest + preferred dividends) 10.00 9.00 8.00 7.00 6.00 QEP…
  9. Investor Presentation – QEP Resources, Inc. – slide 9
    RESERVE SUMMARY (BCFE) Area Proved1 Probable2 Possible2 Williston Basin 615 606 152 Pinedale 1,531 1,012 214 Uinta Basin 618 3,402 5,416 Midcontinent 530 685 273 Haynesville/ Cotton Valley 531 1,911 1,654 Legacy 112 504 1,822…
  10. Investor Presentation – QEP Resources, Inc. – slide 10
    Areas Of Operations E&P
  11. Investor Presentation – QEP Resources, Inc. – slide 11
    WILLISTON BASIN Fat Cat Eastern edge 116,000 net acres being defined by drilling 8 rigs as of 7/31/2013 all on pad drilling Fort Berthold 6 rigs S. Antelope 2 rigs Ft. Berthold South Antelope 2Q13 avg. net production 20.3…
  12. Investor Presentation – QEP Resources, Inc. – slide 12
    WILLISTON BASIN SOUTH ANTELOPE Acquisition closed on 9/27/2012 Approximately net cash flow neutral since closing while proved reserve PV-10 value of asset has increased substantially Time for spud to first production reduced by 20%…
  13. Investor Presentation – QEP Resources, Inc. – slide 13
    WILLISTON BASIN FORT BERTHOLD RESERVATION Building operational momentum Strong well performance Improvements in capital and operating cost LOE reduced substantially from 2012 Eastern edge Nearly all of oil, gas and water volumes…
  14. Investor Presentation – QEP Resources, Inc. – slide 14
    GREEN RIVER BASIN - PINEDALE CURRENT ACTIVITY QEP PDP well Other operators Number of rigs (as of 7/31/2013) 4 (No QEP interest) QEP leasehold Well cost (MM) 4.2 Avg. gross EUR (Bcfe) 4.6 Gross locations remaining* 900 * As of…
  15. Investor Presentation – QEP Resources, Inc. – slide 15
    AT PINEDALE, MANY OF THE BEST LOCATIONS AHEAD OF US QEP net production 320 (MMcfepd) PDP well EUR (Bcfe) 280 8+ 240 200 68 160 46 120 24 80 QEP well 40 QEP leasehold Developed from south to north in accordance with BLM plan of…
  16. Investor Presentation – QEP Resources, Inc. – slide 16
    UINTA BASIN LOWER MESAVERDE CURRENT ACTIVITY 2013 Multi-well pads 1 & 2 Number of rigs (as of 1 7/31/2013) Avg. well cost (MM) 2.3 Avg. gross EUR (Bcfe) 2.3 Avg. liquids content 2.45 (gallons per Mcf) 1 Gross locations 3,200…
  17. Investor Presentation – QEP Resources, Inc. – slide 17
    UINTA BASIN LOWER MESAVERDE PAD DRILLING Pad 1: First pod of 8 wells completed Drilling on second pod of 8 wells 20-acre bottom hole locations Pad 2: 16 20-acre 10-acre bottom hole locations locations in 2 8-well pods…
  18. Investor Presentation – QEP Resources, Inc. – slide 18
    Areas Of Operations Midstream
  19. Investor Presentation – QEP Resources, Inc. – slide 19
    CONTROL OF MIDSTREAM INTEGRAL TO EXECUTION AND VALUE MAXIMIZATION Own and operate gathering, treating, and NGL extraction assets in core QEP producing areas Field Services Adjusted EBITDA Maximizes margins on and timeliness of…
  20. Investor Presentation – QEP Resources, Inc. – slide 20
    MIDSTREAM GREEN RIVER BASIN Pinedale System QEP contributed all gathering and transmission assets in the Green River Basin to QEPM Natural gas, crude oil and water gathering Rendezvous Gas Services Interconnects to multiple…
  21. Investor Presentation – QEP Resources, Inc. – slide 21
    MIDSTREAM UINTA BASIN 24B Processing Plant QEP contributed 50% ownership interest Uinta Gathering in the Three Rivers Gathering JV to QEPM Three Rivers Throughput capacity of 212 MMcf/d Gathering in 2012 Stagecoach/Iron…
  22. Investor Presentation – QEP Resources, Inc. – slide 22
    MIDSTREAM VERMILLION BASIN QEP contributed gathering and compression assets in SW Wyoming, NE Utah and NW Colorado Throughput capacity of 206 MMcf/d in 2012 Transports gathered gas to processing facilities owned by QEP and third…
  23. Investor Presentation – QEP Resources, Inc. – slide 23
    OTHER MIDSTREAM ASSETS QEP contributed gathering and related assets in North Dakota. Capacity of 7,000 Bbl/d with minimum volume commitments QEP retained Haynesville midstream assets Natural gas gathering and treating 323 BBtu/d…
  24. Investor Presentation – QEP Resources, Inc. – slide 24
    WHY INVEST IN QEP Well positioned for future growth Visible path for oil production growth On track to grow oil production 70% in 2013 Third quarter 2013 oil production expected to be over 30 MBbl/d Deep inventory of high-quality,…
  25. Investor Presentation – QEP Resources, Inc. – slide 25
    Appendix
  26. Investor Presentation – QEP Resources, Inc. – slide 26
    GUIDANCE AND ASSUMPTIONS 2013 Guidance (as of 7/31/2013) Low High Adjusted EBITDA (MM) 1,600 1,675 Production (Bcfe)* 315 320 Capital Investment (MM) 1,595 1,695 *production guidance assumes ethane rejection for all of 2013…
  27. Investor Presentation – QEP Resources, Inc. – slide 27
    COMMODITY DERIVATIVES Gas, oil and NGL derivatives (as of 7/26/13) (prices before deducts) 3.6 MMBbls Oil 98.28/ Bbl - WTI 58.5 Bcf Gas 8 MMBbls Oil 57.2 Bcf Gas 4.08 / Mcf 93.29/ Bbl - WTI 4.74 / Mcf 0.2 MMBbls Oil 107.80/ Bbl…
  28. Investor Presentation – QEP Resources, Inc. – slide 28
    2013 CAPITAL EXPENDITURE FORECAST Capital Expenditures Percentage Amount (MMs) Williston Basin 51% 840 Pinedale 16% 260 Midcontinent 16% 260 Uinta Basin 6% 100 Haynesville 2% 35 Field Services (includes QEPM) 5% 90…
  29. Investor Presentation – QEP Resources, Inc. – slide 29
    WOODFORD CANA QEP net production 120 (MMcfepd) 100 80 60 40 20 0 8 wells completed (75% WI) 72,000 net acres Proved reserves 337 Bcfe* 156 PUD locations* TIER II: 41,500 net acres 3,228 additional potential locations…
  30. Investor Presentation – QEP Resources, Inc. – slide 30
    GRANITE WASH C LK B 60 E QEP net production TT O RC GW JACOBS TU BLK E G B&B BLK 1 60 59 58 (MMcfepd) 57 1 2 3 2 4 C&M RR CO 2 5 50 6 7 8 9 BLK C&M B&B B&B 1 BLK 4 BLK 3 GO…
  31. Investor Presentation – QEP Resources, Inc. – slide 31
    HAYNESVILLE SHALE HARRISON TX LA CADDO BOSSIER WEBSTER 360 QEP net production Haynesville / Cotton Valley BIENVILLE 300 (MMcfepd) 240 180 PANOLA 120 60 0 RED RIVER Haynesville / Cotton Valley RUSK 50,600 net acres…
  32. Investor Presentation – QEP Resources, Inc. – slide 32
    ETHANE REJECTION EXAMPLE - PINEDALE Ethane Recovery Ethane Rejection Price Units Revenue Units Revenue per unit1 Produced per product2 Produced per product2 Natural Gas (Mcf) 3.75 s 8,527 31,977 w 8,964 34,657 Ethane (gal) 0.25 t…
  33. Investor Presentation – QEP Resources, Inc. – slide 33
    ETHANE REJECTION EXAMPLE - UINTA Ethane Recovery Ethane Rejection Price Units Revenue Units Revenue per unit1 Produced per product2 Produced per product2 Natural Gas (Mcf) 3.75 s 8,085 30,684 w 8,483 32,607 Ethane (gal) 0.25 t 8,894…
  34. Investor Presentation – QEP Resources, Inc. – slide 34
    PLAY ECONOMICS Gross Avg. Avg. Gross Net NYMEX Play Remaining Working EUR Finding Price 10% Locations1 Interest (Bcfe/well) Cost BTAX (/Mcfe) ROR3 (/MMBtu) Williston Basin Fort Berthold2 450 77% 640 24.40 73.50 S. Antelope2 301…
  35. Investor Presentation – QEP Resources, Inc. – slide 35
    PINEDALE ECONOMICS Production Type Curve Capital Return Price Sensitivity 7,000 100% 6.9 Bcfe 6,000 5.4 Bcfe 80% 5,000 MCFEPD BTAX ROR 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…
  36. Investor Presentation – QEP Resources, Inc. – slide 36
    WILLISTON BASIN FORT BERTHOLD ECONOMICS Production Type Curve Capital Return Price Sensitivity 800 40% 600 30% Daily Rate (BOEPD) 740 MBoe BTAX ROR 400 20% 640 MBoe 200 10% 520 MBoe 0 0% 0 20 40 60 80 100 120…
  37. Investor Presentation – QEP Resources, Inc. – slide 37
    WILLISTON BASIN SOUTH ANTELOPE ECONOMICS 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…
  38. Investor Presentation – QEP Resources, Inc. – slide 38
    UINTA BASIN RED WASH ECONOMICS Production Type Curve Capital Return Price Sensitivity 3,000 100% 80% 2,000 BTAX ROR 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…
  39. Investor Presentation – QEP Resources, Inc. – slide 39
    WOODFORD CANA ECONOMICS Production Type Curve Capital Return Price Sensitivity 6,000 60% 5,000 50% 4,000 40% 3.7 Bcf & 86 MBo BTAX ROR MCFED 3,000 30% 5.3 Bcf & 26 MBo 2,000 20% 5.5 Bcf 1,000 10% 0 0% 0 20 40…
  40. Investor Presentation – QEP Resources, Inc. – slide 40
    HAYNESVILLE ECONOMICS Production Type Curve Capital Return Price Sensitivity 10,000 100% 8,000 80% 8 Bcf 7 Bcf 60% BTAX ROR 6,000 MCFPD 6 Bcf 4,000 40% 5 Bcf 2,000 20% 0 0% 0 20 40 60 80 100 120 3.00 3.50…

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