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Barclays Capital CEO Energy Power Conference – QEP Resources, Inc.

QEP Resources, Inc. · Aug 6, 2012 · 41 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. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 1
    The Resource Growth Company QEP Resources, Inc.
  2. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 2
    LTM ADJUSTED QEP Energy EBITDA 1.43 B * (Exploration & Production) 3.6 Tcfe proved reserves 18% 4-yr production CAGR QEP Field Services (Gathering and NGL extraction) 77% 1.37 Bcfpd processing 2,000 miles of gathering lines…
  3. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 3
    Williston Basin in North Dakota Production from Bakken and Three Forks formations 12 miles west of QEPs Ft. Berthold Reservation block 1.385 billion purchase price (9 sellers) July 1 effective date, September 27 anticipated closing…
  4. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 4
    QEP net production and forecast (Boepd) Fat Cat 20,000 Fort Berthold QEP through Q2 2012 15,000 QEP remainder 2012F Acquisition (forecast) Acquisition 10,000 leasehold 5,000 0 QEP Fort Berthold existing core acreage…
  5. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 5
    TFS well Operated core area Acquisition leasehold TFS EURs (MBoe) for long laterals completed after 1/1/2010 Less than 300 301 - 500 501 - 700 701 - 900 901 1,100 1,101 1,300 1,301 1,500 6 miles EUR bubble map (MBoe)…
  6. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 6
    Middle Bakken well Operated core area Acquisition Bakken EURs (MBoe) for long laterals completed after 1/1/2010 Less than 300 301 - 500 501 - 700 701 - 900 901 1,100 1,101 1,300 1,301 1,500 6 miles 7
  7. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 7
    1.44 B 1.55 B * Corporate 1% Field Services 11% Bakken/PRB** 7% Uinta MSV/GR Oil 17% 28% Pinedale 2% GW/Tonk/Marm/Cana 20% 10% Haynesville 25% 22% 19% 29% 9% 2011 Capital 2012 Capital Budget * Top end of guidance range of…
  8. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 8
    Revised 2012 guidance (assuming a Adjusted EBITDA 9/27/2012 closing date for North (MM/yr) Dakota Acquisition): 1,425* 1,387 Adjusted EBITDA 1.40 B to 1.45 B 1,311 310 to 315 Bcfe production 1,165 1,141 Capital investment 1.50 B to…
  9. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 9
    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, 2Q 2012 2009 Production Production…
  10. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 10
    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…
  11. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 11
    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% PXP WLL SWN XCO FST SM PXD XEC DVN EOG NBL EQT…
  12. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 12
    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…
  13. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 13
    2011 average production cash cost (/Mcfe) structure 5.00 versus 46 E&P peers (LOE + transportation/gathering/processing + production taxes + G&A + interest + preferred dividends) 4.00 QEP Resources 2.06/Mcfe 3.00 2.00 1.00…
  14. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 14
    Proved Reserves Net Production (Bcfe) 312.5 (Bcfe/yr) 275 3,614 229 3,031 2,747 190 171 2,218 140 1,868 2012 Guidance: 310 315 Bcfe 15
  15. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 15
    % Liquids of Total Net % Liquids of Total Proved 22% Production Reserves 24% 14% 13% 12% 11% 11% 14% 11% 9% 8% 2012 Guidance: mid-point range 16
  16. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 16
    Dry Gas Liquids Liquids + fee-based revenues 24% 20% 27% 32% 74% 76% 80% 73% 68% 26% YE 11 Proved Total E&P-only 4Q12 E&P-only 4Q12 Total 4Q12 Total Reserves Production* Production** Production*** Revenues*** * 2nd Qtr…
  17. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 17
    Multiple oil targets 4,500-ft laterals 6.5 - 7 MM average well Hardy 16-14-74-39SXH WOC cost WI: 46% Hardy 4-23-39-74SXH Average Sussex EUR: 450 Peak 24-hour rate: Sussex to 525 Mboe/horizontal well 1,606 Boe Completed 6/2012…
  18. Barclays Capital CEO Energy Power Conference – 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. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 19
    Pad 1 RW 23-23B 24 Wells 20-acre bottom hole locations Pad 2 Future possible 10-acre RW 44-22B bottom hole locations 16 Wells Estimated 20-acre drainage ellipses Estimated 10-acre drainage ellipses 20
  20. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 20
    QEP net production (MMcfepd) QEP PDP well 280 240 Other operators (No QEP interest) 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 to…
  21. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 21
    64 61 Average Days Spud to TD 45 42 35 28 23 17 13.8 13.4 Record 9.8 days 22
  22. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 22
    QEP net production Dewey Co. 60 (MMcfepd) Blaine Co. 50 40 30 20 Kingfisher Co. 10 Custer Co. 0 Proved reserves 303 Bcfe* TIER II: 86 PUD locations* 41,600 net acres 3,360 additional potential locations Caddo Co. Canadian…
  23. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 23
    60 QEP net production 50 (MMcfepd) 40 5 30 20 10 10 2 1 0 7 MM average operated well costs 9 EUR 500 MBoe to 1,200 MBoe/well 7 8 3 Operated well currently completing: 6 1. Jolly 21 SL 7H (81% WI) After processing peak…
  24. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 24
    BOSSIER WEBSTER QEP net production HARRISON TX LA CADDO 360 (MMcfepd) BIENVILLE 300 240 180 PANOLA 120 60 0 DE SOTO RED RIVER CV/Hosston Haynesville RUSK NATCHITOCHES SHELBY Proved reserves 685 Bcf* 98 PUD locations*…
  25. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 25
    Gross Avg. Net NYMEX Avg. Remaining Gross Finding Price Play Working Locations (as EUR Cost 10% BTAX Interest of Nov. 2011) (Bcfe/well) (/Mcfe) ROR** Pinedale 1,100 60% 4.6 1.06 2.05 Bakken + 420 80% 550* 21.86* 65.50 Three…
  26. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 26
    WY NW Louisiana CO2 treating / blending: 600 MMcfpd Gathering: 179 miles W. Green River Basin UT Interstate pipeline connections: 4 Processing: 840 MMcfpd CO Gathering: 886 miles Rendezvous transmission: 21 miles Interstate pipeline…
  27. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 27
    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,…
  28. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 28
    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 29
  29. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 29
    Visible organic production and reserve growth potential of 12 to 15+% per year from existing assets Acreage in core of high-quality, repeatable resource plays Concentrated, contiguous QEP-operated land positions Track record as…
  30. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 30
    The Resource Growth Company QEP Resources, Inc.
  31. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 31
    Gas, oil and NGL derivatives as of 7/31/12 (prices before deducts) 0.9 MMBbls Oil 97.03 / Bbl 0.7 MMBbls Oil 0.9 MMBbls Oil 87.50 115.36 / Bbl 104.12 / Bbl 0.5 MMBbls Ethane & Propane, 43.01 / Bbl 92.7 Bcf Gas 94.3 Bcf Gas 5.17…
  32. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 32
    1,500 1,500 MM 1,250 Revolving Credit 0 MM drawn 2.00% 1,000 6.875% 750 625.0 5.375% 300 MM Term Loan 500.0 500 2.82% 300.0 6.80% 6.80% 250 176.8 134.0 136.0 6.05% 0 2012 2013 2014 2015 2016 2017 2018 2019 2020…
  33. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 33
    1.11 B 1.48 B 1.44 B 1.55 B* 9% 33% 68% 84% 91% 67% 32% 16% 2009 Capital 2010 Capital 2011 Capital 2012 Capital Budget Liquids Driven + Fee Based Projects Low-Cost Gas Projects *Top end of guidance range 34
  34. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 34
    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…
  35. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 35
    Production Type Curve Capital Return Price Sensitivity 800 60% 50% 650 MBo 600 BTAX ROR 40% BOEPD 550 MBo 400 30% 450 MBo 20% 200 10% 0 0% 0 20 40 60 80 100 120 75.00 80.00 85.00 90.00 95.00 Months on Production…
  36. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 36
    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…
  37. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 37
    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…
  38. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 38
    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…
  39. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 39
    Inventory Life at 2012 Activity Levels (Yrs) 80 75 Gross Unrisked Remaining Locations 60 4,000 3,200 3,360 40 3,000 22 21 20 11 14 8 2,000 0 1,100 1,200 1,000 715 420 0 QEP Energy Net Capex (MM) 8,000 6,720 6,000 5,578…
  40. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 40
    QEP Field Services Gobblers Knob Southwest Wyoming assets and Blacks Fork Processing Complex Blacks Fork Processing Complex Clear Creek Storage (100% ownership/capacity) Emigrant Trail Cryo Clay Basin Plant (QEP…
  41. Barclays Capital CEO Energy Power Conference – QEP Resources, Inc. – slide 41
    FACT SHEET CORPORATE DATA ANALYST CONTACTS Ticker symbol and stock exchange: QEP NYSE Richard J. Doleshek Executive Vice President, Spin-off from Questar Corporation: Distribution date June 30, 2010 to shareholders of record Chief…

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