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IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp

Questar Corp · Apr 14, 2010 · 33 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. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 1
    A Natural Gas-Focused Energy Company IPAA Oil & Gas Investment Symposium New York, NY April 14, 2010
  2. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 2
    EBITDA contribution Questar Exploration & Full Year 2009 Production Wexpro Market 11% (Exploration & Production) Resources 82% 10% Questar Gas Management (Gathering and Processing) 61% 10% Questar Pipeline (Interstate Gas…
  3. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 3
    3,000 2010E 230 210-215 Proved YE reserves (Bcfe)* 210 2,500 10-year (1999-2009) CAGR: 16% 190 2,000 170 150 1,500 130 1,000 110 90 500 Production (Bcfe)* 10-year (1999-2009) CAGR: 9% 70 0 50 99 00 01 02 03 04 05 06 07 08…
  4. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 4
    Questar E&P EBITDA ( millions) 1,106.9 988.0 820.0- 870.0 749.8 638.9 452.3 2005 2006 2007 2008 2009 2010E 4
  5. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 5
    4Q09 production cash cost structure versus 42 E&P peers (LOE + production taxes + G&A + interest) 8.00 6.00 Questar E&P Average 1.57/Mcfe 3.18/Mcfe 4.00 2.00 0.00 Source: Company data and Credit-Suisse E&P Stat Sort, March 23,…
  6. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 6
    2009 CAPEX 2010 CAPEX Forecast 1.50 Billion 1.58 Billion Wexpro 100 Gas Management Wexpro 290 116 Questar E&P* 1,110 Gas Management Questar E&P* 88 900 Pipeline 161 Pipeline 101 Questar Questar Gas Gas 129 83 *2009…
  7. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 7
    Growth driven by two world-class assets - Pinedale and Haynesville Additional growth from emerging resource plays - Bakken, Granite Wash, Woodford / Cana 2010 production guidance 210 - 215 Bcfe - Over 75% hedged and up 11 - 13% vs.…
  8. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 8
    2009 YE Reserves (Bcfe)* QEP: 2,747 Wexpro**: 676 Questar E&P Rockies Pinedale 1,646 Anticline (60% of reserves) Bakken Questar E&P Midcontinent 1,101 Wexpro 676 Woodford Shale 2009 Production (Bcfe) Uinta Basin QEP: 189.5…
  9. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 9
    QEP proved reserves 592 Bcf* 38 producing wells TX LA 276 PUD locations* Over 925 additional unbooked locations on 80-acre density 7 operated rigs 8 9 MM completed well cost EUR 6 8 Bcf/well * As of December 31, 2009…
  10. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 10
    Reported initial production (IP) a rates for Haynesville wells (MMcfd) 28 5 15-20 6 2 9 5-10 20 3 33 31 10-15 8 Questar E&P 18 29 32 drilling / completing 14 Questar E&P 11 30 1 10 15 23 waiting on completion Initial…
  11. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 11
    Concentrated asset Questar operated Proven play QMR leasehold 17,872 gross acres Low F&D and LOE Downspacing potential Developed infrastructure Pinedale Field Gathering and processing 11
  12. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 12
    Questar E&P proved reserves 1.3 Tcfe* 427 producing wells at 12/31/09 432 PUD locations on combination of 5,10, and 20-acre density* Up to 970 additional unbooked locations on combination of 5- and 10-acre density 10-acre density…
  13. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 13
    Questar E&P proved reserves 104 Bcfe a 53 producing wells 5 76 PUD locations a Over 1,525 additional unbooked locations on 80-acre density 18.4% average working interest 13 wells drilling or WOC 2 1 or 2 operated rigs in 2010…
  14. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 14
    Questar E&P Net production from Granite Wash/Atoka 40 From Map Area 30 MMcfed 20 10 Price related curtailments 0 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jan-04 Jan-05 Jan-06 Jan-07…
  15. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 15
    Reported initial Production (IP) rates 4 9 3 12 7 22 for Granite Wash wells 11 1 (MMcfed) 6 16 28 29…
  16. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 16
    80,000 net acres 5,000 to 10,000-ft laterals Parshall/Sanish Field 5.5 - 6.5 MM completed well cost IPs: 750-3,000 bod EURs: 400-1,000 Mbo IPs of 500-3,000+ bod 350 to 750 Mboe/well Questar E&P Questar E&P MHA 1-13-14H 5th…
  17. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 17
    Over 1,300 identified unrisked locations Pinedale 340 locations* Approx. 1.3 B identified risked net CAPEX WY Successful-well costs added to investment base, dry holes excluded Moxa Arch/Labarge Platform Investment base…
  18. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 18
    Investment Base Net Income ( millions) ( millions) 439.5 410.6 80.7 73.9 300.4 59.2 260.6 50.0 206.3 43.7 182.8 35.3 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 18
  19. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 19
    Questar Gas Management Net Income ( millions) 81.5 69.4 55.3 42.6 35.7 21.0 2004 2005 2006 2007 2008 2009 19
  20. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 20
    WY Vermillion Basin Current processing/blending: 80 MMcfd Gathering: 600 miles QGM Operating income share: 7% Interstate pipeline connections: 1 W. Green River Basin Blacks Fork Hub UT CO Current processing/blending: 580 MMcfd…
  21. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 21
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  22. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 22
    Actual and Forecast EBITDA 2010 guidance effective 2/17/10 Billions EBITDA 1.45B-1.55B 1.76 1.64 1.45- 75% of estimated production 1.55 hedged Assumptions for unhedged 1.25 production: 1.09 - Gas: 5.00-6.00/MMBtu NYMEX 0.86 -…
  23. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 23
    Capitalization including short-term debt ( millions) 5,800 5,906 41% 40% 3,961 3,273 35% 2,441 2,628 33% 41% 41% 59% 59% 67% 65% 59% 60% 2004 2005 2006 2007 2008 2009 Equity % Total Debt % 23
  24. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 24
    1. Fast-growing, high-quality E&P - Large inventory of development locations - Low operating costs - Competitive F&D cost - 12 - 15% annual production growth 2. Supported by businesses with stable cash flow - Rest of Questar adds to…
  25. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 25
    A Natural Gas-Focused Energy Company IPAA Oil & Gas Investment Symposium New York, NY April 14, 2010
  26. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 26
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  27. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 27
    LNG imports More N.A. drilling Hedge Weather Acquisitions less likely Recession DEMAND DESTRUCTION 8.00/MMbtu NYMEX EQUILIBRIUM RANGE 6.00/MMbtu DEMAND RECOVERY LNG delays Less N.A. drilling Dont hedge Weather Economic…
  28. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 28
    Gas and oil hedges as of 2/17/10 (Volumes and net-to-well prices) 28 Bcf gas collars 7 Bcfe oil collars 5 Bcfe oil 4.63-6.66 / Mcf 51.73-102.10 / bbl 7 Bcf gas collars 60.66 / bbl 4.65-6.51 / Mcf 41 Bcf gas 4 Bcfe oil collars 5.91 /…
  29. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 29
    Questar Net Income ( millions) Pipeline 58.0 58.2 Wexpro producing 45.4 45.0 areas Overthrust 34.8* Pipeline ID Producing 27.6 Opal basins UT Wamsutter Kanda WY 2004 2005 2006 2007 2008 2009 Clay CO Basin Total system:…
  30. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 30
    Opal Ruby Roberson Creek Rock Springs Point of Rocks Compression Compression Roberson Blacks Fork Wamsutter REX Compression WIC Cabin 31 Kanda REX Overthrust Loop Overthrust Compression Expansion Expansion Facilities: 44…
  31. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 31
    Net Income ( millions) 41.6 40.2 IDAHO 37.0 37.4 WYOMING 36.0 Logan 31.5 Rock Springs Ogden Salt Lake City Park City Provo UTAH Price COLORADO 2004 2005 2006 2007 2008 2009 Questar Gas Cities served: 277 Major cities…
  32. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 32
    Key Metrics Return on capital Earned allowed return past 4 years Efficiency Ranks 3rd of 73 in O&M / customer Overall rates Among lowest in U.S. Customer growth Above U.S. average Revenue decoupling Pilot program in effect Test year…
  33. IPAA OIL & GAS INVESTMENT SYMPOSIUM – Questar Corp – slide 33
    Dividends / payout ratio / yield Quarterly dividend 0.49 0.51 0.13 per share 0.47 0.49 0.43 0.45 36 increases in 37 years 0.39 0.35 0.36 0.52 annualized dividend 1.2% yield on 42.00 stock price * 2001 2002 2003 2004 2005 2006…

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