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NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Nov 1, 2011 · 45 slides

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Slides

  1. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION Corporate Presentation November 2011
  2. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 2
    Executive Summary Magnum Hunter Resources is focused exclusively on three of the most prolific unconventional resource plays in the United States: South Texas Eagle Ford Shale Appalachia Marcellus Shale / Utica / Huron / Weir North…
  3. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 3
    MHR Overview Magnum Hunter has the following characteristics today: 650 million in market capitalization Net debt-to-total capitalization of 20% Current daily production of 8,400 boe/d Projected year-end 2011 production exit rate…
  4. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 4
    Current Portfolio Overview Focused exclusively on unconventional resource plays 81,740 Net Acres 58,048 Net Marcellus Acres 16,000 Net Utica Shale Acres 273,000 Net Southern Appalachia Acres 24,872 Net Acres 5
  5. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 5
    IRRs of Top U.S. Shale Plays MHR Active Resource Plays 60% 51% 50% 47% 40% 34% 34% 30% 25% 25% 23% 22% 20% 19% 20% 18% 16% 16% 14% 14% 13% 11% 10% 8% 7% 7% 5% 2% 0% Year: 1 2 3 4 5 6 7 8+ WTI Oil: 93.18 87.55…
  6. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 6
    Capital Expenditure Budget 2011 Capital Budget - 255 Million 2012 Capital Budget - 200 Million Appalachia - 70 mm Williston Basin - 70 mm Appalachia - 50 mm Williston Basin - 50 mm 27.5% 27.5% 25% 25% Eureka Hunter Eureka…
  7. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 7
    Projected Production Growth Natural Gas Oil / Liquids Shut-in 14,000 13,000+ 12,000 10,000+ 10,000 8,500 Boe/d 8,000 6,020 6,000 5,747 (2) (1) 5,270 4,947 4,000 2,269 2,000 0 1Q11A 2Q11A 3Q11A 4Q11E…
  8. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 8
    Production Growth Forecast Oil/Liquids Natural Gas 14,000 12,000 10,000 8,000 Boe/d 6,000 4,000 2,000 0 1Q 2011A 2Q 2011A 3Q 2011A 4Q 2011E 1Q 2012E 2Q 2012E 3Q 2012E 4Q 2012E 2,269 boe/d 4,947 boe/d…
  9. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 9
    Third Quarter 2011 Production 9,000 8,400 8,000 7,500 7,000 6,000 5,891 5,034 5,000 4,905 Boe/d 4,000 3,000 2,000 1,000 0 July 2011 Aug 2011 Sept 2011 Oct 2011 Current Est. Est. 10
  10. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 10
    Proved Reserves June 30, 2011 September 30, 2011(1) Proved Reserves: 31.2 Mmboe Proved Reserves: 37.0 Mmboe 55% Oil/Liquids 52% Oil/Liquids PDNP PDNP 6% 8% PUD PUD 42% 46% 48% 50% PDP PDP (1) Based on internal reserve…
  11. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 11
    Williston Basin 12
  12. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 12
    Williston Hunter Overview Proved producing reserves of 2.7 MMBoe as of June 30, 2011 (1) Proved Reserves Total proved reserves of 7.8 MMBoe as of June 30, 2011 R/P ratio of approximately 18.7 years 90 % crude oil Production 85 %…
  13. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 13
    Williston Hunter Areas of Operation 75% Avg. WI 35,240 net acres 10% Avg. WI 30% Avg. WI 28,350 net acres 11,700 net acres 50% Avg. WI 6,450 net acres Recently Acquired MHR Existing NuLoch Assets Assets 14
  14. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 14
    Williston Hunter Operations Overview Gross of Wells of Wells Drilled of Wells Average TFSanish IP Rates (boe/d) Wells Completed Awaiting Currently 24 hour 7-day 30-day Producing 2011 Completion Being Drilled North Dakota 2 mile…
  15. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 15
    Williston Basin Economics Sensitivity North Dakota (2 mile lateral) Saskatchewan (1 mile lateral) North Dakota (2 mile lateral) CAPEX: 6.9 Million CAPEX: 3.4 Million IP-24 Hour: 550 Bbl/D IP-24 Hour: 250 Bbl/D Saskatchewan (1 mile…
  16. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 16
    Eagle Ford Shale 17
  17. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 17
    Eagle Ford Hunter Overview Proved producing reserves of 1.3 MMBoe as of June 30, 2011 (1) Proved Reserves Total proved reserves of 4.5 MMBoe as of June 30, 2011 R/P ratio of approximately 15.5 years 85 % crude oil, with high btu…
  18. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 18
    Eagle Ford Shale Oil Window Magnum Hunter Resources Focused in the Oil Window HIGHLIGHTS 11 producing wells (9 operated, 2 non-op) 51,664 gross / 24,872 net acres leased in focus areas with 190+ possible EFS horizontal…
  19. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 19
    Eagle Ford Hunter - Operations MHR Lateral Stages IP Rate (Boe/d) Well County Operator Interest Length Fraced 24-hour 7-day 30-day First Production MHR Operated (Gonzales/Lavaca County): Gonzo Hunter 1H Gonzales MHR 50% 4,365 9 of 11…
  20. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 20
    Eagle Ford Hunter Gross Production Gonzo Hunter 1H Lagunillas 2H Lagunillas 1H Southern Hunter 1H Gonzo North 1H Cinco 2H Cinco 1H Furrh 1H Geo Hunter 1H Oryx Hunter 1H Sable Hunter 1H 4,000 3,500 3,000 2,500 Boe/d…
  21. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 21
    Economic Sensitivity of Eagle Ford Gonzales County High Case: Mid Case: Low Case: Capex: 8.0MM + .02MM PU Capex: 8.0MM + .02MM PU Capex: 8.0MM + .02MM PU IP-24 Hour: 1,280 bbl/d IP-24 Hour: 800 bbl/d IP-24 Hour: 613 bbl/d Initial…
  22. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 22
    Appalachia 23
  23. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 23
    Appalachia Overview Magnum Hunters Appalachia assets are a combination of multiple acquisitions Magnum Hunter has completed over the past year and a half including Triad, NGAS, PostRock, and Windsor. Proved producing reserves of 11.6…
  24. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 24
    Appalachia Areas of Operation Primary focus on liquids rich Marcellus gas in northwest West Virginia Triad Hunter NGAS Hunter The Marcellus is one of the most attractive shale plays in the United States Ohio The Marcellus has one…
  25. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 25
    Triad Hunter Liquids Rich Marcellus Shale Pennsylvania Ohio Marcellus Properties / Operations: 58,048 Net Marcellus Acres To-date eight wells have been drilled and completed Four wells in Tyler County, WV Five wells in Wetzel…
  26. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 26
    Marcellus Operations MHR Lateral Frac IP Rate (mcfe/d) First Well County Operator Interest Length Stages 24 Hour 7-day 30-day Production Weese 1H Tyler MHR 100% 3,550 12 7,210 4,559 4,205 12/31/2010 Weese 3H Tyler MHR 100% 3,030 12…
  27. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 27
    Triad Hunter Gross Marcellus Production (1) (2) (2) (2) (2) (2) Weese 1001 Weese 1003 Ormet 1-9H Stone Unit 2 - 2H Stone Unit 3 - 5H WVDNR 1102 WVDNR 1103 WVDNR 1104 WEESE 1110 40,000 35,000 30,000 25,000 mcfe/d…
  28. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 28
    Economic Sensitivity of Marcellus Economic Sensitivity of Marcellus Gas Price, /MMBtu High Middle Low Completed Well Cost - 5.0MM High Case: Middle Case: Low Case: IP-24 Hour: 7 Mmcf/D IP-24 Hour: 5 MMcf/D IP-24 Hour: 2.5MMcf/D…
  29. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 29
    Utica Shale Overview MHR has approximately 20,000 gross / 16,000 net acres that are prospective for the Utica Shale Wet MHR has Utica potential in: Gas Monroe County, OH Noble County, OH Washington County, OH Tyler County, WV…
  30. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 30
    Southern Appalachia Overview NGAS Hunter Operations: Kentucky Since the close of the NGAS transaction, seven wells have been successfully drilled and completed Two additional wells are scheduled for fracture stimulation in Fonde…
  31. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 31
    Appalachia Shale Has Best Economics Estimated Gas Price Required for 10% IRR 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Source: Morgan Stanley Research Report (January 2011) 32
  32. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 32
    Eureka Hunter 33
  33. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 33
    Eureka Hunter Pipeline Background Acquired by Magnum Hunter from Triad Energy in February 2010 First Priority: Be there for Triad equity gas Upsized pipe to 20 inches to capture 3rd party producers Local producers need takeaway…
  34. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 34
    Eureka Hunter Pipeline - Overview Eureka Hunter Eureka Hunter 20 Pipeline(s) and Right of Ways and Connecting Gathering Systems MarkWest Ohio and West Virginia Mobley Plant Eureka Carbide Mobley to Site - Equitrans - TCO…
  35. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 35
    Eureka Filling Void in Northern WV MHR Acreage WI 100% or HBP MHR Acreage…
  36. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 36
    Eureka Hunter Pipeline Competitive Advantages: Building high pressure gathering in an area void of gathering capacity Maximize producer options for gathering, processing and market access Building pipeline facilities faster and more…
  37. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 37
    Financial Overview 38
  38. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 38
    Financing Highlights Senior Credit Facilities of 350 million provided by Amegy Bank, BMO, Capital One, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, KeyBanc, SunTrust Bank, UBS and Union Bank Revolving Credit Facility of up to…
  39. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 39
    Additional Equity Issued NuLoch Acquisition (VWAP of 7.40/share) 314 Million NGAS Acquisition (VWAP of 7.99/share) 56 Million PostRock Acquisition (VWAP of 7.92/share) 8 Million Total Equity Capital Issued in Acquisitions of 378…
  40. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 40
    Capitalization December 31, December 31, March 31, June 30, September 30, 2009 2010 2011 2011 2011 Cash and Cash Equivalents 2,281 554 3,836 4,750 10,687 (1) Notes Payable, Less Current Portion 13,000 33,151 35,798 145,791…
  41. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 41
    Summary of Commodity Hedges in Place (As of November 2011) 4th Qtr 2011 2012 2013 NATURAL GAS HEDGES: Swaps Volume (mmbtu/d) 111 98 0 Price - /mmbtu 5.98 6.15 N/A Collars Volume (mmbtu/d) 2,096 11,879 12,500 Floor Price - /mmbtu…
  42. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 42
    Financial Goals Continue to increase Senior Credit Facility borrowing base through reserve additions from organic growth through the drill bit Move allocated capital to higher IRR projects within the portfolio Continue to issue…
  43. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 43
    Summary Experienced and Seasoned Management Team and Board Significant Insider Ownership 15% Well Positioned in the Three Top Resources Plays in the US Diversified, Balanced Portfolio with Long Reserve Life Multi-Year Drilling…
  44. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 44
    Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets Pritchard Capital Canaccord Genuity Robert W. Baird & Co. Capital One Southcoast, Inc. Rodman & Renshaw. Global Hunter…
  45. NOVEMBER 2011 INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 45
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