MAGNUM HUNTER RESOURCES CORPORATION Marcellus Midstream Conference & Exhibition March 2012
Corporate Overview Market Capitalization 960 MM Enterprise Value 1,360 MM Net Debt/Total Cap 28% YE 2011 Exit Rate 12,500 BOE/D YE 2012 Exit Rate (Est.) 16,000 BOE/D Proved Reserves 45 MMBOE Resource Potential 538 MMBOE…
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…
Current Portfolio Overview Focused exclusively on three unconventional resource plays 69,299 Net Acres 58,426 Net Marcellus Acres 61,151 Net Utica Shale Acres 313,000 Net Southern Appalachia Acres 24,000 Net Acres…
Platform for Continued Growth December 31, 2011* December 31, 2011* Proved Reserves: 44.9 Mmboe Proved Reserves by Region 48% Oil / Liquids Eagle Ford PDP PUD 13.7% 46.1% 50.9% 66.6% 19.7% Appalachia Williston Basin 3%…
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. Total proved reserves of 30.1…
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…
Appalachia Shale Has Best Gas 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) 10
Triad Hunter Liquids Rich Marcellus Shale Pennsylvania Ohio Marcellus Properties / Operations: 58,426 Net Marcellus Acres Todate thirteen wells have been drilled and completed Seven wells in Tyler County, WV Five wells in Wetzel…
Marcellus Operations MHR Lateral Frac IP Rate (mcfe/d) First Well County Operator Interest Length Stages 24 Hour 7day 30day 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 5,431…
Economic Sensitivity of Marcellus Economic Sensitivity of Marcellus Completed Well Cost - 6.5 MM High Case Type Curve Middle Case Type Curve Low Case Type Curve IP: 7 Mmcf/D IP: 5 MMcf/D IP: 4 MMcf/D High Case Initial Decline: 98%…
Utica Shale Overview On February 17, 2012, MHR closed on the acquisition of 12,186 net Utica Shale acres for approximately 25 million (2,037/acre) The acreage is predominantly located in Noble County, OH Wet The majority of the…
Eureka Hunter 15
Eureka Hunter Pipeline Overview 20 inch high pressure gathering system / 300 mmcfd design 45 miles in ground additional 17 miles by mid summer Full processing services via MarkWest Mobley site 320 mmcf / day Laterals planned…
Eureka Hunter Pipeline Overview Eureka Hunter Eureka Hunter 20 Pipeline(s) and Right of Ways and Connecting Gathering Systems PA Ohio and West Virginia MarkWest Mobley Plant Eureka Carbide Ohio Plant Mobley to TCO Dominion…
Eureka Hunter Pipeline Geographical Map OHIO WEST VIRGINIA 18
Eureka Hunter Pipeline Business Model Reservation, commodity rate design and/or acreage dedication contracts Ensured cash flow through demand based structure o Reservation fees for contracted Maximum Daily Quantity (MDQ) o Commodity…
Eureka Hunter Carbide Facility 240 Acre MultiUse Facility Site in Eastern Wetzel County Rail Siding off CSX Rail Line Frac sand handling and storage 5,000 tons Frac Water Storage 4,000,000 gallons Produced Water Storage…
Eureka Hunter Carbide Plant 1930s 21
Eureka Hunter Carbide Facility Frac Water Storage CSX Rail Siding Frac Sand Storage Condensate Handling Rail Car Facilities Central Gas Compression 22
Eureka Marcellus Exposure MARCELLUS Triad Hunter Equity Production 23
Utica Exposure UTICA Triad Hunter Acreage 24
Beverly Bell Pipeline Concept Existing ROW Business opportunities: OHIO Oil Gathering to Ohio River TRIAD UTICA Gas Gathering NGLs to Ohio River TENNESSEE TETCO LEGEND: 8 Oil Line Oil Storage 20 Wet Gas 4 NGL Cryo…
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. Caris &…