MAGNUM HUNTER RESOURCES CORPORATION DUG East Conference November 15-17, 2011 Pittsburgh, PA
Corporate Overview Market Capitalization 600 MM Net Debt/Total Cap 20% Current Production 8,400 BOE/D YE 2011 Exit Rate (Est.) 10,000 BOE/D YE 2012 Exit Rate (Est.) 13,000 BOE/D Proved Reserves 37 MMBOE Resource Potential…
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 4
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…
Platform for Continued Growth September 30, 2011* September 30, 2011* Proved Reserves: 37.0 Mmboe Proved Reserves by Region PDNP Eagle Ford 6% 18% PUD 46% 61% 21% 48% Appalachia Williston Basin PDP 52% Oil / Liquids…
Appalachia 7
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 23.0…
Appalachian Production 5,900 BOE/D 25% Liquids 9
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…
Triad Hunter Liquids Rich Marcellus Shale Pennsylvania Ohio Marcellus Properties / Operations: 62,200 Net Marcellus/Utica Acres To-date eight wells have been drilled and completed Four wells in Tyler County, WV Five wells in…
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…
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…
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…
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…
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…
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) 17
Eureka Hunter 18
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…
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…
Eureka Hunter Pipeline Key Points 20 - 900 psi gathering system. Maximum allowable operating pressure 1,000 psi 200 300 Mmcf per day design capacity could be increased Strategically located in heart of Marcellus wet gas corridor of…
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…
Eureka Filling Void in Northern WV MHR Acreage WI 100% or HBP MHR Acreage…
11/17/2011 Utica Shale Overview The Utica Shale: The Utica extent extends for 170,000 sq miles (Nearly twice the size of the Marcellus Shale extent) Big players are attracted to Utica including CHK, Range, Consol, Devon,…
Construction Photos 25
Company Overview 26
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…
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. 30
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…
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…
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…
Summary 34
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…
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…
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