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INVESTOR PRESENTATION – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Mar 1, 2015 · 52 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. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION Investor Presentation March 2015
  2. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 2
    Who We Are Magnum Hunter Resources is an exploration and production company focused in two of the most prolific unconventional resource shale plays in North America; the Marcellus and Utica Shales of West Virginia and Ohio Redirected…
  3. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 3
    Where We Operate A natural gas focused company with assets based in the heart of the Marcellus and Utica Shale plays 175 mile gas gathering system strategically located in Ohio and West Virginia moving over 400,000 MMBtu/d with seven…
  4. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 4
    Production Growth 2013 production increased 92% to 14,831 Boepd(1) compared to 7,739 Boepd in 2012 2014 reported production increased 44% compared to 2013 2015 estimated production anticipated to increase 77% - 101% compared to 2014…
  5. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 5
    Proved Reserve Growth Consistency Track record of proved reserve growth since inception Approximately 83.8 MMBoe of proved reserves at December 31, 2014 (70.2% natural gas) Expect to significantly increase proved reserves in the Utica…
  6. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 6
    Reserves Summary Extensive inventory of low-risk development drilling locations in the Marcellus Shale and Williston Basin Significant exploration potential in the wet/dry gas window of the Utica Shale in Ohio and West Virginia…
  7. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 7
    Growth Plan Continues EBITDAX Revenue 450 391.5 400 350 300 280.4 250 ( MM) 200 150.5 150 140.4 112.4 100 76.2 66.5 50.4 50 28.6 4.2 0 2010 2011 2012 2013 2014 * See Appendix of this presentation…
  8. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 8
    Breakdown of Capital Expenditures 2015 Capital Budget Breakdown Appalachia Williston Leasehold Acquisition 20% 10% 70% Total: 100 Million 7
  9. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 9
    Substantial Leasehold Inventory Developed Undeveloped (1) (2) As of September 30, 2014 Acreage Acreage Total Acreage Gross Net Gross Net Gross Net (3) Appalachian Basin Marcellus Shale 58,334 57,908 28,066 22,651 86,400 80,559…
  10. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 10
    Appalachian Division (Ohio, West Virginia and Kentucky) 9
  11. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 11
    Appalachian Division Overview Overview Areas of Operation Proved Reserves and PV-10 Total proved reserves of 75.9 MMBoe as of 12/31/14 Proved producing reserves of 50.3 MMBoe as of 12/31/14 PV-10 of 765.8 million as of 12/31/14…
  12. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 12
    Marcellus Shale Recent Well Results Marcellus Operated Well Results IP 24-hr avg. rate (Mcfe/d) IP 30-day avg. rate (Mcfe/d) Frac Stages () 18,000 17,028 17,116 16,847 Recently Completed Wells 16,000 14,000 13,321 12,854 12,832…
  13. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 13
    NGL Uplift in Appalachia Following the startup of the Mobley Processing Plant in December 2012, Magnum Hunter has realized an uplift in NGLs on a per wellhead Mcf basis between 0.50 - 1.00 The Company has 200 MMcf/d of dedicated…
  14. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 14
    Economic Sensitivity of Marcellus Magnum Rich Assumptions for 2014 Case: CAPEX: 7.0 million per well EUR: 11.0 Bcfe (includes NGL) 2014 Case 16 14 IRR: 88% 12 IRR: 75% Single Well NPV-10 ( MM) IRR: 63% 10 IRR: 52% 8…
  15. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 15
    Marcellus Shale NOBLE MHR - Ormet 9 Pad MONROE MHR/Eclipse - McIntire Pad MHR - Ormet 15 Pad Mark West Mobley MHR/Eclipse - Stalder Pad WETZEL Facility Fractionation Eclipse/MHR - Herrick Pad Eureka - Carbide Compression…
  16. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 16
    Results Indicate Best Shale Play in US Shale Play Comparison Chart Ohio/West Va./Penn. Wyoming/Colorado Texas N. Dakota Utica Shale / Parameter Point Pleasant DJ Basin Niobrara Eagle Ford Bakken Lithology Calcareous Shale…
  17. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 17
    Major Players in the Utica: Who They Are Company Ticker Net Acres EV (MM) Acres/EV Chesapeake Energy CHK 1,000,000 34,063 29 Chevron CVX 600,000 233,468 3 Anadarko Petroleum APC 267,000 57,360 5 Devon Energy DVN 195,000 30,153 6…
  18. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 18
    Utica Asset Transactions Announced Total Transaction Implied Date Buyer(s) Seller(s) Value (MM) Acreage / Acre Feb-14 GPOR Rhino 185 8,200 22,561 Jan-14 American Energy Partners, LP Paloma Partners 442 26,000 17,000 Jan-14 American…
  19. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 19
    Stalder Pad Drilling Locations Magnum Hunter announced the initial production results from the first Utica horizontal well on the MHR - Stalder 3UH 32.5 MMCF 97% Methane Stalder Pad on 2/14/14 Tested at a peak rate of 32.5 MMCF of…
  20. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 20
    Pad Drilling in Appalachia 19
  21. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 21
    Stewart-Winland Pad Drilling Locations The Stewart-Winland Pad located in Tyler County, WV has seven planned Tyler County, West Virginia laterals Magnum Hunter Acreage MHR / JV Partner Acreage Four wells have been drilled and…
  22. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 22
    Fracing Operations 21
  23. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 23
    Utica Shale Recent Well Results Note: MHR currently owns approximately 128,000 net acres in the Utica Shale 22
  24. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 24
    Best in Class Dry Gas Utica Peak Peak Rate Rate Lateral Well Name County Operator (MMcfe/d) (Boe/d) % Gas Length Stages Stewart Winland 1300U Tyler, WV MHR 46.5 7,750 100% 5,289 22 Bigfoot 9H Belmont, OH RICE 41.7 6,948 100% 6,957 40…
  25. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 25
    New Marcellus/Utica Production Planned in 2015 (2) (2) MHR Working MHR Net Estimated Gross Production Estimated Net Production Anticipated (1) Well Name Location Interest Revenue Interest Boe/d (3) Mcfe/d Boe/d (3) Mcfe/d Timing…
  26. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 26
    Eureka Hunter Midstream 25
  27. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 27
    Eureka Hunter Highlights Strategically located asset base Northern West Virginia (Primary: Tyler, Ritchie, Wetzel, Pleasants, Doddridge Location Secondary: Marion, Harrison, Lewis, Monongalia) Southeastern Ohio (Monroe, Washington)…
  28. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 28
    New Strategic Partner In early October 2014, an affiliate of Morgan Stanley Infrastructure Inc. (MSI) purchased all convertible preferred and common equity interests in Eureka Hunter Holdings, LLC, previously owned by ArcLight…
  29. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 29
    Contracted vs. Gathered Volumes Eureka Hunter Pipeline 1Q 2013 2Q 2013 3Q 2013 4Q 2013 1Q 2014 2Q 2014 3Q 2014 4Q 2014 High Pressure Reservation Volume (MMBtu/d) Magnum Hunter 87,950 92,339 75,000 75,000 83,500 96,000 111,400 135,000…
  30. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 30
    Eureka Hunter Utica Exposure MARSHALL Clairington MarkWest Hub Seneca Blue Racer Berne Blue Racer Natrium Ormet Wells NOBLE MONROE PENN W.V. Farley Units Stalder Units WETZEL MORGAN MarkWest Dominion Mobley Eureka…
  31. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 31
    Eureka Hunter Utica Exposure 30
  32. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 32
    How Do We Measure Up Gathering Capacity Marcellus / Utica Operations Summit Midstream mcf/d, 1050 Eureka Hunter mcf/d, 1500 Crestwood Midstream mcf/d, 700 Markwest Midstream mcf/d, 1000 EQT Midstream mcf/d, 1940…
  33. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 33
    Appalachia Differentials Appalachia Net Demand Overview 12.0 Seasonal winter demand to drive better pricing in Q4 2014 and Q1 2015 10.0 8.0 Pricing improvements in 2015+ expected as year- over-year demand is positive 6.0 New…
  34. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 34
    Midstream Outlook Proposed Interstates Pipeline Project Receipt Area Delivery Area Capacity Rate In Service Domion Transmission Lebanon West Cadiz Plant-Harlem Springs Lebanon 350,000 Tariff Nov-13 ANR 2014 Lebanon Reversal Lebanon…
  35. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 35
    Eureka Hunter Pipeline - Construction Challenging Terrain Welding Up Pipeline Strung Pipe Before Connection Being Lowered 34
  36. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 36
    TransTex Hunter TransTex Hunter, LLC (TransTex) founded in 2006; acquired by Eureka Hunter in April 2012 and operates as a wholly-owned subsidiary Designs and fabricates gas treating plants out of its 10-acre fabrication yard Assets…
  37. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 37
    TransTex Hunter Amine Plants 36
  38. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 38
    Alpha Hunter Drilling 37
  39. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 39
    Drilling Fleet Overview Current fleet of six (6) drilling rigs: One (1) Schramm TXD 500 Rig 7 o Spud first well (Stalder Pad) on July 1, 2013 o Contract Rate of 24,000/day o Two (2) year term with Triad Hunter Five (5) Schramm TXD…
  40. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 40
    Alpha Hunter Growth Continues 35 30 Revenues ( in millions) 25 20 15 10 5 0 2010 2011 2012 2013 2014 Revenues 39
  41. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 41
    Alpha Hunter Experience Company of Wells Drilled AEP 14 Bretagne 1 CNX Gas 8 Consol 3 Central WV Oil & Gas 1 Dominion 34 Eagle Ford Hunter 15 Eclipse 44 EQT 342 EXCO Resources 57 Green Hunter Water 4 Hildreth 7 PetroEdge 1…
  42. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 42
    Williston Basin Assets (Non-Core Assets) 41
  43. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 43
    Williston Basin Overview Areas of Operation Overview Proved Reserves and PV-10 Total proved reserves of 7.9 MMBoe as of 12/31/14 Proved producing reserves of 5.2 MMBoe as of 12/31/14 Total Proved PV-10 of 143.5 million as of…
  44. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 44
    Financial Overview 43
  45. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 45
    Financial Strategy Capital spending driven by rates of return across all operating areas 2015 capital budget of 100 million will focus predominately on high return areas in the Appalachian Basin Closed Calgary and Denver offices in…
  46. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 46
    Adjusted EBITDAX Reconciliation FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 Net income (loss) from continuing operations ( 22.3) ( 76.7) ( 119.7) ( 204.1) ( 137.8) Unrealized (gain) loss on derivatives 3.1 4.2 ( 10.9) 17.1 73.6 Net…
  47. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 47
    Non-Core Divestiture Overview Focused on divesting non-core assets to redeploy capital into Utica / Marcellus Over 700 million raised since beginning of 2013 Asset Sales Value (MM) Completed in 2013 Eagle Ford Sale 401.0 Gain on…
  48. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 48
    Crude Oil and Natural Gas Hedges Crude Oil 2014 2015 2016 NYMEX Average (1) 94.03 90.56 88.08 Weighted-Average Hedge Price With Ceilings 100.90 115.93 - Weighted-Average Hedge Price With Floors 85.00 85.00 - Weighted-Average…
  49. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 49
    MHR Net Asset Value* Assumptions Valuation ( in thousands) Low High Low High (1) Total Proved Reserves PV-10 (12/31/2014) 909,300 909,300 /acre (2) Undeveloped Acreage Low High Williston Basin U.S. 42,700 3,000 5,000 128,100…
  50. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 50
    A Focused Company on the Right Path Proven management and technical team in place committed to proper capital allocation for future growth Successful proven track record in the development and highgrading of key resource plays in…
  51. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 51
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets MLV Partners Canaccord Genuity RBC Capital Markets Capital One Southcoast Robert W. Baird &…
  52. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 52
    Appendix Net Asset Value Although Magnum Hunter does not consider Net Asset Value and Net Asset Value Per Share to be non-GAAP financial measures, as defined in SEC rules, Magnum Hunter uses Net Asset Value as an estimate of fair value.…

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