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INVESTOR PRESENTATION – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Jul 3, 2013 · 40 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 July 2013
  2. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 2
    Who We Are Magnum Hunter Resources is an exploration and production company focused in three of the most prolific unconventional shale resource plays in North America, namely the Marcellus, Utica and Williston/Bakken Shale Current…
  3. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 3
    Where We Operate A well-balanced and concentrated asset base in large shale plays Secure footholds in West Virginia, Ohio, Kentucky, and North Dakota 190,000 Net Acres 81,000 Net Marcellus Acres 80,000 Net Utica Acres…
  4. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 4
    Production Growth 2012 Production increased 139% to 13,152 Boepd compared to 5,510 Boepd in 2011 Year-end 2013 exit rate guidance recently reaffirmed 23,000 25,000 17,000 14,145 14,587 12,984 12,624 9,124 5,270…
  5. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 5
    Proved Reserve Growth Consistency Robust track record of proved reserve growth since inception Approximately 73.1 MMBoe at December 31, 2012 (63% oil/liquids)(1) Anticipate continuing to consistently add proven reserves with an equal…
  6. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 6
    Proved Reserves Summary Proved Reserves up 63% in One Year Proved Reserves Summary(1) Net Proved Reserves as of Year-End 2012 (SEC PRICING) Liquids Gas Total Category (MMBbls) (Bcf) (MMBoe) % PDP 20.8 102.9 38.0 52.0% PDNP 1.8…
  7. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 7
    Operational Efficiency Improvements (/Boe) 61.95 5.01 34.43 30.18 3.72 21.23 13.36 3.13 7.43 22.51 13.10 10.67 2010 2011 2012 LOE Recurring Cash G&A Production Taxes 7
  8. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 8
    Growth Plan Continues EBITDAX Revenue 300 271.0 250 200 168.6 ( MM) 150 129.2 100 50.4 50 32.7 5.4 6.8 4.2 0 2009 2010 2011 2012 Note: New management team took over in May 2009 8
  9. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 9
    Substantial Leasehold Inventory Developed Undeveloped As of May 1, 2013 Acreage (1) Acreage (2) Total Acreage Gross Net Gross Net Gross Net Appalachian Basin (3) Marcellus Shale 63,198 62,490 24,978 18,511 88,176 81,001 Utica Shale…
  10. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 10
    Future Growth and Profitability Drivers To achieve consistent growth, we are committed to the following: Focus on developing and growing core assets in areas with the highest rate of return using our proven development expertise…
  11. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 11
    2013 Accomplishments to Date Our long-term strategic growth plan is reflected in recent events: January June: New wells drilled: Marcellus 13 Gross (7.5 Net) North Dakota 33 Gross (8.7 Net) Saskatchewan 1 Gross (.9 Net) April:…
  12. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 12
    A Focused Company on the Right Path Proven management and technical team in place committed to proper capital allocation for future growth Geographically diversified asset base in three of the most prolific shale plays in the US…
  13. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 13
    Appendix 13
  14. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 14
    Appalachia Overview Overview Areas of Operation Proved Reserves MHR areas of operations Total proved reserves of 36.5 MMBoe as of 12/31/12 Proved producing reserves of 24.1 MMBoe as of 12/31/12 Acreage Position 490,000 net…
  15. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 15
    Marcellus Operations Marcellus Well Results 10,500 10,400 10,000 9,700 9,700 9,600 9,500 9,471 9,563 8,340 7,998 7,210 7,078 6,542 6,337 6,361 5,800 5,618 5,614 5,413 5,274 5,329 5,040 4,836 4,716 4,205 3,875 3,360 2,789…
  16. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 16
    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 0.75 - 1.25 The Company has 200 MMcf/d of dedicated…
  17. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 17
    Economic Sensitivity of Marcellus CAPEX: 6.5MM EUR: 7.8 Bcfe (includes natural gas liquids) 14.0 IRR: 108% 12.0 3.81/MMBtu(1) IRR: 98% 10.0 IRR: 87% Single Well NPV-10 ( MM) IRR: 77% 8.0 IRR: 67% 6.0 IRR: 57% 4.0 IRR:…
  18. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 18
    Marcellus Shale Note: MHR owns approximately 81,000 net acres in the Marcellus Shale 18
  19. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 19
    Utica Shale Overview The Utica Shale extends approximately 170,000 square miles throughout the Total Organic Carbon Appalachia Basin in the United States and Canada Ordovician-aged organic rich black shale with interbedded limestone…
  20. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 20
    Potentially Best Shale Play in US 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 Chalk/marl…
  21. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 21
    Lithology The Point Pleasant Formation is actually a series of very Point Pleasant Core Photomicrograph thin, high-permeability carbonate stringers encased in organic-rich source rock Large gross interval provides huge amount of…
  22. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 22
    First Utica Pad Farley First Utica horizontal well in Washington County spud April 10, 2013 Farley Pad is designed to handle 4 horizontal wells Pilot Well has recently reached TD vertically at 8,164 feet, logged and cored Lateral…
  23. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 23
    Farley Pad Drilling Locations MHR - Farley Pad Four Planned Laterals Washington County Noble County 0 2000 4000 Magnum Hunter Acreage 23
  24. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 24
    Stalder Pad Drilling Locations MHR - Stalder Pad Eighteen Planned Laterals 0 2000 Magnum Hunter Acreage Marcellus Horizontal Well Utica Horizontal Well 0 2,000 FEET 24
  25. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 25
    Alpha Hunter T500XD Rig On May 7, 2013 Alpha Hunter took possession of a new state of the art robotic drilling rig Will be used to drill all 16 - 18 wells on the Stalder Pad over the next 18 months First well spud July 1, 2013 25
  26. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 26
    Utica Shale Recent Well Results Antero - Miley 5HA Gulfport - Stutzman 1-14H MUSKINGUM IP Rate: 3200 boe/d 4 Hour Rate: 9450 bbls NGL/d 1250 BTU Gas Well Not Rested +21.0 mmcf/d (4060 boe/d) Gulfport - Irons 1-4H Drilling Gulfport -…
  27. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 27
    Williston Hunter Overview Areas of Operation Overview Proved Reserves Total proved reserves of 24.0 MMBoe as of 12/31/12 Proved producing reserves of 9.9 MMBoe as of 12/31/12 Acreage 190,000 net acres in the Williston Basin…
  28. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 28
    Ambrose/Divide County 2013 Activity Areas of Operation Overview 2013 Drilling Program 30 gross, 10 net wells Targeting Sanish Three Forks and Middle Bakken Prolific Two-mile Lateral Wells IP 24-hour rates up to 1,200 Boepd IP…
  29. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 29
    Williston Hunter Recent North Dakota Well Results Williston (North Dakota) MHR results 24-Hr IP Rate 30-Day Average Production Rate of Frac Stages 1770 1549 1326 1352 1054 1085 1046 1033 990 910 842 859 874 868 836 833…
  30. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 30
    Williston Basin Economics Sensitivity North Dakota West (High Case) North Dakota West (Base Case) Saskatchewan (1 mile lateral) CAPEX: 7.1 Million CAPEX: 7.1 Million CAPEX: 3.5 Million EUR: 730 MBO EUR: 550 MBO EUR: 175 MBO…
  31. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 31
    Eureka Hunter Midstream Overview Strategically Positioned Assets Pipeline strategically located in heart of Marcellus wet gas corridor of WV 80 miles of 20 1135 MAOP gathering system in the ground to-date 350+ MMcf per day current…
  32. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 32
    Eureka Hunter Pipeline Geographical Map Constructed Line 32
  33. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 33
    Eureka Hunter Gathering Volumes Eureka Hunter Pipeline, LLC 2012 Avg. Jan-13 Feb-13 Mar-13 Apr-13 May-13E High Pressure Reservation Volume (MMBtu/d) Triad 40,000 87,950 87,950 87,950 91,117 91,117 Third-Parties 6,667 35,000 35,000…
  34. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 34
    Eureka Hunter Pipeline Three pipe solution at Carbide Challenging West Virginia Terrain Ohio River Bore into Ohio (McCormick & Evans) 34
  35. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 35
    Mobley Processing Plant Processing complex consists of three trains: 200 Mmcf/d + 200 Mmcf/d + 120 Mmcf/d 200 Mmcf/d plant came online during November 2012 Equitrans feed Eureka Hunter began deliveries December 20, 2012 35
  36. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 36
    Financial Overview 36
  37. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 37
    Capitalization March 31, June 30, September 30, December 31, ( in millions) 2012 2012 2012 2012 Cash 31.5 24.8 22.0 57.6 Debt: Revolving Credit Facility due 2016 205.0 100.0 175.0 225.0 Term Loan 100.0 0.0 0.0 0.0 Senior Unsecured…
  38. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 38
    Adjusted EBITDAX Reconciliation (MMs) Full Year Full Year Full Year Full Year 2009 2010 2011 2012 Net income (loss) (15.1) (22.3) (76.7) (139.4) Unrealized (gain) loss on derivatives, net 7.7 3.1 4.2 (10.9) Interest expense, net 2.7…
  39. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 39
    Crude Oil and Natural Gas Hedges Crude Oil 2013 2014 2015 NYMEX Average (1) 89.44 86.45 84.12 Weighted-Average Hedge Price With Ceilings 100.38 100.90 115.93 Weighted-Average Hedge Price With Floors 87.33 85.00 85.00…
  40. INVESTOR PRESENTATION – Magnum Hunter Resources Corp. – slide 40
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets KLR Group Canaccord Genuity MLV Partners Capital One Southcoast, Inc. RBC Capital Markets…

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