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CORPORATE PRESENTATION – Magnum Hunter Resources Corp.

Magnum Hunter Resources Corp. · Dec 1, 2012 · 47 slides

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Slides

  1. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 1
    MAGNUM HUNTER RESOURCES CORPORATION Corporate Presentation December 2012
  2. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 2
    Overview of Magnum Hunter Overview Production Growth (Boe/d) Magnum Hunter Resources is an exploration and Oil / Liquids Natural Gas 18,500 production company focused on the most prolific (1) 14,145 unconventional resource plays…
  3. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 3
    Concentrated Asset Base in Largest Shale Plays 156,000 Net Acres(1) 85,500 Net Marcellus Acres 81,800 Net Utica Shale Acres 300,000 Net Southern Appalachia Acres 6/30/2012 Proved Reserves 26,000 Net Acres % Oil/…
  4. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 4
    Highest IRR North American Shale Plays 60% 55% 52% 51% MHR active resource plays 49% 50% 42% 40% 40% 35% 34% 33% 30% 30% 30% IRR 27% 26% 23% 21% 20% 20% 19% 20% 17% 17% 17% 14% 14% 13% 11% 11% 9% 9% 10%…
  5. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 5
    Liquids Driven Capital Plan 2012 upstream capital budget heavily weighted to liquids targets Williston Basin: 34 net wells budgeted to be drilled in 2012 Eagle Ford: 14 net wells budgeted to be drilled in 2012 Marcellus: 5 net wells…
  6. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 6
    Proved Reserves Summary Proved Reserves up 51% since yearend 2011 Proved Reserves Summary Net Proved Reserves as of 6/30/2012 (SEC PRICING) Liquids Gas Total Category (MMBbls) (Bcf) (MMBoe) % PDP 13.0 82.3 26.7 39.4% PDNP 1.2…
  7. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 7
    Proved Reserve Growth Consistency Robust track record of proved reserve growth since inception Approximately 68 MMBoe at June 30, 2012 Expect to continue consistently adding reserves with mix becoming more dominated by oil / liquids…
  8. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 8
    Operational Efficiency Improvements (/Boe) 61.18 4.85 34.43 30.54 3.72 20.52 13.36 3.37 6.83 21.90 13.46 10.32 2010 2011 Nine Months 2012 LOE Recurring Cash G&A Production Taxes 7
  9. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 9
    Projected Cash Flow and Margin Growth Unhedged Debt Adjusted Cash Flow Growth (2011 2015e CAGR) Unhedged Cash Margin Growth (2011 2015e CAGR) MHR, 50% MHR, 21% OAS, 22% DVN, 13% CXO, 17% CHK, 12% GDP, 15% GDP, 11% NBL, 13% ECA, 9%…
  10. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 10
    Williston Basin 9
  11. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 11
    Williston Hunter Overview Areas of Operation Overview Proved Reserves Total proved reserves of 27.0 MMBoe as of 6/30/12 Proved producing reserves of 7.3 100% Avg. WI MMBoe as of 6/30/12 Acreage 156,000 net acres in the…
  12. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 12
    Williston Hunter Recent North Dakota Well Results Williston (North Dakota) MHR results IP 24hr avg. rate (bbl/d) IP 30day avg. rate (bbl/d) Frac stages () 2,036 1,525 1,212 1,203 1,188 1,139 1,047 988 1,005 998…
  13. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 13
    Recent North Dakota Results vs. Type Curve Lampert Torgeson 115 Riede 414 Bonneville Hauge 1321 Thomte Nomad Titan Bel Aire Marauder Dorado Type Curve 335 Mbo 1,200 1,000 800 Bopd 600 400 200 0 1 2 3 4…
  14. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 14
    Recent North Dakota Average Results vs. Type Curve 700 Type Curve 335 Mbo Average 600 500 400 Bopd 300 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Month * Type curve and…
  15. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 15
    Recent Tableland Well Results Williston (Tableland) MHR results 893 810 749 704 605 576 543 552 542 491 467 425 354 357 342 333 319 288 301 286 254 236 244 33 34 33 26 169 26 27 27 193 26 183 200 184 28 27 24 24 24…
  16. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 16
    Recent Tableland Results vs. Type Curve Type Curve 185 Mbo 114110 1316110 1310110 1210110 814110 515110 510110 415110 116110 1216110 19111 822110 169110 11110 400 350 300 250 Bopd 200 150 100 50 0 1 2 3 4 5…
  17. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 17
    Recent Tableland Average Results vs. Type Curve Average Type Curve 185 Mbo 300 250 200 Bopd 150 100 50 0 1 2 3 4 5 6 7 8 9 10 11 12 Month * Type curve and historical production data does not include…
  18. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 18
    Williston Basin Economics Sensitivity North Dakota (2 mile lateral) Saskatchewan (1 mile lateral) CAPEX: 7.0 Million North Dakota (2 mile lateral) CAPEX: 3.4 Million 30Day IP: 440 bbl/d 30Day IP: 180 bbl/d EUR: 400 MBO Saskatchewan (1…
  19. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 19
    Williston Basin Acquisition Overview On November 26, 2012, Magnum Hunter announced a definitive agreement to acquire approximately 20,000 net Williston Basin lease acres from Samson Resources Company for 30 million Consideration for…
  20. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 20
    Eagle Ford 19
  21. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 21
    Eagle Ford Hunter Overview Total proved reserves of 10.0 MMBoe as of June 30, 2012 Proved Reserves Proved producing reserves of 2.6 MMBoe as of June 30, 2012 90% crude oil, with high BTU gas (+1350) Production 39 gross wells on…
  22. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 22
    Eagle Ford Map MHR EOG Hilcorp/Marathon Weber Conoco Phillips Hess / ZaZa Penn Virginia GeoSouthern Leopard Hunter 1H Southern Bay 24hr IP 1,333 Boe/d Penn Virginia Gardner 1H IP 1,247 Boe/d Hawn Holt 9H IP 1,877 Boe/d…
  23. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 23
    Eagle Ford Hunter Operations Eagle Ford MHR results 2,289 2,044 2,033 1,798 1,819 1,651 1,590 1,545 1,491 1,321 1,333 1,336 1,275 1,250 1,203 1,039 1,017 1,031 1,019 1,024 996 961 909 882 902 910 883 886 908 854…
  24. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 24
    Eagle Ford Historical Production vs. Type Curve Furrh 1H Furrh 2H Geo Hunter 1H Gonzo N 1H Gonzo N 2H Kudu Hunter 1H Leopard Hunter 1H Oryx Hunter 1H Sable Hunter 1H Southern Hunter 1H Gonzo Hunter 1H Hawg Hunter 1H Snipe Hunter…
  25. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 25
    Economic Sensitivity of Eagle Ford Gonzales County CAPEX: 8.5MM + 0.3MM (ESP) + .02MM PU 30Day IP: 900 Boe/d EUR: 450 MBoe 11.0 10.0 9.0 IRR: 75% 8.0 Single Well NPV10 ( MM) IRR: 66% IRR: 58% 7.0 IRR: 52% 6.0 IRR: 45%…
  26. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 26
    Pearsall Shale Pearsall Shale Located about 2500 beneath the Eagle Ford Shale and is approximately 500600 in thickness Similar composition to the Eagle Ford Shale, composed of interbedded organic shale, silica and limestone Magnum…
  27. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 27
    Appalachia 26
  28. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 28
    Appalachia Overview Overview Areas of Operation Proved Reserves MHR areas of operations Total proved reserves of 30.7 MMBoe as of 6/30/12 Proved producing reserves of 16.7 MMBoe as of 6/30/12 Acreage 467,000 net acres in the…
  29. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 29
    Marcellus Historical Production vs. Type Curve R Weese 1001 R Weese 1003 R Weese 1110 WVDNR 1102 WVDNR 1103 WVDNR 1104 E Weese 1107 E Weese 1108 E Weese 1109 Type Curve (6.7 Bcf) 8,000 7,000 6,000 5,000 Mcf/d 4,000…
  30. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 30
    Economic Sensitivity of Marcellus CAPEX: 6.5MM 30Day IP: 7 MMcfe/d EUR: 9.2 Bcfe (includes natural gas liquids) 14.0 13.0 12.0 11.0 10.0 IRR: 72% 9.0 NPV10 ( MM) IRR: 64% 8.0 IRR: 56% 7.0 6.0 IRR: 48% 5.0 IRR:…
  31. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 31
    Utica Shale Overview Extends approximately 170,000 square miles Utica Shale Permit and Rig Activity throughout the Appalachia Basin in the United States and Canada Ordovicianaged organic rich black shale with interbedded limestone…
  32. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 32
    Utica Shale Recent Well Results CHESAPEAKE Neider 3H* Oil Window 3.8 MMcf/d; 980 Bbls/d Wet Gas Window (Peak rate) CHESAPEAKE Dry Gas Window Harvey 8H REX 3.8 MMcf/d; 603 Bbls/d Cheeseman 1H (Peak rate) 9.2 MMcf/d CHESAPEAKE…
  33. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 33
    Appalachian Basin Acquisition Overview On November 2, 2012, Magnum Hunter closed on the previously announced agreement to acquire 100% of the stock of privately held Viking International Resources Company, Inc. (VIRCO) for 106.7…
  34. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 34
    Appalachian Basin Acquisition Acreage Map Utica Window VIRCO Acreage OHIO Triad Hunter Acreage Triad Hunter Acreage acquired in February 2012 Eureka Hunter Pipeline WEST VIRGINIA Marcellus 33
  35. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 35
    Eureka Hunter Midstream 34
  36. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 36
    Eureka Hunter Midstream Overview Strategically Positioned Assets Pipeline in strategic geographical location in heart of Marcellus wet gas corridor of WV 54 miles of 20 1135 MAOP gathering system in the ground todate 350+ MMcf per day…
  37. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 37
    Eureka Hunter Pipeline Geographical Map Constructed Line Proposed Ohio River Crossing Under Construction 36
  38. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 38
    Eureka Hunter Pipeline 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,…
  39. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 39
    New Pipeline Entering Ohio Under River 38
  40. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 40
    Mobley Processing Plant MarkWests Mobley Processing Complex will initially consist of two trains, a 200 Mmcf/d plant and a 120 Mmcf/d plant The 200 Mmcf/d Cryogenic Processing Plant is expected to be in service November 2012 Eureka…
  41. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 41
    TransTex Hunter On April 2, 2012, Magnum Hunters wholly owned unrestricted subsidiary, Eureka Hunter, acquired the assets of TransTex Gas Services, LLC (TransTex) for 58.5 million The 58.5 million purchase price consisted of 46.8…
  42. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 42
    Financial Overview 41
  43. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 43
    Financial Strategy Capital spending driven by rates of return across all operating areas Focused on development of existing acreage 2012 capital budget focused on high return, oil / liquids areas Margins and EBITDA projected to…
  44. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 44
    Capitalization March 31, June 30, September 30, ( in millions) 2012 2012 2012 Cash 31.5 24.8 22.0 Debt: Revolving Credit Facility due 2016 205.0 100.0 175.0 Term Loan 100.0 0.0 0.0 Senior Unsecured Notes due 2020 0.0 444.0 444.1…
  45. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 45
    Summary of Commodity Hedges in Place As of 8/1/2012 4th Qtr 2012 2013 2014 2015 NATURAL GAS HEDGES: Swaps Volume (mmbtu/d) 16,098 15,500 0 0 Price /mmbtu 3.53 3.52 0.00 N/A Collars Volume (mmbtu/d) 11,868 12,500 0 0 Floor Price…
  46. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 46
    Summary of Key Investment Highlights Focused, LiquidsDriven Drilling Factory to Generate Strong Cash Flow Large, Diversified Asset Base in Highest Return Resource Plays Increased Operational Efficiency and Margins Attractive…
  47. CORPORATE PRESENTATION – Magnum Hunter Resources Corp. – slide 47
    Equity Research Coverage / Contact Information Magnum Hunter Resources (NYSE: MHR) Equity Research Analyst Coverage: BMO Capital Markets KeyBanc Capital Markets Canaccord Genuity KLR Group Capital One Southcoast, Inc. MLV…

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