The presentation discusses an investor presentation by an oil and gas company. It contains forward-looking statements about future plans and estimates. The company has 162,000 gross acres in the Permian Basin with an estimated 1 billion barrels of oil equivalent of unrisked resource potential. It plans to drill 70 wells in 2014 with a $400 million capital budget as part of developing its Wolfcamp shale oil resource play.
The document discusses AREX's 2014 development plan for its Wolfcamp shale oil resource play in the Permian Basin. Key points include:
- 2014 capital budget of $400 million, 95% directed to horizontal Wolfcamp drilling with 3 rigs
- Targeting the Wolfcamp A, B, and C zones with pad drilling and stacked laterals
- Expecting 45% production growth in 2014 to 4.95 MMBoe with a 70% liquids mix
- Horizontal Wolfcamp well costs estimated at $5.5 million
The plan focuses on developing AREX's large Wolfcamp shale oil resource potential through horizontal drilling and pad development while maintaining flexibility given commodity price uncertainty
This document discusses an energy conference presentation by AREX, an oil and gas company. Key points:
- AREX has 163,000 acres in the Permian Basin with an estimated 1 billion barrels of oil equivalent of unrisked resource potential from the Wolfcamp shale play.
- AREX is running 3 horizontal drilling rigs and plans to drill 70 wells in 2014 to develop the Wolfcamp shale, with a goal of 40% production growth.
- Well results have tracked or exceeded AREX's 450 Mboe type curve, with a recent Wolfcamp C well averaging 970 boe/d. Infrastructure investments aim to reduce costs and enable large-scale development.
- Third Quarter 2014 Results presentation by AREX discussing financial and operational results
- Produced 14.2 MBoe/d in 3Q14, a 61% increase from the prior year, maintaining low well costs of $5.5 million per well
- Drilled 18 horizontal wells in the Wolfcamp shale play and completed 16 wells, achieving a type curve IP rate of 746 Boe/d
- Achieved record quarterly EBITDAX of $50.7 million and revenues of $68.1 million, maintaining a strong financial position with $362 million in liquidity
- The document provides financial and operational highlights for Arex Energy's fourth quarter and full-year 2014 results.
- Key highlights include record revenues and net income for the full year, strong production and reserve growth, capital expenditures below budget, and a flexible capital program for 2015 focused on financial discipline and returns.
- Operational results demonstrated continued strong well performance and recoveries from the Wolfcamp shale play, Arex's core asset.
The document discusses AREX's fourth quarter and full-year 2013 results. Key points include:
- Production for 4Q13 exceeded guidance at 11.3 MBoe/d and was 46% oil.
- Proved reserves increased 20% year-over-year to 114.7 MMBoe, with growth driven by the Wolfcamp shale play.
- The company plans to drill approximately 70 horizontal Wolfcamp wells in 2014 with a 3-rig program, targeting 40% production growth.
The document provides an operational and financial summary for the 4th quarter of 2013. It discusses the company's asset base which includes over 163,000 gross acres and over 1 billion barrels of estimated oil and gas resources. The company is accelerating development through running 3 horizontal drilling rigs and plans to drill 70 wells in 2014. It highlights the company's track record of reserve and production growth, driven by drilling in the Wolfcamp shale play. Charts show proved reserves increasing 20% in 2013 to over 114 million barrels of oil equivalent and oil production up 49% from 2012. The company aims to grow production 40% in 2014 through increased horizontal drilling in the Wolfcamp.
- The company reported results for the second quarter of 2015, with production increasing 8% year-over-year to 15.3 MBoe/d and cash operating costs decreasing 26% to $11.02/Boe.
- The company drilled 9 and completed 10 Wolfcamp wells in the quarter and continued reducing well costs, with an average of $4.5 million per well compared to $5.5 million in 2014.
- Financial highlights included $32.6 million in EBITDAX, capital expenditures of $56.9 million (mostly for drilling and completions), and liquidity of $193 million as of June 30th.
- The company has a high-quality asset base in the Permian Basin with over 115 million barrels of oil equivalent in proved reserves and over 1 billion barrels of oil equivalent in estimated resource potential from over 1,000 identified drilling locations.
- Production has grown significantly in recent years through horizontal drilling in the Wolfcamp shale, with a 19% increase in 2013 and a target of 40% growth in 2014.
- Oil reserves and production have increased substantially, with oil reserves up over 10 times since 2009 and oil production up nearly 50% in 2013 alone, driven by successful horizontal Wolfcamp development.
The document discusses AREX's 2014 development plan for its Wolfcamp shale oil resource play in the Permian Basin. Key points include:
- 2014 capital budget of $400 million, 95% directed to horizontal Wolfcamp drilling with 3 rigs
- Targeting the Wolfcamp A, B, and C zones with pad drilling and stacked laterals
- Expecting 45% production growth in 2014 to 4.95 MMBoe with a 70% liquids mix
- Horizontal Wolfcamp well costs estimated at $5.5 million
The plan focuses on developing AREX's large Wolfcamp shale oil resource potential through horizontal drilling and pad development while maintaining flexibility given commodity price uncertainty
This document discusses an energy conference presentation by AREX, an oil and gas company. Key points:
- AREX has 163,000 acres in the Permian Basin with an estimated 1 billion barrels of oil equivalent of unrisked resource potential from the Wolfcamp shale play.
- AREX is running 3 horizontal drilling rigs and plans to drill 70 wells in 2014 to develop the Wolfcamp shale, with a goal of 40% production growth.
- Well results have tracked or exceeded AREX's 450 Mboe type curve, with a recent Wolfcamp C well averaging 970 boe/d. Infrastructure investments aim to reduce costs and enable large-scale development.
- Third Quarter 2014 Results presentation by AREX discussing financial and operational results
- Produced 14.2 MBoe/d in 3Q14, a 61% increase from the prior year, maintaining low well costs of $5.5 million per well
- Drilled 18 horizontal wells in the Wolfcamp shale play and completed 16 wells, achieving a type curve IP rate of 746 Boe/d
- Achieved record quarterly EBITDAX of $50.7 million and revenues of $68.1 million, maintaining a strong financial position with $362 million in liquidity
- The document provides financial and operational highlights for Arex Energy's fourth quarter and full-year 2014 results.
- Key highlights include record revenues and net income for the full year, strong production and reserve growth, capital expenditures below budget, and a flexible capital program for 2015 focused on financial discipline and returns.
- Operational results demonstrated continued strong well performance and recoveries from the Wolfcamp shale play, Arex's core asset.
The document discusses AREX's fourth quarter and full-year 2013 results. Key points include:
- Production for 4Q13 exceeded guidance at 11.3 MBoe/d and was 46% oil.
- Proved reserves increased 20% year-over-year to 114.7 MMBoe, with growth driven by the Wolfcamp shale play.
- The company plans to drill approximately 70 horizontal Wolfcamp wells in 2014 with a 3-rig program, targeting 40% production growth.
The document provides an operational and financial summary for the 4th quarter of 2013. It discusses the company's asset base which includes over 163,000 gross acres and over 1 billion barrels of estimated oil and gas resources. The company is accelerating development through running 3 horizontal drilling rigs and plans to drill 70 wells in 2014. It highlights the company's track record of reserve and production growth, driven by drilling in the Wolfcamp shale play. Charts show proved reserves increasing 20% in 2013 to over 114 million barrels of oil equivalent and oil production up 49% from 2012. The company aims to grow production 40% in 2014 through increased horizontal drilling in the Wolfcamp.
- The company reported results for the second quarter of 2015, with production increasing 8% year-over-year to 15.3 MBoe/d and cash operating costs decreasing 26% to $11.02/Boe.
- The company drilled 9 and completed 10 Wolfcamp wells in the quarter and continued reducing well costs, with an average of $4.5 million per well compared to $5.5 million in 2014.
- Financial highlights included $32.6 million in EBITDAX, capital expenditures of $56.9 million (mostly for drilling and completions), and liquidity of $193 million as of June 30th.
- The company has a high-quality asset base in the Permian Basin with over 115 million barrels of oil equivalent in proved reserves and over 1 billion barrels of oil equivalent in estimated resource potential from over 1,000 identified drilling locations.
- Production has grown significantly in recent years through horizontal drilling in the Wolfcamp shale, with a 19% increase in 2013 and a target of 40% growth in 2014.
- Oil reserves and production have increased substantially, with oil reserves up over 10 times since 2009 and oil production up nearly 50% in 2013 alone, driven by successful horizontal Wolfcamp development.
- The company reported its first quarter 2014 results, with key highlights including a 42% year-over-year increase in production to 11.9 million barrels of oil equivalent per day and record quarterly EBITDAX of $42.7 million, up 75% from the previous year.
- In the quarter the company drilled 16 horizontal wells and completed 19 wells in its Wolfcamp shale play, with an average initial production of 743 barrels of oil equivalent per day across wells completed.
- The financial position of the company remains strong with $354 million in liquidity as of the end of the quarter and an undrawn borrowing base of $350 million.
- AREX reported strong third quarter 2014 results, with production up 61% year-over-year to 14.2 million barrels of oil equivalent per day and EBITDAX reaching a record high of $50.7 million, up 60% year-over-year.
- In the third quarter, AREX drilled 18 and completed 16 horizontal wells in the Wolfcamp shale play, maintaining best-in-class well costs of $5.5 million per well on average.
- Initial production from recent wells continues to track at or above AREX's 450 thousand barrels of oil equivalent type curve, and an Elliott C bench well expanded the potential of the Wolfcamp development to the east.
1) The company reported first quarter 2015 results with production of 14.3 MBoe/d, a 21% increase over the previous year. Operating costs continued to improve with cash operating costs of $12.32/Boe, down 27% from the previous year.
2) The company drilled 8 and completed 13 horizontal wells in the Wolfcamp B and C zones, with average initial production of 723 Boe/d.
3) The company's water recycling facility became fully operational in March 2015 and is expected to reduce drilling and completion costs by $450k per well and lower operating expenses.
- The company reported its second quarter 2014 results, with production increasing 58% year-over-year to 14.1 thousand barrels of oil equivalent per day. Revenues increased 74% to $73.4 million.
- In the quarter the company drilled and completed 16 horizontal wells in the Wolfcamp shale formation, with an average initial production of 556 barrels of oil equivalent per day.
- The company maintained its production and expense guidance for 2014, expecting total production of 4.95 million barrels of oil equivalent with operating expenses between $5-6 per barrel of oil equivalent.
Approach Resources Inc. presented at the Goldman Sachs Global Energy Conference in January 2014. The presentation provided an overview of Approach Resources' asset base in the Permian Basin, which includes 166,000 gross acres and over 1 billion barrels of estimated oil and gas resources. The company discussed its track record of reserve and production growth through horizontal drilling in the Wolfcamp shale play. Approach Resources outlined its 2014 capital program, which includes drilling 75% more horizontal Wolfcamp wells compared to 2013 with the goal of 40% production growth. The company also highlighted ongoing efforts to reduce well costs and increase drilling efficiencies through pad development and infrastructure investments.
This presentation discusses an oil and gas company's Wolfcamp shale resource play in the Permian Basin. Key points include:
- The company has 160,000 gross acres and estimates over 1 billion barrels of unrisked oil resource potential from the multi-bench Wolfcamp shale.
- The 2014 capital budget of $400 million will fund a 3-rig horizontal drilling program targeting the Wolfcamp A, B and C zones, with an aim to drill around 70 wells.
- The development plan focuses on pad drilling, stacked laterals, and infrastructure to reduce costs and drive projected 45% production growth in 2014 to nearly 5 million barrels of oil-equivalent.
- The company reported its second quarter 2014 results with increased production and revenue.
- Production for the quarter averaged 14.1 MBoe/d, a 58% increase year-over-year.
- The company drilled and completed 16 horizontal wells in the Wolfcamp shale play and realized an average IP rate of 556 Boe/d.
- Guidance for 2014 was increased with expected production of 4,950 MBoe and capital expenditures of $400 million to drill 70 horizontal wells.
EOG Resources 4Q 2015 Quarterly Presentation Investor RelationsMichelle Smith
EOG Resources provides key information about its operations and financial results. It has over 3,200 premium well locations with over 2 billion barrels of oil equivalent of resource potential. EOG reduced capital spending 44% year-over-year while maintaining flat US oil production in 2015. It aims to generate at least 30% returns on investment at $40/barrel oil from its shifting focus to premium locations with over 10 years of sustainable inventory growth.
The document discusses oil prices and activity in the Southern Midland Basin. It notes that AREX has 134,000 net acres in the basin with an estimated 1 billion barrels of oil equivalent of unrisked resource potential from the Wolfcamp shale. AREX has implemented water recycling facilities to reduce drilling and completion costs by $450,000 per well and lower operating expenses. At their current drilling and completion cost of $7 million per well, AREX wells in the Wolfcamp have a type curve estimated ultimate recovery of 510 thousand barrels of oil equivalent and an internal rate of return above 40% at $60 oil.
This document contains forward-looking statements regarding activities, events, developments, and financial results that could differ from actual results. It discusses the company's Wolfcamp shale resource play, estimated resource potential, drilling locations, capital expenditures, well results, and guidance. The document cautions that estimates of unproved reserves and resource potential could change significantly as additional data becomes available. It provides an overview of the company, including its asset base, reserve growth history, second quarter 2015 highlights showing production and cost improvements, and discussion of its low-cost structure enabled by infrastructure like its water recycling facility.
Scotia Howard Weil 43rd Annual Energy Conference PresentationApproachResources
The document discusses forward-looking statements and cautions that actual results may differ substantially from estimates. It provides an overview of Arena Energy, including its enterprise value, asset base in the Midland Basin with over 1 billion barrels of estimated resource potential, and capital program focused on flexibility and returns. Arena has a low-risk, oil-rich asset base and a strong financial and liquidity position to withstand commodity price volatility.
The document provides an overview of the company's fourth quarter and full-year 2015 results. Some key points:
- Production for Q4 was 1.33 MMBoe and 5.53 MMBoe for the full year, in line with guidance. No capital expenditures were incurred in Q4 due to low commodity prices.
- Proved reserves increased 14% year-over-year to 166.6 MMBoe with a PV-10 of $504 million. Drilling replaced 603% of production at a drill-bit F&D cost of $4.32/Boe.
- The company has $177 million in liquidity and reduced total debt from $515.6 million to $
Approach Resources Inc. reported third quarter 2013 results. Key highlights included accelerating their completion pace and drilling efficiencies, driving down well costs below $5.5 million per well on average, and delivering strong initial production rates from Wolfcamp B and C wells across their acreage, with some wells producing over 1,000 barrels of oil equivalent per day. Approach is on track to increase production 40% in 2014 by drilling 75% more horizontal Wolfcamp wells with their 3-rig program.
The document provides an overview of Antero Resources Corporation. It discusses forward-looking statements and risks associated with the estimates and projections. It also highlights key aspects of Antero's recent acquisition including the addition of 66,500 net acres and over 5 trillion cubic feet of reserves for $546 million. The acquisition significantly increases Antero's drilling inventory in the Marcellus shale play with attractive well economics.
Constellation Energy Partners LLC reported financial and operational results for the fourth quarter and full year of 2013. Key highlights included:
- Oil accounted for 51% of sales revenue in 2013, with average daily oil production up 84% year-over-year.
- Operating costs were $24.69 per BOE for 2013, down 4% from 2012.
- Capital spending of $15.7 million in 2013 resulted in 79 net wells and recompletions.
- The company forecast $20-22 million in capital spending and 1,346-1,552 MBOE of production for 2014, with adjusted EBITDA of $26.7-29.9 million.
The document provides an overview of Antero Resources Corporation, including:
- Antero has significant reserves of 37.5 Tcfe primarily in the Marcellus and Utica shale plays with strong production growth.
- The company has industry-leading capital efficiency and a top quartile return on productive capital.
- Antero has significant midstream infrastructure and secured firm transportation for its gas and NGL production.
The document provides an overview of Antero Resources Corporation, including:
- Antero has significant reserves of 37.5 Tcfe primarily in the Marcellus and Utica shale plays with strong production growth.
- The company has industry-leading capital efficiency and a top quartile return on productive capital, with low development costs and a high growth-adjusted recycle ratio.
- Antero has invested heavily in midstream infrastructure like processing plants and pipelines to support its production and has secured significant firm transportation contracts.
The document provides an overview of Antero Resources Corporation, including:
- Antero has significant reserves of 37.5 Tcfe primarily in the Marcellus and Utica shale plays with high potential for further reserve growth.
- Production has grown significantly from 566 MMcfe/d in 3Q 2013 to 891 MMcfe/d currently due to a focus on liquids-rich development across its acreage.
- Antero has leading capital efficiency with a low average development cost of $1.15/Mcfe and industry-leading recycle ratio of 4.8x, supporting high returns on productive capital.
SandRidge Energy presented its corporate strategy and assets at an investor presentation in March 2017. The company has over $500 million in liquidity and is focused on high-grading its existing positions. SandRidge will continue developing its Mississippian, NW STACK, and North Park Niobrara assets, which have over 1,300 combined drilling locations. The company expects total oil production to increase starting in late 2017. SandRidge is also optimizing completions and lowering costs to maximize value from its key projects.
- The document provides an overview of Antero Resources Corporation, a company focused on developing natural gas and oil resources from the Marcellus and Utica Shales.
- Antero has significant reserves and acreage positions in the Marcellus and Utica Shales, with over 37 trillion cubic feet of reserves across both plays.
- The company has invested heavily in midstream infrastructure like gathering lines and processing facilities to support its production and growth.
- Antero has also secured long-term firm transportation and processing agreements to achieve premium realized prices for its natural gas and natural gas liquids.
The document provides an operational and financial summary for the 4th quarter of 2013. It discusses the company's asset base which includes over 163,000 gross acres and over 1 billion barrels of estimated oil and gas resources. The company is accelerating development through running 3 horizontal drilling rigs and plans to drill 70 wells in 2014. It highlights the company's track record of reserve and production growth, driven by drilling in the Wolfcamp shale play. Charts show proved reserves increasing 20% in 2013 to over 114 million barrels of oil equivalent and oil production up 49% from the prior year. The company aims to grow production 40% in 2014 through increased horizontal drilling in the Wolfcamp.
EnerCom’s The Oil and Gas Conference 21 PresentationApproachResources
The document discusses forward-looking statements and provides cautionary statements regarding oil and gas quantities estimates. It then provides an overview of the company, noting it has an enterprise value of $588 million with 167 million barrels of oil equivalent of proved reserves, of which 63% are liquids. It also discusses the company's Permian Basin assets which include 139,000 gross acres and an estimated 1 billion barrels of oil equivalent of unrisked resource potential from 1,800 identified drilling locations.
- The company reported its first quarter 2014 results, with key highlights including a 42% year-over-year increase in production to 11.9 million barrels of oil equivalent per day and record quarterly EBITDAX of $42.7 million, up 75% from the previous year.
- In the quarter the company drilled 16 horizontal wells and completed 19 wells in its Wolfcamp shale play, with an average initial production of 743 barrels of oil equivalent per day across wells completed.
- The financial position of the company remains strong with $354 million in liquidity as of the end of the quarter and an undrawn borrowing base of $350 million.
- AREX reported strong third quarter 2014 results, with production up 61% year-over-year to 14.2 million barrels of oil equivalent per day and EBITDAX reaching a record high of $50.7 million, up 60% year-over-year.
- In the third quarter, AREX drilled 18 and completed 16 horizontal wells in the Wolfcamp shale play, maintaining best-in-class well costs of $5.5 million per well on average.
- Initial production from recent wells continues to track at or above AREX's 450 thousand barrels of oil equivalent type curve, and an Elliott C bench well expanded the potential of the Wolfcamp development to the east.
1) The company reported first quarter 2015 results with production of 14.3 MBoe/d, a 21% increase over the previous year. Operating costs continued to improve with cash operating costs of $12.32/Boe, down 27% from the previous year.
2) The company drilled 8 and completed 13 horizontal wells in the Wolfcamp B and C zones, with average initial production of 723 Boe/d.
3) The company's water recycling facility became fully operational in March 2015 and is expected to reduce drilling and completion costs by $450k per well and lower operating expenses.
- The company reported its second quarter 2014 results, with production increasing 58% year-over-year to 14.1 thousand barrels of oil equivalent per day. Revenues increased 74% to $73.4 million.
- In the quarter the company drilled and completed 16 horizontal wells in the Wolfcamp shale formation, with an average initial production of 556 barrels of oil equivalent per day.
- The company maintained its production and expense guidance for 2014, expecting total production of 4.95 million barrels of oil equivalent with operating expenses between $5-6 per barrel of oil equivalent.
Approach Resources Inc. presented at the Goldman Sachs Global Energy Conference in January 2014. The presentation provided an overview of Approach Resources' asset base in the Permian Basin, which includes 166,000 gross acres and over 1 billion barrels of estimated oil and gas resources. The company discussed its track record of reserve and production growth through horizontal drilling in the Wolfcamp shale play. Approach Resources outlined its 2014 capital program, which includes drilling 75% more horizontal Wolfcamp wells compared to 2013 with the goal of 40% production growth. The company also highlighted ongoing efforts to reduce well costs and increase drilling efficiencies through pad development and infrastructure investments.
This presentation discusses an oil and gas company's Wolfcamp shale resource play in the Permian Basin. Key points include:
- The company has 160,000 gross acres and estimates over 1 billion barrels of unrisked oil resource potential from the multi-bench Wolfcamp shale.
- The 2014 capital budget of $400 million will fund a 3-rig horizontal drilling program targeting the Wolfcamp A, B and C zones, with an aim to drill around 70 wells.
- The development plan focuses on pad drilling, stacked laterals, and infrastructure to reduce costs and drive projected 45% production growth in 2014 to nearly 5 million barrels of oil-equivalent.
- The company reported its second quarter 2014 results with increased production and revenue.
- Production for the quarter averaged 14.1 MBoe/d, a 58% increase year-over-year.
- The company drilled and completed 16 horizontal wells in the Wolfcamp shale play and realized an average IP rate of 556 Boe/d.
- Guidance for 2014 was increased with expected production of 4,950 MBoe and capital expenditures of $400 million to drill 70 horizontal wells.
EOG Resources 4Q 2015 Quarterly Presentation Investor RelationsMichelle Smith
EOG Resources provides key information about its operations and financial results. It has over 3,200 premium well locations with over 2 billion barrels of oil equivalent of resource potential. EOG reduced capital spending 44% year-over-year while maintaining flat US oil production in 2015. It aims to generate at least 30% returns on investment at $40/barrel oil from its shifting focus to premium locations with over 10 years of sustainable inventory growth.
The document discusses oil prices and activity in the Southern Midland Basin. It notes that AREX has 134,000 net acres in the basin with an estimated 1 billion barrels of oil equivalent of unrisked resource potential from the Wolfcamp shale. AREX has implemented water recycling facilities to reduce drilling and completion costs by $450,000 per well and lower operating expenses. At their current drilling and completion cost of $7 million per well, AREX wells in the Wolfcamp have a type curve estimated ultimate recovery of 510 thousand barrels of oil equivalent and an internal rate of return above 40% at $60 oil.
This document contains forward-looking statements regarding activities, events, developments, and financial results that could differ from actual results. It discusses the company's Wolfcamp shale resource play, estimated resource potential, drilling locations, capital expenditures, well results, and guidance. The document cautions that estimates of unproved reserves and resource potential could change significantly as additional data becomes available. It provides an overview of the company, including its asset base, reserve growth history, second quarter 2015 highlights showing production and cost improvements, and discussion of its low-cost structure enabled by infrastructure like its water recycling facility.
Scotia Howard Weil 43rd Annual Energy Conference PresentationApproachResources
The document discusses forward-looking statements and cautions that actual results may differ substantially from estimates. It provides an overview of Arena Energy, including its enterprise value, asset base in the Midland Basin with over 1 billion barrels of estimated resource potential, and capital program focused on flexibility and returns. Arena has a low-risk, oil-rich asset base and a strong financial and liquidity position to withstand commodity price volatility.
The document provides an overview of the company's fourth quarter and full-year 2015 results. Some key points:
- Production for Q4 was 1.33 MMBoe and 5.53 MMBoe for the full year, in line with guidance. No capital expenditures were incurred in Q4 due to low commodity prices.
- Proved reserves increased 14% year-over-year to 166.6 MMBoe with a PV-10 of $504 million. Drilling replaced 603% of production at a drill-bit F&D cost of $4.32/Boe.
- The company has $177 million in liquidity and reduced total debt from $515.6 million to $
Approach Resources Inc. reported third quarter 2013 results. Key highlights included accelerating their completion pace and drilling efficiencies, driving down well costs below $5.5 million per well on average, and delivering strong initial production rates from Wolfcamp B and C wells across their acreage, with some wells producing over 1,000 barrels of oil equivalent per day. Approach is on track to increase production 40% in 2014 by drilling 75% more horizontal Wolfcamp wells with their 3-rig program.
The document provides an overview of Antero Resources Corporation. It discusses forward-looking statements and risks associated with the estimates and projections. It also highlights key aspects of Antero's recent acquisition including the addition of 66,500 net acres and over 5 trillion cubic feet of reserves for $546 million. The acquisition significantly increases Antero's drilling inventory in the Marcellus shale play with attractive well economics.
Constellation Energy Partners LLC reported financial and operational results for the fourth quarter and full year of 2013. Key highlights included:
- Oil accounted for 51% of sales revenue in 2013, with average daily oil production up 84% year-over-year.
- Operating costs were $24.69 per BOE for 2013, down 4% from 2012.
- Capital spending of $15.7 million in 2013 resulted in 79 net wells and recompletions.
- The company forecast $20-22 million in capital spending and 1,346-1,552 MBOE of production for 2014, with adjusted EBITDA of $26.7-29.9 million.
The document provides an overview of Antero Resources Corporation, including:
- Antero has significant reserves of 37.5 Tcfe primarily in the Marcellus and Utica shale plays with strong production growth.
- The company has industry-leading capital efficiency and a top quartile return on productive capital.
- Antero has significant midstream infrastructure and secured firm transportation for its gas and NGL production.
The document provides an overview of Antero Resources Corporation, including:
- Antero has significant reserves of 37.5 Tcfe primarily in the Marcellus and Utica shale plays with strong production growth.
- The company has industry-leading capital efficiency and a top quartile return on productive capital, with low development costs and a high growth-adjusted recycle ratio.
- Antero has invested heavily in midstream infrastructure like processing plants and pipelines to support its production and has secured significant firm transportation contracts.
The document provides an overview of Antero Resources Corporation, including:
- Antero has significant reserves of 37.5 Tcfe primarily in the Marcellus and Utica shale plays with high potential for further reserve growth.
- Production has grown significantly from 566 MMcfe/d in 3Q 2013 to 891 MMcfe/d currently due to a focus on liquids-rich development across its acreage.
- Antero has leading capital efficiency with a low average development cost of $1.15/Mcfe and industry-leading recycle ratio of 4.8x, supporting high returns on productive capital.
SandRidge Energy presented its corporate strategy and assets at an investor presentation in March 2017. The company has over $500 million in liquidity and is focused on high-grading its existing positions. SandRidge will continue developing its Mississippian, NW STACK, and North Park Niobrara assets, which have over 1,300 combined drilling locations. The company expects total oil production to increase starting in late 2017. SandRidge is also optimizing completions and lowering costs to maximize value from its key projects.
- The document provides an overview of Antero Resources Corporation, a company focused on developing natural gas and oil resources from the Marcellus and Utica Shales.
- Antero has significant reserves and acreage positions in the Marcellus and Utica Shales, with over 37 trillion cubic feet of reserves across both plays.
- The company has invested heavily in midstream infrastructure like gathering lines and processing facilities to support its production and growth.
- Antero has also secured long-term firm transportation and processing agreements to achieve premium realized prices for its natural gas and natural gas liquids.
The document provides an operational and financial summary for the 4th quarter of 2013. It discusses the company's asset base which includes over 163,000 gross acres and over 1 billion barrels of estimated oil and gas resources. The company is accelerating development through running 3 horizontal drilling rigs and plans to drill 70 wells in 2014. It highlights the company's track record of reserve and production growth, driven by drilling in the Wolfcamp shale play. Charts show proved reserves increasing 20% in 2013 to over 114 million barrels of oil equivalent and oil production up 49% from the prior year. The company aims to grow production 40% in 2014 through increased horizontal drilling in the Wolfcamp.
EnerCom’s The Oil and Gas Conference 21 PresentationApproachResources
The document discusses forward-looking statements and provides cautionary statements regarding oil and gas quantities estimates. It then provides an overview of the company, noting it has an enterprise value of $588 million with 167 million barrels of oil equivalent of proved reserves, of which 63% are liquids. It also discusses the company's Permian Basin assets which include 139,000 gross acres and an estimated 1 billion barrels of oil equivalent of unrisked resource potential from 1,800 identified drilling locations.
The document summarizes Arex Energy's second quarter 2016 results. It discusses:
- Low operating costs of $4.56 per barrel of oil equivalent and record low drilling and completion costs of $3.7 million per well.
- Average production of 12.6 thousand barrels of oil equivalent per day, exceeding guidance. New wells are outperforming type curves.
- Revenues of $22.4 million and EBITDAX of $13.7 million. Capital expenditures were $6.9 million, aligned with cash flow. The company has $51 million in liquidity.
- The company reported third quarter 2015 results with record production of 16.6 MBoe/d, up 17% year-over-year.
- Operating costs continued to decrease, with lease operating expenses of $5.04/Boe, a 14% reduction from the prior year.
- The company drilled 4 wells and completed 5 wells in the Wolfcamp B-C zones, with initial production averaging 931 Boe/d.
The document summarizes AREX's first quarter 2016 results. It discusses:
- Drilling of 4 Wolfcamp wells on time and on budget during the quarter with no completions.
- Production of 1,165 Mboe during the quarter as no new wells were completed.
- EBITDAX of $8.7 million and cash flow from operations of $5.3 million for the quarter. Capital expenditures were $4.9 million.
- The company maintains a strong financial position and liquidity of $54 million providing flexibility for its 2016 plan.
AREX 2016 Wells Fargo West Coast Energy PresentationApproachResources
The document discusses AREX's operations in the Permian Basin, including its 167 million barrels of oil equivalent proved reserves, low cost structure, extensive drilling inventory, and significant resource potential from the Wolfcamp shale play. AREX has implemented enhanced completion designs that outperform type curves and reduced its lease operating expenses through the use of a centralized water recycling facility that lowers drilling and completion costs by reusing flowback and produced water.
August 2016 corporate_presentation_final Eclipse resourcesSteve Wittrig
Eclipse Resources is an oil and gas company focused on developing its 115,000 net acres in the core of the Utica Shale and 13,000 net acres in the Marcellus Shale. The presentation highlights Eclipse's strong operational performance, including increasing lateral lengths by 200% while decreasing drilling costs by 50% per foot. Eclipse plans to resume drilling activities in mid-2016 and grow production over 30% year-over-year in 2017 through completing DUCs and operating a one-rig program. The company also discusses its super-lateral drilling program aimed to significantly improve well returns through extending lateral lengths.
An updated copy of a PowerPoint presentation used by Eclipse to summarize and convey important information about the company's shale drilling operations in the Marcellus/Utica region.
Victory Energy (VYEY) Investor PresentationDerek Gradwell
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2. Forward-looking statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes
or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this
presentation specifically include the expectations of management regarding plans, strategies, objectives, anticipated financial and operating results of the Company, including
as to the Company’s Wolfcamp shale resource play, estimated resource potential and recoverability of the oil and gas, estimated reserves and drilling locations, capital
expenditures, typical well results and well profiles, type curve, and production and operating expenses guidance included in the presentation. These statements are based on
certain assumptions made by the Company based on management's experience and technical analyses, current conditions, anticipated future developments and other factors
believed to be appropriate and believed to be reasonable by management. When used in this presentation, the words “will,” “potential,” “believe,” “intend,” “expect,” “may,”
“should,” “anticipate,” “could,” “estimate,” “plan,” “predict,” “project,” “target,” “profile,” “model” or their negatives, other similar expressions or the statements that include those
words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied
or expressed by the forward-looking statements. In particular, careful consideration should be given to the cautionary statements and risk factors described in the Company's
most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which such statement is made
and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as
required by applicable law.
The Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that
meet the SEC’s definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. The
Company uses the terms “estimated ultimate recovery” or “EUR,” reserve or resource “potential,” and other descriptions of volumes of reserves potentially recoverable through
additional drilling or recovery techniques that the SEC’s rules may prohibit the Company from including in filings with the SEC. These estimates are by their nature more
speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized by the Company.
EUR estimates, identified drilling locations and resource potential estimates have not been risked by the Company. Actual locations drilled and quantities that may be
ultimately recovered from the Company’s interest may differ substantially from the Company’s estimates. There is no commitment by the Company to drill all of the drilling
locations that have been attributed these quantities. Factors affecting ultimate recovery include the scope of the Company’s ongoing drilling program, which will be directly
affected by the availability of capital, drilling and production costs, availability of drilling and completion services and equipment, drilling results, lease expirations, regulatory
approval and actual drilling results, as well as geological and mechanical factors Estimates of unproved reserves, type/decline curves, per well EUR and resource potential
may change significantly as development of the Company’s oil and gas assets provides additional data.
Type/decline curves, estimated EURs, resource potential, recovery factors and well costs represent Company estimates based on evaluation of petrophysical analysis, core
data and well logs, well performance from limited drilling and recompletion results and seismic data, and have not been reviewed by independent engineers. These are
presented as hypothetical recoveries if assumptions and estimates regarding recoverable hydrocarbons, recovery factors and costs prove correct. The Company has very
limited production experience with these projects, and accordingly, such estimates may change significantly as results from more wells are evaluated. Estimates of resource
potential and EURs do not constitute reserves, but constitute estimates of contingent resources which the SEC has determined are too speculative to include in SEC filings.
Unless otherwise noted, IRR estimates are before taxes and assume NYMEX forward-curve oil and gas pricing and Company-generated EUR and decline curve estimates
based on Company drilling and completion cost estimates that do not include land, seismic or G&A costs.
Cautionary statements regarding oil & gas quantities
2
3. Company overview
AREX OVERVIEW ASSET OVERVIEW
Enterprise value $1.1 BN
High-quality reserve base
115 MMBoe proved reserves
$1.1 BN proved PV-10
99% Permian Basin
Permian core operating area
162,000 gross (144,000 net) acres
~1+ BnBoe gross, unrisked resource potential
~2,000+ Identified HZ drilling locations targeting
Wolfcamp A/B/C
2014 Capital program of $400 MM
Running 3 HZ rigs in the Wolfcamp shale play to drill
70 wells during 2014
Notes: Proved reserves and acreage as of 12/31/2013 and 3/31/2014, respectively. All Boe and Mcfe calculations are based on a
6 to 1 conversion ratio. Enterprise value is equal to market capitalization using the closing share price of $20.70 per share on
5/2/2014, plus net debt as of 3/31/2014. See “PV-10 (unaudited)” slide.
3
4. Key investment highlights
Note: Estimated acreage and proved reserves as of 3/31/2014 and 12/31/2013, respectively. See “F&D costs (unaudited)” and
“Strong, simple balance sheet” slides.
High Margin, Low
Risk Asset Base
High Degree of
Operational Control
Track Record of
Growth at Low Cost
Prudent Financial
Management
Experienced
Management
• High margin, oil-weighted asset base in Midland Basin
• 162,000 gross (144,000 net) primarily contiguous acres
• Proved reserves are 69% liquids; 1Q14 production is 70% liquids (42% oil)
• Long reserve life with 30+ years R/P rate
• Drilled more than 530 wells in Midland Basin since 2004, including 100+ HZ Wolfcamp wells
• Operate 100% reserve base
• ~100% working interest
• Leasehold maintenance requirements are insignificant, particularly in core areas of activity
• Reserve and production CAGR since 2004 of 31% and 34%, respectively
• Low-cost operator with competitive F&D and LOE/Boe costs
• 2013 Drill bit F&D cost $10.63/Boe
• Effective May 2014, $1 BN credit facility with $450 MM borrowing base
• Substantial liquidity of $354 MM at 3/31/2014 ($454 MM including borrowing base increase)
• Active hedging program
• Over 140 years of combined industry experience for executive management team
• Excellent operational track record in the Permian Basin
• Significant technical expertise
STRENGTHS HIGHLIGHTS
4
5. Long history of operating in Midland Basin
WELLS DRILLED TO DATE
• Drilled more than 530 wells
in Midland Basin since
2004
• One of the first-movers in
the HZ Wolfcamp play with
longest production history
and track record of full-
scale development
• Well data, core data, 3-D
seismic and micro-seismic
reduces future
development risk
43
81
58
51
63
18
56
0
2
4
6
8
10
12
14
0
10
20
30
40
50
60
70
80
90
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E
Vertical Horizontal
45
70
Wellsdrilled
Production(MBoe/d)
69
46
5
6. Strong track record of reserve growth
RESERVE GROWTH
0
20
40
60
80
100
120
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Gas (MMBoe) Oil & NGLs (MMBbls)
4.3 5.0
18.1
37.3
46.1
0
5
10
15
20
25
30
35
40
45
50
2009 2010 2011 2012 2013
Oil (MMBbls)
OIL RESERVE GROWTH
• YE13 reserves up 20% YoY
• Replaced 776% of reserves at a drill-bit F&D
cost of $10.63/Boe
• 81.6 MMBoe proved reserves booked to HZ
Wolfcamp play
• Strong, organic oil reserve growth driven by
HZ Wolfcamp shale
• Oil reserves up 11x since YE09
• Oil reserves up 24% YoY
Note: See “F&D costs (unaudited)” slide.
MMBoe
MMBbls
6
7. Strong track record of production growth
PRODUCTION GROWTH
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Natural Gas (MBoe/d) Oil & NGLs (Mbbls/d)
206
246
482
969
1,444
0
200
400
600
800
1,000
1,200
1,400
1,600
2009 2010 2011 2012 2013
Oil (MBbls)
OIL PRODUCTION GROWTH
• 2013 Production increased 19% YoY
• Targeting 40% production growth in 2014
4,790 MBoe in 2014
2014E Production mix ~44.5% oil (72.5% total
liquids), based on midpoint of guidance
• Strong, organic oil production growth driven
by HZ Wolfcamp shale
• Oil production up 7x since FY09
• Oil production up 49% YoY
MBbls
MBoe/d
7
8. 16.7
53.8
81.6
50.7
60.3
41.7
33.1
-
20
40
60
80
100
120
2010 2011 2012 2013
HZ Wolfcamp (MMBoe) Other Vertical (MMBoe)
HZ Wolfcamp proved
reserves up 5x since 2011
Horizontal Wolfcamp reserve growth driving oil production growth
HZ WOLFCAMP RESERVE GROWTH FY13 HZ WOLFCAMP PRODUCTION MIX
114.7
95.5
77.0
Began drilling
HZ Wolfcamp
20%
17%
63%
Gas NGLs Oil
MMBoe
8
9. AREX Wolfcamp shale oil resource play
PERMIAN CORE OPERATING AREA
Large, primarily contiguous acreage position
Oil-rich, multiple pay zones
162,000 gross (144,000 net) acres
Low acreage cost ~$500 per acre
~ 1BnBoe gross, unrisked HZ Wolfcamp
resource potential
~2,000 Identified HZ Wolfcamp locations
Large, primarily contiguous acreage
position with oil-rich, multiple pay zones
2014 OPERATIONS
Plan to drill ~70 HZ wells with 3 rigs
Testing “stacked-wellbore” development and
optimizing well spacing and completion design
Decreasing well costs and increasing
efficiencies
Compressing spud-to-sales times
Focusing activity around field infrastructure
systems
Field infrastructure systems contributing to
lower LOE/Boe and HZ D&C costs
9
10. AREX Wolfcamp activity
NORTH & CENTRAL
PANGEA
PANGEA WEST
Note: Acreage as of 3/31/2014.
• 1Q14 Activity included:
Stacked A/C completion
SchleicherCrockett
IrionReagan
Sutton
Legend
● Vertical Producer
│ HZ Producer
│ HZ – Waiting on Completion
│ HZ – Drilling
• 1Q14 Activity included:
Stand-alone B-zone
completions and stacked B/C
completions in North &
Central Pangea
STRATIGRAPHIC UNIT
Clearfork/Spraberry
Dean
Wolfcamp
A ●
B ●
C ●
Canyon ☼
Strawn ☼
Ellenburger ☼
10
12. Efficiency-driven transition to two-bench pad development
• Reduces time between spud to
first sales
• 7 to 8 wells per section
• Reduces surface footprint
• Reduces rig mobilization costs
• Completion optimization from
zipper fracs and frac cost savings
• 14 to 16 wells per section
2011 – 2013: SINGLE-BENCH
DEVELOPMENT
CURRENT: TWO-BENCH
DEVELOPMENT
● ● ● ● ● ● ● ●
TRANSITION FROM SINGLE-BENCH TO TWO-BENCH DEVELOPMENT
660’
A
B
C
Map view
X-Section
view
~1200’
thick
● ● ● ● ● ● ● ●
● ● ● ● ● ● ● ●
660’
Note: Target zones in X-Section view are illustrative.
● ● ● ● ● ● ● ●
● ● ● ● ● ● ● ●
660’
OR
12
13. Low cost operator
Expect to drill ~20 to 24 HZ wells per rig in
2014 vs. prior estimate of 10 to 12 HZ wells
per rig
3 HZ rigs currently running in Project Pangea
/ Pangea West
Recently drilled wells in 10 to 11 days (~7,500’
lateral)
Compressing spud-to-sales times
Focusing activity around field infrastructure systems
COMPETITIVE LOE (FY13 LOE/Boe)OPERATIONAL EFFICIENCY
BEST-IN-CLASS HZ D&C ($MM/Well)
$5.5
$5.8 $6.0
$6.3 $6.5
$7.1
$7.4 $7.5
$8.0 $8.0 $8.1
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
Avg. $6.9 MM
$5.19 $5.59
$7.06
$7.48
$7.92
$8.72 $8.97
$10.43
$11.00
$12.20
$14.00
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
Avg. $8.96/Boe
Note: Peers include APA, ATHL, CPE, DVN, FANG, EGN, EPE, LPI, PXD and RSPP. Data sourced from SEC filings and
company news releases/IR presentations. 13
14. 0
100
200
300
400
500
600
700
800
0 90 180 270 360 450 540 630 720 810 900 990
DailyProduction(BoeincludingNGLs)
Time (Days)
AREX HZ Wolfcamp well performance
AREX HZ WOLFCAMP (BOE/D)
Note: Daily production normalized for operational downtime.
Production Data from
AREX A Bench Wells (8)
450 MBoe Type Curve
Wolfcamp Shale Oil
Production Data from
AREX B Bench Wells (63)
Production Data from
AREX C Bench Wells (4)
14
15. Infrastructure for large-scale development
• Reducing D&C cost
• Reducing LOE
• Increasing project profit margin
• Minimizing truck traffic and surface
disturbance
Pangea
West
North & Central Pangea
South
Pangea
SchleicherCrockett
IrionReagan
Sutton
50-Mile Oil Pipeline
100,000 Bbls/d
Capacity
15
16. Key field infrastructure & equipment systems
• Safely and securely transport water across Project Pangea and Pangea West
• Reduce time and money spent on water hauling and disposal and also reduces
truck traffic
• Replace rental equipment and contractors with Company-owned and operated
equipment and personnel; reduce money spent on flowback operations
• Facilitate large-scale field development
• Reduce fresh water use and water costs
Water transfer equipment
SWD wells
Gas lift system and flowback
equipment
Non-potable water source wells
Water recycling systems
BENEFITS
Infrastructure and equipment systems are key to large-scale field development
and to reducing D&C costs and LOE/Boe cost
INFRASTRUCTURE
• First-mover oil pipeline system in the southern Midland Basin
• 50-mile pipeline with 100 MBoe/d throughput capacity
• Sold in October 2013 for 6x ROI
• Maintain competitive oil transportation fee and firm takeaway
Oil pipeline and marketing
agreements
16
17. AREX HZ Wolfcamp economics
Notes: Identified locations based on multi-bench development and 120-acre spacing for HZ Wolfcamp. No locations assigned
to south Project Pangea. HZ Wolfcamp economics assume NYMEX – Henry Hub strip and NGL price based on 40% of WTI.
0
10
20
30
40
50
60
70
80
350 400 450 500 550
IRR(%)
Well EUR (MBoe)
$100 / bbl $90 / bbl $80 / bbl $70 / bbl
Play Type
Horizontal
Wolfcamp
Avg. EUR (gross) 450 MBoe
Targeted Well Cost $5.5 MM
Potential Locations ~2,000
Gross Resource
Potential
~1 Bn
Boe
BTAX IRR SENSITIVITIES
• Horizontal drilling improves recoveries and
returns
• Targeting Wolfcamp A / B / C
• 7,000’+ lateral length
• ~80% of EUR made up of oil and NGLs
17
18. 2014 Development plan
• 2014 Capital budget $400 MM, approx. 95% for HZ Wolfcamp
• 3 HZ rigs in the Wolfcamp shale
• Targeting Wolfcamp A, B and C
• Pad drilling and stacked lateral development
• Targeting 40%+ production growth
• 2014 Production guidance of 4.8 MMBoe
• 2014E Production mix 72.5% liquids (44.5% oil)
• Development D&C HZ well cost $5.5 MM
Key takeaways:
2014 capital program provides flexibility to development Wolfcamp shale oil play and monitor commodity
prices and service costs
Increase in oil production drives expected increase in cash flow
Strong liquidity position with $354 MM of liquidity at 3/31/2014 ($454 MM including May 2014 borrowing
base increase)
18
20. 1Q14 Key highlights
1Q14 HIGHLIGHTS
• Drilled 16 HZ wells and completed 19 HZ
wells
• De-risked stacked wellbore development
• Maintained best-in-class HZ well costs,
while accelerating development
• Increased 1Q14 production 42% YoY to
11.9 MBoe/d
• Delivered record quarterly EBITDAX
• Solid financial position further
strengthened by borrowing base increase
Production (MBoe/d) 11.9
% Oil 42%
% Total liquids 70%
Average realized price ($/Boe)
Average realized price, excluding commodity derivatives impact $ 58.04
Average realized price, including commodity derivatives impact 56.78
Costs and expenses ($/Boe)
LOE $ 7.36
Production and ad valorem taxes 3.91
Exploration 0.69
General and administrative 8.00
G&A – cash component 5.51
G&A – noncash component 2.49
DD&A 22.12
1Q14 SUMMARY RESULTS
20
21. 1Q14 Operating highlights
OPERATING HIGHLIGHTS
Maximizing
Returns
• HZ well costs averaging $5.5 MM per well
• Oil differential of $(5.83)/Bbl (improved 53% YoY)
Delivering
Strong Well
Results &
Advancing
Delineation
• 1Q14 HZ Wolfcamp average IP 743 Boe/d (73% oil)
• De-risked stacked wellbore development outlook
• Stacked B/C completions, Baker B 255 HB and Baker B 259 HC, average IP
842 Boe/d (79% oil)
• HZ well results continue to track at or above type curve
• Recently drilled 100th HZ Wolfcamp well
Accelerating
Development
• Drilled 16 HZ wells and completed 19 HZ wells
• Wolfcamp A – 1 well, Wolfcamp B – 13 wells and Wolfcamp C – 5 wells
• Total production 11.9 MBoe/d (up 42% YoY)
• 1Q14 production 42% oil (oil production up 45% YoY)
21
22. 1Q14 Financial highlights
FINANCIAL HIGHLIGHTS
Significant Cash
Flow
• Record quarterly EBITDAX (non-GAAP) of $42.7 MM (up 75% YoY), or $1.09 per diluted
share (up 74% YoY)
• Capital expenditures $103.4 MM ($97.1 MM for D&C)
Strong Financial
Position
• Liquidity of $354 MM at March 31st
• Undrawn borrowing base of $350 MM ($450 MM as of May 2014)
• Liquidity of $454 MM including borrowing base increase
Increasing
Revenues
• Revenues of $61.9 MM (up 71% YoY)
• Net income of $2.9 MM, or $0.08 per diluted share
• Adjusted net income (non-GAAP) of $6.7 MM, or $0.17 per diluted share
Strong Balance Sheet and Liquidity to Develop
HZ Wolfcamp Shale
Note: See “Adjusted Net Income,” “EBITDAX” and “Strong, Simple Balance Sheet” slides.
22
23. Production and expense guidance
2014 Guidance
Production
Total (MBoe) 4,790
Percent oil 43% - 46%
Percent total liquids 71% - 74%
Operating costs and expenses (per Boe)
Lease operating $5.00 - $6.00
Production and ad valorem taxes 7.25% of oil & gas revenues
Cash general and administrative $4.50 - $5.00
Exploration $0.50 - $1.00
Depletion, depreciation and amortization $22.00 - $24.00
Capital expenditures (in millions) Approx. $400
Horizontal wells 70
23
24. Strong, simple balance sheet
FINANCIAL RESULTS ($MM)
As of
March 31, 2014
As of
March 31, 2014
(Pro forma for
Borrowing Base
Increase)
Summary Balance Sheet
Cash and Cash Equivalents $4.3
Restricted Cash 7.4
Credit Facility –
Senior Notes 250.0
Total Long-Term Debt $250.0
Shareholders’ Equity 715.9
Total Book Capitalization $965.9
Liquidity
Borrowing Base $350.0 $450.0
Cash and Cash Equivalents 4.3 4.3
Long-term Debt under Credit Facility – –
Undrawn Letters of Credit (0.3) (0.3)
Liquidity $354.0 $454.0
Key Metrics
LTM EBITDAX $146.1
Total Reserves (MMBoe) 114.7
Proved Developed Reserves (MMBoe) 45.2
% Proved Developed 39%
% Liquids 69%
Credit Statistics
Debt / Book Capital 26%
Debt / LTM EBITDAX 1.7x
LTM EBITDAX / LTM Interest 8.1x
Debt / Proved Reserves ($/Boe) $2.18
24
25. Current hedge position
Commodity & Period Contract Type Volume Contract Price
Crude Oil
April 2014 – December 2014 Collar 550 Bbls/d $90.00/Bbl - $105.50/Bbl
April 2014 – December 2014 Collar 950 Bbls/d $85.05/Bbl - $95.05/Bbl
April 2014 – December 2014 Collar 2,000 Bbls/d $89.00/Bbl - $98.85/Bbl
April 2014 – March 2015 Collar 1,500 Bbls/d $85.00/Bbl - $95.30/Bbl
January 2015 – December 2015 Collar 2,600 Bbls/d $84.00/Bbl - $91.00/Bbl
Natural Gas Liquids
Propane
April 2014 – December 2014 Swap 500 Bbls/d $41.16/Bbl
Natural Gasoline
April 2014 – December 2014 Swap 175 Bbls/d $83.37/Bbl
Natural Gas
April 2014 – December 2014 Swap 360,000 MMBtu/month $4.18/MMBtu
April 2014 – December 2014 Swap 35,000 MMBtu/month $4.29/MMBtu
April 2014 – December 2014 Swap 160,000 MMBtu/month $4.40/MMBtu
September 2014 – June 2015 Collar 80,000 MMBtu/month $4.00/MMBtu - $4.74/MMBtu
January 2015 – December 2015 Swap 200,000 MMBtu/month $4.10/MMBtu
January 2015 – December 2015 Collar 130,000 MMBtu/month $4.00/MMBtu - $4.25/MMBtu
25
26. Adjusted net income (unaudited)
(in thousands, except per-share amounts)
Three Months Ended
March 31,
2014 2013
Net income (loss) $ 2,945 $ (347)
Adjustments for certain items:
Unrealized loss on commodity derivatives 5,926 4,100
Related income tax effect (2,154) (1,394)
Adjusted net income $ 6,717 $ 2,359
Adjusted net income per diluted share $ 0.17 $ 0.06
The amounts included in the calculation of adjusted net income and adjusted net income per diluted share below were computed in
accordance with GAAP. We believe adjusted net income and adjusted net income per diluted share are useful to investors because they provide
readers with a more meaningful measure of our profitability before recording certain items whose timing or amount cannot be reasonably
determined. However, these measures are provided in addition to, and not as an alternative for, and should be read in conjunction with, the
information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our SEC filings and posted
on our website.
The following table provides a reconciliation of adjusted net income to net income (loss) for the three months ended March 31, 2014 and 2013.
ADJUSTED NET INCOME (UNAUDITED)
26
27. EBITDAX (unaudited)
EBITDAX (UNAUDITED)
The amounts included in the calculation of EBITDAX were computed in accordance with GAAP. EBITDAX is not a measure of net income or cash
flow as determined by GAAP. EBITDAX is presented herein and reconciled to the GAAP measure of net income because of its wide acceptance by
the investment community as a financial indicator of a company's ability to internally fund development and exploration activities. This measure is
provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements
prepared in accordance with GAAP (including the notes), included in our SEC filings and posted on our website.
The following table provides a reconciliation of EBITDAX to net income (loss) for the three months ended March 31, 2014 and 2013.
(in thousands, except per-share amounts)
Three Months Ended
March 31,
2014 2013
Net income (loss) $ 2,945 $ (347)
Exploration 738 260
Depletion, depreciation and amortization 23,606 17,056
Share-based compensation 2,654 2,257
Unrealized loss on commodity derivatives 5,926 4,100
Interest expense, net 5,137 1,229
Income tax provision (benefit) 1,681 (187)
EBITDAX $ 42,687 $ 24,368
EBITDAX per diluted share $ 1.09 $ 0.63
27
28. PV-10 (unaudited)
PV-10 (UNAUDITED)
(in millions) December 31,
2013
PV-10 $ 1,132
Less income taxes:
Undiscounted future income taxes (919)
10% discount factor 463
Future discounted income taxes (456)
Standardized measure of discounted future net cash flows $ 676
The present value of our proved reserves, discounted at 10% (“PV-10”), was estimated at $1.1 billion at December 31, 2013, and was calculated based
on the first-of-the-month, twelve-month average prices for oil, NGLs and gas, of $97.28 per Bbl of oil, $30.16 per Bbl of NGLs and $3.66 per MMBtu of
natural gas.
PV-10 is our estimate of the present value of future net revenues from proved oil and gas reserves after deducting estimated production and ad valorem
taxes, future capital costs and operating expenses, but before deducting any estimates of future income taxes. The estimated future net revenues are
discounted at an annual rate of 10% to determine their “present value.” We believe PV-10 to be an important measure for evaluating the relative
significance of our oil and gas properties and that the presentation of the non-GAAP financial measure of PV-10 provides useful information to investors
because it is widely used by professional analysts and investors in evaluating oil and gas companies. Because there are many unique factors that can
impact an individual company when estimating the amount of future income taxes to be paid, we believe the use of a pre-tax measure is valuable for
evaluating the Company. We believe that PV-10 is a financial measure routinely used and calculated similarly by other companies in the oil and gas
industry.
The following table reconciles PV-10 to our standardized measure of discounted future net cash flows, the most directly comparable measure calculated
and presented in accordance with GAAP. PV-10 should not be considered as an alternative to the standardized measure as computed under GAAP.
28
29. F&D costs (unaudited)
F&D COST RECONCILIATION
Cost summary (in thousands)
Property acquisition costs
Unproved properties $ 5,857
Proved properties 1,000
Exploration costs 2,238
Development costs 287,898
Total costs incurred $ 296,993
Reserves summary (MBoe)
Balance – 12/31/2012 95,479
Extensions & discoveries 27,282
Acquisition 109
Production (1) (3,517)
Revisions to previous estimates (4,692)
Balance – 12/31/2013 114,661
F&D cost ($/Boe)
All-in F&D cost $ 13.08
Drill-bit F&D cost 10.63
Reserve replacement ratio
Drill-bit 776%
All-in finding and development (“F&D”) costs are calculated by dividing the
sum of property acquisition costs, exploration costs and development costs for
the year by the sum of reserve extensions and discoveries, purchases of
minerals in place and total revisions for the year.
Drill-bit F&D costs are calculated by dividing the sum of exploration costs and
development costs for the year by the total of reserve extensions and
discoveries for the year.
We believe that providing F&D cost is useful to assist in an evaluation of how
much it costs the Company, on a per Boe basis, to add proved reserves.
However, these measures are provided in addition to, and not as an alternative
for, and should be read in conjunction with, the information contained in our
financial statements prepared in accordance with GAAP (including the notes),
included in our previous SEC filings and to be included in our annual report on
Form 10-K filed with the SEC on February 25, 2014. Due to various factors,
including timing differences, F&D costs do not necessarily reflect precisely the
costs associated with particular reserves. For example, exploration costs may
be recorded in periods before the periods in which related increases in
reserves are recorded, and development costs may be recorded in periods
after the periods in which related increases in reserves are recorded. In
addition, changes in commodity prices can affect the magnitude of recorded
increases (or decreases) in reserves independent of the related costs of such
increases.
As a result of the above factors and various factors that could materially affect
the timing and amounts of future increases in reserves and the timing and
amounts of future costs, including factors disclosed in our filings with the SEC,
we cannot assure you that the Company’s future F&D costs will not differ
materially from those set forth above. Further, the methods used by us to
calculate F&D costs may differ significantly from methods used by other
companies to compute similar measures. As a result, our F&D costs may not
be comparable to similar measures provided by other companies.
The following table reconciles our estimated F&D costs for 2013 to the
information required by paragraphs 11 and 21 of ASC 932-235.
(1) Production includes 560 MMcf related to field fuel.
F&D COSTS (UNAUDITED)
29
30. Contact information
MEGAN P. HAYS
Director, Investor Relations & Corporate Communications
817.989.9000
mhays@approachresources.com
www.approachresources.com