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.
This document provides information about EOG Resources Inc. (EOG), including its stock symbol, common dividend amount, number of common shares outstanding, and investor relations contacts. It also contains legal disclaimers about forward-looking statements and non-GAAP financial measures, as well as brief statements about EOG being a U.S. leader in return on capital employed and oil growth, having among the lowest costs of production globally, and being committed to safety and the environment.
- EOG Resources Inc. acquired Yates Petroleum Corporation, adding 1.6 million net acres across multiple regions for $2.5 billion.
- The acquisition significantly increases EOG's core positions in the Delaware Basin, Powder River Basin, and Northwest Shelf, providing over 1,700 additional premium drilling locations.
- The high quality acreage acquired from Yates is estimated to contain over 1.6 billion barrels of oil equivalent in net resource potential, and will enable expanded development and exploration across EOG's portfolio.
This document provides information about EOG Resources, Inc. (EOG), an oil and gas exploration and production company. It includes EOG's stock symbol, dividend, shares outstanding, and investor relations contacts. The document also contains cautionary statements about forward-looking estimates and non-GAAP financial measures. Additionally, it summarizes EOG's strategy of focusing on premium wells that offer high rates of return even at low oil prices, and outlines EOG's plan to deliver double-digit oil production growth in 2017 through its premium drilling strategy.
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.
The document provides an overview of Antero Resources Corporation and contains forward-looking statements regarding estimates, plans, strategies, objectives, anticipated financial and operating results, and assumptions. It cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Specifically, it notes estimates of reserves, a drilling program, production growth, hedging activities, capital expenditures, and guidance are forward-looking statements dependent on certain assumptions. It also lists risk factors that could impact forward-looking statements from the company's annual report.
The document provides an overview of a partnership between Antero Midstream Partners LP and Antero Resources Corporation. It contains forward-looking statements regarding future plans, strategies, objectives, and anticipated financial and operating results. These statements are based on certain assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. The ability to make future distributions is substantially dependent on Antero Resources' development and drilling plan, which is dependent on its annual capital budget approval.
The document provides cautionary statements regarding forward-looking statements in the presentation. It notes that actual results can differ materially from expectations due to risks and uncertainties described in Chesapeake's SEC filings. It also defines terms used in the presentation like PV10, estimated ultimate recovery, and resource potential that are more speculative than proved reserves. The SEC prohibits including these estimates in filings.
This document provides contact information for Devon Energy's investor relations team. It also contains standard legal disclaimers about forward-looking statements and the use of non-GAAP financial measures in company presentations. The rest of the document summarizes Devon's operations, highlighting its high-quality asset portfolio, strong financial position, and focus on capital discipline and returns. It provides details on key growth opportunities in the STACK and Delaware Basin plays.
This document provides information about EOG Resources Inc. (EOG), including its stock symbol, common dividend amount, number of common shares outstanding, and investor relations contacts. It also contains legal disclaimers about forward-looking statements and non-GAAP financial measures, as well as brief statements about EOG being a U.S. leader in return on capital employed and oil growth, having among the lowest costs of production globally, and being committed to safety and the environment.
- EOG Resources Inc. acquired Yates Petroleum Corporation, adding 1.6 million net acres across multiple regions for $2.5 billion.
- The acquisition significantly increases EOG's core positions in the Delaware Basin, Powder River Basin, and Northwest Shelf, providing over 1,700 additional premium drilling locations.
- The high quality acreage acquired from Yates is estimated to contain over 1.6 billion barrels of oil equivalent in net resource potential, and will enable expanded development and exploration across EOG's portfolio.
This document provides information about EOG Resources, Inc. (EOG), an oil and gas exploration and production company. It includes EOG's stock symbol, dividend, shares outstanding, and investor relations contacts. The document also contains cautionary statements about forward-looking estimates and non-GAAP financial measures. Additionally, it summarizes EOG's strategy of focusing on premium wells that offer high rates of return even at low oil prices, and outlines EOG's plan to deliver double-digit oil production growth in 2017 through its premium drilling strategy.
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.
The document provides an overview of Antero Resources Corporation and contains forward-looking statements regarding estimates, plans, strategies, objectives, anticipated financial and operating results, and assumptions. It cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Specifically, it notes estimates of reserves, a drilling program, production growth, hedging activities, capital expenditures, and guidance are forward-looking statements dependent on certain assumptions. It also lists risk factors that could impact forward-looking statements from the company's annual report.
The document provides an overview of a partnership between Antero Midstream Partners LP and Antero Resources Corporation. It contains forward-looking statements regarding future plans, strategies, objectives, and anticipated financial and operating results. These statements are based on certain assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. The ability to make future distributions is substantially dependent on Antero Resources' development and drilling plan, which is dependent on its annual capital budget approval.
The document provides cautionary statements regarding forward-looking statements in the presentation. It notes that actual results can differ materially from expectations due to risks and uncertainties described in Chesapeake's SEC filings. It also defines terms used in the presentation like PV10, estimated ultimate recovery, and resource potential that are more speculative than proved reserves. The SEC prohibits including these estimates in filings.
This document provides contact information for Devon Energy's investor relations team. It also contains standard legal disclaimers about forward-looking statements and the use of non-GAAP financial measures in company presentations. The rest of the document summarizes Devon's operations, highlighting its high-quality asset portfolio, strong financial position, and focus on capital discipline and returns. It provides details on key growth opportunities in the STACK and Delaware Basin plays.
This document provides an overview of Antero Resources Corporation. It begins with forward-looking statements and disclosures regarding the inherent risks and uncertainties in projections. The rest of the document then highlights Antero's large production base, declining costs, significant hedging position through 2021 protecting cash flows, and strategic transportation agreements allowing it to sell almost all production at favorable markets. It presents Antero as having a sustainable business model through the current price down cycle.
This document provides information about EOG Resources, Inc. It includes EOG's stock symbol and dividend, shares outstanding, website and investor relations contacts. It also contains cautionary statements regarding forward-looking statements and assumptions of risk. The document notes that EOG is shifting capital to premium locations that generate over 30% returns even at $40/barrel oil. It also discusses growing premium well inventory, increasing capital productivity, and maintaining a strong balance sheet while focusing on returns.
This document provides an investor presentation for Crestwood Midstream Partners LP and Crestwood Equity Partners LP. It summarizes the companies' strategic pivot to improve processes and efficiencies, reduce costs, simplify operations, and deleverage the balance sheet. Going forward, the companies plan to focus on executing existing projects, high-grading growth opportunities, and pursuing disciplined growth through joint ventures to enhance their strategic position while preserving financial strength. Key regions for potential long-term growth include the Marcellus Shale, Bakken, and Delaware Permian areas.
Denbury Resources is an oil and gas company focused on CO2 enhanced oil recovery. It owns over 1,100 miles of CO2 pipelines and has access to large CO2 reserves. Denbury estimates there is potential to recover up to 16 billion gross barrels using CO2 EOR in its operating areas in the Gulf Coast and Rocky Mountain regions. The company is focusing on reducing costs and debt in response to low oil prices. It has significantly improved CO2 efficiency and reduced cash operating costs per barrel. Denbury has ample CO2 supply for several years with no major capital required.
EOG Resources Inc. is an oil and gas exploration and production company with stock symbol EOG trading on the NYSE. It pays a quarterly dividend of $0.67 per share and has 550 million shares outstanding. The document provides contact information for EOG's investor relations department and cautions that any forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. It also notes that some reserve estimates disclosed may include probable and possible reserves not calculated according to SEC guidelines.
This document provides contact information for Devon Energy's investor relations team. It also contains standard legal disclaimers about forward-looking statements and the use of non-GAAP financial measures in company presentations. The rest of the document summarizes Devon's operations and financial position, highlighting its high-quality asset portfolio including top positions in the STACK and Delaware Basin plays, significant financial strength following asset sales, and a focus on capital discipline and returns.
NYSE:DNR is an oil and gas company focused on CO2 enhanced oil recovery. It owns over 1,100 miles of CO2 pipelines and has significant CO2 reserves. Its core assets have long lives and large estimated original oil in place that could potentially be recovered through CO2 flooding. The company is reducing costs and debt in response to low oil prices while continuing to optimize its operations and preserve liquidity. It provided 2016 capital and production guidance focused on its low decline, oil-weighted assets.
The document provides an overview of Antero Resources Corporation. It notes that the presentation contains forward-looking statements regarding activities, events or developments that may occur in the future. It cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The document also provides updates to slides since the last October 2016 presentation, including updated financial data, production guidance, and hedge positions.
This document provides an overview of Antero Resources Corporation. It begins with forward-looking statements and disclosures, noting that the document contains projections that may not come to pass. It then provides updates to slides presented in a prior September 2016 presentation, including improved well economics from lower costs and longer laterals, higher estimated ultimate recoveries, and updated financial information. The document highlights Antero's large core acreage position, growing production and improving well returns, leading realized prices due to premium sales contracts, and strong balance sheet with significant liquidity. It presents Antero as well positioned for sustainable growth in the Appalachian basin.
- EOG Resources Inc. is acquiring Yates Petroleum Corporation for $2.5 billion, adding 1.6 million net acres to its portfolio.
- The acquisition significantly increases EOG's core positions in the Delaware Basin, Powder River Basin, and Northwest Shelf, providing an additional 1,740 net premium drilling locations and estimated premium net resource potential of 1.6 billion barrels of oil equivalent.
- The transaction will be completed through the issuance of $2.3 billion in EOG equity and $151 million in cash and debt assumption, and is expected to close in early October.
The document provides an overview of forward-looking statements and guidance for Antero Midstream Partners LP. It summarizes that AM expects adjusted EBITDA of $180-190 million and distributable cash flow of $160-170 million for 2015. It also outlines AM's guidance for expansion of its low and high pressure pipelines and compression capacity additions. The guidance assumes a continued 28-30% annual distribution growth through 2017 driven by Antero Resources' 40%+ production growth target, establishing AM's business model is tied to Antero's strong production growth.
Mason Graphite Corporate Presentation April 2016masongraphite
The presentation provides an overview of the Lac Guéret Flake Graphite Project being developed by Mason Graphite. Key points include:
- Robust economics shown in the feasibility study, including a pre-tax IRR of 44% and payback period of 2.3 years.
- The project has a 25-year mine life using only 7% of current measured and indicated resources.
- Management has over 50 years of combined experience in graphite production and the team previously worked together at Timcal/Imerys Graphite.
- The project has local community support and access to hydroelectric power. Mason Graphite aims to be a low-cost producer of high-grade graphite.
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.
Howard weil conference presentation march 2017 v-f (small)AnteroResources
This document contains forward-looking statements regarding Antero Resources Corporation's expected activities, events, developments, and financial results. It cautions readers that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. It also provides an overview of Antero's key attributes, including its large drilling inventory, production and reserves growth targets, strong hedge book, and upside potential from growing liquids production as infrastructure expands.
The document provides an overview of Antero Resources Corporation. It notes that the presentation contains forward-looking statements subject to risks and uncertainties. It also highlights several changes made in the presentation since February 2017, including updated slides on Antero's reserve growth, liquids-rich resource base, and increasing NGL realizations. The document introduces Antero as the largest liquids-rich natural gas producer and consolidator in Appalachia.
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.
This document provides information about EOG Resources, Inc. (EOG), an oil and gas exploration and production company. It lists EOG's stock symbol and dividend, shares outstanding, and investor relations contacts. It also contains cautionary statements about forward-looking estimates and reserves, describes EOG's strategy of focusing on high-return oil growth through premium drilling locations and technological advantages, and provides production and well performance data to demonstrate EOG's leading position.
The document provides an overview of Antero Resources Corporation. It notes that the presentation contains forward-looking statements regarding activities, events or developments that may occur in the future. It cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The document also highlights several changes made to guidance, economics and other figures since the prior presentation in March 2017 based on updated strip pricing as of March 31, 2017.
Denbury provides a corporate presentation discussing its operations, assets, and 2017 priorities. It has 254 million barrels of proved oil reserves across its Gulf Coast and Rocky Mountain regions, with an additional ~900 million barrels of potential from CO2 enhanced oil recovery. Its priorities for 2017 include improving its balance sheet, stabilizing production, maintaining efficiencies, and pursuing growth opportunities. It outlines a $300 million capital budget focused on tertiary projects and exploitation to maintain flat production of around 62,000 barrels per day.
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 $
- 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.
This document provides an overview of Antero Resources Corporation. It begins with forward-looking statements and disclosures regarding the inherent risks and uncertainties in projections. The rest of the document then highlights Antero's large production base, declining costs, significant hedging position through 2021 protecting cash flows, and strategic transportation agreements allowing it to sell almost all production at favorable markets. It presents Antero as having a sustainable business model through the current price down cycle.
This document provides information about EOG Resources, Inc. It includes EOG's stock symbol and dividend, shares outstanding, website and investor relations contacts. It also contains cautionary statements regarding forward-looking statements and assumptions of risk. The document notes that EOG is shifting capital to premium locations that generate over 30% returns even at $40/barrel oil. It also discusses growing premium well inventory, increasing capital productivity, and maintaining a strong balance sheet while focusing on returns.
This document provides an investor presentation for Crestwood Midstream Partners LP and Crestwood Equity Partners LP. It summarizes the companies' strategic pivot to improve processes and efficiencies, reduce costs, simplify operations, and deleverage the balance sheet. Going forward, the companies plan to focus on executing existing projects, high-grading growth opportunities, and pursuing disciplined growth through joint ventures to enhance their strategic position while preserving financial strength. Key regions for potential long-term growth include the Marcellus Shale, Bakken, and Delaware Permian areas.
Denbury Resources is an oil and gas company focused on CO2 enhanced oil recovery. It owns over 1,100 miles of CO2 pipelines and has access to large CO2 reserves. Denbury estimates there is potential to recover up to 16 billion gross barrels using CO2 EOR in its operating areas in the Gulf Coast and Rocky Mountain regions. The company is focusing on reducing costs and debt in response to low oil prices. It has significantly improved CO2 efficiency and reduced cash operating costs per barrel. Denbury has ample CO2 supply for several years with no major capital required.
EOG Resources Inc. is an oil and gas exploration and production company with stock symbol EOG trading on the NYSE. It pays a quarterly dividend of $0.67 per share and has 550 million shares outstanding. The document provides contact information for EOG's investor relations department and cautions that any forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. It also notes that some reserve estimates disclosed may include probable and possible reserves not calculated according to SEC guidelines.
This document provides contact information for Devon Energy's investor relations team. It also contains standard legal disclaimers about forward-looking statements and the use of non-GAAP financial measures in company presentations. The rest of the document summarizes Devon's operations and financial position, highlighting its high-quality asset portfolio including top positions in the STACK and Delaware Basin plays, significant financial strength following asset sales, and a focus on capital discipline and returns.
NYSE:DNR is an oil and gas company focused on CO2 enhanced oil recovery. It owns over 1,100 miles of CO2 pipelines and has significant CO2 reserves. Its core assets have long lives and large estimated original oil in place that could potentially be recovered through CO2 flooding. The company is reducing costs and debt in response to low oil prices while continuing to optimize its operations and preserve liquidity. It provided 2016 capital and production guidance focused on its low decline, oil-weighted assets.
The document provides an overview of Antero Resources Corporation. It notes that the presentation contains forward-looking statements regarding activities, events or developments that may occur in the future. It cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The document also provides updates to slides since the last October 2016 presentation, including updated financial data, production guidance, and hedge positions.
This document provides an overview of Antero Resources Corporation. It begins with forward-looking statements and disclosures, noting that the document contains projections that may not come to pass. It then provides updates to slides presented in a prior September 2016 presentation, including improved well economics from lower costs and longer laterals, higher estimated ultimate recoveries, and updated financial information. The document highlights Antero's large core acreage position, growing production and improving well returns, leading realized prices due to premium sales contracts, and strong balance sheet with significant liquidity. It presents Antero as well positioned for sustainable growth in the Appalachian basin.
- EOG Resources Inc. is acquiring Yates Petroleum Corporation for $2.5 billion, adding 1.6 million net acres to its portfolio.
- The acquisition significantly increases EOG's core positions in the Delaware Basin, Powder River Basin, and Northwest Shelf, providing an additional 1,740 net premium drilling locations and estimated premium net resource potential of 1.6 billion barrels of oil equivalent.
- The transaction will be completed through the issuance of $2.3 billion in EOG equity and $151 million in cash and debt assumption, and is expected to close in early October.
The document provides an overview of forward-looking statements and guidance for Antero Midstream Partners LP. It summarizes that AM expects adjusted EBITDA of $180-190 million and distributable cash flow of $160-170 million for 2015. It also outlines AM's guidance for expansion of its low and high pressure pipelines and compression capacity additions. The guidance assumes a continued 28-30% annual distribution growth through 2017 driven by Antero Resources' 40%+ production growth target, establishing AM's business model is tied to Antero's strong production growth.
Mason Graphite Corporate Presentation April 2016masongraphite
The presentation provides an overview of the Lac Guéret Flake Graphite Project being developed by Mason Graphite. Key points include:
- Robust economics shown in the feasibility study, including a pre-tax IRR of 44% and payback period of 2.3 years.
- The project has a 25-year mine life using only 7% of current measured and indicated resources.
- Management has over 50 years of combined experience in graphite production and the team previously worked together at Timcal/Imerys Graphite.
- The project has local community support and access to hydroelectric power. Mason Graphite aims to be a low-cost producer of high-grade graphite.
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.
Howard weil conference presentation march 2017 v-f (small)AnteroResources
This document contains forward-looking statements regarding Antero Resources Corporation's expected activities, events, developments, and financial results. It cautions readers that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. It also provides an overview of Antero's key attributes, including its large drilling inventory, production and reserves growth targets, strong hedge book, and upside potential from growing liquids production as infrastructure expands.
The document provides an overview of Antero Resources Corporation. It notes that the presentation contains forward-looking statements subject to risks and uncertainties. It also highlights several changes made in the presentation since February 2017, including updated slides on Antero's reserve growth, liquids-rich resource base, and increasing NGL realizations. The document introduces Antero as the largest liquids-rich natural gas producer and consolidator in Appalachia.
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.
This document provides information about EOG Resources, Inc. (EOG), an oil and gas exploration and production company. It lists EOG's stock symbol and dividend, shares outstanding, and investor relations contacts. It also contains cautionary statements about forward-looking estimates and reserves, describes EOG's strategy of focusing on high-return oil growth through premium drilling locations and technological advantages, and provides production and well performance data to demonstrate EOG's leading position.
The document provides an overview of Antero Resources Corporation. It notes that the presentation contains forward-looking statements regarding activities, events or developments that may occur in the future. It cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The document also highlights several changes made to guidance, economics and other figures since the prior presentation in March 2017 based on updated strip pricing as of March 31, 2017.
Denbury provides a corporate presentation discussing its operations, assets, and 2017 priorities. It has 254 million barrels of proved oil reserves across its Gulf Coast and Rocky Mountain regions, with an additional ~900 million barrels of potential from CO2 enhanced oil recovery. Its priorities for 2017 include improving its balance sheet, stabilizing production, maintaining efficiencies, and pursuing growth opportunities. It outlines a $300 million capital budget focused on tertiary projects and exploitation to maintain flat production of around 62,000 barrels per day.
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 $
- 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 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.
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.
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 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 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.
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.
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 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 the prior year. The company aims to grow production 40% in 2014 through increased horizontal drilling in the Wolfcamp.
- 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 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 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.
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.
- The document is an investor presentation for Parsley Energy that provides an overview of the company's operations and key metrics.
- Parsley is an oil and gas producer focused on the Midland and Delaware Basins with over 138,000 net acres of leasehold.
- In the fourth quarter of 2015, Parsley produced over 25,000 barrels of oil equivalent per day, with oil accounting for 63% of production.
- 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.
- 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.
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.
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2. Forward-looking statements
First Quarter 2016 Results – May 2016 2
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 drilling project, 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 limited
production experience with this project, 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
3. Company overview
AREX OVERVIEW ASSET OVERVIEW
Enterprise value $619MM
High-quality reserve base
167 MMBoe proved reserves
63% Liquids, 33% oil
$504 MM proved PV-10 (non-GAAP)
Permian core operating area
139,000 gross (126,000 net) acres
~1+ BnBoe gross, unrisked resource potential
~1,800 Identified HZ drilling locations targeting
Wolfcamp A/B/C
2016 Capital program focused on aligning
capex with cash flow
Stable leasehold that is largely HBP provides for
flexible budget
Improving commodity prices would allow us to
seamlessly increase capital budget from ~$20 MM
to ~$80 MM
Note: Proved reserves as of 12/31/2015 and acreage as of 3/31/2016. 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 $2.99 per share on 4/27/2016, plus net debt as of 3/31/2016. See “PV-10 (unaudited)” slide for reconciliation to GAAP measure.
3First Quarter 2016 Results – May 2016
4. 1Q16 Operating highlights
OPERATING HIGHLIGHTS
Low cost, on
time, and on
budget
• Drilled 4 HZ wells, no completions during the quarter
• Wolfcamp A – 2 wells and Wolfcamp C – 2 wells
• Wells drilled during the quarter coming in at or below $3.7 MM AFE
• 3Q15 wells continue to track above 510 MBoe type curve
Production
decline
management
• No completions during the quarter given sustained low prices, production continued on
natural PDP decline
• Total 1Q16 production of 1,165 Mboe
• Positioned for return to development with two completions planned for 2Q16
4First Quarter 2016 Results – May 2016
5. 1Q16 Financial highlights
FINANCIAL HIGHLIGHTS
Preserving cash
flow
• Quarterly EBITDAX (non-GAAP)1 of $8.7 MM, or $0.21 per diluted share
• Quarterly cash flow from operations of $5.3 MM
• Capital expenditures of $4.9 MM ($4.0 MM for D&C)
• Remain well-hedged for the balance of 2016
Stable financial
position
• Continued to reduce debt and current liabilities during the quarter
• Lenders set borrowing base and commitment amount at $325 MM following Spring 2016
redetermination, while providing flexibility to pursue balance sheet initiatives
• Current liquidity position is more than adequate to execute on our 2016 plan
Heightened
focus on cutting
costs
• Revenues (pre-hedge) of $17.6 MM, adjusted net loss (non-GAAP)1 of $13.0 MM, or $0.32
per diluted share
• Every per-unit cash cost metric has been improved since 1Q15
• 1Q16 Cash operating costs totaled $10.74/Boe, a 13% decrease compared to 1Q15
5
1. See “Adjusted net loss (unaudited)” and “EBITDAX (unaudited)” slides for reconciliation to GAAP measures.
First Quarter 2016 Results – May 2016
6. First Quarter 2016 Results – May 2016
Balance sheet detail
6
AREX Liquidity and Capitalization• Following the Spring 2016 redetermination, our lenders set the
borrowing base and commitment amount at $325 MM, while agreeing
to a number of amendments designed to provide additional flexibility
• Interest coverage covenant of 1.25x (or 1.00x following the issuance
of junior secured debt) through 12/31/17, moving to 1.5x through
12/31/18 and 2.0x thereafter
• $150 MM permitted debt basket allows for issuance of new junior
secured debt
• 2016 capital budget targeted to match operating cash flow
• Pro forma liquidity2 of $54 MM provides additional flexibility
• LTM EBITDAX / LTM Interest of 3.9x and current ratio of 6.7x, well
above minimum covenant requirements
• No near-term debt maturities
AREX Debt Maturity Schedule ($ MM)
AREX Capitalization as of 3/31/2016 ($ MM)
Cash $0.8
Credit Facility 269.9
7.0% Senior Notes due 2021 226.1
Total Long-Term Debt 1
$496.0
Shareholders’ Equity 595.8
Total Book Capitalization $1,091.8
AREX Pro Forma Liquidity2
Borrowing Base $325.0
Cash and Cash Equivalents 0.8
Borrowings under Credit Facility (272.0)
Undrawn Letters of Credit (0.3)
Liquidity $53.5
$272.0
$230.3
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
2016 2017 2018 2019 2020 2021
7.0% Senior Notes
1. Long-term debt is net of debt issuance costs of $6.4 million as of March 31, 2016
Revolving Credit
Facility
2. See “Liquidity (unaudited)” slide for pro forma reconciliation.
8. First Quarter 2016 Results – May 2016
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
1 31 61 91 121 151 181 211 241 271 301 331 361 391
2015 Wolfcamp B&C bench completions
Average completed lateral length = 6886'
Enhanced completion design drives outperformance from
2015 wells
8
Note: Production data normalized for operational downtimeNote: Production data normalized for operational downtime
CumulativeProduction(Boe)
Time (Day)
9. Strong track record of reserve and production growth
9
RESERVE GROWTH
0
20
40
60
80
100
120
140
160
180
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gas (MMBoe) Oil & NGLs (MMBbls)
• YE15 reserves up 14% YoY
• Replaced 603% of produced reserves at a drill-
bit F&D cost (non-GAAP) of $4.32/Boe1
• 154.6 MMBoe proved reserves booked to HZ
Wolfcamp play
MMBoe
PRODUCTION GROWTH
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Natural Gas (MBoe/d) Oil & NGLs (Mbbls/d)
• 2015 Production increased 10% YoY to a
record 15.2 MBoe/d
• Anticipating production decline in 2016 with
significantly reduced capital budget
MBoe/d
First Quarter 2016 Results – May 2016
1. 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. See “F&D costs (unaudited)”
slide for reconciliation to GAAP measure.
10. First Quarter 2016 Results – May 2016
The business is anchored by long-lived, low-cost proved reserve
base
10
• 12/31/2015 reserve summary prepared by DeGolyer and MacNaughton (“D&M”)
• Replaced 603% of produced reserves at a drill-bit F&D cost (non-GAAP) of $4.32 per Boe1
• Total proved reserves up 14% YoY, proved PV-10 (non-GAAP) of $504 million2
Oil (MBbls) NGLs (MBbls) Natural Gas (MMcf) 3 Total (MBoe) PV-10 ($ MM) 2
PDP 15,476 20,362 154,202 61,539 $390.8
PDNP 191 52 450 317 $1.1
PUD 38,829 29,072 221,336 104,790 $112.1
Total Proved 54,496 49,486 375,988 166,646 $504.0
Total Proved Reserves Reserves by Commodity Proved PV-10
33%
30%
37%
Oil NGLs Natural Gas
37%
<1%
63%
PDP PDNP PUD
78%
< 1%
22%
PDP PDNP PUD
1. 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. See “F&D costs (unaudited)”
slide for reconciliation to GAAP measure.
2. PV-10 calculated based on the first-of-the-month, 12-month average prices for oil, NGLs and natural gas, of $50.16 per Bbl of oil, $15.13 per Bbl of NGLs and $2.64 per MMBtu of natural gas. See “PV-10
(unaudited)” slide for reconciliation to GAAP measure.
3. The gas reserves contain 42,617 MMcf of gas that will be produced and used as field fuel (primarily for compressors and artificial lifts) before the gas is delivered to a sales point.
11. Established infrastructure in place is critical to low cost
structure
11
Benefits of water recycling
• Reduce D&C cost
• Reduce LOE
• Increase project profit margin
• Minimize fresh water use, truck
traffic and surface disturbance
First Quarter 2016 Results – May 2016
12. First Quarter 2016 Results – May 2016
Current hedge position
12
• Based on the midpoint of current 2016 guidance, approximately 48% of forecasted oil production and 75% of
forecasted natural gas production are hedged at weighted average prices of $50.56/Bbl and $2.61/MMBtu,
respectively.
Commodity & Period Contract Type Volume Contract Price
Crude Oil
April 2016 – December 2016 Swap 750 Bbls/d $62.52/Bbl
April 2016 – June 2016 Swap 1,000 Bbls/d $40.00/Bbl
April 2016 – June 2016 Swap 500 Bbls/d $40.25/Bbl
April 2016 – September 2016 Swap 750 Bbls/d $43.00/Bbl
Natural Gas
April 2016 – December 2016 Swap 200,000 MMBtu/month $2.93/MMBtu
April 2016 – March 2017 Swap 400,000 MMBtu/month $2.45/MMBtu
April 2017 – December 2017 Collar 200,000 MMBtu/month $2.30/MMBtu - $2.60/MMBtu
13. First Quarter 2016 Results – May 2016
Production and expense guidance
13
2016 Guidance
Production
Oil (MBbls) 1,300 – 1,400
NGLs (MBbls) 1,440 – 1,540
Natural Gas (MMcf) 9,600 – 10,100
Total (MBoe) 4,340 – 4,625
Cash operating costs (per Boe)
Lease operating $5.00 - $6.00
Production and ad valorem taxes 8.0% of oil & gas revenues
Cash general and administrative $3.50 - $4.00
Non-cash operating costs (per Boe)
Non-cash general and administrative $1.00 - $1.50
Exploration (non-cash) $0.50 - $1.00
Depletion, depreciation and amortization $18.00 - $20.00
Capital expenditures (in millions) ~$20
15. AREX Wolfcamp acreage is offset by large operators
15
Pangea West
EOG
HENRY
ENERVEST
EP ENERGY
others
APA
PXD
DVN
AREX
AREX
AREX
AREX
APA
APA
DVN
DVN
ELEVATION
PXD
DVN
APA
APA
APA
EOG
Pangea
ENERVEST
EOG /
EAP
EAP
BROADOAK
ENDEAVOR
APA
UPTON
CROCKETT
REAGAN
IRION
SCHLEICHER
SUTTON
EP ENERGY
AREX
AREX
AREX
AREX
EOG
First Quarter 2016 Results – May 2016
16. First Quarter 2016 Results – May 2016
Adjusted net loss (unaudited)
16
(in thousands, except per-share amounts)
Three Months Ended
March 31,
2016 2015
Net loss $ (13,660) $ (7,708)
Adjustments for certain items:
Unrealized loss on commodity derivatives 957 9,321
Rig termination fees - 498
Related income tax effect (335) (3,437)
Adjusted net loss $ (13,038) $ (1,326)
Adjusted net loss per diluted share $ (0.32) $ (0.03)
The amounts included in the calculation of adjusted net loss and adjusted net loss per diluted share below were computed in accordance with GAAP. We
believe adjusted net loss and adjusted net loss per diluted share are useful to investors because they provide readers with a 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 loss to net loss for the three months ended March 31, 2016 and 2015.
17. First Quarter 2016 Results – May 2016
EBITDAX (unaudited)
17
We define EBITDAX as net loss, plus (1) exploration expense, (2) depletion, depreciation and amortization expense, (3) share-based compensation expense, (4)
unrealized loss on commodity derivatives, (5) interest expense, net, and (6) income tax benefit. EBITDAX is not a measure of net income or cash flow as
determined by GAAP. The amounts included in the calculation of EBITDAX were computed in accordance with GAAP. EBITDAX is presented herein and
reconciled to the GAAP measure of net loss 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 loss for the three months ended March 31, 2016 and 2015.
(in thousands, except per-share amounts)
Three Months Ended
March 31,
2016 2015
Net loss $ (13,660) $ (7,708)
Exploration 569 1,090
Depletion, depreciation and amortization 20,229 26,520
Share-based compensation 1,550 2,217
Unrealized loss on commodity derivatives 957 9,321
Interest expense, net 6,298 5,922
Income tax benefit (7,245) (3,996)
EBITDAX $ 8,698 $ 33,366
EBITDAX per diluted share $ 0.21 $ 0.83
18. First Quarter 2016 Results – May 2016
Cash operating expenses (unaudited)
18
We define cash operating expenses as operating expenses, excluding (1) exploration expense, (2) depletion, depreciation and amortization expense, and (3)
share-based compensation expense. Cash operating expenses is not a measure of operating expenses as determined by GAAP. The amounts included in the
calculation of cash operating expenses were computed in accordance with GAAP. Cash operating expenses is presented herein and reconciled to the GAAP
measure of operating expenses. We use cash operating expenses as an indicator of the Company’s ability to manage its operating expenses and cash flows. 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 cash operating expenses to operating expenses for the three months ended March 31, 2016 and 2015.
(in thousands, except per-Boe amounts)
Three Months Ended
March 31,
2016 2015
Operating expenses $ 34,869 $ 45,686
Exploration (569) (1,090)
Depletion, depreciation and amortization (20,229) (26,520)
Share-based compensation (1,550) (2,217)
Cash operating expenses $ 12,521 $ 15,859
Cash operating expenses per Boe $ 10.74 $ 12.32
19. First Quarter 2016 Results – May 2016
Liquidity (unaudited)
19
Liquidity is calculated by adding the net funds available under our revolving credit facility and cash and cash equivalents. We use liquidity as an indicator of the
Company’s ability to fund development and exploration activities. However, this measurement has limitations. This measurement can vary from year-to-year for
the Company and can vary among companies based on what is or is not included in the measurement on a company’s financial statements. This measurement 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 table below summarizes our liquidity at March 31, 2016, and pro forma for the third amendment to our revolving credit facility at March 31, 2016.
(in thousands) Liquidity at March 31,
2016 Pro forma
Borrowing base $ 450,000 $ 325,000
Cash and cash equivalents 840 840
Revolving credit facility – outstanding borrowings (272,000) (272,000)
Outstanding letters of credit (325) (325)
Liquidity $ 178,515 $ 53,515
20. First Quarter 2016 Results – May 2016
F&D costs (unaudited)
20
F&D Cost reconciliation
Cost summary (in thousands)
Property acquisition costs
Unproved properties $ 653
Proved properties -
Exploration costs 4,439
Development costs 146,237
Total costs incurred $ 151,329
Reserves summary (MBoe)
Balance – 12/31/2014 146,248
Extensions & discoveries 34,895
Production (1) (5,787)
Revisions to previous estimates (8,709)
Balance – 12/31/2015 166,646
F&D cost ($/Boe)
All-in F&D cost $ 5.78
Drill-bit F&D cost 4.32
Reserve replacement ratio
Drill-bit 603%
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 included in our annual report on Form 10-K filed with the SEC on
March 4, 2016. 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 2015 to the information
required by paragraphs 11 and 21 of ASC 932-235.
(1) Production includes 1,530 MMcf related to field fuel.
21. First Quarter 2016 Results – May 2016
PV-10 (unaudited)
21
The present value of our proved reserves, discounted at 10% (“PV-10”), was estimated at $504 million at December 31, 2015, and was calculated based on the first-of-the-month,
twelve-month average prices for oil, NGLs and gas, of $50.16 per Bbl of oil, $15.13 per Bbl of NGLs and $2.64 per MMBtu of natural gas, adjusted for basis differentials, grade and
quality.
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.
(in millions) December 31,
2015
PV-10 $ 504
Less income taxes:
Undiscounted future income taxes (307)
10% discount factor 263
Future discounted income taxes (44)
Standardized measure of discounted future net cash flows $ 460