Par Pacific Holdings, Inc. Common Stock · NYSE:PARR
Par Pacific Holdings, Inc. Common Stock — Par Petroleum — Investor Presentation (March 2015)
10 slides from Par Pacific Holdings, Inc. Common Stock's investor presentation, Mar 12, 2015
Slide 1: Piceance Energy Investment Overview March 2015
Piceance Energy Investment Overview March 2015
Slide 2: Preliminary Note
2 Preliminary Note Par Petroleum Corporation (the “Company”) owns a 33.3% interest in Piceance Energy, LLC and does not operate the Piceance Energy properties. However, the information contained herein has been derived from sources Par believes to be reliable. The information contained in this prese
Slide 3: Piceance Energy Executive Summary
3 Piceance Energy Executive Summary • Piceance Energy, LLC was formed in September 2012 through a combination of Laramie Energy II’s assets with Delta Petroleum’s Piceance Basin assets via the restructuring of Delta • Laramie’s management team has a proven track record of Piceance Basin expertise –
Slide 4: Investment Summary
4 Investment Summary • In order to pursue a staggered, 3 rig program over the next 18 months Piceance Energy is raising $75 million in fresh equity capital • Existing investors as well as one new investor are contributing additional capital • Par is slightly increasing its ownership stake in the ent
Slide 5: Improving Economics in the Piceance Basin
5 • The economics of developing natural gas in the Piceance Basin have significantly improved over the past five years: – Basis differentials have decreased significantly due to increased interstate pipeline capacity going west – Multi-stage large volume slick water fracs have increased EURs by over
Slide 6: Advances in Completion Design driving EURs higher
6 Advances in Completion Design driving EURs higher Williams Fork Frac History – Water Volume vs. EUR • Additional water infrastructure allows for higher volume completions yielding improved EURs 2006 2008 2011 - 2013 2014 0.00 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 - 10,000 20,000 30,000
Slide 7: Single Well Economics & Natural Gas Price Sensitivities
7 Single Well Economics & Natural Gas Price Sensitivities • Reducing well costs to $1.4 MM shows capability of creating a repeatable gas inventory with 20%+ IRR profile based on NYMEX strip pricing • Improvements in drilling times suggest further reductions in D&C costs to $1.25 MM further improving
Slide 8: Rockies Gas Realizations Improving
8 $(1.46) $(0.18) $(0.29) $0.30 ($0.35) ($1.11) ($2.00) ($1.50) ($1.00) ($0.50) $0.00 $0.50 2007 to 2011 2011 to now 3 Yr. Fwd 2007 to 2011 2011 to now 3 Yr. Fwd $ / MMB TU Rockies Gas Realizations Improving Rockies West Basis Strengthening(1) Appalachian East Basis Weakening(2) Source: Internal Ana
Slide 9: Piceance Energy Acreage Footprint
9 Piceance Energy Acreage Footprint • All Piceance Energy acreage in Garfield & Mesa Counties, Colorado • Located in prime geologic fairway areas, south of Colorado River and Interstate 70 • Field operations and oil field services based in Grand Junction, CO • Headquarters located in Denver, CO Comp
Slide 10: Conclusion
10 Conclusion • Reductions in drilling & completion costs more than offsetting commodity price • Excellent option value embedded in the asset base long-term • Dedicated and experienced operators with superior track record in the basin • Committed group of like minded equity sponsors with track recor