Clayton Williams Energy — IPAA OGIS New York Conference 2009
32 slides from Clayton Williams Energy's conference presentation, Apr 20, 2009
Slide 1: Clayton Williams Energy, Inc. IPAA OGIS New York Conference
CLAYTON WILLIAMS ENERGY, INC. IPAA OGIS New York Conference April 20, 2009
Slide 2: Regulatory Statements
Regulatory Statements This presentation includes 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. These statements are based on certain assumptions and analyses made by the Company in light of its exper
Slide 3: Attendees
Attendees Clayton W. Williams, Jr., President and CEO Mel G. Riggs, SVP of Finance, Secretary, Treasurer, and CFO since 1991 and Director since 1994 Patti Hollums, Director of Investor Relations
Slide 4: Company Overview
Company Overview
Slide 5: Company Overview
Headquartered in Midland, Texas Oil & gas exploration and production Operates primarily in Texas, Louisiana and New Mexico Company has extensive experience utilizing 3-D seismic and horizontal drilling Clayton W. Williams, Jr., CEO, has over 50 years experience in the energy industry Publicly traded
Slide 6: Key Producing Areas
Key Producing Areas Midland, TX (Headquarters) Permian Basin Austin Chalk (Trend) South Louisiana North Louisiana Cotton Valley Reef Complex
Slide 7: Company Strategy
Company Strategy Large Inventory of Development Locations Focused on Oil Permian Basin Austin Chalk High Impact Exploration Prospects South Louisiana Deep Bossier Sands in East Texas Utah Overthrust Operational Control Operate approximately 70% of our production High working interest position in fut
Slide 8: Our Plan for 2009
Our Plan for 2009 Preserve liquidity Manage debt levels Improve profit margins Identify inventory for future drilling Protect proven leasehold position Drill only wells that are economic at lower prices
Slide 9: Permian Basin Drilling Inventory
Permian Basin Drilling Inventory 159 proven locations Several hundred probable & possible locations Long life reserves Primarily oil Vertical and horizontal wells Devonian, Wolfcamp, Spraberry and San Andres Formations 4,000 – 11,500 foot wells Current Production Reserves %: 59% of YE Reserves Net D
Slide 10: Permian Basin Areas of Interest
Permian Basin Areas of Interest War-Wink 10 proven locations 12 probable locations 59 possible locations Bone Springs Formation 275,000 BOE gross reserves Avg. cost $3.4M/well Avg. 100% working interest Andrews County University Lands 67 proven locations 196 probable locations 4 possible locations W
Slide 11: Austin Chalk
Austin Chalk Proven development success 254 wells producing in Robertson & Burleson County Rapid payout Primarily oil 20 proved & 60 possible development locations identified 160,000 BOE gross reserves Avg. cost $1.7M/well 100% working interest 50 Refracs 29,000 BOE gross reserves Avg. cost $225,000
Slide 12: East Texas Deep Bossier Trend
East Texas Deep Bossier (Pressured) Trend Encana/Leor Amoruso Field Burlington/Conoco-Phillips Savell Field Net Acreage 150,000 Drilling Update 2 wells drilled Big Bill Simpson No. 1 (Non-commercial) Margarita No. 1 (Non-commercial) Completing Sunny Unit #1 (100% Working Interest) 17,300-foot explor
Slide 13: North Louisiana Drilling Inventory
Proven Area 26 Development Locations Identified Primarily gas Cotton Valley/Gray Sands Formation Avg. 10,000 feet deep North Louisiana Terryville Ruston Drilling Inventory Terryville Field 2.0 Bcfe reserves/well Avg. 86% working interest Avg. cost $2.8M/well Ruston Field 2.0 Bcfe reserves/well Avg.
Slide 14: South Louisiana
South Louisiana Swift – SL 18669 #1 Tested 11 Mmcf, 739 BO/day at 11,279 psi on 14/64 choke Production hooked up by mid-2009 50% working interest with Swift Energy, Inc. New Discovery Current Production Fleur/West Lake Washington Proven area Completed 2 development oil wells in 2008 5 development lo
Slide 15: South Louisiana Exploratory Locations
South Louisiana Exploratory Locations Liger East & Deep Miami Corp #1, St. Mary Parish, LA Currently drilling 50% working interest with BP Americas, Inc. 18,500 foot exploratory test Deeper test under existing field Targeting lower Miocene sands in Bayou Sale field Jade North and West Camerina & Mio
Slide 16: Utah Overthrust Play
Utah Overthrust Play Net Acreage 22,755 Joint Exploration Program: CWEI 1/3 interest in play Primarily oil Navajo Sandstone formation Maple Canyon Prospect scheduled to drill in 4th Qtr 2009 2 dry holes have been drilled to date Wolverine “Covenant” Oil Field Overthrust Fairway CWEI Acreage Wolverin
Slide 17: Reserves & Financial Overview
Reserves & Financial Overview
Slide 18: Summary of Proved Reserves at December 31, 2008
Summary of proved reserves at December 31, 2008 PV 10% (In millions) By location By Production Mix Proved Reserves (MMBOE) Cotton Valley 4% Louisiana 17% Other 2% Permian Basin 59% Austin Chalk 18% Gas 45% Oil 55% 45.2 38.1 48.5 2006 2007 2008 $712.4 $1,331.1 $511.7 2006 2007 2008
Slide 19: Summary of Historical Financials
Summary of Historical Financials ($ millions) 2006 2007 2008 Operations: Total revenue $266.0 $393.9 $565.5 Growth % -6.2% 48.1% 43.6% Cash Flow from Operations $146.0 $234.9 $382.0 Margin % -10.7% 60.9% 62.6% Capital Expenditures (a) $250.2 $230.7 $372.7 Balance sheet: Cash $13.8 $12.3 $41.2 Long-t
Slide 20: Cash Flow from Operations
Cash Flow from Operations ($ in millions) $146.0 $234.9 $382.0 $0 $100 $200 $300 $400 2006 2007 2008
Slide 21: Total Debt
Total Debt ($ in millions) Bank Debt $ 94.1 Drilling Rig Debt 39.4 Subordinated Note-Larclay JV 7.5 Senior Notes 225.0 Total $366.0 Total Debt as of 12/31/08 ($ in millions) Debt Structure Includes Current Maturities $431.3 $452.7 $366.0 $0.0 $100.0 $200.0 $300.0 $400.0 $500.0 2006 2007 2008
Slide 22: Capitalization and Liquidity
Capitalization and Liquidity Capitalization ($ millions) December 31, 2008 7 3/4% Senior Notes due 2013 $225.0 Secured bank credit facility, due May 2012 94.1 Secured term loan of Larclay JV, due June 2011 39.4 Subordinated notes of Larclay JV 7.5 Total debt $366.0 Stockholders’ equity 314.7 Book ca
Slide 23: Capital Expenditures
Capital Expenditures ($ in millions) $56.0 $372.7 $230.7 $250.2 $0 $100 $200 $300 $400 2006 2007 2008 2009E
Slide 24: 2009 Exploration and Development Costs
2009 Exploration and Development Costs Planned for 2009 = $56 Million ($ in millions) $0.5 $1.9 $2.1 $7.4 $11.8 $14.6 $17.7 $0.0 $5.0 $10.0 $15.0 $20.0 Other N. Louisiana Austin Chalk Utah/California E. Texas Bossier Permian Basin S. Louisiana
Slide 25: Production (MBOE)
Production (MBOE) 4,903 5,982 6,226 5,758 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2006 2007 2008 2009E
Slide 26: CWEI Takeaways
CWEI Takeaways Near term focus is on liquidity Long term focus is on oil Solid Permian Basin position Understand the importance of operational control Clayton Williams and the rest of the management team are aligned with long-term shareholders
Slide 27: Appendix
Appendix
Slide 28: Summary of Hedges as of April 20, 2009
Summary of Hedges as of April 20, 2009 Swaps: MMBtu (a) Price Bbls Price Production Period: 1st Quarter 2009 1,180,000 5.47 $ 160,000 46.39 $ 2nd Quarter 2009 1,570,000 5.47 $ 470,000 49.68 $ 3rd Quarter 2009 1,450,000 5.47 $ 440,000 48.13 $ 4th Quarter 2009 1,850,000 5.47 $ 400,000 46.15 $ 2010 7,5
Slide 29: 2009 Guidance
2009 Guidance Year Ending December 31, 2009 Estimated Estimated Estimated Estimated First Quarter Second Quarter Third Quarter Fourth Quarter (Dollars in thousands, except per unit data) Average Daily Production: Gas (Mcf) 52,000 to 56,000 47,500 to 51,500 44,000 to 48,000 42,000 to 46,000 Oil (Bbls
Slide 30: Coverage Ratios
Coverage Ratios 2007 2008 EBITDAX (a) $242,078 $395,854 Total Debt $452,675 $365,975 Interest Expense $32,118 $24,994 Ratio of Total Debt to EBITDAX 1.9x .9x Ratio of EBITDAX to Interest Expense 7.5x 15.8x (a) See Computation of EBITDAX in Appendix (Dollars in thousands) Year Ended December 31,
Slide 31: Computation of EBITDAX
Computation of EBITDAX (a) EBITDAX represents income (loss) from continuing operations before minority interest, interest expense, income taxes, exploration costs, gains/losses on sales of property and equipment, and all non-cash items in our statement of operations, including depreciation, depletio
Slide 32: [LOGO]
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