Chord Energy Corporation · NASDAQ:CHRD
Chord Energy — Oasis Petroleum — Investor Presentation (November 2010)
27 slides from Chord Energy's investor presentation, Nov 15, 2010
Slide 1: Oasis Petroleum Investor Presentation
November 2010 Oasis Petroleum Investor Presentation
Slide 2: Forward-Looking Statements
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 addre
Slide 3: Management
Management Years Experience Tommy NuszPresident, Chief Executive Officer and Chairman Former President International Division, VP Acquisitions and Divestitures, VP Strategic Planning and Engineering of Burlington Resources 28 Taylor ReidExecutive Vice President, Chief Operating Officer and Director
Slide 4: Oasis Highlights
As of December 31, 2009. Oasis Highlights Key Highlights Comment Oil Focused, Pure Play Bakken Operator 93% oil weightedLeading leverage to the Bakken Significant Acreage and Drilling Inventory (1) Over 292,000 net acres in the Bakken / Three Forks trendIdentified drilling inventory of 469 locations
Slide 5: Large, Concentrated Acreage Blocks
5 As of December 31, 2009 As of November 4, 2010 Williston Basin SHERIDAN MCKENZIE WILLIAMS BURKE East Nesson West Williston RICHLAND ROOSEVELT Sanish DIVIDE NESSON ANTICLINE ELM COULEE BAKKEN TREND Oasis Acreage Large, Concentrated Acreage Blocks Montana North Dakota West Williston East Nesson Sani
Slide 6: Multi-Year Potential Drilling Inventory
Multi-Year Potential Drilling Inventory Oasis Potential Gross Drilling Locations Drivers Inc Primary Gross Identified Drilling Locations 469 Gross Potential Infill Locations 469 846 Gross Potential Three Forks Locations 1315 1342 Total Gross Locations 2657 Over 2,600 Potential Drilling Locations (4)
Slide 7: Growing Production Profile
Growing Production Profile (1) Average Daily Production Operated Highlights Through Q3 2010 17 gross (12.8 net) wells brought on production 8 gross (4.9 net) wells waiting on completion as of September 30, 2010 4 gross (2.8 net) wells drilling as of September 30, 2010 2010 Drilling Program 44 gross
Slide 8: Aggressively Develop Our Williston Basin Leasehold Position
Aggressively Develop Our Williston Basin Leasehold Position 469 gross identified drilling locations (1) primarily focused on Bakken Potential 2,188 additional infill Bakken drilling and Three Forks drilling locations (1) Enhance Returns by Focusing on Operational and Cost Efficiencies Effective inve
Slide 9: Middle Bakken / TFS Area Type Curves
Middle Bakken / TFS Area Type Curves Operated Bakken Operated Bakken Operated Bakken Operated Bakken West Williston West Williston East Nesson East Nesson Low High Low High Well Assumptions Gross Oil Reserves (MBo) 400 700 350 600 Gross Reserves (MBoe) 450 787 393 675 IP - 7 day average (Boepd) 567
Slide 10: West Williston Hebron Acquisition - Overview
West Williston Hebron Acquisition - Overview WILLIAMS MCKENZIE SHERIDAN MONTANA NORTH DAKOTA ELM COULEE BAKKEN TREND RICHLAND ROOSEVELT Hebron Operating Area Operated Producing Operated Waiting on Completion Operated Drilling Acquired Wells Acquired Wells (1) Luke Sweetman 24-25H (2) Amazing Grace 1
Slide 11: West Williston - Overview
West Williston - Overview (CHART) Production (Boepd) WILLIAMS MCKENZIE SHERIDAN MONTANA NORTH DAKOTA ELM COULEE BAKKEN TREND 27 1 2 26 28 5 As of November 9, 2010 As of October 31, 2010 8 RICHLAND ROOSEVELT 1,106 1,078 1,481 7 13 6 16 29 31 Operated Producing Other Selected Bakken Wells Operated Wai
Slide 12: East Nesson - Overview
East Nesson - Overview 1 2 3 5 6 15 NORTH DAKOTA Divide Burke Ward Williams Mountrail NESSON ANTICLINE Sanish Parshall 16 14 7 8 Bakken /TFS Production (Boepd) As of October 31, 2010 (CHART) 9 10 East Nesson East Nesson East Nesson East Nesson Net Acreage (as of 12/31/2009) Net Acreage (as of 12/31/
Slide 13: Sanish - Overview
Sanish - Overview NORTH DAKOTA MOUNTRAIL Parshall Sanish Sanish Sanish Sanish Sanish Net Acreage (as of 12/31/2009) Net Acreage (as of 12/31/2009) 8,747 8,747 Bakken / TFS Wells Bakken / TFS Wells Bakken / TFS Wells Bakken / TFS Wells Gross Gross Net Producing Wells Producing on or before December 3
Slide 14: Inventory Management
Inventory Management Well Costs $6.8-7.2 million for 10,000 foot lateral, 28 stage plug and perf, 65/35 ceramic mix 1st half of 2010 ~ $6.6 million per well Contracting Services Currently running 6 operated rigs Currently pumping services agreements for 5+ well fracs per month Cost Optimization Dril
Slide 15: 2010 Capital Budget
2010 Capital Budget $58.5MM increase from $270MM Increase associated with acquisition in Hebron - Roosevelt County, Montana $48.0 million at effective date (8/1/10), and $49.9 million at close (subject to customary post close adjustments) Remainder for purchase price adjustments, drilling, land, and
Slide 16: Strong Liquidity and Management Alignment
Strong Liquidity and Management Alignment Liquidity Position (1) Liquidity Position (1) Cash $270MM Debt $ -0- Revolver Availability $120MM Ownership (CHART) Public Shareholders OAS Holdco (2) Management Direct and Indirect (2) 1) As of September 30, 2010 Management's indirect ownership of 10.6% thr
Slide 17: Investment Highlights
Investment Highlights Oil focused, pure play in the Williston Basin Large, concentrated acreage position with identified drilling inventory Substantial upside potential with known catalysts Growing production profile Management with resource play execution experience
Slide 18: Appendix
Appendix
Slide 19: 2010 Sequential Quarterly Results
2010 Sequential Quarterly Results Sequential Quarter Comparison Sequential Quarter Comparison Change(%) 3Q 2010 2Q 2010 Increase/ (Decrease) Adjusted EBITDA(1) ($MM) $22.0 $17.4 26% Average Daily Production (Boepd) 5,507 4,461 23% Realized Oil Prices ($/Bbl) $66.42 $67.19 (1%) LOE Costs ($/Boe) $6.3
Slide 20: 2010 Guidance
2010 Guidance (1) Actual Actual Actual Actual Estimate Estimate Metric 1Q 10 2Q 10 3Q 10 YTD 10 4Q 10 FY 10 Production (Boepd) 3,295 4,461 5,507 4,429 6,000 - 7,300 4,800 - 5,100 LOE ($/Boe) $10.04 $7.21 $6.33 $7.54 $7.25 - $7.75 G&A ($/Boe) $11.86 $9.22 $9.57 $10.01 $9.00 - $10.00 Production Taxes
Slide 21: Risk Management
Risk Management Critical Prices ($ / Bbl) Critical Prices ($ / Bbl) Critical Prices ($ / Bbl) Type Term Sub-Floor Floor Cap BOPD % Q3 2010 Production** NYMEX Collar 12 Months (Jan-Dec) $60.00 $81.15 502 NYMEX Collar 12 Months (Jan-Dec) $70.00 $100.25 300 NYMEX Collar 12 Months (Jan-Dec) $75.00 $94.0
Slide 22: Williston Inventory
Williston Inventory Primary Inventory (1) (2) PUD PUD Non-Proved Non-Proved Primary Locations Primary Locations Primary Inventory (1) (2) Gross Net Gross Net Gross Net Operated West Williston 8 5.1 145 83.4 153 88.5 East Nesson 14 9.0 79 45.3 93 54.3 Sanish 0 0.0 0.0 0.0 0.0 0.0 Total Operated 22 14
Slide 23: Drilling Locations
Drilling Locations (1) Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Area Gross Wells by Ar
Slide 24: Bakken / TFS Drilling Program by Project Area
Bakken / TFS Drilling Program by Project Area (1) Project Areas: West Williston West Williston East Nesson East Nesson Sanish Sanish Total Total Bakken / TFS Wells Bakken / TFS Wells Bakken / TFS Wells Bakken / TFS Wells Bakken / TFS Wells Bakken / TFS Wells Bakken / TFS Wells Bakken / TFS Wells Gro
Slide 25: Key Company Facts / External Support
Key Company Facts / External Support Oasis Petroleum Inc. Oasis Petroleum Inc. Exchange / Ticker NYSE / OAS Shares Outstanding 92.2MM Share Price (close on 11/1/10) $21.23 per share Approx. Market Capitalization $2.0BN External Support External Support Financial Auditor PricewaterhouseCoopers Tax Ad
Slide 26: Proven Resource Conversion Experience
Proven Resource Conversion Experience Geology - Put yourself in right places Understand subsurface Technology to unlock potential Control large acreage blocks Reduce costs / improve returns Significant asset acquisition and integration experience Management Team with Proven Track Record Average over
Slide 27: Technological Evolution Driving Resource Recovery
Technological Evolution Driving Resource Recovery More operators moving from 4-5,000 ft laterals (640 acre spacing units) to 9- 10,000 ft laterals (1280 acre spacing units) Pre-Perforated Liner (2006) Sliding Sleeves / Swell Packers (2007 / 2008) Plug and Perf / Swell Packers (2009 / 2010) Increasin
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