The Resource Growth Company QEP Resources, Inc.
LTM PRO-FORMA * QEP Energy EBITDA $1.18 B (Exploration & Production) 3.0 Tcfe proved reserves 15% 4-yr production CAGR QEP Field Services 81% (Gathering and NGL extraction) 0.95 Bcfpd processing 2,855 miles of gathering lines 18% QEP Marketing (Production marketing) Markets equity gas, oil and NGL‟s 1% Owns gas storage * LTM ending 1Q11 2 NYSE: QEP
Production growth per debt-adjusted diluted share (2006 – „10 CAGR) 49% 21% 13% 11% 11% 9% 8% 8% 8% 7% 7% 7% 6% 5% 4% 4% 3% 2% -1% -5% -6% -14% SWN UPL BBG QEP RRC WLL APC KWK EQT NBL EOG XEC COG SM PXD HK DVN NFX CHK BRY FST PXP Reserve growth per debt-adjusted diluted share (2006 – „10 CAGR) 43% 23% 20% 14% 13% 13% 13% 11% 10% 9% 7% 6% 6% 5% 4% 4% 3% 2% 1% -2% -3% -18% SWN BBG RRC UPL COG EQT QEP EOG NFX NBL DVN PXD XEC HK KWK BRY WLL SM CHK APC FST PXP Source: QEP Resources & ThomsonReuters Mar 2011 3 NYSE: QEP
2010 average production cash cost structure versus 44 E&P peers $8.00 (LOE + production taxes + G&A + interest) $6.00 QEP Energy $1.58/Mcfe $4.00 $2.00 Average $2.94/Mcfe $0.00 Source: Company data and Howard Weil, March 2011; includes allocated capitalized interest & G&A 4 NYSE: QEP
30% Avg Return on Capital Employed 2006-2010 (Cashflow from Operations / Gross PP&E) 25% QEP 20% Peer Average 15% 10% 5% 0% -20% -10% 0% 10% 20% 30% 40% 50% 60% Production Growth per Debt-Adjusted Diluted Share 2006-2010 Peer Group: APC, BBG, BRY, CHK, COG, DVN, EOG, EQT, FST, HK, KWK, NBL, NFX, PXD, PXP, RRC, SM, SWN, UPL, WLL, XEC 5 NYSE: QEP
2010 Reserves * 2009 YE Reserves * 3,031 Bcfe Pinedale ND 2,747 Bcfe Anticline Rockies: 1,860 Bcfe WY Bakken UT Midcontinent: 1,171 Bcfe CO Woodford Shale Uinta Basin 2009 Production 2010 Production 189.5 Bcfe 229 Bcfe OK Rockies: 108.6 Bcfe Granite Wash TX LA Haynesville Midcontinent: 120.4 Bcfe * Proved reserves prepared by independent reservoir engineering consultants as of 12/31/10 6 NYSE: QEP
Proved Reserves Net Production (Bcfe) (Bcfe/yr) 265* 3,031 2,747 229 190 2,218 171 1,868 140 1,631 130 * 2011 estimate: 263 - 267 Bcfe 7 NYSE: QEP
EBITDA ($MM/yr) 2011 guidance as of 4/26/11: 1,311 • EBITDA $1.2 B to $1.3 B 1,250* 1,165 1,141 • 263 to 267 Bcfe production • Capital investment $1.2 B • Approximately 55% of 2011 estimated 891 production hedged 738 • Assumptions for unhedged production: • NYMEX gas price $3.75 to $4.50/MMBtu • NYMEX oil price $85 to $95/Bbl • Rockies basis: $0.60 to $0.40/MMBtu • Midcontinent basis: $0.40 to $0.20/MMBtu * midpoint of guidance 8 NYSE: QEP
Gas Liquids Liquids + fee-based revenues 11% 14% 16% 34% 89% 86% 84% 66% YE 10 Proved Total E&P-only Total Total Reserves Production* Production** Revenues** * Full-yr 2010 ** Full-yr 2010, E&P + Midstream 9 NYSE: QEP
$1.11 B $1.48 B $1.20 B 18% 12% 7% 18% 15% 26% Field Services 5% 6% 12% Other 2% 5% 7% Bakken 10% Granite Wash 10% 27% Cana 29% Haynesville 22% Pinedale 31% 19% 19% 2009 Capital 2010 Capital 2011 Capital Budget 10 NYSE: QEP
TX LA QEP net production (MMcfepd) 360 300 240 180 120 60 0 CV/Hosston Haynesville Proved reserves 604 Bcf* 219 PUD locations* 1,200 additional unbooked locations on 80-acre density Six operated rigs $8.5 to $9.5 MM completed well cost EUR 4 to 9 Bcf/well * As of December 31, 2010 QEP Leasehold 6 Miles Haynesville Tier I Haynesville Tier II 6 Miles Haynesville Shale Wells 11 NYSE: QEP
Average days spud to TD QEP-operated wells 66 37 32 Record 22 days 12 NYSE: QEP
QEP net production QEP PDP well (MMcfepd) 240 Other operators 200 (No QEP interest) 160 QEP leasehold 120 80 40 Proved reserves 1.35 Tcfe* 432 PUD locations on a combination of 5,10, and 20-acre density * Up to 1,300 remaining locations 103 well completions in 2010 90-100 well completions in 2011 Current Completed well costs below $3.8 MM Economic EUR 2.5 to > 10 Bcfe/well Limit Four operated rigs 1 Mile * As of December 31, 2010 13 NYSE: QEP
Average days spud to TD 64 61 45 42 35 28 23 17 14 Record 10.6 days 14 NYSE: QEP
QEP net production 50 (MMcfepd) 40 30 20 10 0 Proved reserves 199 Bcfe * 103 PUD locations * TIER II: 3,450 potential locations 25,845 net acres 20% average working interest in Tier I lands (operate 52% of potential investment) TIER I: Three operated rigs 6 Miles 49,467 net acres $8.0 to $9.5 MM completed well cost Value Driver: EUR 4 to 12 Bcfe/well Predominately condensate and NGL QEP leasehold (Woodford or deeper) 18% of QEP net acres Significant NGL (25 to 130 bbls/MMcf) Woodford wells completed Significant condensate and NGL 60% of QEP net acres Woodford wells drilling & WOC Dry gas * As of December 31, 2010 22% of QEP net acres 15 NYSE: QEP
3,000 QEP net production (Boepd) 2,000 Parshall/Sanish Fields IP’s: 750 -3,000 Bopd 1,000 0 5,000 to 10,000-ft laterals PROPOSED $6.5 to $8.5 MM completed well cost 10-well pad Eastern edge being Proved reserves of 26.6 MMBoe* defined by drilling 71 Bakken PUD locations on 640 acre spacing (1280 acre units)* QEP IP: 1,374 Boepd EUR 350 to 750 Mboe/well ( Three Forks ) QEP IP avg. Boepd: Three operated rigs Long lateral: 1,530 * As of Dec 31, 2010 Short lateral: 998 QEP Bakken & TFS wells 6/2011 completion Bakken wells TFS wells QEP producing wells Drilling Bailey Field Area IP’s: 500 -1,000 Bopd 6 Miles 16 NYSE: QEP
QEP net production 50 QEP leasehold (MMcfepd) 40 30 Edwards 1056H 64% WI (Cherokee) Morrison 5033H 13.7 MMcfepd Morrison 6033H 20 100% WI (Atoka) 50% WI (Caldwell) 23.0 MMcfepd Drilling 10 Franklin 46 #1H 66% WI (Cherokee) 0 Testing Tom Puryear 5028H 30% WI (Caldwell) Puryear 13 #8H 19.4 MMcfepd 100% WI (Caldwell) $8.0 to $9.0 MM completed well cost 15.7 MMcfepd Huff 3406H 100% WI (Atoka) EUR 4.0 to 7.0 Bcfe/well Childrens Home 204H 15.4 MMcfepd 100% WI (Atoka) Moore 10W #4H 16.4 MMcfepd 27,050 net acres 100% WI (Atoka) Puryear SL 8027H WOC 100% WI (Atoka) Three operated rigs Drilling Barrett 11 #1H Puryear 13 #7H After processing peak daily production rates: 97% WI (Atoka) 100% WI (Atoka) Puryear 5028H: 7.7 MMcfd, 1,947 Bbls oil & NGL (19.4 MMcfepd) 5.7 MMcfepd Drilling Edwards: 5.7 MMcfd, 1,336 Bbls oil & NGL (13.7 MMcfepd) Morrison: 16.9 MMcfd, 1,012 Bbls oil & NGL (23.0 MMcfepd) Mthdst Hm: 8.3 MMcfd, 1,257 Bbls oil & NGL (15.9 MMcfepd ) Methodist Home 2 #5H Simmons 9 #2H Huff: 11.4 MMcfd, 665 Bbls oil & NGL (15.4 MMcfepd) Moore: 8.3 MMcfd, 505 Bbls oil & NGL (11.3 MMcfepd) 100% WI (Atoka) 88% WI (Atoka) Puryear 13 #8H: 6.8 MMcfd, 1,487 Bbls oil & NGL (15.7 MMcfepd) 15.9 MMcfepd 3.2 MMcfepd Barrett: 3.2 MMcfd, 416 Bbls oil & NGL (5.7 MMcfepd) Simmons: 2.3 MMcfd. 148 Bbls oil & NGL (3.2 MMcfepd) Moore 10W #3H Moore 10 #2H 1 Mile Childrens Home: 12.6 MMcfd, 627 Bbls oil & NGL (16.4 MMcfepd) 100% WI (Atoka) 99% WI (Atoka) WOC 11.3 MMcfepd 17 NYSE: QEP
1 3 2 5 4 6 2 6 3 1 4 5 Texas Wash Oklahoma Wash 27,050 net acres 13,550 net acres 6 Miles Texas Key Wells IP‟s (all QEP operated) * Oklahoma Key Wells IP‟s ** 1 – Morrison 5033H, 7-2010, 22,983 MCFED, Atoka 1 – Roxanne 2-17H (QEP), 10- 2009, 660 BOPD, 5,456 MCFD, Desmoinesian (Colony „B‟) 2 – Huff 3406H, 10-2010, 15,408 MCFED, Atoka 2 – McEntire 2-27H (non-QEP), 8-2010, 574 BOPD, 10,000 MCFD, Desmoinesian 3 – Puryear 8013H, 12-2010, 15,709 MCFED, Granite Wash/Caldwell 3 – Dowell 1-31H (non-QEP), 5-2010, 2,440 BOPD, 16,200 MCFD, Desmoinesian 4 – Mthdst Hm 205H, 8-2010, 15,868 MCFED, Atoka 4 – Thetford 4-23H (non-QEP), 9-2010, 2,043 BOPD, 3,865 MCFD, Missourian (Hogshooter) 5 – Moore 1002H, 12-2010, 11,291 MCFED, Atoka 5 – Wester 2-34H (non-QEP), 5-2010, 5 BOPD, 4,683 MCFD, Atoka 6 – Childrens Home 204H, 3-2011, 16,384 MCFED, Atoka 6 – Stewart USA 2-15H (non-op), 3- 2011, 910 BOPD, 6,903 MCFD, Desmoinesian (Colony „B‟) * Processed volume detail on prior slide ** Wellhead rates 18 NYSE: QEP
Horizontal Sussex Oil Play IPs: 700-1500 Bopd QEP Drilling in 2011 Powder River: 55,000 net acres Recent Sussex IPs: 31-1H SHL-Fed Sussex IP: 895 Bopd 667, 768, 796, 1077, 1298, 1488 Bopd 41-15H Henry Fed Frontier IP: 987 Boepd D-J Basin: 82,600 net acres CHK Spillman Draw Niobrara 400 Bopd (first 57 days) 15-65-36-1H State Silo Field Niobrara Herrington Niobrara IP: 831 Bopd Farms 1H E. Green River: 10 MMBo 202 Boepd Silo State 17,000 net acres 67 Boepd QEP leasehold QEP Borie 16-4H Basins EOG - Hereford Field Niobrara Well Niobrara – 283 MBO P&A‟d Permits or Drilling through Dec 2010 Sussex 36-11-65 Moonshine Niobrara Niobrara Niobrara 16-11-9-60H State IP: 650 Bopd Frontier IP: 602 Bopd 36-44-8-62 Bob White EOG IP: 725 Bopd Recent Niobrara IPs: 19 NYSE: QEP 732, 730, 600, 1100 Bopd
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