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Michael D. Watford
Chairman, President and CEO
2014 Accomplishments
Operations
Repositioned portfolio to higher returning assets in the west while shedding lower
returning assets in the east
Increased PV-10 by 72% to $7.1B and proved reserves 49% to 5.4 Tcfe
Financial
Grew net income 53% to $402.8MM and EBITDA 34% to $810.0MM vs. 2013
Increased field level margins by ~$1.00 per Mcfe by swapping Marcellus production
for more Pinedale production
Generated 58% cash flow margin and 34% net income margin
$15 $35
Drilling program
169 gross (110 net) Wyoming wells
22 gross (22 net) Utah wells
$395
Wyoming
Utah
Infrastructure
Corporate
1P Reserves (Bcfe)
8,000
6,000
5,371
5,000
7,000
$7,098
6,000
4,000
5,000
3,614
4,000
3,000
$4,132
3,000
2,000
2,000
1,000
1,000
0
2013
2014
2013
2014
Note: YE 2013 price deck of $3.67/mmbtu HH gas price and $96.92/bbl WTI, including 5 year PUD capital of $1.758MM. YE 2014 price deck of $4.35/mmbtu HH gas
price and $94.99/bbl WTI, including 5 year PUD capital of $3.538MM.
20,000
18,000
5,749
16,000
13,329
14,000
Bcfe
12,000
3,796
3,796
4,162
4,162
4,162
Technical
PUD*
Probable
Other
Possible
9,533
10,000
8,000
6,000
4,000
5,371
2,000
0
YE14
1P
Note: Technical PUDs of 4.2 Tcfe refers to those locations that could be booked if the company adopted a larger 5-yr development plan. Technical PUDs meet all the
technical criteria to be considered proved reserves.
19,271
19,078
18,000
20,000
19,271
19,078
18,000
5,769
16,000
14,000
3P Reserves (Bcfe)
9,241
14,000
12,000
12,000
10,000
10,000
8,000
8,000
13,309
6,000
4,699
16,000
9,120
14,378
6,000
10,030
10,151
4,000
4,000
Non-Operated
Operated
2,000
Appalachia
Rockies
2,000
0
2013
2014
2013
2014
Note: Year End 2014 3P reserves estimated by Netherland, Sewell & Associates, Inc., a third-party, independent engineering firm. 3P reserves were estimated using a gas
price of $5.00 HHUB and an oil price of $94.99 WTI.
Pinedale/Jonah Fields
Net Acres: 67,000
Proved Developed: 2,255 Bcfe
Total Proved: 5,025 Bcfe
Total Resource: 13.9 Tcfe
Total WI Wells: 1,670
Production: 682 Mmcfe/d
UT
CO
Ultra Operated
QEP Operated
Well Cost
($/MM)
IRR
200%
150%
100%
4.0
5.0
6.0
$3.8
26%
43%
64%
$3.5
31%
51%
77%
$3.2
38%
63%
94%
50%
Economics at $3.50/Mcf wellhead price and $70/Bbl
Payout for a 5 Bcfe well at $3.5MM = 22 months
0%
$3.00
$4.00
$5.00
Wellhead Gas Price ($/Mcf)
4.0 Bcfe
5.0 Bcfe
$6.00
6.0 Bcfe
60
50
Rig Release to 40
Rig Release
30
(Days)
20
10
0
2006
2007
2008
2009
2010
2011
2012
2013
2014
600
optimization and technology application
500
400
Rig Release to
Rig Release 300
(hours)
200
Record Well
197 hours
100
0
2009
2010
2011
2012
2013
2014
Pinedale Field
$7.0
$6.0
$5.0
Total
Well Cost
($MM)
$4.0
$3.0
$2.0
$1.0
$2006
2007
2008
2009
2010
2011
2012
2013
2014
2015e
10
$3.7
$3.6
$3.47
Millions
$3.5
$3.40
$3.4
$3.35
$3.30
$3.3
$3.2
$3.1
$3.0
4Q14
1Q15e
2Q15e
3Q15e
4Q15e
11
<35% field
developed
4,770 remaining
gross locations
2,570 wells drilled
12
UT
CO
13
Well Cost
($/MM)
120%
IRR
90%
60%
200
250
300
$1.9
31%
49%
72%
$1.7
39%
64%
91%
$1.5
52%
83%
124%
30%
Economics at $50/BBL wellhead price
0%
$40
$50
$55
$60
250 MBO
300 MBO
14
2014 Well
Count
Average
IP30
(BO/d)
Average
IP60
(BO/d)
Average
IP90
(BO/d)
Average
IP120
(BO/d)
Average
IP180
(BO/d)
37
172
157
160
143
129
21
151
140
125
109
96
17
100
97
89
82
74
180
Area 1 Type Curve
160
140
BOPD
120
100
80
60
40
20
0
12
18
24
Months on Production
30
36
15
Uinta Accomplishments
Operations Success:
Achieved 2014 exit rate of 11,000 BOE/d, nearly tripling production
Decreased LOE by 40%
Reduced drilling cycle time to 6 days from 8 days
Value Enhancement:
Reduced oil price differentials by 24%
Improved run times to 95% from 90%
Waterflood Pilot:
Pilot for 1H 2015
Upside: 2 to 4 times increase in reserves with 80% less capex
16
Wonsits
Redwash
Monument Butte
Analog
Field
Primary
Recovery
Incremental
Recovery
Secondary
to Primary
Ratio
Redwash
53 MMBO
53 MMBO
Wonsits
22 MMBO
26 MMBO
1.2
GMBU
5%
10% - 20%
2-4
A
Natural Buttes
DUSHESNE CO.
Leland Bench
Ultra
Three Rivers
Wonsits
Redwash
A
A
LGR
DC
Travis
CP
Wasatch
Flooded
Interval
Flooded
Interval
Flooded
Interval
Flooded
Interval
Planned
Flood Interval
17
Big West
Chevron
Salt Lake
City
Tesoro
Ultra
Uinta Basin
25 miles
18
Ultra-Interest Lands
PA
19
100%
Well Cost
($/MM)
80%
IRR 60%
40%
20%
6.0
7.0
8.0
$6.5
14%
21%
29%
$6.0
17%
26%
35%
$5.5
22%
31%
42%
0%
$2.00
$3.00
$4.00
$5.00
7 BCFE
8 BCFE
20
$10.00
$8.00
All-in Costs
per Mcfe
$6.00
Mean $6.89/Mcfe
$4.00
$2.00
$0.00
21
100%
94%
80%
96%
96%
91%
91%
92%
90%
86%
60%
77%
40%
94%
81%
77%
78%
69%
63%
78%
58%
54%
54%
20%
58%
46%
0%
NW Rockies
Dominion South
Transco Leidy
22
100%
90%
50%
80%
$1.18
$1.15
$1.35
$1.62
$1.78
70%
$2.53
$2.82
$3.07
$2.82
31%
30%
29%
29%
2010
2011
2012
2013
$3.10
40%
60%
50%
30%
40%
70%
73%
64%
30%
55%
58%
20%
20%
34%
10%
10%
0%
0%
2010
2011
2012
2013
2014
2014
23
West Production %
$4.00
100%
$3.50
$2.88
$3.00
90%
95%
80%
$2.50
70%
$2.00
60%
$1.50
$1.22
$1.00
73%
50%
40%
30%
$0.50
20%
$0.00
10%
Wyoming
Pennsylvania
0%
Before
2015
24
Competitive Margins
$7.00
$6.27
$6.00
$5.10
($/Mcfe)
$5.00
$4.75
$4.72
$5.20
$4.79
$4.40
$3.75
$3.79
$4.00
$3.90
$3.96
$3.00
$2.81
$2.72
$2.00
$2.55
$2.53
$2.43
$2.41
$1.95
$1.00
$1.00
$0.40
$0.00
GPOR
AR
UPL
NFG*
COG
RRC
EQT
RICE
G&A
CNX
ECR
Interest Expense
*NFG is converted from FY ending Sept 30 to calendar year 2014 for comparison purposes
Source: Scotia Howard Weil and Company Data
25
26
27
Appendix
28
29
Hedging Summary
NYMEX
Q1 2015
Q2 2015
Q3 2015
Q4 2015
FY 2015
Volume (Bcf)
17.8
57.7
58.4
19.7
153.6
$/Mmbtu
$4.54
$3.50
$3.50
$3.50
$3.62
$/Mcf
$4.81
$3.71
$3.71
$3.71
$3.84
30
70
65
Bcf/Day
60
55
50
Source: SpringRock
31
Bcf/d
2.5
2.0
1.5
1.0
0.5
0.0
2014
2015
2016
LNG
Power Gen
2017
Industrial
2018
Mexico
2019
2020
Transport
32
Bcf/d
20.0
15.0
10.0
5.0
0.0
2014
2015
LNG
2016
Power Gen
2017
Industrial
Mexico
2018
Transport
2019
2020
33
Duschesne
WY
Utah
Colorado
Altamont
CO
EP
DVN
CPG
BBG
QEP
NFX
NFX
UPL
CPG
APC
BRY
Monument Butte
CUM: 72 MMBo 244 Bcf
Oil Production
Gas Production
QEP
EOG
EP
XOM
34
Avg Boe/d
7,000
6,000
5,000
4,000
3,000
2,000
1,000
2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Gross Production
Net Production
35
Three Rivers
Type Section
Type Section
10,100
4,400
Lower Lance
(Main Pay Section)
Pinedale
Reservoir Top (MD):
10,100
4,400
13,300
7,000
Average Porosity:
6%
7%
Average Permeability:
0.1 md
16
10
5.5
$3.5MM
$1.7MM
7.5 MMcfe/D
200 BO/D
Three Rivers
4 6 Bcfe
0.5 md
7,000
13,300
36
Debt Structure
$ Millions
Covenants
450
850
1,300
518
1,560
Total Outstanding
2,078
3,378
>1.5x PV-9
<3.5x Leverage Ratio (Debt: EBITDA)
(2.2x on Dec. 31, 2014)
37
$700
$600
Debt
Balance
(Millions)
$500
$400
$300
$200
$100
$0
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
38
Greater use of this clean, abundant, madeinAmerica energy source will create U.S. jobs and boost
local economies, while advancing our national
security
Clean:
Jobs:
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Innovative Employees
We value the multi-faceted skills and performance our talented
employees have to offer
We have a unique, entrepreneurial, value-driven business culture
We operate in a highly decentralized work environment where
employees can see their projects come to fruition
Responsibility and accountability go hand-in-hand for all employees at
all levels; every employee is recognized for their contribution and
performance
All employees are challenged to deliver best-in-class results as normal
everyday business practice
40
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