1 / 36

ACQUIRE, EXPLORE, EXPLOIT Pritchard Energy Conference January, 2007

W HITTIER E NERGY C ORPORATION. ACQUIRE, EXPLORE, EXPLOIT Pritchard Energy Conference January, 2007. Forward-Looking Statement.

pancho
Download Presentation

ACQUIRE, EXPLORE, EXPLOIT Pritchard Energy Conference January, 2007

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. WHITTIER ENERGY CORPORATION ACQUIRE, EXPLORE, EXPLOIT Pritchard Energy Conference January, 2007

  2. Forward-Looking Statement This presentation includes forward-looking statements made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on Whittier's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. Risks, uncertainties and assumptions include (i) risks inherent in the exploration for and development and production of oil and gas and in estimating reserves, (ii) the presence or recoverability of estimated reserves, (iii) the ability to replace reserves, (iv) unexpected future capital expenditures, (v) general economic conditions, (vi) oil and gas price volatility, (vii) the success of our risk management activities, (viii) competition, (ix) regulatory changes, (x) the ability of management to execute its plans to meet its goals and (xi) other factors discussed in Whittier's filings with the United States Securities and Exchange Commission. Whittier assumes no obligation to publicly update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events, or otherwise. Cautionary Note to U.S. Investors The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as “Proved + Probable” or “3-D Supported,” that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 10-KSB, File No. 000-30598, as amended, available from us at Whittier Energy Corporation - Investor Relations and Company Information, 333 Clay Street, Suite 700, Houston, Texas, 77002. You also may obtain this information at the SEC's public reference room, located at 450 Fifth Street NW, Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. This filing is also available at the internet website maintained by SEC at http://www.sec.gov.

  3. Corporate Highlights • NASDAQ:WHIT • Acquires and explores for conventional resources in onshore Texas and Louisiana • Current reserves estimated at 50 Bcfe* • 70% natural gas; 50% operated; R/P ratio 7 years • Current net production: >19 Mmcfed • Legacy – 100 year history of growing companies and monetizing *includes 2006 mid-year acquisitions estimated additions from 2006 drilling program

  4. Business Strategy • Build Well Capitalized Base of Producing Properties • Pursue Acquisitions in Core Areas • South Texas, Gulf Coast, Permian Basin • Significant reserve and production growth potential • Negotiated Transactions • Generate Drilling Prospects • Working Interest dependent on risk and cost • Operated and Non-operated • Disciplined Investment Approach • Continuously review property portfolio • Divest of non-core assets

  5. Whittier Core Areas 50 Bcfe est. proved reserves* Current production over 19 Mmcfed Net Production (9/06) Reserves (9/06) * Includes Westhoff Ranch & Imperial Acquisitions and estimated adds from 2006 drilling program

  6. Oil Creating Value 2001 to Present Proved Reserves • Growth via Acquisitions 12 Operated properties • $56 million RIMCO acquisition in 2005 • $28.1 million for two transactions in 2006 • Growth via Drill Bit • 38 New wells scheduled for 2007 • Approximately 85% success rate in 2006 Demonstrated Results • Net Reserves grew by over 5,000% • Net Production grew by over 900% Daily Average Production * Includes Westhoff Ranch & Imperial Acquisitions Gas

  7. Growth Drivers - Acquisitions Two Acquisitions Completed in 2006 • 15.9 Bcfe of proved reserves* • 6.8 Bcfe of identified 2P resource • Net production approximately 3.0 Mmcfed • Total purchase price $28.1 million* Westhoff Ranch, Jackson County, Texas • 75% Operated working interest • Current net production of approximately 2.7 Mmcfed • Cap Ex budget for 2006 of $2 million • Closed June 1, 2006 Imperial Petroleum • Purchased three fields in Texas and Mississippi • 50% Average working interest • 15 proved undeveloped locations • Potential to add approx. 3.0 Mmcfed of net production in 2007 • Closed August 9, 2006 * Net of closing adjustments; third party and internal estimates for reserves

  8. Organic Growth Potential for significant organic growth over next 2 years • >90 Probable, possible and 3D supported locations • 75 Bcfe of non-proved resources • Undeveloped land: > 17,000 net acres • 3-D Seismic database: > 2,900 square miles • Generating multiple new prospects • 4,000 acre S. Texas Olmos prospect • Leasing 7 prospects in Crowley area 43 Sq mi 3D • Leasing 5 prospects at East Lake Arthur, LA. • Reviewing and leasing S TX 3D prospects

  9. 2007 Preliminary Capital Budget • $39 million budget • Drill 38 new wells; 16 operated • Continued emphasis on non-proved resources Capex by Type Capex by Region

  10. 2007 Current Projects SOUTHEAST TEXAS 2 Yegua wells completing SOUTH LOUISIANA – 2 Wells 5-15 Bcfe Marg Tex test in East Lake Arthur 1 well in Rayne currently drilling So. Bosco waiting on pipeline SOUTH TEXAS – 1 Wells 1 Wilcox non-operated well

  11. 2007 Capital Budget 38 Wells to be Drilled PERMIAN BASIN 2 Wells SOUTH TEXAS 12 Wells GULF COAST 24 Wells

  12. 2007 Projects Southeast Texas SE TEXAS 3D PROJECT 60 sq. mile proprietary survey Six Nodosaria wells drilled in 2006 Three Yegua wells drilled in 2006 Fourth Yegua well off-structure;may be re-drilled in 2007; Fifth well dry 8-10 Yegua wells planned for 2007 18% working interest, >3 Mmcfed net

  13. 2007 Projects S. Louisiana EAST LAKE ARTHUR AREA Retained 50% avg. working interest Five prospects leased; 5 Bcfe to 30 Bcfe per target 12,000’-16,000’ targets Rig scheduled 1/07 New 43 Sq. Mile 3D Survey Five prospects leased 3 Bcfe to 20 Bcfe per prospect Reviewing three additional prospects 27% working interest

  14. 2007 Projects S. Louisiana RAYNE PROSPECT Whittier operated field 19% working interest offset to 500 MBO well Currently drilling SOUTH BOSCO 10,500’ target; updip to production 40% working interest Waiting on pipeline

  15. Delivering ResultsSouth Texas – Developing Acquired Properties TOM LYNE FIELD Drilled 1 well; 1 recompletion 600 Mcfed to 2 Mmcfed (1 Mmcfed net) 55% avg. working interest SCOTT & HOPPER FIELD Drilled 2 wells; 1 recompletion 500 Mcfed to 5 Mmcfed (1.8 Mmcfed net) 45% avg. working interest Increased net production from 500 Mcfed to 2.8 Mmcfed

  16. Delivering ResultsGrass Roots Projects SE Texas 3D Project Producing >20 Mmcfed (3 Mmcfed net) 9 successful wells drilled 18% working interest ` DUSON FIELD Producing 7.3 Mmcfed (500 Mcfed net) 10% working interest 2 internally generated projects added over 3.5 Mmcfed net

  17. FINANCIAL HIGHLIGHTS

  18. Revenue Growth($MM’s) *Operating Cash Flow is a Non-GAAP measure. Reconciliation shown on slide 27

  19. Per Share Growth($’s) Operating Cash Flow is a Non-GAAP measure. Reconciliation shown on slide 27

  20. Shareholders’ Equity Growth ($MM’s)

  21. Production Growth (Average Mmcfed) *Daily production as of Sept. 01, 2006

  22. Reserve Growth (Bcfe) Includes Westhoff Ranch & Imperial Acquisitions

  23. $7.95 actual revenue per Mcfe First Nine Months 2006 Cost structure

  24. Acquisition Margins $5.86 $3.20

  25. W Operating Statistics

  26. Balance Sheet

  27. Reconciliation of Non-GAAP Financial Measures Operating cash flow represents net income, as determined under generally accepted accounting principles (“GAAP“), with certain non-cash items added back. Although a non-GAAP measure, operating cash flow is widely accepted as a financial indicator of an oil and gas company’s ability to generate cash that can be used to internally fund exploration and development activities and to service debt. This measure may also be used in the valuation, comparison, rating and investment recommendations for companies in the oil and gas exploration and production industry. Operating cash flow is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operating, investing, or financing activities or as an indicator of cash flows or measure of liquidity. The following table reconciles Operating Cash Flow for the periods indicated:

  28. Trading Metrics • Stock Price as of 12/31/2006: $9.27 • Number shares outstanding: 12,595,426 • Market Cap: $116,759,590 • First 9 months of 2006: • Earnings per Share: $0.49 • Cash Flow per Share: $1.63 • EBITDA per Share: $1.75 • P/E: 19:1 • P/CF: 5.7:1

  29. Summary • Track record of growth and value creation • Coherent strategy for creating and realizing value • Experienced management team executing business plan • Diversified base of producing properties • Multi-year inventory of drilling projects • Strong balance sheet to support business strategy

  30. January 2007

  31. ADDENDUM

  32. Management TeamExperience & Diversity Bryce W. Rhodes President & Chief Executive Officer • Over 25 years of energy industry experience • Former V.P. Whittier Energy • Director of PYR Energy Corp. since 1999 • Education: MBA, Stanford Univ.; BA Geology, BA Biology, UC Santa Cruz Daniel H. Silverman Executive V.P. & Chief Operating Officer • Over 19 years of energy industry experience • Former Managing Director of Acquisition and Divestitures and Director for Torch Energy Advisors • Former Manager of Acquisitions and Divestitures for Apache Corp. • Education: MS Mineral Economics, Colorado School of Mines; BS Petroleum Engineer, UT Austin • Over 13 years of financial experience • Former tax director • Significant public company experience • Education: MPA, UT Austin Geoffrey M. Stone, CPA V.P. Finance & Chief Accounting Officer

  33. Oil Hedges Nymex Contract Price Total Ceiling/Swap Contract Period & Type Volume Floor Price Crude Oil Contracts (barrels) Swap Contracts: November 2006 – December 2006 6,000 $58.00 November 2006 – December 2006 6,000 $74.05 January 2007 – June 2007 15,000 $73.85 July 2007 – December 2007 9,000 $73.00 January 2008 – December 2008 48,000 $71.35 Collar Contracts: November 2006 – December 2006 16,000 $30.00 $34.25 November 2006 – December 2006 3,600 $49.50 $68.60 January 2007 – June 2007 54,000 $47.50 $69.00 January 2007 – December 2007 78,000 $47.50 $69.25 January 2008 – December 2008 48,000 $60.00 $83.00

  34. Natural Gas Contracts Swap Contracts (mmbtu) November 2006 – March 2007 151,000 N/A $10.75 April 2007 – October 2007 210,000 N/A 6.97 April 2007 – October 2007 214,000 N/A 9.25 April 2007 – October 2007* 490,000 N/A (0.37) November 2006 – March 2007 150,000 N/A 8.16 November 2007 – March 2008 152,000 N/A 10.98 April 2008 – October 2008 214,000 N/A 8.65 Collar Contracts (mmbtu) November 2006 – December 2006 80,000 $7.00 9.51 November 2006 – December 2006 20,000 5.00 6.45 December 2006 – March 2007 300,000 7.50 11.20 November 2006 – March 2007 151,000 9.00 14.50 April 2007 – October 2007 280,000 6.25 7.95 April 2007 – October 2007 214,000 7.50 12.65 November 2006 – March 2007 200,000 7.25 9.75 November 2007 – March 2008 152,000 9.00 16.25 April 2008 – October 2008 214,000 7.50 10.90 November 2006 – November 2006 120,000 6.00 6.90 December 2006 – December 2006 35,000 7.00 9.30 November 2007 – March 2008 150,000 7.75 12.00 April 2008 – October 2008 140,000 6.50 10.25 *these contracts require the Company to pay Houston Ship Channel price and counterparty to pay NY Mercantile Exchange price less $0.37

  35. Source: EIA and BHI Rig Count U.S. Gas Rig Count vs Production

  36. Source: EIA and BHI Rig Count U.S. Oil Rig Count vs Production

More Related