Más contenido relacionado La actualidad más candente (20) Similar a Gastar Exploration Investor Presentation at Johnson Rice Energy Conference - Sept 30, 2013 (20) Más de Marcellus Drilling News (20) Gastar Exploration Investor Presentation at Johnson Rice Energy Conference - Sept 30, 20131. © 2013 Gastar Exploration Ltd.
E X P A N D I N G O U R H O R I Z O N S
J. Russell Porter
Chief Executive Officer
September 2013
2. © 2013 Gastar Exploration Ltd.
Forward-Looking Statements
2
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF
“SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This presentation of Gastar Exploration Ltd. contains forward-looking statements relating to Gastar’s operations that are based on management’s
current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as “anticipates,”
“expects,” “intends,” “plans,” “targets,” “projects,” “believes,” “seeks,” “schedules,” “estimates,” “budgets” and similar expressions are intended to
identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties
and other factors, some of which are beyond the company’s control and are difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-
looking statements, whether as a result of new information, future events or otherwise.
Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: changing crude oil
and natural gas prices; changing refining, marketing and chemical margins; actions of competitors or regulators; timing of exploration expenses;
timing of crude oil liftings; the competitiveness of alternative-energy sources or product substitutes; technological developments; the results of
operations and development activities; the potential failure to achieve expected net production from existing and future crude oil and natural gas
development projects; potential delays in the development, construction or start-up of planned projects; the potential disruption or interruption of the
company’s net production or manufacturing facilities or delivery/transportation networks due to war, accidents, political events, civil unrest, sever
weather or crude oil production quotas that might be imposed; the potential liability for remedial actions or assessments under existing or future
environmental regulations and litigation; significant investment or product changes under existing or future environmental statutes, regulations and
litigation; the potential liability resulting from other pending or future litigation; the company’s future acquisition or disposition of assets and gains and
losses from asset dispositions or impairments; government-mandated sales, divestitures, recapitalizations, industry-specific taxes, changes in fiscal
terms or restrictions on scope of company operations; foreign currency movements compared with the U.S. dollar; the effects of changed accounting
rules under generally accepted accounting principals promulgated by rule-setting bodies; and the factors set forth under the heading “Risk Factors” on
pages 23 through 35 of the company’s 2012 Annual Report on Form 10-K. In addition, such statements could be affected by general domestic and
international economic and political conditions. Unpredictable or unknown factors not discussed in this presentation could also have material adverse
effects on forward-looking statements. The company undertakes no obligation to publicly update or revise any forward-looking statements except as
required by law.
Estimates of Hydrocarbons. Certain terms, such as “resources,” “resource potential,” and “EUR,” or “estimated ultimate recovery,” and similar
terms, may be used in this presentation to describe certain oil and gas hydrocarbon quantities that are not permitted to be used in filings with the U.S.
Securities and Exchange Commission. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are
subject to substantially greater risk of being actually realized by the company. Estimates of EURs in this presentation were made internally by the
company after evaluation of limited production histories of wells drilled recently in the play by other operators. Horizontal drilling in the Hunton
formation in this area is a relatively new play with a limited production history and, as a result, such estimates may be subject to more uncertainties
than those in more established plays. Individual well reserves will vary and such estimates may prove to be incorrect.
3. © 2013 Gastar Exploration Ltd.
Gastar Overview
3
Listed on the NYSE MKT: GST
$260 million market capitalization(1)
$531 million enterprise value(2)
61.6 million shares outstanding(3)
Focus in two areas
Marcellus Shale in liquids-rich window of West Virginia
Emerging Oklahoma Hunton Limestone oil play
Organic growth strategy through the drillbit
74% of 2013 capex (excluding acquisitions) allocated
to drilling
Enhanced by recently announced WEHLU acquisition
Track record of adding proved reserves and creating
value
248.9 Bcfe with a 14.0 R/P(4)
Reserve growth of 395% over last 3 years
PV-10 value $431.8 million using 6/30/13 NYMEX curve
(1) Market capitalization at September 24, 2013
(2) Enterprise value at September 24, 2013; includes preferred shares of $99.0 million face value
(3) Reflects 6.8 million shares repurchased as part of CHK transaction
(4) Based on June 30, 2013 reserve report
4. © 2013 Gastar Exploration Ltd.
East TX
27.4 Bcfe
11%
Appalachia
206.2 Bcfe
83%
Mid-
Continent
15.3 Bcfe
6%
East TX
10.3
MMcfe/d
21%
Appalachia
36.4
MMcfe/d
74%
Mid-
Continent
2.4
MMcfe/d
5%
Asset Overview
4
June 30, 2013 Proved Reserves by Region
YTD 2013 Net Production by Region
Total 176,300
net acres(1)(2)
(1) Net acres as of 6/30/2013; excludes 2013 Marcellus West - Pennsylvania expirations and non-
core OK sale and JV partner election acreage
(2) Net acres as of 6/30/2013 ; includes 16,600 net acres in East Texas
Marcellus Shale
Rich Gas Play
63,300 net acres(1)
Houston HQ
49.1 MMcfe/d
248.9 Bcfe
Hunton Limestone Oil Play
96,300 net acres(1)
5. © 2013 Gastar Exploration Ltd.
Historical Reserve Growth
5
Proved Reserves
2012 proved reserve F&D cost of $1.97 per Mcfe
% of high-value liquids expected to increase substantially in 2013-2014
59% 66%
50%
63%
65%
14% 18%
15%
7%
4%
27% 17%
34%
30%
31%
0.0
50.0
100.0
150.0
200.0
250.0
300.0
2009 2010 2011 2012 YTD 2013
Bcfe
PDP PDNP PUD
99.2% 99.3%
77%
72%
70%
0.8% 0.7%
23%
28%
30%
0.0
50.0
100.0
150.0
200.0
250.0
300.0
2009 2010 2011 2012 YTD 2013
Bcfe
Gas Liquids
6. © 2013 Gastar Exploration Ltd.
Historical Production
6
Total Daily Production
YTD 2013 Marcellus production constrained by ~29% due
to third-party pipeline & processing issues
99.2% 95%
80%
72%
2%
8%
14%
0.8%
3%
12%
14%
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2010 2011 2012 YTD 2013
MMcfe/d
Gas Condensate & Oil NGLs
7. © 2013 Gastar Exploration Ltd.
278
809
1,680 1,753
2,831
167
1,221
2,295
0.0
500.0
1000.0
1500.0
2000.0
2500.0
3000.0
4Q11 1Q12 4Q12 1Q13 2Q13 2011 2012 YTD 2013
BarrelsofLiquids/day
Accelerating Liquids Growth
Driving Stronger Economics
7
New Hunton Oil Play Exposes GST to Additional Oil Production & Reserves
8. © 2013 Gastar Exploration Ltd.
100% of drilling and completion costs
target liquids-rich wells
74% of 2013 planned capital dedicated to
drilling (excluding acquisition costs)
Excludes $187.5 million WEHLU acq.
Aggressively Shifting Capital to Liquids
8
$193 million
2013 Capital Investment
(1) Includes capitalized interest and G&A costs.
($ in millions)
Area Capital
Marcellus $60
Mid-Continent 56
Mid-Continent Acquisition 69
East Texas 2
Capitalized Costs (1) 6
Total $193
Marcellus
$60MM
31%
East Texas
$2MM
1%Mid-Continent
$56MM
29%
Mid-Continent
Acquisition
$69MM
36%
Capitalized Costs &
Other
$6MM
3%
10. © 2013 Gastar Exploration Ltd.
Marshall & Wetzel Counties, W. Va.
JV partner Atinum
19,400 net JV acres
Focus area with ultra liquids-rich
gas
Utica potential being tested in the
immediate area
Marcellus East, W. Va.
49,000 net acres – dry gas
100% WI, 80% NRI
Strong Position in the Marcellus Shale
10
Near-term activity concentrated in highly prospective liquids-rich portion of the play
o Marshall & Wetzel Counties
o Marcellus East
63,300 net acres with Marcellus exposure(1)
(1) As of 6/30/2013; excludes 2013 Marcellus West - Pennsylvania expirations
11. © 2013 Gastar Exploration Ltd.
Liquids-Rich Window of
Marshall & Wetzel Counties
11
High Btu gas and condensate yields
30-40 Bbls/MMcf condensate
40-50 Bbls/MMcf NGLs
57 gross horizontal Marshall County
wells on production as of August
2013
$60 million capital budget for 2013
57 net (113 gross) additional
horizontal wells planned in Marshall
and Wetzel Counties on existing
acreage for 2014 and beyond with JV
partner
Testing tighter spacing and
enhanced reservoir evaluation and
stimulation to potentially increase IP
rates, EURs and number of drilling
locations
Active development program
Williams Pipeline
Marshall County
Development Area
Tax Districts w/Acreage
12. © 2013 Gastar Exploration Ltd.
Field and Development Overview –
Marcellus West
12
13. © 2013 Gastar Exploration Ltd.
Marcellus West Economics
13
6.7 Bcfe EUR
Daily Peak Rate
3.5 MMCFD & 175 BCPD
65% Gas (processed)
35% Liquids
39% IRR(1)
Cost $6.7MM (5000’ lateral)
$1.18/MMcfe F&D Costs
PV10 $7.8 million per well
(1) Based on Wright & Company, Inc. reserve report and the NYMEX futures
curve on August 11, 2013.
14. © 2013 Gastar Exploration Ltd.
Marcellus West – Operated Drilling Overview
14
Gastar has completed 57 gross wells as of today
0.0
10.0
20.0
30.0
40.0
50.0
Marcellus West Historical Daily Production
(MMcfe/d)
66% 69% 67% 67% 66% 67%
11% 11% 11% 14% 15% 13%
23% 20% 22% 18% 19% 19%
0%
20%
40%
60%
80%
100%
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
Gas Condensate and Oil NGLs
Marcellus West Production Mix
(1) Average well lateral length approximates the actual average well lateral length for the pad wells.
(2) Reserves based on 6/30/13 SEC reserve report by Wright.
Pad
Gross Well
Count
Working
Interest
Net Revenue
Interest
Avg. Lateral
Length (ft.)
(1)
Avg. Well Cost
($ 000's)
Date of First
Production
Avg. EUR/Well
(Bcfe)
(2)
% Liquids
Corley 4 40.8% 35.4% 4,700 $7,770 Dec-11 5.3 28.7%
Simms 3 50.0% 43.2% 4,900 $8,160 Dec-11 8.0 31.2%
Hall 3 40.0% 34.7% 4,300 $6,156 Jan-12 7.2 29.6%
Hendrickson 5 40.0% 34.7% 4,600 $6,856 Apr-12 6.6 31.8%
Accettolo 3 50.0% 40.2% 4,600 $7,084 Jun-12 5.3 35.3%
Burch Ridge 5 50.0% 41.5% 5,500 $7,685 Aug-12 8.0 31.6%
Wayne 4 50.0% 40.6% 5,000 $7,321 Sep-12 5.6 34.3%
Wengerd 7 44.5% 37.7% 4,900 $8,188 Nov-12 6.0 31.7%
Lily 4 50.0% 40.6% 5,300 $6,609 Dec-12 6.6 35.8%
Shields (1-5) 5 50.0% 41.5% 3,000 $5,230 Feb-13 6.9 39.5%
Addison 5 50.0% 41.7% 5,000 $6,780 Mar-13 5.4 31.3%
Shields (6-10) 5 50.0% 41.5% 3,700 $5,440 May-13 5.4 39.5%
Goudy 4 50.0% 39.9% 6,000 $7,000 Aug-13 7.5 31.8%
Total 57 4,731 $6,945 6.4 33.8%
Historical Operated Marcellus West Drilling Results
15. © 2013 Gastar Exploration Ltd.
Pad Drilling Drives Attractive Economics
15
Average drilling time reduced to ~ 16 days per well
Additional savings being realized on completion costs
16. © 2013 Gastar Exploration Ltd.
Utica Activity around
Marshall & Wetzel Counties
16
The Utica/Point Pleasant formation
underlies GST’s Marcellus West
position
Five operators currently drilling
Utica wells that matter to GST
Dry gas
Approximately 100 gross GST Utica
locations at 8 to 10 BCF recoverable
per location
Estimated $10 million per well D&C
800 Bcf to 1 TCF of gross Utica
resource underlying a successful
and highly profitable Marcellus
Shale development
Planning initial test in 2014 drilling
program
Offset Utica Activity
Williams Pipeline
Marshall County
Development Area
Tax Districts w/Acreage
XTO
Chevron
Gulfport
Eclipse
Triad Hunter
Permitted
Commenced Drilling
XTO
17. © 2013 Gastar Exploration Ltd.
New Oklahoma Hunton Limestone Play
17
Exposure to over 100 MMBOE of net
resource potential, primarily oil
Very encouraging early drilling results
Play further de-risked by partner’s recent
activity and historic vertical production in
the area
CHK acquisition and subsequent non-core
lease sale significantly lower GST financial
risk
Current lease position – approximately
96,300 net acres
WEHLU acquisition will add 2,000 BOE/D
plus numerous low-risk development
drilling locations
18. © 2013 Gastar Exploration Ltd.
Hunton Acreage
18
Undeveloped acreage
expands inventory of
prospective low-cost, high-
return drilling locations
19. © 2013 Gastar Exploration Ltd.
Overview of Transactions
19
CHK Acquisition
Acquired 157,000 net acres and 3.0 MMBOE proved reserves for $69 million
Acquired 6.8 million GST common shares at $1.44 per share ($9.8 million)
$1 million allocated to litigation resolution
Closed June 7, 2013
Partner AMI Election
Sold 12,800 net undeveloped acres and 0.4 MMBOE proved reserves for
$12.1 million
Closed July 1st, 2013
Non-Core Sale
Sold 76,000 net undeveloped acres for $62 million
To close August 6th, 2013
Summary
GST acquired 68,200 additional undeveloped acres and 2.6 MMBOE proved
reserves for no outlay of cash; and
GST executed a 10% stock buy back at a 42% discount to market
20. © 2013 Gastar Exploration Ltd.
Overview of Transactions (cont’d)
20
WEHLU Acquisition
Strategic and operational fit with considerable upside
Acquiring 11.1 million proven BOE producing 2,078 BOE/D for $187.5 million
24,000 HBP acres with 62 identified upper Hunton PUD’s limited to only
7,000 acres
Over 100 additional drilling locations for the upper and lower Hunton
Scheduled to close late November 2013
21. © 2013 Gastar Exploration Ltd.
WEHLU Acquisition
21
Encouraging Initial Results
22. © 2013 Gastar Exploration Ltd.
AMI Horizontal Well Activity
22
Encouraging Initial Results
23. © 2013 Gastar Exploration Ltd.
County
First
Production
Most Recent
10 Day
Average
(BOE/D)(1)
Mid-Con 1H Kingfisher 10/05/12 32
Mid-Con 2H Kingfisher 02/15/13 671
Mid-Con 3H Garfield 04/04/13 81
Mid-Con 4H Kingfisher 06/01/13 121
Mid-Con 5H Kingfisher 08/28/13 310(2)
Hunton Oil Play Well Data
23
Gastar’s Wells in Existing AMI:
County
First
Production
IP or Peak
Rate (BOE/D) EUR (MBOE)
First 6 wells avg. Logan 2010 342 226
Last 7 wells avg. Logan / Kingfisher 2011-2013 645 436
Recent JV Partner Hunton Wells Outside of AMI:
(1) As of September 4, 2013
(2) September 12th rate. Well flowing from 8 of 20 stages with mechanical
restrictions due to stuck coil tubing
24. © 2013 Gastar Exploration Ltd.
Hunton Acreage
24
Initial operated
drilling will test
overall acreage
position for Hunton
prospectivity
25. © 2013 Gastar Exploration Ltd.
Lower Hunton Horizontal Oil Play Economics
436 MBOE EUR
Peak daily Rate 400 BO &
1,250 MCF
35% Gas (processed; 57% unprocessed)
65% Liquids
73% IRR(1)
Cost $5.2MM (4,200’ lateral)
$15.36/BOE F&D Cost
PV10 $5.5 million per well(1) Based on results of last 7 wells of JV partner and the NYMEX futures
curve on August 11, 2013.
25
26. © 2013 Gastar Exploration Ltd.
WEHLU Bois d’Arc Horizontal Economics
123 MBOE EUR
Peak Daily Rate 165 BO &
231 Mcf
12% Gas (processed; 19% unprocessed)
88% Liquids
61% IRR(1)
Cost $2.3MM (3500’ lateral)
$22.79/BOE F&D Cost
PV10 $1.9 million per well
(1) Based on Wright & Company, Inc. reserve report and NYMEX futures
curve on August 11, 2013.
26
27. © 2013 Gastar Exploration Ltd.
WEHLU Chimney Hill Horizontal Economics
250 MBOE EUR
Peak daily rate 340 BO &
1360 MCF
25% Gas (processed; 40% unprocessed)
75% Liquids
53% IRR(1)
Cost $4.5MM (4,200’ lateral)
$21.98/BOE F&D Cost
PV10 $3.2 million per well(1) Based on Wright & Company, Inc. reserve report and NYMEX futures
curve on August 11, 2013.
27
28. © 2013 Gastar Exploration Ltd.
Preliminary Hunton Drilling Plan (Excludes WEHLU activity)
28
2013
10 total wells
6 gross (3 net) within existing AMI (non-operated)
3 gross (3 net) on new acreage (operated)
1 gross (0.8 net) on new acreage (non-operated)
2014
19 total wells
8 gross (4 net) within existing AMI (non-operated)
11 gross (11 net) on new acreage (operated)
Net Drilling Locations
~210 net locations in retained acreage
65 net locations on existing AMI
Exposure to over 100 MMBOE net resource potential
30. © 2013 Gastar Exploration Ltd.
Assets
Balance Sheet
30
($ in millions)
Liabilities and Shareholders’ Equity
June 30, 2013
Cash and cash equivalents 10.8
Other current assets 14.0
Total current assets 24.8
Total property, plant and equipment, net 419.8
Other assets 5.6
Total assets 450.2
Current portion of debt -
Other current liabilities(1) 81.2
Total current liabilities 81.2
Long-term debt 194.6
Other long-term liabilities 8.5
Preferred stock of subsidiary 76.8
Common shareholders' equity 89.1
Total liabilities and shareholders' equity 450.2
$
$
$
$
(1) Includes $30.4 million of advances from non-operators
31. © 2013 Gastar Exploration Ltd.
Issuer: Gastar Exploration USA, Inc.
Coupon: 8.625%
Maturity: May 15, 2018. Two-year non call provision.
Guarantees: Fully and unconditionally guaranteed by the Company and certain existing and future
wholly-owned domestic restricted subsidiaries
R/C Facility: $50 million undrawn revolving credit facility that expands as a percentage of ACNTA
Ranking: The Notes and the guarantees will rank senior in right of payment to all of the
Company’s and the guarantors’ future subordinated indebtedness and equal in right of
payment with all of the Company’s and the guarantors’ existing and future senior
indebtedness, and effectively junior to the Company’s and the guarantors’ obligations
under the Company’s new revolving credit facility.
Security: The Notes and the guarantees will be secured by a lien on substantially all of the
Company’s and the guarantors’ proved and probable reserves and certain other assets,
subject to certain exceptions; provided, however, that pursuant to the terms of an
intercreditor agreement, the security interest in those assets that secure the Notes and
the guarantees will be contractually subordinated to liens thereon that secure the new
$50 million revolving credit facility and certain other permitted indebtedness.
31
Issued on May 15, 2013 at par
$200 million Senior Secured Notes
32. © 2013 Gastar Exploration Ltd.
Issuer: Gastar Exploration USA, Inc.
Symbol: NYSE MKT: GST.PRA
Guarantor: Gastar Exploration Ltd.
Annual Rate: 8.625%
Face Value: up to $100,000,000 (4,000,000 shares)
Guarantee: Gastar Exploration Ltd. will fully and unconditionally guarantee the payment of
dividends that have been declared by the board of directors of Gastar Exploration USA,
Inc., amounts payable upon redemption or liquidation, dissolution or winding up, or any
other amount due.
Dividends: Holders are entitled to receive cumulative cash dividends of 8.625% per annum of the
$25.00 liquidation preference per share ($2.16 per annum per share). Dividends will be
payable monthly in arrears on the last day of each calendar month.
Tax Treatment: Distributions will be treated as dividends to the extent of Gastar’s current and
accumulated earnings and profits as determined under the U.S. Tax Code. Any portion
of the distributions that exceeds Gastar’s current and accumulated earnings and profits
(currently anticipated to be 100% of future distributions) will first be applied to reduce a
U.S. holder’s tax basis in the Series A Preferred Securities.
32
$99.0 million issued to date(1)
(1) Face value composed of 3,958,160 shares sold as of June 30, 2013 at $25 face value.
8.625% Cumulative Preferred Stock
33. © 2013 Gastar Exploration Ltd. 33
Strong Collateral Coverage
Collateral Coverage
$431.8
$200.0
$431.8
$109.0
$0
$100
$200
$300
$400
$500
$600
New Senior Secured Notes Proved PV-10(1) Proved PV-10(1) + Undeveloped Acreage(2)
$189.2 million
Net Debt(3)
$540.8
PV-10 / Total Debt: 2.2x 2.7x
PV-10 / Net Debt: 2.3x 2.9x
(1) Based on 6/30/13 NYMEX reserve report
(2) Excludes $43.7 million gain on acquisition of assets at fair value
(3) Before sales proceeds from East Texas and Hunton non-core divestitures
34. © 2013 Gastar Exploration Ltd.
$398.8
$200.0
$398.8
$51.8
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
New Senior Secured Notes Proved PV-10(1) Proved PV-10(1) + Undeveloped Acreage(2)
34
Strong Collateral Coverage – Pro Forma
Collateral Coverage
$91.6 million
Net Debt(3)
$450.6
PV-10 / Total Debt: 2.0x 2.2x
(1) Based on 6/30/13 NYMEX reserve report; excludes East Texas
(2) Excludes $43.7 million gain on acquisition of assets at fair value; includes impact of Hunton non-core divestiture
(3) After sales proceeds from East Texas and Hunton non-core divestitures, net
PV-10 / Net Debt: 4.4x 4.9x
35. © 2013 Gastar Exploration Ltd. 35
(1) SEC and NYMEX reserves and PV-10 figures based on 06/30/13 third-party reserve report.
(2) Excludes $43.7 million gain on acquisition of assets at fair value.
(3) Includes adjustment for Williams downtime.
Financial Overview
Credit Statistics
Credit Statistics
($ in millions) June 30, 2013 (1)
Total Debt 200.0$
Net Debt 189.2
LTM Adjusted EBITDA (2)
53.0
LTM Normalized Adjusted EBITDA
(2) (3)
66.2
Total Proved Reserves - NYMEX (Bcfe) 257.7
Total Proved PV-10 - NYMEX 431.8$
Total Proved Reserves - SEC (Bcfe) 248.9
Total Proved PV-10 - SEC 324.1$
Undeveloped Acreage Value (2)
109.0$
Total Asset Value - NYMEX 540.8$
Total Asset Value - SEC 433.1
Total Debt / Normalized Adjusted EBITDA 3.0x
Net Debt / Normalized Adjusted EBITDA 2.9x
Normalized Adjusted EBITDA / Total Interest Expense 3.8x
Normalized Adjusted EBITDA / (Total Interest Expense + Preferred Equity Dividends) 2.6x
Total Net Debt / Total Proved Reserves ($ / Bcfe) 0.73$
Total Asset Value - NYMEX / Net Debt 2.9x
Total Asset Value - SEC / Net Debt 2.3x
Year to Date as of
36. © 2013 Gastar Exploration Ltd.
Natural Gas as of September 24, 2013
Hedging Program
36
[VALUE] NYMEX SWAP $3.89
[VALUE] NYMEX SWAP $4.06
[VALUE] NYMEX SWAP 4.03
[VALUE] NYMEX SWAP $4.11
[VALUE] $5.00/$6.45 Collar
[VALUE] $4.05/$3.79 Prot. Spread
[VALUE] $3.88/$3.00/$4.53
3way
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2013 2014 2015 2016
Gas Hedging Strategy MMbtu per day
Swap Collar Protective Spread 3-Way
29,381 MMbtu/d
21,636 MMbtu/d
5,500 MMbtu/d
2000 MMbtu/d
37. © 2013 Gastar Exploration Ltd.
Crude Oil and NGLs as of September 24, 2013
Hedging Program (cont’d)
37
[VALUE]/d $97.70 WTI Swap
[VALUE]/d $92.68 WTI Swap
[VALUE] /d $39.88 Propane Swap
[VALUE]/d $98 collar
[VALUE]/d $85/$67.37/$97.00 3way
[VALUE]/d $82.27/$65/$96.33 3way[VALUE]/d $80/$62.68/$97.92 3way
-
500
1,000
1,500
2,000
2,500
3,000
2013 2014 2015 2016 2017
Liquids Hedging Stategy Barrels per day
WTI Swap Propane Swap Collar 3-Way
2,635 Bpd
1,668 Bpd
845 Bpd
605 Bpd
522 Bpd
38. © 2013 Gastar Exploration Ltd.
Hedge Percentages as of September 24, 2013
Hedging Program (cont’d)
38
39. © 2013 Gastar Exploration Ltd.
Summary
39
Well positioned for reserve & production growth
with strong economics in 2013 & beyond
2013 production projected to grow materially over 2012
High-value liquids production expected to increase vs last year
Hunton oil play further enhances overall drilling economics
74% of planned capex allocated to drilling in 2013
Early mover with sizeable acreage positions in two oil / NGL plays
2013 capex focused primarily on liquids-rich Marcellus acreage
New Mid-Continent Hunton oil play focus expanding in 2014
Strong inventory of repeatable, low-cost, high-return drilling
locations in both core areas
Estimated 113 undrilled locations in Marcellus West
Total of 380 locations in Mid-Continent post-WEHLU acquisition
Strong track record of adding reserves and creating value
248.9 Bcfe of proved reserves with a 14.0 R/P
Reserves growth of 395% over last 3 years
40. © 2013 Gastar Exploration Ltd.
Gastar Exploration is an independent energy company engaged in the exploration, development and
production of natural gas and oil in the U.S. Our principal business activities include the identification,
acquisition, and subsequent exploration and development of natural gas and oil properties with an
emphasis on unconventional reserves, such as shale resource plays.
Publicly Traded Securities CUSIP Ticker
Common Stock 367299203 GST
8.625% Cumulative Preferred Stock (Series A) 36729P207 GST.PRA
Investor Contacts
J. Russell Porter
President and Chief Executive Officer
(713) 739-0456
rporter@gastar.com
Michael A. Gerlich
Vice President and Chief Financial Officer
(713) 739-0455
mgerlich@gastar.com
Gastar Exploration Ltd.
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