2008 IPAA OGIS San Francisco, CA - October 6 2008 - PowerPoint PPT Presentation

Loading...

PPT – 2008 IPAA OGIS San Francisco, CA - October 6 2008 PowerPoint presentation | free to download - id: 3b00c6-NGNlZ



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

2008 IPAA OGIS San Francisco, CA - October 6 2008

Description:

NYSE: PHX August 9-13, 2009 IPAA OGIS Florida-February 17-18, 2009 2008 IPAA OGIS San Francisco, CA - October 6 2008 IPAA OGIS Florida-February 17-18, 2009 IPAA OGIS ... – PowerPoint PPT presentation

Number of Views:52
Avg rating:3.0/5.0
Slides: 35
Provided by: panhandleo
Learn more at: http://www.panhandleoilandgas.com
Category:
Tags: ipaa | ogis | francisco | october | san

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: 2008 IPAA OGIS San Francisco, CA - October 6 2008


1

NYSE PHX
August 9-13, 2009
2008 IPAA OGIS San Francisco, CA - October 6 2008
2

2
  • Forward-Looking Statements and Risk Factors
    This report includes 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. Forward-looking
    statements include current expectations or
    forecasts of future events. They may include
    estimates of oil and gas reserves, expected oil
    and gas production and future expenses,
    projections of future oil and gas prices, planned
    capital expenditures for drilling, leasehold
    acquisitions and seismic data, statements
    concerning anticipated cash flow and liquidity
    and Panhandles strategy and other plans and
    objectives for future operations. Although
    Panhandle believes the expectations reflected in
    these and other forward-looking statements are
    reasonable, we can give no assurance they will
    prove to be correct. They can be affected by
    inaccurate assumptions or by known or unknown
    risks and uncertainties. Factors that could
    cause actual results to differ materially from
    expected results are described under Risk
    Factors in Part 1, Item 1 of Panhandles 2008
    Form 10-K filed with the Securities and Exchange
    Commission. These Risk Factors includes the
    volatility of oil and gas prices Panhandles
    ability to compete effectively against strong
    independent oil and gas companies and majors the
    availability of capital on an economic basis to
    fund reserve replacement costs Panhandles
    ability to replace reserves and sustain
    production uncertainties inherent in estimating
    quantities of oil and gas reserves and projecting
    future rates of production and the amount and
    timing of development expenditures uncertainties
    in evaluating oil and gas reserves unsuccessful
    exploration and development drilling declines in
    the values of our oil and gas properties
    resulting in write-downs the negative impact
    lower oil and gas prices could have on our
    ability to borrow and drilling and operating
    risks.
  •  
  • Do not place undue reliance on these
    forward-looking statements, which speak only as
    of the date of this release, and Panhandle
    undertakes no obligation to update this
    information. Panhandle urges you to carefully
    review and consider the disclosures made in this
    presentation and Panhandles filings with the
    Securities and Exchange Commission that attempt
    to advise interested parties of the risks and
    factors that may affect Panhandles business.

3
Who isPanhandle Oil and Gas?NYSE PHX
4
Panhandle Oil and Gas Inc.
4
  • Non-operating independent oil and gas company
    with current drilling projects in the Woodford
    Shale, Fayetteville Shale and Western Oklahoma
  • Market Capitalization - 210 million
  • 52-week range - 13.15 - 39.98
  • 8.3 million shares outstanding
  • Insider ownership 13.8
  • Unique and Evolving company

5
UNIQUE Operational Strategy
5
  • Use ownership of 254,600 mineral acres as base,
    legacy assets
  • Use mineral acreage ownership to participate with
    a working interest in the drilling of a
    significant numberof wells
  • Working interest in 1,350 wells
  • Royalty interest in 3,300 wells
  • As a non-operator, Panhandle participates in
    drilling with operating companies, principally
    large independents.
  • Majority of drilling is on perpetually owned fee
    mineral acreage, drilling on owned fee mineral
    acres maximizes rate of return, royalty on our
    acres is paid to Panhandle
  • Approximately 75 of oil and gas sales revenue is
    from working interests in wells

6
Financial Highlights
6
7
Financial Highlights
7
8
Financial Highlights Condensed Balance Sheet
8
9
PHX 2009 Operating Strategies
9
  • Maintain operational and financial flexibility
  • Prudently manage capital expenditures and credit
    facility drawdowns
  • Continue and expand participation in
    unconventional plays
  • Continue to exploit legacy assets, leveraging
    minerals ownership
  • Maintain ability and commitment to prudently
    maximize current and future drilling and
    development opportunities
  • Potentially divest of a limited number of
    properties in non-core areas or groups of
    marginal properties

10
PHX 2009 Operating Strategies-continued
10
  • 50 million credit facility with Oklahoma banks,
    maturity October, 2011
  • Outstanding balance on credit facility at July
    30, 2009, 11.1 million
  • 35 million borrowing base, as of May 2009
  • Would increase borrowing base, if needed
  • Natural Gas Swaps (all swaps tied to specific
    Oklahoma pipeline price)
  • Continually evaluating hedge position

11
Trailing 12-Mo. Operating and GA Expense
11
Peer Average 2.44
/Mcfe
1.62
PHX
Note Trailing twelve month for periods ending
3/31/09. Source EnerCom Incorporated. Peer set
includes BRY, CHK, CLR, CRK, DVN, FST, GDP,
GMXR, HK, NFX, PETD, PLLL, PQ, PVA, PXP, RRC,
SWN, XTO.
12
3-Year Finding and Development Cost
12
/Mcfe
Peer Average 3.49
2.50
PHX
Source EnerCom Incorporated. Peer set includes
BRY, CHK, CLR, CRK, DVN, FST, GDP, GMXR, HK, NFX,
PETD, PLLL, PQ, PVA, PXP, RRC, SWN, XTO.
13
Debt to Market Capitalization
13
Peer Average 95
9
PHX
Note As of 7/17/09. Source EnerCom
Incorporated. Peer set includes BRY, CHK, CLR,
CRK, DVN, FST, GDP, GMXR, HK, NFX, PETD, PLLL,
PQ, PVA, PXP, RRC, SWN, XTO.
14
Asset Intensity
14
Peer Average 63
47
PHX
Note As of 3/31/09. Source EnerCom
Incorporated. Peer set includes BRY, CHK, CLR,
CRK, DVN, FST, GDP, GMXR, HK, NFX, PETD, PLLL,
PQ, PVA, PXP, RRC, SWN, XTO.
15
Trailing 12-Mo. Capital Efficiency
15
Peer Average 217
201
PHX
Note Trailing twelve month for periods ending
3/31/09. Source EnerCom Incorporated. Peer set
includes BRY, CHK, CLR, CRK, DVN, FST, GDP,
GMXR, HK, NFX, PETD, PLLL, PQ, PVA, PXP, RRC,
SWN, XTO.
16
Asset Pyramid
  • Perpetually owned 198,000 open acres, 56,000
    producing or leased acres
  • Reserves on fee mineral acres, Fayetteville and
    Woodford Shales
  • Over 4,000 total wells, 88 natural gas
  • Low ratio of PUD to total proved reserves

17
Operations Overview
18
Overview/Fiscal Year 2008 Operating Highlights
18
  • Total U.S. mineral ownership of 255,000 acres
  • Significant ownership in the Western Oklahoma
    Anadarko Basin, Arkansas Fayetteville and the
    Southeastern Oklahoma Woodford
  • 2008 proved reserves increased 29 to 54.1 Bcfe
  • Reserve replacement 257
  • Growth through the drillbit
  • 2008 finding cost - 2.64/Mcfe
  • 89 natural gas
  • 76 proved developed producing
  • 2008 annual production increased 33 to 21.2
    Mmcfe per day
  • Q3 2009 production increased to 29.1 Mmcfe per
    day
  • Superior investment economics
  • Large inventory of undrilled locations in premier
    established and developing resource plays
  • Participation with minerals as a working interest
    owner

19
PHX Mid-Year Proved Reserve Update
19
20
Panhandle Oil and Gas Mineral Holdings
Significant Mineral Acreage Holdings
Net Acres (Thousands)
Leasehold
21
Economic Impact of Participation with Mineral
Interest
Arkansas Fayetteville
  • Assumptions
  • PHX ownership -1 W.I., 1 NRI
  • Typical ownership 1 W.I., 0.8125 NRI
  • Gross well cost - 2,900,000
  • Wellhead gas price 7/31/09 NYMEX Strip,
    adjusted for basis (6.19/Mcf wellhead average
    over life of well)

22
PHX Quarterly Production Profile
22
CAGR 28.4
23
PHX Areas of Focus
23
23
The Oil and Gas Conference Denver, CO - August
2009
24
Western Oklahoma Anadarko Basin
24
Anadarko Basin
  • Anadarko Basin (Cana) horizontal Woodford
  • Anadarko Basin (Colony) horizontal Granite Wash
  • Anadarko Basin (SE Leedey) horizontal Cleveland

25
Anadarko Basin Woodford Shale
25
Anadarko Basin
  • 30 horizontal wells on production in the
    play (as of April, 2009)
  • 10,000 13,000 depth
  • 3,000 Mcfd typical initial month production
    rate
  • PHX generates superior returns
  • Drilling on our minerals, we keep royalty
  • 4.3 average NRI in 42 sections (1,365 net acres)
  • 9 working interest wells approved (as of 7/10/09)
  • 4 producers, 1 drilling, 1 testing, 3 scheduled
  • 2 royalty interest wells producing
  • 330 undeveloped locations (based on 8 wells per
    section)

26
Anadarko Basin Woodford Shale
26
27
Arkansas Fayetteville Shale
27
Fayetteville Shale
  • Daily net production 2.9 Mmcf per day
  • PHX generates superior returns
  • Drilling on our minerals, we keep royalty
  • 2 average N.R.I. in 284 sections (8,000 net
    acres)
  • 85 working interest wells approved (as of
    7/10/09)
  • 62 producers, 1 drilling, 2 testing, 20
    scheduled
  • W. I. lt1 to 8, average 4.3 in these wells
  • N.R.I. lt1 to 8, average 5.1 in these wells
  • 138 royalty interest wells producing
  • 2,200 probable/possible locations

28
Arkansas Fayetteville Shale
28
29
Arkansas Fayetteville Shale Reserves
29
Net Reserves (Bcf) to PHX Proved 3.5 Probable 19.
0 Possible 39.0 2,200 locations
  • DeGolyer and MacNaughton, as of 9/30/08
  • based on 8 wells per section
  • Operators
  • Southwestern Energy, Chesapeake, Petrohawk

30
SE Oklahoma Woodford Shale
30
  • Daily net production 8.4 Mmcf per day
  • PHX generates superior returns
  • Drilling on our minerals, we keep royalty
  • 10,000 acres in active counties (Coal, Hughes,
    Pittsburgh Atoka)
  • 3.9 average N.R.I. in 185 sections (6,200 net
    acres)
  • 130 working interest wells approved (as of
    7/10/09)
  • 109 producers, 2 drilling, 12 testing, 7
    scheduled
  • W.I. lt1 to 42, average 6.9 in these wells
  • N.R.I. lt1 to 38, average 6.9 in these wells
  • 24 royalty interest wells producing
  • 1,200 probable/possible locations

Woodford Shale
31
SE Oklahoma Woodford Shale
31
32
SE Oklahoma Woodford Shale Reserves
32
  • Net Reserves (Bcf) to PHX
  • Proved 15
  • Probable 67.0
  • Possible 36.0
  • 1,200 locations

DeGolyer and MacNaughton, as of 9/30/08
based on 8 wells per section Operators
Newfield, Continental, Devon, BP, XTO
33
The Panhandle Oil and Gas Advantage
33
  • Strong financial metrics
  • lt 10 debt to market capitalization
  • Broadly diversified perpetual mineral holdings
  • Total US mineral ownership of 255,000 acres
  • Large drilling inventory in multiple resource
    plays
  • Over 3,000 locations identified
  • Substantial advantage in capital efficiency due
    to mineral ownership
  • Participate with mineral interest as a working
    interest owner or
  • Retain a significant royalty ownership in
    properties with no additional capital investment

34
(No Transcript)
About PowerShow.com