ENERGY PARTNERS, L.P. CO 2. Tim Bradley. President CO 2 Group

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1 CO 2 Tim Bradley President CO 2 Group

2 Distributable Cash Track Record CO 2 Sales and Transportation - historical growth CO 2 Flood Development - growing faster $8 DCF - MM$ $6 $4 $2 $ '1 '2 '3 '4 '5 '6 '7 '8 $68/b CO2 S&T CO2 Flood Properties Plan for Each Year $5/b Note: CO 2 Sales and Transportation includes YOGS, CO 2 Sales profit on own use has not been eliminated. 2

3 28 Performance Recap Overall, slightly ahead despite huge price swings and Hurricane Ike CO 2 Source and Transportation $298 MM vs $233 MM Outperformed Yates $252 MM vs $238 MM 27,631 B/d vs 27,5 B/d Outperformed SACROC* $23 MM vs $265 MM Oil: 27,995 B/d vs 27,677 B/d NGLs: 13,33 B/d vs 16,552 B/d Future growth in cash flow even with flat production Note: Distributable Cash Flow *Including SACROC Services and remaining oil and gas assets Underperformed 3

4 Response to current oil price environment Focus on costs ENERGY PARTNERS, L.P. Yates and S&T have low cost structures 29 DCF by Asset Group Other O&G Opex per unit ~25% of unit revenue at current prices SACROC Complex S&T Modest Capex needs, and very profitable at current prices SACROC Complex Yates Higher opex per barrel Investments profitable at current prices Significant Cost Reduction opportunities targeted in both capex and opex 4

5 Oil and Gas Margins Remain Strong Net of Hedged Prices ENERGY PARTNERS, L.P. SACROC Cost Structure Yates Cost Structure Net Realized Price 6 Net Realized Price $/BOE 4 $/BOE Actual 25 Actual 26 Actual 27 Actual 28 Actual 29 Budget 24 Actual 25 Actual 26 Actual 27 Actual 28 Actual 29 Budget Labor Expensed CO2 Capitalized CO2 Toti Gas Handling Well Work Other Net Realized Price Total OPEX Capitalized CO2 Net Realized Price Expensed CO2 Toti 5

6 SACROC and Yates Oil Production DCF 8, 6, 4, 2, $5 $4 $3 $2 $1 $ SACROC Oil Production Yates SACROC Yates DCF Note: Yates DCF does not include contribution from MKM Historical Summary Significant Development Events SACROC: Acquisition June 2 CLPL May 23 BE, CR, SWCL, Platform 23-present Yates: Acquisition Jan 1, Nov 3 Horizontal Drilling 22 Present CO 2 Injection March Production SACROC oil 28,581 B/d SGP NGLs 16,868 B/d Yates 26,5 B/d 29 DCF SACROC Unit only $258 MM Yates $29 MM 6

7 SACROC Production and Operations Highlights BOPD 4, 35, 3, 25, 2, 15, 1, Oil Production Actual Budget 27 Review Challenge 1: Reservoir responding differently Lower recoveries and injectivities in post Center- Line Projects Development pace slowed to evaluate Challenge 2: Submersible pump failures 5, Jan-1 Jan-2 Jan-3 Jan-4 Jan-5 Jan-6 Jan-7 Jan-8 1-Jan Failure rates improved, but still worse than expected 1. Sub-Pump Improvements 3 28 Progress Failure Rate Average Bbls off Well failure mechanisms studied, changed pump vendor, results significantly improved Oil production from Gel-Polymer conformance work has yet to peak, promising yet early Oil Production rebounded, ~1% above plan 7

8 29 SACROC Opex Budget - $176 Million* Power Labor Wellwork Well work (35%) 38% of wellwork under sub-pump contract Other reductions achieved to date Rig 1% Wireline 25% Slickline 1% Frac tanks 25% Coiled Tubing 25% Surface Expense (29%) 43% of Surface under CO 2 Removal Contract Reductions achieved to date Roustabout Crews 15% Lube oil/fuel 15% Trucking 15% Surface Power (26%) Based on average gas price of $6.53 Current forward curve results in ~1% reduction *Excludes items tied to crude price: Expensed CO 2 $51 MM, TOTI $43 MM Labor (1%) No current plan to reduce staff Overtime reductions of 3% vs 28 8

9 29 SACROC Expansion Capital Budget - $246 Million SACROC Field Fac. SACROC Gas Handling SACROC Wells Well work (49%) 1-4% reductions achieved to date Rig 1% Casing 12% Cement 29% Directional Drilling 25% Logging 43% Wellhead 33% Field Facilities (35%) Recent projects 21% below AFE Crew Costs 1-14% Reuse of existing facilities Less rock, simpler construction Excludes Capitalized CO 2 $11 MM Gas Processing (16%) Expect slower reductions for engineered equipment, but lower installation costs 9

10 SACROC Expansion Projects Platform 29+ South Platform 28 Gilligan s Island 28 Southwest Center Line 27 Southwest Center Line (Stage 3) 28 1

11 PETRA 1/15/29 4:59:3 PM ,624 ENERGY PARTNERS, L.P. SACROC Development: Response to changing oil price Focus on costs REEF_OWC_CHEVRON - HCFT [RMR] - Hydrocarbon Ft = based on Porosity (PHIH) x.8 P6??? Different strategies are being developed depending on both oil price levels and achieved cost reductions Planned developments are profitable at $4/b P4 P5 More resilient plans are being developed given recent excursions to low $3 s s per barrel P1-A P1-B P3 P2 Plan B B still on paper, but involves accelerating higher oil in place patterns Cost less per barrel; lower capex Slower investment pace required to maintain same production FEET Slower pace provides time for cost reductions to become realized We can pick up the pace when the facts are better 11

12 New Project Economics Platform 1B New Projects remain economic at lower recoveries and lower oil pricesp ENERGY PARTNERS, L.P. P1B Expansion Economic Sensitivity 35% Injectivity Growth $3 Flat $35 Flat $4 Flat $5 Flat $7 Flat 2% IRR 7 6 IRR, % Oil Recovery, % of OOIP 12

13 Yates Oil Column Assessment Oil column has thinned relative to 27, but remains stable Expect slightly lower oil production in 29 Continue Horizontal drilling program to capture draining oil Oil production responds when CO 2 injection is redistributed throughout field OCT (Well Avg) OCT (Grid Calc.) W 1265 (177) 127 (172) 1275 (167) 128 (162) 1285 (157) 129 (152) 1295 (147) 13 (142) 135 (137) 131 (132) 1315 (127) 132 (122) 1325 (117) 133 (112) 1335 (17) 134 (12) 1345 (997) 135 (992) 132 (174) 1325 (169) 133 (164) 1335 (159) 134 (154) 1345 (149) 135 (144) 1355 (139) 136 (134) 1365 (129) 137 (124) 1375 (119) 138 (114) 1385 (19) 139 (14) 1395 (999) 14 (994) 146 (176) 1465 (171) 147 (166) 1475 (161) 148 (156) 1485 (151) 149 (146) 1495 (141) 15 (136) 155 (131) 151 (126) 1515 (121) 152 (116) 1525 (111) 153 (16) 1535 (11) 154 (996) 1545 (991) 175 (174) 1755 (169) 176 (164) 1765 (159) 177 (154) 1775 (149) 178 (144) 1785 (139) 179 (134) 1795 (129) 18 (124) 185 (119) 181 (114) 1815 (19) 182 (14) 1825 (999) 183 (994) 1565 (177) 157 (172) 1575 (167) 158 (162) 1585 (157) 159 (152) 1595 (147) 16 GOC - NOV7 [CONTACTS] (142) - 11/12/7 contact survey 165 (137) 161 (132) OCT DEC (127) 162 (122) 1625 (117) 163 (112) WOC - NOV7 [CONTACTS] - 11/12/7 contact survey 1635 (17) 164 (12) 1645 (997) 165 (992) 1855 (174) 186 (169) 1865 (164) 187 (159) 1875 (154) 188 (149) 1885 (144) 189 (139) 1895 (134) 19 (129) 195 (124) 191 (119) 1915 (114) 192 (19) 1925 (14) 193 (999) 1935 (994) 153 (176) 1535 (171) 154 (166) 1545 (161) 155 (156) 1555 (151) 156 (146) 1565 (141) 157 (136) 1575 (131) 158 (126) 1585 (121) 159 (116) 1595 (111) 16 (16) 165 (11) 161 (996) 1615 (991) 13

14 Yates HDH Production Performance Continued Good Results ENERGY PARTNERS, L.P. BOPD Program Avg. 24 Avg 25 Avg 26 Avg 27 Avg 28 Avg 14

15 CO 2 Source and Transportation Growing Business Opportunities ENERGY PARTNERS, L.P. (MMcf/d) (MMcf/d) Permian Basin CO 2 Deliveries Other Sheep Mtn Bravo Dome McElmo Dome & Doe Canyon Permian Basin CO 2 Deliveries Wyoming Mississippi Permian Basin N. Dakota Sources: KM estimates, Oil and Gas Journal, EIA, XOM, Dakota Gasification, DRI Permian Basin Supplies pro-rated rated on occasion Permian Basin Demand expected to continue to remain stable or grow given existing project expansions plus known new project demand Domestic EOR Industry CO 2 EOR activity is increasing Naturally occurring sources are being expanded to ultimate capacity Additional supplies exist: Gasification, Ethylene, Ethylene Oxide, Steam-Methane Reformer, Ammonia & Ethanol facilities Several regions have potential intersection between supply and demand including: Gulf Coast, California, Mid-continent, Canada 15

16 Southwest Colorado Expansion + 3 MMCFD ENERGY PARTNERS, L.P. Utah Colorado McElmo Dome Doe Canyon Kansas Unlevered IRR vs Oil Price Bravo Dome Arizona Cortez PL New Mexico Bravo PL Oklahoma Centerline PL Central Basin PL Wink Crude PL Yates SACROC Texas Increased Capacities McElmo Dome 2 MMCF/d Doe Canyon 1 MMCF/d Cortez PL 2 MMCF/d KM Net Investment $171 MM Ft/In % $4. $5. $6. $7. $8. Current Deliveries 1.3 BCF/d Note: Profitability based on Source Field, PL profitability incorporated into tariff 16

17 CO 2 Delivered Volumes KM Share MMCFD % 125% Budg % KM Share Under Contract % Entitlement Contracted Sacroc and Yates Extensions Current Negotiations Significant growth over past 5 years CAGR: 29 vs 28 Volumes + 11%, Price + 18% Volumes + 15%, Price - 29% Take Or Pay % increasing. 28 signed contracts averaged 86%. 1% 75% 5% 25% % and 21 Include interruptible, as-available commitments 17

18 3rd Party Sales Portfolio Growth in Sales and Greater Diversity ENERGY PARTNERS, L.P. 26 Actual Deliveries 219 MMCF/D 7 6 Percent 3 rd Party Sales 28 Actual Deliveries 332 MMCF/D

19 Strong Long Term Demand for CO 2 Potential Sources Serving The Region* Purchased CO2 Demand vs Oil Price* 12 1 Natural: 37.3 TCF R/P~3 years Various stages of development TCF $5. $8. $1. Oklahoma Other TX Permian Basin Industrial: High Purity: 38.7 TCF Low Concentration: TCF 2 year life Typically much higher cost structure than natural sources * Advance Resources International Study, 28 19

20 29 Expansion Capital Budget - $449 Million Staff OVHD Other Eastern Shelf Source/Trans. Yates CO2 Injection SACROC Wells Yates Gas Handling Yates Field Facilities Yates HDH SACROC CO2 Inj SACROC Field Fac. SACROC Gas Handling Note: Cost Metrics based on 28 run rates 2

21 Impact of Oil Price/Volume Variance on 29 DCF 29 Budget: 79 MM$ +/- 1 BOPD SACROC 27.5 MM$ Yates 14.3 MM$ +/- 1 $/B WTI 5.9 MM$ 3 rd rd Party CO 2 Deliveries +/- 5 MMCF/D 8MM$ Note: Unhedged WTI price presumed to average $68./b, WTI-WTS spread = $

22 KM CO 2 Long-term Potential Development Plans Current plan, likely to change as price/cost trends become more stable 1. SACROC Base Case Forecast 14 MMBOE Gross (a),, 1.3 B$ Capital required includes 347 MM$ cap. CO 2 Includes Eastern Shelf Development 2. Yates Sum of the Parts Forecast 78 MMBOE Gross (a),, 254 MM$ Gross Capex Gross capital required includes 18 MM$ cap. CO 2 3. CO S&T 2 $72 MM Gross Capex, 1.35 BCF/d capacity Includes Eastern Shelf CO Pipeline 2 Further work: SACROC: Improve conformance in older portions of field, complete assessment of Plan B development plan, initiate selective completion strategies in new patterns, expand SACROC Services gas processing business Yates: Monitor performance of HDH program; Pursue secondary targets; evaluate west side for CO 2 development Eastern Shelf: Complete studies, finalize development plans, start construction Be poised to prosecute CCS opportunities $1,2 $1, $8 $6 $4 $2 $ DCF, $MM/Yr S&T (b) Yates SACROC = Budget, 21 at $6/b, 211+ at $68/b Cost Metrics based on 28 run rate (a) Gross Beq = SACROC: Gross Crude plus Wet Hydrocarbon Gas divided by 6; Yates: Gross Crude and NGLs plus Residue Gas divided by 6 (b) CO 2 profits not eliminated from S&T 22

23 And Down the Road SACROC and Yates have and will continue to provide oil production n opportunities: Big Fields get Bigger Better conformance at SACROC is a big opportunity Using latest technology to find residual oil and better target COC 2 injection Yates expansion pilot Stick to our knitting, focusing on maintaining reliable production on KM CO 2 kept its powder dry during the 28 seller s s market Avoided the market froth; Permian acquisitions were at very high prices KM CO 2 may again have the opportunity to further capitalize on our large, low- cost CO 2 supply in a CO 2 -short marketplace 23

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