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Options = Value in the Eagle Ford Steven B. Huckaby President & CEO
DUG Eagle Ford | Midstream Workshop October 10, 2011
Today
Company
Options in the Eagle Ford
Marketing
Service
Our System
Takeaways
Company
Formed 2009: Merit + Heritage
Senior Management Team Together since 2007, avg 25 years experience Golden, CO Steve Huckaby, President & CEO
Nick Thomas, EVP, Business Development Bill Dickey, CFO Tim Pimmel, VP, Operations & Engineering Stacy Horn, VP, Southern Region
Equity Partners EnCap Flatrock Midstream TPH Partners Management
Company
Focus Rapidly developing plays Eagle Ford focus from inception Support aggressive drilling programs Execution All-in solutions Customer service Strong landowner relationships Best practices Strategic infrastructure that helps our producers
create value Marketing and service options
Multi-Zone Story
Wilcox
Escondido (R)
Olmos (R)
San Miguel (R)
Austin Chalk
Eagle Ford Pearsall
Rich Gas Formations
Webb County: lean and rich opportunities ………… …………
Marketing
Multiple interconnects | Multiple markets Kinder Morgan Enterprise DCP Webb Duvall Conoco Lobo Southcross
Service
Flexible options | multiple pathways Rich and Lean HIGH and Low pressure throughput
RICH
LEAN
futur
e
future
Kinder
Morgan
Webb
Duvall
DCP
Southcross
Conoco Lobo
future
HIGH Pressure
LOW Pressure
HIGH Pressure
LOW Pressure
Our System
Somewhere in here is us. Our highest value
markets are somewhere else. We need to
find the path that connects the two.
EEG: Lean Gas System Today
!
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L a r e d oL a r e d o
E n c i n a lE n c i n a l
W e b bW e b b
L a S a l l eL a S a l l e
RVB CDP
PECK CDP
PUIG CDP
HILL CDP
SWIFT CDP
LAGUNA CDP
HACHAR CDP
EL PASO CDP
JUSTAPOR CDP
RVB EAST CDP
BRUNI SUMMERS CDP
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)*59
)*83
)*83
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Mines
Ran
ch
BobBu
llock
Farm
To
Mar
ket
PlumClark
Loga
nM
cphe
rson
Hillside
Del Mar
Indi
aPark
Gale
Mah
er
Mar
cella
Old
San
ta M
aria
Ejid
o
Lafayette
Old M
ines
Ran
ch
Mines
!
KM S. CALLAGHANINTERCONNECT
KM GATO CREEKINTERCONNECT
EEG PLANT
Gathering System • 100 miles, high
pressure • 12-16” Line • 210 MMcf/d capacity Centralized treating facility: • amine & dehydration • 145 MMcf/d capacity Kinder Morgan • S Callaghan • Gato Creek
EEG: Lean Gas System [immediate expansion]
!
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$%
$%
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L a r e d oL a r e d o
E n c i n a lE n c i n a l
W e b bW e b b
L a S a l l eL a S a l l e
RVB CDP
PECK CDP
PUIG CDP
HILL CDP
SWIFT CDP
FASKEN CDP
LAGUNA CDP
HACHAR CDP
LINDSEY CDP
EL PASO CDP
JUSTAPOR CDP
RVB EAST CDP
W. CALLAGHAN CDP
BRUNI SUMMERS CDP
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)*59
)*83
)*83
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Mines
359R
anch
BobBu
llock
Farm
To
Mar
ket
Loga
n PlumClark
Mea
dow
Mcp
hers
on
Hillside
Del Mar
Park
Gale
Mah
er
Ma r
cella
Old
San
ta M
aria
Washington
Lafayette
Old M
ines
Ejid
o
Ran
ch
Bob
Bul
lock
Mines
!
KM S. CALLAGHANINTERCONNECT
KM GATO CREEKINTERCONNECT
EEG PLANT
KM 30"INTERCONNECT
• Additional 15 miles high pressure line
• Kinder Morgan capacity >250MMcfd
Q4 2011 • W. Callaghan Q1 2012 • Fasken CDP • Additional Interconnect at KM 30”
Cuervo Creek Rich Gas System
!
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$%
$%
$%
L a r e d oL a r e d o
E n c i n a lE n c i n a l
W e b bW e b b
L a S a l l eL a S a l l e
2 - LAUREL CDP (TBD)
3 - STOKES CDP (TBD)
5 - MIDDLETON CDP (TBD)
8 - CERRITO RANCH CDP (TBD)
&'(35
)*59
)*83
!"44
!"44
44
Mines
Farm
To
Mar
ket
BobBu
llock
Ran
ch
Mcp
hers
on
Hillside
Del Mar
Gale
Old
San
ta M
aria
Old M
inesM
ines
Ran
ch
!
CONOCO LOBOINTERCONNECT
ENTERPRISE SOUTHINTERCONNECT
ENTERPRISE NORTHINTERCONNECT
EEG PLANT
WEBB DUVALLINTERCONNECT
100 miles 6”-16” high pressure line Condensate & liquids handling Multiple processing options: • Enterprise • Southcross • Webb Duvall • Conoco Lobo • DCP
EEG and Cuervo Creek [combined]
..
!
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$%
$%
$%
L a r e d oL a r e d o
E n c i n a lE n c i n a l
W e b bW e b b
L a S a l l eL a S a l l e
RVB CDP
PECK CDP
PUIG CDP
HILL CDP
SWIFT CDP
FASKEN CDP
LAGUNA CDP
HACHAR CDP
LINDSEY CDP
EL PASO CDP
JUSTAPOR CDP
RVB EAST CDP
W. CALLAGHAN CDP
BRUNI SUMMERS CDP
2 - LAUREL CDP (TBD)
3 - STOKES CDP (TBD)
5 - MIDDLETON CDP (TBD)
8 - CERRITO RANCH CDP (TBD)
&'(35
)*59
)*83
!"44
!"44
44
Mines
Farm
To
Mar
ket
BobBu
llock
Ran
ch
Mcp
hers
on
Hillside
Del Mar
Gale
Old
San
ta M
aria
Old M
inesM
ines
Ran
ch
!
CONOCO LOBOINTERCONNECT
KM S. CALLAGHAN, DCPAND WEBB DUVALL
INTERCONNECTS
ENTERPRISE SOUTHINTERCONNECT
ENTERPRISE NORTHINTERCONNECT
KM GATO CREEKINTERCONNECT
EEG PLANT
KM 30"INTERCONNECT
200 miles Lean and rich High and low pressure Treating Processing Condensate & liquids handling Directional options Multiple interconnects • Kinder Morgan • Enterprise • DCP • Webb/Duvall • Conoco Lobo • Southcross
Takeaways:
Options = Value Webb County: a multi-zone story Takeaway to multiple markets: competition improves pricing Service for rich and lean, high and low pressure gas Our eyes are always on our producers’ bottom line: Strategic midstream that helps our customers meet critical business objectives
Thank you
Steve Huckaby President & CEO 1120 Washington Avenue Suite 200 Golden, Colorado 80401
303.551.8150 [email protected]
