Corporate Presentation November 2014 Exhibit 99.1 |
The information presented in this presentation may contain forward-looking statements. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from the results contemplated by the forward-looking statements. Factors that could cause actual results to differ materially from the results contemplated by the forward-looking statements include, but are not limited to, the risks discussed in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2013 and its other filings with the Securities and Exchange Commission. The forward- looking statements in this presentation are made as of the date of this presentation, and the Company undertakes no obligation to update any forward-looking statement as a result of new information, future developments, or otherwise. Forward Looking Statements [ 1 ] |
[ 2 ] Overview I. Who We Are II. Our Strategy III. E&P Operations IV. Asset Management Business V. Contact Information |
Who We Are |
[ 4 ] Breitling Energy Corporation is a growing U.S. energy company based in Dallas, Texas engaged in the exploration and development of high-probability, lower risk onshore oil and gas properties. The Company’s dual-focused growth strategy primarily relies on leveraging management’s technical and operations expertise to grow through the drill-bit, while also growing its base of non-operating working interests and royalty interests. Breitling’s oil and gas operations are focused primarily in the Permian Basin of Texas and the Mississippi oil window of southern Kansas and Northern Oklahoma, with non- operating investments in Texas, North Dakota, Oklahoma and Mississippi. Breitling Energy Corporation is traded over the counter under the ticker symbol: BECC. Additional information is available at www.breitlingenergy.com. About Breitling Energy Corporation |
Company Highlights Divest working interests in BECC wellbores to monetize projects and reduce risk Leverage industry relationships to place investments with attractive returns Generates revenue through de-risking and well upside and covers well costs and provides working capital Access to investment opportunities through established network of operating companies, landowners and brokers Target non-operated working interests in lower risk areas operated by best-in-class E&P producers Acquire diversified royalty packages with Proved Developed Producing (“PDP”) acreage and ample undeveloped locations Entrepreneurial leadership team with unique combination of business building, value creation and oil and gas experience Significant experience in the energy industry, analyzing, acquiring and producing oil & gas properties in multiple basins, with an emphasis in the Permian Experience developing and marketing oil & gas investments to qualified investors and institutional investors Experienced, disciplined management team Focus on proven oilfields for operating and investing opportunities Currently operating in the Permian Basin of Texas and Mid-Continent region Significant supply of available lower-risk opportunities in proven oilfields typically not of interest to larger E&P companies Single-rig, multi-well drilling program in progress on core Proved Undeveloped Reserves (“PUD”) acreage in Sterling County, Texas Access to available operating and non- operating properties and royalties Managed risk profile through de-risking projects Capitalized by Breitling’s asset management business Attractive business model that creates value through E&P activities and by capitalizing on the demand for oil & gas interests Leverages legacy business to manage operating risk by divesting working interests in E&P projects to fund exploration and production costs, and provides working capital Drives additional value by developing and placing working interests through industry relationships [ 5 ] Lower risk U.S. oil play focused on proven basins |
[ 6 ] Growing Revenues, Reserves and Metrics 1. For the six months ended June 30, 2014 (annualized) 2. Includes operated and non-operated results 3. As reported on Form 8-K filed April 22, 2014 4. As reported on Form 10-KT filed March 31, 2014 5. As of November 6, 2014 6. As of December 9, 2013 2014 Reserve Breakdown Progression of Key Metrics 3P PV-10 Progression Over Time Current Position Share Price (as of Nov. 6, 2014) $0.57 % Change Since Reverse Merger 375% Basic Shares Outstanding (mm) 499 Market Capitalization ($mm) $284 Debt (June 30, 2014) ($mm) $0 2014 2013 2012 Revenues for the year (in thousands) $65,886 (1) $26,651 (4) $13,408 PV-10 of 3P Reserves (in thousands) 128,865 (2,3) 22,073 (4) 13,407 Net Income (loss) in thousands $15,106 (1) ($2,522) ($5,685) Stock Price $0.57 (5) $0.08 (6) Projections included in this presentation are based upon assumptions and estimates that were developed by management in good faith and are subject to risks, uncertainties or other factors that could cause actual results to differ materially from those described. Accordingly, management projections should not be relied upon as a prediction of actual results or regarded as a representation by the Company or its management that the projected results will be achieved. The total PV-10 value of the estimated future net revenue are not intended to represent the current market value of the estimated oil and natural gas reserves we own. Management believes that the presentation of PV-10, while not a financial measure in accordance with GAAP, provides useful information to investors because it is widely used by professional analysts and sophisticated investors in evaluating oil and natural gas companies. Because many factors that are unique to each individual company impact the amount of future income taxes estimated to be paid, the use of a pre-tax measure is valuable when comparing companies based on reserves. PV-10 is not a measure of financial or operating performance under GAAP. PV-10 should not be considered as an alternative to the standardized measure as defined under GAAP. PV-10 of probable or possible reserves represent the present value of estimated future revenues to be generated from the production of probable or possible reserves, calculated net of estimated lease operating expenses, production taxes and future development costs, using costs as of the date of estimation without future escalation and using 12-month average prices, without giving effect to non-property related expenses such as general and administrative expenses, debt service, and depreciation, depletion, and amortization, or future income taxes and discounted using an annual discount rate of 10%. With respect to pre-tax PV-10 amounts for probable or possible reserves, there do not exist any directly comparable GAAP measures, and such amounts do not purport to present the fair value of our probable and possible reserves. Note: |
Proven Management and Technical Team Over twelve years of experience working with energy companies Serves as Chief Operating Officer, General Counsel and Secretary; served as Chief Compliance Officer and General Counsel of Breitling Oil and Gas Corporation Previously, Senior Vice President, General Counsel and Corporate Secretary for Triangle Petroleum Corporation; practiced law as a corporate finance, securities and M&A attorney with Vinson & Elkins, LLP and with Skadden, Arps, Slate, Meagher & Flom, LLP in Houston B.B.A in Finance and Economics (summa cum laude) from Baylor University and J.D. from University of Texas with Honors Over ten years of experience in the oil and gas industry in North America, Europe and the Middle East in roles dealing with project management, production, facilities, drilling and business development Drives the long-range economic and energy outlook of the Company, which serves as the basis for strategic planning as well as investor relations, short and long-term business strategy and mergers and acquisitions Serves as an advisor to ECF Asia Shale Committee and sits on the Board of Directors for the North Texas Commission Studied Biomedical Engineering at Southern Methodist University, Business Administration and Mathematics at Baylor University and Information Systems at the University of North Texas Over ten years of experience within the oil and gas industry Serves as Chief Financial Officer since February 2014 Before joining Breitling, was Chief Financial Officer of TransCoastal Corporation; from March 2011 to September 2012, he served as Chief Financial Officer for Sun River Energy; from June 2007 to June 2009, served as Controller for Union Drilling; from December 2004 to March 2007 served as Chief Financial Officer for Ness Energy International Licensed CPA from the State of Colorado B.S. from Regis University and Master’s Degree in Taxation from the University of Colorado in Denver Rick Hoover Chief Financial Officer Chris Faulkner Chief Executive Officer Jeremy Wagers COO & General Counsel Breitling Energy Corporation [ 7 ] |
Proven Management and Technical Team (Continued) Over 20 years of diversified energy experience in operations, finance and land Participates in acquisition, business development and land management for Breitling Previously, served as the Director of Operations of a public water transfer and salt water disposal well company and Land Manager of a regional, private E&P company focused on East Texas Studied Business Administration and Management at Eastern New Mexico University Scott Cox VP of Land Jim Hiza Chief Investment Officer 15 years of asset management as a registered investment advisor Participates in Breitling’s economic valuation, sales and marketing of oil & gas investments Serves as Chief Investment Officer for Breitling joint ventures Previously was a CPA with Bank of America B.S. in Accounting from the University of North Carolina at Charlotte ~40 years of experience generating, evaluating and drilling oil and gas prospects In 1986, was responsible for generating some of the first horizontal drilling ventures in the Pearsall and Giddings Austin Chalk Fields Managed more than 675 wells in Texas, New Mexico, Oklahoma, Louisiana, Mississippi, Michigan, Arkansas, Wyoming, the Gulf of Mexico and on the North Island of New Zealand 37 year member of the American Association of Petroleum Geologists and 20 year member of the Society of Petroleum Engineers B.S. in Geology with a minor in Petroleum Engineering from the University of Texas at Austin Joseph Simo SVP of Exploration Breitling Energy Corporation [ 8 ] |
Jeremy Wagers COO, GC, Director Strong Board of Directors Chris Faulkner CEO, Director Jonathan Huberman Director Richard Mourglia Director [ 9 ] Currently serves as General Counsel and Senior Vice President-Land of Dune Energy, Inc. From 1990 until joining Dune in 2008, was in private practice with major national and international law firms where his practice focused on a variety of oil and gas/energy transactional matters Began his career in 1980 as a petroleum landman, including heading his own petroleum land services company from 1984 to 1990 Served on the board and as an officer of the General Counsel Forum and the board of the Texas Association of Bank Counsel BA in Finance from The University of Texas at Austin and a JD (cum laude) from South Texas College of Law Currently serves as President and CEO of Tiburon, Inc., a software provider for the public safety industry From 2012 until 2013, Managing Director at the Gores Group, Tiburon’s primary investor. From 2008 to 2012, President of the Consumer and Small Business Product Division at EMC Corp. and was responsible for the company’s China growth initiatives. Prior to that, CEO of Iomega Corp. and continued his responsibilities following EMC’s acquisition of Iomega in 2008. Before joining Iomega, was Managing Director and co-founder of aAd Capital, a hedge fund focused on investing in small to mid-sized public companies Experience working at Idanta Partners, a Private Equity affiliate of the Bass family, Boston Consulting Group and Cray Research. He also served as Special Advisor to the Director of DARPA B.A. in Computer Science from Princeton University and an MBA from The Wharton School at the University of Pennsylvania Over twelve years of experience working with energy companies Serves as Chief Operating Officer , General Counsel and Secretary; served as Chief Compliance Officer and General Counsel of Breitling Oil and Gas Corporation Previously, Senior Vice President, General Counsel and Corporate Secretary for Triangle Petroleum Corporation; practiced law as a corporate finance, securities and M&A attorney with Vinson & Elkins, LLP and with Skadden, Arps, Slate, Meagher & Flom, LLP in Houston B.B.A in Finance and Economics (summa cum laude) from Baylor University and J.D. from University of Texas with Honors Over ten years of experience in the oil & gas industry in North America, Europe and the Middle East in roles dealing with project management, production, facilities, drilling and business development Drives the long-range economic and energy outlook of the Company, which serves as the basis for strategic planning as well as investor relations, short and long-term business strategy and mergers and acquisitions Serves as an advisor to ECF Asia Shale Committee and sits on the Board of Directors for the North Texas Commission Studied Biomedical Engineering at Southern Methodist University, Business Administration and Mathematics at Baylor University and Information Systems at the University of North Texas |
Breitling Corporate History 2009 Participates in first horizontal well Begins execution of “buying in front of the bit” strategy to target large publicly-traded operators 2011 2013 Divests management of legacy retail investor network Forms asset management business, begins fundraising 2012 Enters Bakken/Three Forks play Enters Mid- Continent region Launches proven oilfield development non-operated strategy Acquires $20 million royalty package Executes reverse merger with Bering Exploration, Inc. and changes name to Breitling Energy Corporation (BECC) Acquires two $18 million royalty packages 2014 Announces successful results of its first Permian Basin farmout well, the Parramore #1 Asset management business executes $12.5 million transaction with institutional investor Announces results of the Buresh 17- #1HM well in the Mid-Con Announces spudding of Hoppe 63 #1 well in Sterling County, Texas (Permian) Announces first production on the Teaff #1 operated well in the Permian Basin Eastern Shelf [ 10 ] Timeline events prior to December 9, 2013 are Breitling Oil and Gas Corporation and Breitling Royalties Corporation |
Our Strategy |
Portfolio Management Oil & Gas Management Overview of Breitling Business Strategy E&P Operations [ 12 ] Asset Management Generates revenue from production and strategic divestment De-risking projects and maintaining upside through strategic divestment of working interests Growing scale with acquisition of lower-risk properties Focuses on proven oilfields primarily in the Permian Basin & Mid-Continent Generates ongoing revenue thru carried interests and fees Earns carried interests on investments Maintains distribution network of institutional and qualified investors Manages BECC portfolios of royalty and non-op working interests Generates revenue through carried interests and BECC wellbore monetization Earns carried interests on investments Sells to strategic industry relationships Monetizes and de-risks BECC projects Places BECC and third-party royalties and non-operating working interests |
E&P Operations |
Breitling E&P Acquisition / Development Strategy E&P strategy focused on developing projects in proven oilfields leveraging new oilfield technologies to enhance returns and reduce risk Lower-risk development drilling Operating in established basins with long production histories Using proven operational and technical enhancements to optimize well performance and drive drilling efficiencies Targeting high-probability, lower risk opportunities held by private operators motivated to begin drilling Existing relationships with private operators facilitates an ongoing flow of investment opportunities [ 14 ] E&P Operations – Proven Oilfield Development Recent pullback in oil prices represents significant opportunity to target assets from distressed operators Technical and operating team led by Joseph Simo, a ~40-year industry veteran who has overseen the drilling of more than 675 wells – many in the Permian Basin, Breitling’s primary area of focus |
Working Interest Only Royalty Interest Only Working and Royalty Interest Map of Key Focus Areas [ 15 ] Permian Basin – Midland Basin Sterling County, TX Parramore #1 well producing Hoppe ’63’ #1 well awaiting completion Mid-Continent Sumner County, KS and Garfield County, OK Buresh 17 - #1HM well - Sumner County Currently producing with offset to successful wells Woodring #1 well - Garfield County Currently producing with offset to successful wells Permian Basin Eastern Shelf Taylor County, TX Teaff #1 currently producing Infill drilling opportunities; fit for BECC’s proven oilfield development strategy |
Existing Permian Basin Operations Sterling County, Texas Farmout Parramore #1 well #1 Hoppe ’63’ well [ 16 ] Vertical well Total depth ~9,200 Three-stage slickwater frack Main target three Wolfcamp zones Began production in June 2014 Well currently cleaning up after secondary completion BECC earns full section with each well drilled and entire acreage by drilling eight wells First well, the Parramore #1, was completed in June and the second, Hoppe 63 #1, is awaiting completion #1 Hoppe ’63’ Overview: Vertical well Total depth ~8600 feet Minimum five stage frack Encountered the same productive zones from the Wolfcamp formation as Parramore #1 Currently awaiting completion Primary focus of BECC current development Acquired approximately 3,680 acres in a farmout agreement in early 2014 Multiple pay zone potential, including Wolfcamp, Canyon Sand, Mississippian Lime, Fusselman and Ellenburger Perfect fit for the proven oilfield development strategy Parramore #1 Overview: |
Existing Permian Basin Operations Eastern Shelf - Taylor County, Texas Teaff #1 well [ 17 ] Recently acquired acreage Teaff #1 Overview: Vertical well Total depth ~2,600 feet Hope Lime producer Began production in February 2014 Potential for at least two offsets based on 3-D seismic BECC recently acquired a ~205-acre lease with multiple shallow well opportunities Water disposal planned to increase efficiency and enable full production |
Existing Mid-Continent Operations Sumner County, Kansas Buresh 17 - #1HM Overview: Horizontal well producing from the Mississippian formation Total vertical depth ~4,270 Total measured depth ~6,844 Began producing in September 2014 SandRidge is drilling multiple horizontal Mississippian wells approximately three miles west of the Buresh location and has ~20 wells permitted in Sumner County Buresh 17 - #1HM well Source: Seeking Alpha – “The Mississippian Lime: America’s Next Big Resource” for description in map 1. DrillingInfo [ 18 ] 1 |
Asset Management Business |
Breitling Asset Management Operations Oil and Gas Non-Operated Working Interests and Royalty Interests in Proven Onshore U.S. Basins Portfolio Management [ 20 ] Divests BECC working interests in its well bores to de-risk and monetize such working interests in each project Proceeds fund well development and provide working capital Generates revenue through the monetization of wellbores, revenue from carried interests and the returns on third-party interests placed with industry relationships Oil & Gas Management BECC’s technical team identifies and analyzes royalty and non-operated working interest opportunities through an established network of operating companies, landowners and brokers motivated to develop acreage Targets liquid rich plays alongside best-in-class operators and owners motivated to develop properties Acquires and develops interests and distributes to institutional and qualified investors BECC participates in the upside of wells through earned carried interests Realizes ongoing revenue thru carried interests and fees associated with these interests |
Awards and Notoriety [ 21 ] Excellence in Social Responsibility - 2014 Breitling Energy Corporation - Southwest Region Oil and Gas Awards Named to 2014 World Finance 100 Breitling Energy Corporation - World Finance Magazine Best Company for Leadership in Oil & Gas Extraction - 2014 Breitling Energy Corporation - IAIR Awards Best Independent Oil and Gas Company – North America - 2011, 2012 & 2013 Breitling Oil and Gas Corporation - World Finance Magazine Oil Executive of the Year, 2013 Chris Faulkner - American Energy Research Group Aggreko Award for Excellence in Environmental Stewardship – Gulf Coast Region - 2013 Breitling Oil and Gas Corporation - Oil and Gas Awards E&P Company of the Year - Southwest Region - 2013 Breitling Oil and Gas Corporation - Oil and Gas Awards Industry Leader of the Year - Southwest Region - 2013 Chris Faulkner - Oil and Gas Awards 4 Fastest Growing Privately Held Dallas Company - 2013 Breitling Oil and Gas Corporation - Dallas 100 Entrepreneur Awards Dallas Who’s Who in Energy - 2012, 2013 , 2014 Chris Faulkner - Dallas Business Journal th |
Company Highlights Divest working interests in BECC wellbores to monetize projects and reduce risk Leverage industry relationships to place investments with attractive returns Generates revenue through de-risking and well upside and covers well costs and provides working capital Access to investment opportunities through established network of operating companies, landowners and brokers Target non-operated working interests in lower risk areas operated by best-in-class E&P producers Acquire diversified royalty packages with Proved Developed Producing (“PDP”) acreage and ample undeveloped locations Entrepreneurial leadership team with unique combination of business building, value creation and oil and gas experience Significant experience in the energy industry, analyzing, acquiring and producing oil & gas properties in multiple basins, with an emphasis in the Permian Experience developing and marketing oil & gas investments to qualified investors and institutional investors Experienced, disciplined management team Focus on proven oilfields for operating and investing opportunities Currently operating in the Permian Basin of Texas and Mid-Continent region Significant supply of available lower-risk opportunities in proven oilfields typically not of interest to larger E&P companies Single-rig, multi-well drilling program in progress on core Proved Undeveloped Reserves (“PUD”) acreage in Sterling County, Texas Access to available operating and non- operating properties and royalties Managed risk profile through de-risking projects Lower risk U.S. oil play focused on proven basins Capitalized by Breitling’s asset management business Attractive business model that creates value through E&P activities and by capitalizing on the demand for oil & gas interests Leverages legacy business to manage operating risk by divesting working interests in E&P projects to fund exploration and production costs, and provides working capital Drives additional value by developing and placing working interests through industry relationships [ 22 ] |
Contact Information |
Breitling Contact Information Please contact the Breitling representatives below for further information: Jeremy Wagers Chief Operating Officer and General Counsel 214.716.2030 jwagers@breitlingenergy.com Gilbert Steedley Vice President of Capital Markets 214.716.2060 gsteedley@breitlingenergy.com [ 24 ] |