Exhibit 99.2 | ||||
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TXCO's Presentation Outline for | ||||
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Slide 1 - - Multi-Play, Multi-Pay in the Maverick Basin | ||||
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Slide 2 - - Corporate Information | ||||
- Headquarters: The Exploration Company; 500 North Loop 1604 East, Suite 250; | ||||
- Contacts: James E. Sigmon, President and CEO, jsigmon@txco.com; | ||||
- TXCO - NASDAQ Listed | ||||
- Forward-Looking Information -- Information presented herein which is not historical, including statements | ||||
regarding TXCO's or management's intentions, hopes, beliefs, expectations, representations, projections, estimations, plans or predictions of the future, are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements include those relating to estimated financial results, or expected prices, production volumes, reserve levels and number of drilling locations. It is important to note that actual results may differ materially from the results predicted in any such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the costs of exploring and developing new oil and natural gas reserves, the price for which such reserves can be sold, environmental concerns effecting the drilling of oil and natural gas wells, as well as general market conditions, competition and pricing. More information about potential factors that could affect the company's operating and financial results is included in TXCO's annual report on Form 10-K for the year ended December 31, 2003. This report and TXCO's previously filed documents are on file at the Securities and Exchange Commission and can be viewed on TXCO's website at www.txco.com, copies of which are available from the Company without charge. | ||||
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Slide 3 - - TXCO Snapshot | ||||
- Founded 1979 -- 25th Anniversary Year | ||||
- Headquarters -- San Antonio | ||||
- Nasdaq Smallcap: TXCO | ||||
- Trading Statistics | ||||
- Current 3-month average daily volume -- 157,000 shares | ||||
- April 13, 2004, close -- $4.20 | ||||
- 2003 | ||||
- 21.1 million shares traded | ||||
- High -- $6.75, Low -- $2.62, YE close -- $6.10 | ||||
Slide 4 - - TXCO Growth Strategy | ||||
Shareholder Value Growth Principles: |
Slide 5 - - TXCO Profile |
- Multi-play/multi-pay focus on the Maverick Basin |
Slide 6 - - TXCO Operational Snapshot |
- Leasehold: 584,000 Gross Acres |
- Maverick Basin -- 492,000 acres (427,600 net) |
- Largest Maverick Basin Mineral Leaseholder |
- Williston Basin -- 92,000 acres (87,300 net) |
- Reserve Make Up at December 31, 2003 |
- 28.4 Bcfe -- 59% Proved Developed |
- 55% Gas -- 15.6 Bcf |
- 45% Oil -- 2,129 MBbls |
- PV-10 -- $56.8 million |
- Net Daily Production -- Exit Rate March 2004 |
- 16.1 MMcfe -- Up 24% from March 2003 Exit Rate |
- 96% from Maverick Basin |
- 38% Oil -- 1,022 BOPD |
- 62% Gas -- 10.0 MMcfd |
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Slide 7 - - TXCO's Pipeline Synergy |
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Slide 8 - - TXCO Maverick Basin Focus Area |
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Slide 9 - - Maverick Basin Acreage Growth |
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Slide 10 - - Maverick Basin: Prospect Rich |
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Slide 11 - - Georgetown Faults: 'Seismic Looks Like Broken Glass' |
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Slide 12 - - Georgetown: Model Fault Pattern |
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Slide 13 - - Glen Rose: Three Plays in One |
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Slide 14 - - The Glen Rose Plays |
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Slide 15 - - Pena Creek Infill Drilling Under Way |
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Slide 16 - - Olmos/CBM Play: Coalbed Distribution in Maverick Basin |
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Slide 17 - - Maverick Basin's Jurassic Play |
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Slide 18 - - Strong Cash Flows, Conservative Debt - 2003 operating cash flows were more than double 2002 - Cash Flows are net cash provided by operating activities. See the Investor Relations section of the Company's Web site at www.txco.com for a reconciliation of non-GAAP financial measures. |
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Slide 19 - - Reserves and Production Rising |
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Slide 20 - - Rolling 3-Year Production Replacement |
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Slide 21 - - CAPEX Guidance |
Slide contains two charts. |
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Slide 22 - - 2004 Reserve Exposure Risk Mix |
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Slide 23 - - 3-Year Performance Comparisons |
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Slide 24 - - TXCO Capitalization |
- $132 million enterprise value at March 31,2004 * |
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Slide 25 - - 3-Year Comparative Stock Performance |
Line chart showing stock prices for TXCO, S&P 600 SC, TXCO Peers and AMEX NG Index as a percentage of TXCO's price in April 2001. Peaks are labeled with activity at that point in time. Mid-2002 peak -- Glen Rose Porosity Oil Discovery, and late 2003 through early 2004 peak -- Jurassic Drilling. |
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Slide 26 - - Why Own TXCO? |
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Slide 27 - - Multi-Play, Multi-Pay In the Maverick Basin |