Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Permianville Royalty Trust | d334307d8k.htm |
 Enduro Royalty
Trust Investor Update
April 2012
Exhibit 99.1 |
 Forward-Looking Statements
2
This presentation includes “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other than statements of
historical fact included in this presentation, including without limitation all statements regarding the
financial position, business strategy, production and reserve growth, and other plans and
objectives for the future operations of the Trust and Enduro are forward-looking
statements. Such statements may be influenced by factors that could cause actual
outcomes and results to differ materially from those projected. No assurance can be given that such
expectations will prove to have been correct. The following important factors could affect the
future results of the energy industry in general, and Enduro and the Trust in
particular, and could cause actual results to differ materially from those expressed in
such forward-looking statements:
•
risks associated with the drilling and operation of oil and natural gas wells; •
the amount of future direct operating expenses and development expenses; •
the effect of existing and future laws and regulatory actions; •
the effect of changes in commodity prices or alternative fuel prices; •
the impact of hedge contracts;
•
conditions in the capital
markets; •
competition from others in the energy industry; •
uncertainty of estimates of oil and natural gas reserves and production; •
uncertainty of unrisked reserves and nonproven reserve potential; and •
cost inflation.
You should not place undue reliance on these forward-looking statements. All
forward-looking statements speak only as of the date of this presentation.
More information about factors that potentially could affect the Trust’s financial
results is included in the Trust’s filings with the Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and any subsequent filings.
|
 •
Since the IPO Enduro has….
–
Beaten production estimates
–
Distributed more than expected
•
Enduro is poised to maintain delivering good
results…
–
112 drilling locations in North Louisiana
–
Large Permian fields with waterflood, drilling and
CO2 potential
NDRO has outperformed expectations
3 |
 Enduro’s oil
production has exceeded forecast by 9% 4
Bbls/D |
 Enduro’s gas
production has exceeded forecast by 7% 5
Mcf/D |
 Enduro’s
Production is Strong 6
BOE/D |
 •
Enduro Royalty Trust’s estimated
distributions per unit for the twelve month
period ending October 31, 2012 were
$1.62, or approximately $0.135 per month.
•
Actual distributions have outperformed,
averaging over $0.145 per month.
Higher Production has led to a 10% Distribution Beat!
Month
Declaration
Date
Record Date
Payable Date
Distribution
per Unit
Estimated
Average
Distribution
2011
November
11/18/2011
11/30/2011
12/14/2011
$ 0.314703
$ 0.270
December
12/19/2011
12/30/2011
1/17/2012
$ 0.148113
$ 0.135
2012
January
1/20/2012
1/31/2012
2/14/2012
$ 0.140337
$ 0.135
February
2/17/2012
2/29/2012
3/14/2012
$ 0.142435
$ 0.135
March
3/20/2012
3/30/2012
4/13/2012
$ 0.155529
$ 0.135
Cumulative Distribution
$ 0.901117
$ 0.810000
7 |
 NDRO has
performed well versus peers and still offers a higher yield
8
Peers
Current Yield
as of 4/12/12
•
PBT 7.7%
•
SBR 8.3%
•
SJT 5.7%
•
CRT 6.9%
•
HGT 6.8%
•
Avg 7.1%
NDRO’s current yield is over 9.1% |
 Permian Basin
Location of Large Fields 9 |
 10
NDRO’s ownership in giant fields creates opportunity
•
All
units
listed
below
are
recognized
by
the
DOE
as
potential
CO
2
targets
(3)
The Permian’s mantra, “The best place to find oil is where somebody has already found
it” ___________________________
Permian fields often recover in excess of 30% of OOIP with waterflood and an
additional 8% of OOIP
with the injection of CO2 according to the DOE.
Gross
Net
Original Oil
Current
Net
Original
in Place
Recovery
Revenue
Oil in Place
MMBO
(1)
Factor
Interest
(2)
MMBO
(2)
North Cowden Unit
1,266
21.3%
7.6%
96.2
North Monument Grayburg Unit
580
26%
9.9%
57.4
Eunice Monument South Unit A
672
16.4%
8.1%
54.4
North Central Levelland Unit
142
39.4%
23.3%
33.1
Yates Field
4,000
30.9%
0.7%
28.0
South Foster Unit
163
27.6%
11.1%
18.1
Eunice Monument South Unit B
136
8.8%
11.7%
15.9
West Spraberry Unit
60
23.3%
19.7%
11.8
Spraberry Driver Unit
600
14.7%
0.8%
4.8
Corrigan Cowden Unit
44
40.9%
10.7%
4.7
Jo-Mill Unit
326
23.3%
1.1%
3.6
7,989
26.0%
328.1
1.
Original oil in place is not an indication of the quantity of oil that is likely to be
produced, but rather an indication of the estimated size of a reservoir.
2.
Net to the Underlying Properties. 3.
Source: Department of Energy. 2006. “Basin Oriented Strategies for CO2 Enhanced Oil
Recovery: Permian Basin”. |
 Field
Proved
Developed
Upside
Locations
Elm Grove
14
91
Kingston
34
6
Total
48
97
Enduro has plenty of drilling locations in North
Louisiana –
to be drilled when prices increase
Haynesville Shale
Field
Proved
Developed
Upside
Locations
Elm Grove
7
15
Lower Cotton Valley
11 |
 Elm Grove Field
Haynesville Shale Locations Red Dashed -
Locations
Red Solid -
PUD
Black Solid -
Producing
Green Solid -
PDNP
12 |
 Elm Grove Field
Lower Cotton Valley Locations Red Dashed -
Locations
Red Solid -
PUD
Black Solid -
Producing
Green Solid -
PDNP
13 |
 Opportunity to
increase reserves •
Permian Basin has enough unrisked upside to more
than double the reserves in the entire trust
–
Waterflood potential:
6 million BOE
–
CO2 potential:
26 million BOE
•
North Louisiana has a large amount of unrisked
potential: 46 million BOE of upside potential
•
These projects are occurring on our assets right now
•
Higher investment in the Permian Basin has more than
offset the lower capital in our gas properties
•
More opportunity and a higher yield should lead to
superior price performance compared to our peers |