Patina Oil & Gas — Merger or Acquisition (December 2004)
36 slides from Patina Oil & Gas's merger presentation, Dec 21, 2004
Slide 1: Noble Energy Acquisition of Patina Oil & Gas
High-Graded Focused Expanding Monetizing Transitioning noble Noble Acquisition Patina PATINA December energy Energy, OilExploration Oil & 16, Production Stranded of & Gas Assets to 2004 Inc. Gas a Corporation Cash Corporation Natural Generator Gas
Slide 2: Forward-looking Statement
Forward-looking This Energy’s described for the possibility ability its may update noble goals the possibility differ communication energy to acquisition; the and and replace ininformation that materially the other Patina that the forward-looking reserves; Statement risks the industry 2)Oil contains
Slide 3: Additional Information and Where to Find It
Additional In statement(s) available) Patina the documents proxy Oil Noble ownership Investors in These noble unlawful. the connection SEC’s & energy acquisition Gas statement/prospectus materials Energy, Energy’s Oiland and website & in of Information filed that Gas favor Patina security with any P
Slide 4: An Accretive Transaction Summary
AnPercent Transaction $1.8 $1.1 $0.5 60 New Immediately Pro 68 32 Board Five Two noble Accretive Forma Billion POG Current NBL energy of Directors Directors Shares Stock NBL POG Ownership Value Summary Assumed Equity Debt Accretive NBL Acquisition /Issued –Directors 40$3.4 Percent Debt to–Billion EP
Slide 5: Transaction Terms Summary
Transaction Key Consideration: Cash Value In Estimated March/April NBL Conditions: POG Hart Termination noble $100MM Total, Terms Scott Shareholder or Shareholders energy ofNBL POG 0.3751 Closing: Rodino and Summary Fee: 2005 Common Shareholders Conditions NBL Approval Approval Can, Shared Stock, Su
Slide 6: Transaction Summary Benefits
Transaction Substantial Lengthen Reserves Establishes Domestic Onshore Reduces Less More Multi-year Immediately Increased Hedging * noble SeeReliance Appendix Exploitation/Development energy Tight Domestic Program and Per Domestic Free Onshore Project Financial New Summary Accretive Share Production
Slide 7: Immediate Benefits to Combined Companies' Shareholders
Benefits Immediate Combined 55% Transaction Additional nobleDomestic energy to Companies Exposure Financial POG’s Structure Reserves, Shareholders Flexibility to Allows Have High 45% Outstanding Impact POG’s International with Shareholders Projects Investment Portfolio Reserves Overseas Grade to Div
Slide 8: An Outstanding Combination of Assets
An Outstanding Onshore Gulf Ecuador* Argentina* North Israel* China* Equatorial Reserves Production noble ofenergy Sea* Mexico* US As 320 68 13 11 75 10 203 Guinea* As 78 39 3 9 7 4 17 MMBoe Of Pro MBoepd MMBoe MBoepd Of 12/31/03 Combination Forma* YTD 9/04 of Assets
Slide 9: Adds Significant Projects in Key Growth Basins
Central Wattenberg San Mid-Continent NBL 152 68% 120 8,700+ 80 70% 35 800+ 16 97% 22 500+ POG 15 11% 4 300 noble MMBoe MMBoe Juan MMBoe Projects Gas Adds –Projects energy Wattenberg Mid-Continent San Central Projects Probable Significant Juan Probable Proved Proved(2004E) Probable &(2004E) &Assets &
Slide 10: Adds Significant Projects in Key Growth Basins
Bowdoin 25 Siberia 8 Drilling Piceance Gulf 38 Wind Testing Niobrara 235 Caspiana (Hosston 5 Additional NBL 152 68% 120 8,700+ 80 70% 35 800+ 16 97% 22 500+ POG 15 11% 4 300 noble –Well MMBoe Drilling MMBoe 710 Well MMBoe Projects Gas Coast Adds Well –Projects River energy Well Wattenberg Mid-Contin
Slide 11: Rebalance NBL Pro Forma Reserve Mix
Rebalance NBL 457 Pro Domestic International Total 710 noble Forma MMBoe YE Reserves: energy 2003 Weighting 30% 55% Reserve 70% Mix 45% Increases Significantly
Slide 12: Increased Production Contribution
Increased More NBL 107 Pro Domestic 3Q04 GOM Other North Israel EG 160 noble 15% 10% Forma MBoepd Production Stable, 12% 8% energy Int’ Sea 37%Domestic 24% Onshore l9% l6% 7%Longer-lived 5% 20% 47% Onshore Production Contribution
Slide 13: Why Patina Fits NBL's Growth Objectives
Why NBL’s Grow Long-lived Complement Deepwater Balance Generate Reduce A High-quality, Balances Increases Extends Taps Establishes Allows Provides noble Combination into Patina energy Domestic Articulated Application Dependence Risk Domestic NBL Competitive Risk One Domestic Onshore New Oil Internat
Slide 14: NBL's Strategic Achievements
Significant NBL’s Cost Growth Reduce Establish Strategic Major Achievements Recent Announced Reduced Five Total Net noble Debt/Book Non-core/Higher Reductions Debt/Book energy International Long-term Deepwater Financial Run-rate Acquisitions Organic Progress Acquisition Capitalization Capitalization
Slide 15: POG Has A Strong Record Of Growth
POGOil Production 23% 2005E 60 54 46 32 26 Proven 30% Gas 2004E 2003 2002 2001 263 253 184 120 nobleCAGR Has energy Reserves A(MBoepd) Strong (MMBoe) Record Of Growth
Slide 16: POG Large Low-cost, Low-risk Asset Base
Large Provides Low-cost, High Significant Seven-plus Low-risk More Operating 95 Focused Over Technical, 3Q04 noble Percent 250 200 85 Free Than Average energy POG Percent Asset Stability Exploitation MMBoe Control High Cash Operating of Inventory Year 10,000 Resource Value Daily Base Operating Flow
Slide 17: A New Wattenberg Core Area
A New Wattenberg One Over Stable, Resources 152 73 120 68 Production 33 13 Average Control 99 Leasehold Wind Siberia Piceance Niobrara D-J noble POG NBLYear MBoepd Percent Basin MMBoe of500 Currently River energy Ten Predictable, Core Ridge Reserve WI Trend MMBoe Wattenberg ––Operated Developed Natu
Slide 18: Wattenberg Multiple Zone Exploitation
Wattenberg A Multiple Up All Low Over Major Codell Further Shallow Potential Niobrara Shannon Sussex Parkman Blanket Dakota J-Sand D-Sand EXISTING RECOMPLETION ORIGINAL DEEPENING REFRAC noble 8,000 7,800 7,500 7,300 7,000 4,800 4,500 3,600 Large to Zones Risk 98 8,700 energy Eight Proven Drilling, D
Slide 19: Mid-Continent Growing Platform
A Platform Growing Stable Resources 80 71 35 70 Production 15 87 Leasehold noble Mid-Continent Year MMBoe MBoepd Percent energy Oil Reserve Natural Production –Operated Developed Natural –for of Probable/Possible 180,000 2004E 3Q04 Proven Substantial Area Life Gas GasNet Position in Reserves Ardmore
Slide 20: A Large Mid-Continent Growth Play
A Large Mid-Continent Down-spacing Granite Potential 10,000 Western Developing Southern Expand Test Over St. Hemphill Buffalo Billy South Texas Franklin Santa Milroy Elm Oklahoma Loco Eakley SW Wildcat East Cottonwood noble Claire Davis Deeper Grove Cumberland 800 Rose Fe energy Thomas Net Weatherfo
Slide 21: San Juan Basin Platform for Growth
Establishing Resources 16 70 22 97 Production 2 6 Average Control 98 Leasehold San noble Year MBoepd MMBoe Percent Juan energy Reserve WI Basin –Operated Developed Natural 2–Probable/Possible of of 20,700 2004E A3Q04 Proven Platform 78 Life Percent Gas NetReserves Acres for Growth
Slide 22: Central Region Stable Production
Central Stable Primarily Resources 15 89 11 Production 4 10 93 Leasehold noble MMBoe MBoepd Percent Year MMBoe energy Oil Region Reserve Illinois Production –Probable/Possible Natural Developed Operated –of 70,000 2004E 3Q04 Proven Life and Gas Net Kansas Reserves AcresBasins
Slide 23: New Ventures Leasing
New Ventures Leasing Utilize More Drilling noble Than energy POG’s Acreage Expected 70,000 Tight intoNet Three Reservoir Begin Acres Areas in Acquired 1Q05 Completion Targeting To Shale Date Expertise Formations
Slide 24: POG's Resources Inventory Provides Future Growth
POG’s PDP Probable PUD PDNP Possible Resources Projects Total: Wattenberg Mid San Central noble Juan Continent 32% 15% 13% energy 477 10,400 9% 20% Deep 4% 3% by 23% 29% 21% 38% 9% 5% MMBoe by Area Category 61% 84% Project Area Category 26% Inventory Provides Future Growth 8%
Slide 25: Combination Drives Cost Improvements
A Significantly Combination Year-to-Date Domestic NBL LOE SG&A Exploration Interest Subtotal DD&A Total Production [1] [2] [3] [4] noble Average Includes 4.36 POG 22.42 energy [1] 10.59 [1] 11.83 Domestic 3.51 1.42 Pro Tax (MMBoe) 1.35 14.05 Total 3.92 Acquisition Additional Purchase 9/30/04, Drives
Slide 26: NBL Pro Forma 2005 Guidance
2005 NBL Production (175 LOE SG&A DD&A Exploration Capital Effective % noble Deferred –($/Boe) Pro Guidance energy 180 (Spending ( $/Boe) $/Boe) Forma Tax MBoepd) Growth 20 ($MM) 3.70 Rate –1.45 7.00 30 ($MM) –(%) (%) 25 140 3.90 –– 1.65 –7.50 42 10 –35 3.50 735 160 40 10 1.15 8.25 995 –140 11 3.75
Slide 27: Proved Reserves Peer Comparison
2003 A 0 500 1,000 1,500 2,000 2,500 MMBoe NBL EOG XTO PXD KMG APA BR DVN Note: 710 SGY THX FST MUR NFX PPP VPI CHK noble PC PF Proved 2003 Reserve energy Reserves Figures Adjusted for Announced Asset Acquisitions and Divestitures Source: J.P. Morgan Chase
Slide 28: Enterprise Value Peer Comparison
Enterprise $ D 0 10 15 20 25 30 NBL PXD CHK EOG XTO KMG APC BR APA Source: $7.7 SGY VPI THX FST PPP NFX MUR noble VN Billions PF energy J.P.Value Morgan Chase
Slide 29: Capitalization 12/31/04E
Capitalization 12/31/04E (Millions) Amount Credit Current Acquisition Sr. Total noble Unsecured Debt Equity Capitalization energy Facility Term NBL Percent (Millions) 12/31/04 $Loan 1,443 879 Pro Loan Notes $ Amount 85 38% Forma - 62% -150 4% $1,300 644 2,322 $ $447 6% 3,146 2,541 28% Percent 23% 15
Slide 30: Financial Flexibility
Financial Five-year Combined Available Debt Hedges nobleReduced energy Ensure Flexibility for Financing Company Expanded toFree Pre-acquisition Cash Provides Generates Capital FlowRepayment Substantial to Projects Levels Meet Within Goals Flexibility FreeThree Cash Years Flow
Slide 31: Hedging Protects New Company
Hedging Protects New Natural Crude Layered Treated Fixed nobleProduction energy Rate Oil:7,000 Gas: as Cash into Strategy Hedges Swaps NBL’s 80 Flow MMcfpd Boepd Hedges from Existing Through Operations Production 2008 for Capital Needs and Debt Reduction
Slide 32: Transaction Summary: Stronger NBL
NBL Accelerating Stronger Reserves A Increased NBL’s Domestic Accretive Significant * noble See Larger and Appendix energy Current and Base and POG Inventory Onshore Growth Cost toCombined Earnings Progress More Production to Portfolio Structure Support Less Significantly Balanced ofand Towards Free
Slide 33: Appendix
noble energy Appendix
Slide 34: Disclosure: Non-GAAP Measures Reconciliation
Disclosure 09/04 YTD ($MM) Power Crude Interest Undistributed Distribution DD&A Impairment Change Accretion Other Discretionary Adjustments Working Israel Cash Capitalized Deferred Net A noble – 1Cash Income Exploration –energy (4.5) 2003 Oil Project –234.4 ($MM) Take Capitalized inCapital Tax, Inco
Slide 35: Disclosure: Discretionary Cash Flow
Disclosure Discretionary (1) operating unavailable variance The good investors obligations. A noble - Discretionary 2table tool energy of following above cash). for &plus would Discretionary internal Reconciliation Cash reconciles Net orcash include minus Flow the operating use flow crude and 10 cas
Slide 36: Noble Energy
noble energy
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