Chicago Jun 26, 2015 (Thomson StreetEvents) -- Edited Transcript of Contango Oil & Gas Co presentation Tuesday, June 23, 2015 at 2:30:00pm GMT TEXT version of Transcript ================================================================================ Corporate Participants ================================================================================ * Allan Keel Contango Oil & Gas Company - President & CEO ================================================================================ Presentation -------------------------------------------------------------------------------- Allan Keel, Contango Oil & Gas Company - President & CEO [1] -------------------------------------------------------------------------------- Hi, I am Allan Keel, President and CEO of Contango Oil & Gas in Houston. Happy to have you here today to hear our updated story about the Company. Just a quick overview, the Company is -- symbol is MCF, share price is in the $12 to $13 range. We have about 20 million shares outstanding. Our market cap is roughly $250 million. Our daily production is about 111 million cubic feet a day, about two thirds of that is gas. Our PV-10 value at year end was roughly $900 million including our equity ownership in a partnership called Exaro. Proven reserves at 345 BCF, an upside of twice that amount. Why invest in Contango? Well, first of all, we have a proved developed asset base. We don't have a lot of PUDs in the Company so we are not buying for a lot of locations on a map. We have about, as I said, 345 BCF of proven reserves. I mentioned the production. We have a stable cash flow from our primary asset which is in the shallow water in the Gulf of Mexico; I'll talk more about that momentarily. 80% of our proved value is developed again to the point that we don't have a lot of PUDs in our inventory. And we do operate greater than 80% of our production. In terms of upside we have a lot of potential there, three times our proved reserve value in resource potential. Our primary projects when it comes to our upside potential exist in the Wyoming Muddy Formation where we have 35,000 net acres and where we recently announced a new discovery. Madison Grimes, which is just north of Houston, that is though Woodbine and Lewisville section. We have about 16,000 net acres there. Another relatively new project called Elm Hill which is in Fayette Gonzales County, Texas. We have 25,000 net acres there. We had some early encouraging results and we are working over a couple wells there, we will release some news on that in the near future. And then finally our acreage of -- we've got about 25,000 net acres that exposes us to the Eagle Ford and the Eaglebine in Texas. So a lot of upside in the Company. With this recent discovery in Wyoming it is going to make things a lot more interesting and we will talk more about that in a few moments. Another really good reason to look at our Company is our financial flexibility. We do have a strong balance sheet. We have no long-term debt, just our revolver. Our net debt to EBITDAX of 0.68 times at the end of the first quarter was probably -- certainly put us at the front of the class in our peer group. We -- on our CapEx program we stay within cash flow, which is very unusual in our industry. And then we do have a significant capacity inside our revolver to pursue other opportunities. So those are the reasons why we -- I would look at Contango. In terms of our proven reserves, again I had mentioned 345 Bcfe which includes our partnership in Exaro, our equity interest. In terms of where our reserves are, about 42% our offshore, 38% are onshore and the other 20% is in Exaro, which is in the Jonah Field up in Wyoming. Reserve mix, 71% natural gas, 29% oil liquids. And again, from a proved developed standpoint about 76% proved developed, 24% PUDs. |