Investment Fund for North American Unconventional Resource Plays

Transcription

1 Investment Fund for North American Unconventional Resource Plays

2 Kalnin Ventures Kalnin Ventures LLC is a US based entity registered with the SEC and headquartered in Denver, Colorado. The sole investor for our first fund is an international energy focused company with assets of $7 billion. Investments are made through our investment fund, BKV Oil & Gas Capital Partners, L.P. 2

3 Sole International Investor Closely held international public company - Headquartered in SE Asia. Operations in 6 countries - Coal Mining and Power Generation - Market Cap $2.0 billion - Total Assets exceed $7 billion Experienced with cyclical commodities 3

4 Kalnin Ventures Team Chris Kalnin Managing Director Co founded Kalnin Ventures LLC in June 2014 MBA from Northwestern Worked at McKinsey & Company CSFB, PTTEP and Level 3 Communications Rebecca Kalnin Co Founder Co founded Kalnin Ventures LLC in June 2014 Responsible for administration. Masters from ASU NAIA women s basketball All American Joe Davis VP Geoscience, Partner PhD in Geology, Univ Texas at Austin 40+ years in oil and gas industry Worked at USGS, Arco Oil and Gas, Maxus Energy Certified Petroleum Geologist Ethan Ngo VP Engineering, Partner Master in Petroleum Engineering from Colorado School of Mines MBA from CU Denver Worked at ExxonMobil, Newfield Exploration, Liberty Resources and Fidelity E&P Kathleen Neuheardt Controller CPA and Bachelor of Science Business Administration, Accounting Option from Montana State University Worked 12 years as an Auditor with KPMG in Houston and Midland, TX focused on oil and gas companies Worked as Senior Director of Finance for FOCUS, a large Catholic Church non profit focused on college students. Matthew Johnson Sr. Director of Finance & Land, Partner BBA in Finance & Real Estate from Baylor University; Masters in Finance candidate from CU Denver Registered Prof. Landman & expertise in U.S. land and land management Worked at Linc Energy and Sam Gary Jr. and Associates. Sam Hoda Data Scientist PhD in Mathematics from Carnegie Mellon Deep expertise in mathematics and data science Worked at Exxon, Level 3 Communications and SpotX Shannon Kretzer Administrative Assistant First point of contact at Kalnin Ventures Denver office Provides administrative and professional support across disciplines Heather Child Asset Manager Bachelor s of Science in Civil and Environmental Engineering from BYU. Strong expertise in production, completions and artificial lift. Worked at ExxonMobil (XTO) and Anadarko. Brent Perkins Financial Analyst BBA in Finance and MIS from Baylor University Previous consulting experience with Protiviti, focusing on reliability of financial reports 4

5 Extensive Industry Experience International / Domestic Conventional / Unconventional Finance, Geoscience, Engineering Major and independent 5

6 Investment strategy Focus on non operated assets in de risked sweet spots of mature unconventional plays - Lower risk projects than conventional private equity - 15% 20% full cycle returns Value proposition - Buy at the right price - Manage with a small, high tech team with low G&A - Influence operators with big data analysis regarding costs and operational efficiencies - Self market production and aggressively manage mid stream 6

7 Focus: Non operated assets in proven North American Resource plays Size 20% to 40% WI with Proven Operator Substantial Investments - >$100 million Plays Marcellus/Utica Montney Bakken Eagle Ford Permian Wolfcamp 7

8 Why We Like The Marcellus Good selection of mid sized, public operators - Few private equity backed teams Consolidation is imminent; Most operators have non op assets - M&A market is set for a rebound as consolidation progresses Dry gas is well suited for non operated management: safe and simple Pipeline capacity increases will tighten basis differentials 8

9 Chaffee Corners Acquisition Closed March 2016 for $111.5 million 76 wells, ~11,000 net acres Daily net production 21 mmcf/day Reserves (1P) 156 BCF 2017 EBITDA ~$10 million Firm contract for 50% of gas Co-owner in Gathering and Compression system: ~100 miles of pipe and 120 mmcf/day compression $0.71/MCF (1P reserves) $5,300/MCF/day flowing 9

10 Chaffee Corners Acquisition Compressor Station Cooley Unit 10

11 NEPA Corners Acquisition Closed January 2017 for $63 million ~161 wells, ~10,000 net acres Daily net production 17 mmcf/day Reserves (1P) 133 BCF 2017 EBITDA ~$8 million $0.47/MCF (1P reserves) $3,500/MCF/day flowing 11

12 NEPA Corners Acquisition NEPA Drillsite Warburton Unit 12

13 What are our preferred deal structures? Mezzanine Debt Equity SWEET SPOT Generally we prefer simple, non operated structures, where we buy into a specific position and are headsup thereafter. Potential Solution Space Upfront buy in However, we are willing to consider alternative structures which include: Combined Equity and Mezzanine Debt deals and/or Deals which have an upside sharing component Drill to earn or upside sharing 13

14 Contact Us Kalnin Ventures, LLC Tabor Center th Street, Suite 1850 Denver, CO Main: (720) Fax: (720) E mail: KVinfo@kalninventures.com 14