Skip to main content BAML Energy Conference – Crescent Point Energy Corp. Investor Presentation | Shale Experts
Loading...
Pm

BAML Energy Conference – Crescent Point Energy Corp.

Crescent Point Energy Corp. · Nov 10, 2014 · 28 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. BAML Energy Conference – Crescent Point Energy Corp. – slide 1
    BANK OF AMERICA MERRILL LYNCH: 2014 ENERGY CONFERENCE November 2014
  2. BAML Energy Conference – Crescent Point Energy Corp. – slide 2
    Q3 2014 HIGHLIGHTS Record production of 141,183 boe/d (91% oil weighted) 9% production per share growth over Q3 2013 Funds flow from operations of 618 million 12% increase over Q3 2013 465 million expenditure on drilling and…
  3. BAML Energy Conference – Crescent Point Energy Corp. – slide 3
    COMPANY SNAPSHOT: CPG (TSX AND NYSE) Market Capitalization: 16.7 billion (447.0 million shares fully diluted)(1) Net Debt: 2.8 billion(2) Enterprise Value: 19.5 billion 2014 Exit Production: 155,000 boe/d (90% oil weighted)(3) 2014…
  4. BAML Energy Conference – Crescent Point Energy Corp. – slide 4
    KEY MESSAGES Proven track record of delivering growth and income Growing high-netback production and cash flow on a per share basis World-class assets with a large drilling inventory of high-return wells coupled with the…
  5. BAML Energy Conference – Crescent Point Energy Corp. – slide 5
    BUSINESS STRATEGY Develop and Exploit Increase recovery factors through step-out and infill drilling, waterflood optimization and improved technology Acquire Focus on high-quality, large resource-in-place pools with the…
  6. BAML Energy Conference – Crescent Point Energy Corp. – slide 6
    HEDGING STRATEGY Total Oil Hedges 60% 70,000 70% 60,000 60% 37% 50,000 50% 21% bbl/day 40,000 40% 30,000 4% 30% Actively hedging 3 years 20,000 20% into the future 10,000 10% - 0% Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1…
  7. BAML Energy Conference – Crescent Point Energy Corp. – slide 7
    HISTORICAL 5-YEAR VOLATILITY IN CPG SHARES (1)(2) Standard Deviation 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% (1)(2) Downside Variance 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% Our hedging strategy and conservative…
  8. BAML Energy Conference – Crescent Point Energy Corp. – slide 8
    PROVEN TRACK RECORD 160,000 3,000 Production (boe/d) Funds Flow (millions) 2,500 120,000 2,000 80,000 1,500 1,000 40,000 500 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2004 2005…
  9. BAML Energy Conference – Crescent Point Energy Corp. – slide 9
    NEAR TERM FOCUS Production per Share Cash Flow per Share 7.00 CAGR 12.4% + 360 CAGR 6.5% + Dividend Yield Dividend Yield 6.00 320 5.00 4.00 280 3.00 240 2.00 1.00 200 (1) 2010 2011 2012 2013 (1) 2010…
  10. BAML Energy Conference – Crescent Point Energy Corp. – slide 10
    18 BILLION INVENTORY DRIVES LONG-TERM GROWTH Potential Total First Month Risked Finding & Risked per Capital(1) Total Reserves(2) Production Rate Development Cost Producing Area Net Wells (MM) (Mboe) (boe/d)(3) (/boe) (4) boe(3)…
  11. BAML Energy Conference – Crescent Point Energy Corp. – slide 11
    SUSTAINABLE ORGANIC GROWTH Production per Share (4)(6) (excl. waterflood and acquisitions) 500 7.2% 5-Year CAGR + Dividend Yield Boe/d / million shares 450 1.8% 5-Year CAGR + 400 Dividend Yield 350 300 250 200 150 2013 2014E…
  12. BAML Energy Conference – Crescent Point Energy Corp. – slide 12
    INDUSTRY LEADING NETBACKS 2014E Operating Netbacks Peer Comparison (CAD/boe) (1) 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 US US CPG US US US US US Canada Canada US Canada US Canada US US Industry…
  13. BAML Energy Conference – Crescent Point Energy Corp. – slide 13
    FOCUSED GROWTH Strategic positions in four of the top seven medium to light oil resource pools in Canada(1) Largest player in the OOIP 5.3 billion Canadian Bakken, the barrels second largest light oil pool in OOIP 4.6…
  14. BAML Energy Conference – Crescent Point Energy Corp. – slide 14
    BREAK-EVEN ECONOMICS Average Break-Even Economics for Major Canadian and US Light to Medium Oil Plays (1) 100.00 CPG Core Areas 80.00 WTI (US/bbl) 60.00 40.00 20.00 0.00 Crescent Points highest return type…
  15. BAML Energy Conference – Crescent Point Energy Corp. – slide 15
    CAPITAL ALLOCATION: FOCUSED ASSET BASE Play Type Well (EURs)(1) Rate of Payout Well Costs % of 2014 Return (%)(1) (in months) (2) Drilling Capital Budget Viewfield Horizontal (EUR 75 250 mbbls) 84 to 800 4 14 2.0 MM Horizontal 30…
  16. BAML Energy Conference – Crescent Point Energy Corp. – slide 16
    BUILDING FREE CASH FLOW ASSETS Viewfield Bakken Cash Flow vs Capex (MM) Shaunavon Cash Flow vs Capex (MM) 1,600 600 1,200 450 800 300 400 150 - - Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8E(1) Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6E(1)…
  17. BAML Energy Conference – Crescent Point Energy Corp. – slide 17
    UINTA BASIN SIGNIFICANT OPPORTUNITY 5,000 ft Mahogany Garden Gulch Douglas Creek Potential zones for horizontal drilling Black Shale Castle Peak Uteland Butte Recent successful industry horizontal wells Wasatch 10,000 ft…
  18. BAML Energy Conference – Crescent Point Energy Corp. – slide 18
    FLAT LAKE: TORQUAY (THREE FORKS) & BAKKEN Crescent Point Energy lands Recently acquired lands as part of a 99.1 million acquisition Torquay edge Bakken wells Torquay wells Consolidated area, bringing total Drilled…
  19. BAML Energy Conference – Crescent Point Energy Corp. – slide 19
    SUMMARY Continue lowering payout ratio by building cash flow on a per-share basis World-class assets with large drilling inventory of high netback, high return wells with waterflood upside Focused growth strategy and allocation of…
  20. BAML Energy Conference – Crescent Point Energy Corp. – slide 20
    APPENDIX
  21. BAML Energy Conference – Crescent Point Energy Corp. – slide 21
    CASH FLOW IS A BETTER PROXY FOR PERFORMANCE Peer analysis solely on net income does not account for various non-cash charges such as Crescent Points hedging strategy Crescent Point Energy Corp. (millions) Q3/14A 2013A Net income…
  22. BAML Energy Conference – Crescent Point Energy Corp. – slide 22
    THE IMPORTANCE OF PAYOUTS: CASE STUDY 12 Month Payout Well (1) Cumulative Free Cash Flow ( millions) 3.5 3.0 2.5 Hypothetical Economics 2.0 1.5 NPV10% 3.4 MM 1.0 0.5 Well cost 2.0 MM 0.0 (0.5) (1.0) EUR/well (Mbbls) 150…
  23. BAML Energy Conference – Crescent Point Energy Corp. – slide 23
    PIONEER IN ADVANCING NEW TECHNOLOGY 2008 - 2009 2010 - 2012 2013 - 2014 Completed first cemented liner in the Bakken Expanded waterflood area within the core of the Became the largest driller of horizontal wells in oil resource…
  24. BAML Energy Conference – Crescent Point Energy Corp. – slide 24
    TECHNOLOGY + PATIENCE CREATES VALUE Technology has shown to be a significant value creator over time Rewarded for a patient drilling strategy, which is supported by our dividend plus growth model In-house technology expertise…
  25. BAML Energy Conference – Crescent Point Energy Corp. – slide 25
    IMPACT OF TECHNOLOGY IMPROVEMENTS Viewfield Bakken Fresh Water Usage per well Viewfield Bakken Drilling Progression Spud to Rig Release 900 16 750 12 600 Days Water (m3) 450 8 300 4 150 0 0 2009 2010 2011 2012…
  26. BAML Energy Conference – Crescent Point Energy Corp. – slide 26
    TRANSFER OF KNOWLEDGE Viewfield Shaunavon Uinta Basin Flat Lake Initial Year of Entry Early 2007 Early 2009 Late 2012 Mid 2013 Q3/14 Production (boe/d) 60,000 23,000 14,000 6,800 2013 Cash Flow (millions) 1,216 329 151 55 (1)…
  27. BAML Energy Conference – Crescent Point Energy Corp. – slide 27
    ACQUISITION HISTORY: RESERVES MORE THAN DOUBLED Initial P+P Estimated Current P+P Total P+P Reserves Production Reserves Reserves Increase in P+P % Increase in Property (Mboe) (Mboe)(1) (Mboe)(1)(2) (Mboe)(1) Reserves (Mboe)…
  28. BAML Energy Conference – Crescent Point Energy Corp. – slide 28
    www.crescentpointenergy.com BANKER Bank of Nova Scotia AUDITOR PricewaterhouseCoopers LLP LEGAL COUNSEL Norton Rose Fulbright Canada LLP EVALUATION ENGINEERS GLJ Petroleum Consultants Ltd Sproule Associates Ltd REGISTRAR &…

From the store

Browse maps, data & reports in the Shale Experts store