OUR FOCUS We are an upstream energy company, focused on light oil development in western Canada EXTENSIVE PORTFOLIO SUSTAINABLE SHAREHOLDER VALUE OF ASSETS BUSINESS MODEL CREATION Drilling inventory of 10+ 2014 growth platform…
OUR ASSET BASE Oil Gas Business Units Q2 Production Drilling Inventory1 Q2 Average Production (boepd) (locations) 42,513 boepd Southeast Saskatchewan 19,705 1,170 Drilling Inventory Cardium 19,277 530 2,000 locations AB / BC…
GROWING FREE CASH FLOW Initial capital investment in light oil resource plays generates near-term FUTURE GROWTH production growth and early payout GROWING INTO Maturing production base FREE CASH FLOW generates growing free cash…
DEBT AND LIQUIDITY Term debt provides certainty; liquidity on the balance sheet provides flexibility 2 DEBT CAPITAL COMPOSITION 400 million of available liquidity Term Secured Debt Term subject to 1.3 billion Credit…
TOTAL DEBT POSITION Total Year-End Debt 2010 2011 2012Q2 2013 2014 Pro Forma 2015 2,500 50,000 2015 Target (post dispositions) 2,000 40,000 Debt and Liquidity (million) Production (boepd) 1,500 30,000 1,000 20,000…
DISPOSITION ACTIVITY Year to-date we have announced asset sales totaling 351 million Amount Metric 3,015 boepd Production 116,418/boepd (39% gas) 48.38/boe Reserves (2P) 7.7 MMboe (incl. FDC) Net Operating Income 44…
GUIDANCE UPDATE At this time, due to results from certain Swan Hills and Brazeau area Cardium wells as well as restrictions encountered on non-op Falher wells, we are adjusting our 2014 guidance to reflect current expectations…
WE HEDGE OUR RISK We methodically layer on commodity contracts up to three years in the future to hedge between 25-50% of net production Hedging Outlook 2014(e) Production 42,000 boepd 20,000 125 16,000 100 Royalties Hedged…
MATURING ASSET BASE As our production matures, our base decline is decreasing Annual Corporate Decline Rate 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014(e) 2015(e) 11
PRODUCTION PLATFORM In 2014, we have reduced our capital expenditures and applied disposition proceeds to our balance sheet 50,000 1,000 Extensive light oil assets 80% light oil and liquids 40,000 800 Capital Expenditures…
IMPROVING SUSTAINABILITY Our sustainability ratio continues to improve as our production matures All-in Sustainability Maturing production 200% 190% attenuates the base decline rate and generates higher free 161% 150% 150% operating…
SE SASKATCHEWAN ASSETS We are maximizing the value of our assets by focusing on optimization and EOR Our assets have lower decline, light oil production from the Bakken and the conventional Mississippian formations. With a moderate…
IMPROVING TIGHT OIL RECOVERIES Future value generation through natural gas flooding With Bakken EOR projects we Bakken Creelman EOR Performance expect to: 1,600 12 Attenuate declines and extend production life 1,400 Increase DPIIP…
CARDIUM ASSETS Now generating positive operating cash flow Our extensive land base stretches from Calgary to LTS Land Edmonton and our assets primarily produce light oil LTS Batteries from the Cardium formation. We are evolving our…
CARDIUM GROWTH We grew the production in the Cardium quickly and it has been maintained at 20,000 boepd for more than a year 25,000 500 20,000 400 Net Wells on Production Production (boepd) 15,000 300 10,000 200…
PROVEN RESULTS THROUGH INNOVATION Innovations in drilling and completion techniques improve productivity and lower costs Performance in West Pembina Slickwater fracturing has 80,000 reduced costs and improved productivity…
AB / BC ASSETS The Swan Hills has become our next growth target Our focus for new growth is in the Swan Hills area of northern Alberta. We started drilling in the area in 2012, and have since grown production rates to 2,700 boepd (2013…
GROWING SWAN HILLS PRODUCTION In 2013/14 drilled 7 new wells which were tied-in to our new 3,500 bopd battery in June. Swan Hills production in June averaged 3,100 boepd. 5,000 25 * 4,000 20 Net Wells on Production Production…
SWAN HILLS RESULTS Our historical experience in the Swan Hills formation, at Deer Mountain, has generated results outperforming our projections Swan Hills Performance Until recently, our 100,000 results exceeded expectations for…
WELL ECONOMICS We focus on well economics that reinforce our business model with quick payouts and strong capital efficiencies < 2 year capital payout 2 recycle ratio Mississippian Type Well Bakken Cardium Swan Hills1 Conventional…
LONG-TERM OPPORTUNITY EXTENSIVE ASSETS SUSTAINABILITY SHAREHOLDER VALUE Inventory of 10+ years 2014 sustainability ratio Strong cash netbacks of 100% Undeveloped land of Improving debt to cash 730,000 acres Attractive annual…
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CONSISTENTLY DELIVERING RESULTS Our assets have built a reliable foundation providing consistent results year-over-year Average Production (boepd) Operating Netback (/boe) 46,438 42,784 54.76 41,688 40,998 42,000 50.00 47.76…
OPERATING NETBACK Our assets combined with our operational expertise deliver leading operating netbacks 2014 Q1 Operating Netbacks 70 2014 Q2 60 57.49 50 /boe 40 30 20 10 0 VET LTS BNE TOG CPG WCP SGY PWT ARX BTE…
CASH NETBACK Our strong cash netbacks are the result of our light oil focus 2014 Q1 Cash Netback 50 2014 Q2 45.76 40 /boe 30 20 10 0 BNE TOG CPG VET LTS WCP SGY BTE ARX PWT BNP ERF PEY PGF Cash netback = funds…
DIVIDEND PAYOUT RATIO Lightstream maintains the lowest dividend payout ratio in our peer group at 15% 2014 Q1 Dividend Payout Ratio 60% 2014 Q2 50% 40% % of Cash Flow 30% 20% 14% 10% 0% LTS BNP PEY PWT ERF TOG VET…
CASH NETBACK AFTER DIVIDENDS Our low dividend payout ratio and high cash netbacks generate significant discretionary cash 2014 Q1 Cash Netbacks After Declared Dividends 40 39.47 2014 Q2 30 /boe 20 10 0 LTS TOG VET…
SUSTAINABILITY We are targeting a sustainability ratio of 100% for 2014 2014(e) Consensus All-in Sustainability 188% 150% 125% 100% 75% 50% 25% 0% WCP SGY TOG LTS VET BNE PWT ERF PEY BTE BNP ARX CPG PGF Peer group data…
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