Barclays CEO Energy-Power Conference September 6, 2012
Penn West Corporate Profile Listing NYSE: PWE TSX: PWT Market Capitalization (1) 7 Billion Shares Outstanding (Q4 2011) 474 million Liquidity (shares/day) 3.0 million 2012 Production Forecast 165 - 168.5 mboe/d (65% liquids) Average…
North American Peers Production 100,000 500,000 boe/d Liquids Exposure Gas Oil & NGL 100% Oil & NGL Production (%) 80% 60% 40% 20% 0% Source: Company reports 5
Financial & Capital Portfolio Management Scenarios Edm Par/AECO Financial Capital Protect Balance Sheet 65/2.50 Anticipate Maintaining Dividend No Production Growth for Short Term Maintain Balance Sheet Limited Production Growth…
Financial Flexibility Capitalization Geographical Breakdown Credit Syndicate of Credit Syndicate 3.0 billion Asia 20 banks 10% 4 year revolver U.S. (1) Canada Private Notes 24% 58% 1.9 billion private notes 8% 6.0 year…
Acquisitions & Divestitures Asset Dispositions Value 1.0 1.5 Billion Volume 6,000 12,000 boe/d Create competitive tension Strategy Market more packages than we sell Oil weighted Non-core Attributes Non-operated Low growth…
Risk Management Penn West Oil Pipeline Transportation Strategy Penn West is targeting 50% direct transport Edmonton commitment and marketing Chicago Major Export Pipelines Cushing Keystone Keystone XL Flanagan South…
Penn West Production Primary Major Play Horizontal Contribution 2009 Forward boe/d 40,000 35,000 20% of Penn West 30,000 Production 25,000 Carbonates 20,000 Cardium 15,000 10,000 Viking Spearfish 5,000 Other 0…
Netback Increasing Profitability through Oil Development 100 New Oil 5% wellbores 20% of production 20% volume 75 35% cash flow Netback (/boe) 50 45% of production 25 35% of production 0 New Oil Old Oil Natural…
Current Drilling Inventory Drilling Inventory 10,000+ well inventory 8,000 Light oil inventory Potential Drilling Locations Carbonates produces average rates 6,000 of return of 25% - 65% Cardium 4,000 Viking 2,000…
2012 Capital Program & Guidance Due to commodity price uncertainty & volatile differentials near-term capital investment will be slowed Expect net capital spending of approximately 1.2 1.25B Anticipated average annual production…
R20 R1W5 170 miles Penn West land PW Forecast 2012 well PW 2011 well Carbonates Tight PW 2010 well Industry well Sawn Oil Development Lake Drilling Program Slave Point T90 Red Earth Otter Peace River Slave 235…
R10W5 T95 Penn West land PW Forecast 2012 well PW 2011 well Slave Point PW 2010 well Industry well Focused Development Existing & Planned Core Pipeline Senex Sawn T90 Otter Penn West Battery 5,000 Production Q2…
R10W5 High Penn West land PW Forecast 2012 well Swan Hills Prairie PW 2011 well PW 2010 well Industry well Drilling Program Swan Hills T70 East Swan Swan Hills 2,000 Production Q2 2012 (boe/d) 1,500 South Swan…
R10 R1W5 100 miles Penn West land PW Forecast 2012 well PW 2011 well Cardium PW 2010 well Industry well Tight Oil Development Focused Drilling Program 140 miles Alder Flats T45 West Pembina Cardium Trend Willesden…
Cardium Production History Cardium Regional Trend boe/d 120,000 HMSF Development 100,000 1,000 Wells 70,000 boe/day 80,000 60,000 40,000 20,000 0 2004 2006 2008 2010 2012 23
R10 R5W5 Penn West land Duvernay PW vertical well Industry well Willesden Green T50 Oil 8 kms 5 miles T45 Dry Gas Duvernay Trend 100,000+ net acres Liquid Rich Gas Focused on the liquids rich fairway Fairway…
R5W4 R20W3 120 miles Penn West land PW Forecast 2012 well Viking Trend T45 PW 2011 well PW 2010 well Tight Oil Development Industry well & Exploration Kerrobert 170 miles Kerrobert Viking Trend 750,000 net acres…
R29 R23W1 Spearfish Tight Oil Development Focused Drilling Program Saskatchewan Manitoba T5 Melita Waskada Spearfish Trend Goodlands T1 75,000 net acres Manitoba 37o API crude quality North Dakota 2012e…
Resource Appraisal Cordova Shale Gas Joint Venture Peace River Oil Partnership EOR Penn West land position Exploration 27
Stock Exchange Investor Relations Toronto: PWT Toll Free: 1-888-770-2633 New York: PWE Email: investor_relationspennwest.com Website: www.pennwest.com Legal Counsel Burnet, Duckworth & Palmer LLP Penn West Exploration Independent…
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