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PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp

Bonavista Energy Corp · Sep 10, 2014 · 51 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. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 1
    Investor Presentation Peters & Co. 2014 Energy Conference
  2. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 2
    THIS IS BONAVISTA 10%+ ANNUAL SHAREHOLDER RETURN FOCUSED EFFICIENT A DECADE OF INVENTORY 3
  3. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 3
    THIS IS BONAVISTA Our assets are focused and operated: Western Operate 91% of 75 operated Canadian production facilities producer 4
  4. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 4
    THIS IS BONAVISTA Our people are experienced and aligned: 17 years of Experienced 11% insider operational leadership, ownership presence 12-year average tenure 5
  5. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 5
    BUSINESS PLAN 10%+ Annual Shareholder Return 6
  6. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 6
    BUSINESS PLAN Annual target: 5%+ + 5% = 10%+ Production Yield Annual growth per shareholder share return Reinvesting Distributing 75-85% 20-30% of cashflow of cashflow 7
  7. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 7
    FOCUSED Maximizing Efficiency through Concentration 8
  8. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 8
    FOCUSED Maximizing efficiency with a concentrated asset base: BC AB SK Ft St John MONTNEY 1,000 boe/d Edmonton DEEP BASIN 16,000 boe/d WEST CENTRAL 50,000 boe/d Calgary 9
  9. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 9
    FOCUSED Why these areas + Multi-zone potential + Abundant resource in place + Accessible infrastructure Proximity of services = Maximum efficiency 10
  10. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 10
    FOCUSED Production in our focus areas: 87% of current production 22% production growth* in our focus areas over the past five years * Growth rate represents a compounded annual growth rate over the past five years. 11
  11. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 11
    FOCUSED Reserves in our focus areas: 83% of P+P reserves at YE 2013 16% reserve growth* in our focus areas over the past five years * Growth rate represents a compounded annual growth rate over the past five years. 12
  12. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 12
    FOCUSED Land base in our focus areas: 2 MILLION net acres as of August 1, 2014 250% increase in land in our focus areas over the past five years 13
  13. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 13
    FOCUSED E&D expenditures in our focus areas: 94% of E&D expenditures allocated to focus areas in 2014 36% E&D expenditure growth* in our focus areas over five years * Growth rate represents a compounded annual growth…
  14. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 14
    EFFICIENT Finding a Better Way 15
  15. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 15
    EFFICIENT Executed our 2013 E&D program with greater efficiency: 18% annual improvement in finding and development costs to 11.95/boe* 35% annual improvement in the cost of adding production to 21,000/boed 19% annual…
  16. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 16
    EFFICIENT Competitive cost structure: finding, development and acquisition costs 35.00 30.00 3-year average FD&A *(/boe) 25.00 20.00 15.00 10.00 5.00 0.00 Bonavista Peer group * 2011 -2013 proved +…
  17. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 17
    EFFICIENT Competitive cost structure: cash costs 30.00 Q2 2014 cash costs* (/boe) 25.00 20.00 15.00 10.00 5.00 0.00 Bonavista Peer group * Cash costs include operating, transportation, G&A and interest…
  18. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 18
    LOOKING FORWARD A decade of inventory 19
  19. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 19
    OUR DRILLING INVENTORY Highlights include: 1,550 Locations Quantity: greater than 10 years inventory Quality: 91% horizontal wells Concentration: 92% in focus areas 20
  20. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 20
    VALUE CREATION Recycle ratio of key plays **: 5 4 Recycle Ratio (x:1) 3 2 502* 207* 1 542* 779* 513* 517* 0 Glauconite Cardium Bluesky Wilrich Ellerslie Montney * Value represents…
  21. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 21
    VALUE CREATION Payout of key plays **: 25 20 Payout (Months) 15 10 207* 109* 50* 5 27* 31* 17* 0 Glauconite Cardium Bluesky Wilrich Ellerslie Montney * Value represents absolute value…
  22. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 22
    VALUE CREATION Internal rate of return of key plays **: 80% 70% 60% 50% IRR (%) 40% 30% 20% 200* 380* 165* 155* 85* 45* 10% 0% Glauconite Cardium Bluesky Wilrich Ellerslie Montney *…
  23. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 23
    VALUE CREATION On-stream cost IP12 months of key plays **: 25,000 20,000 On-stream Costs (/boed) 15,000 10,000 348* 5,000 433* 278* 395* 377* 138* 0 Glauconite Cardium Bluesky Wilrich…
  24. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 24
    2014 BUDGET Exploration and development expenditures: Value* and support** expenditures Value* expenditures by play 350 300 300 250 13% 250 29% 200 41% 200 million million 46% 150 150 87% 29% 100 71% 100 15% 50 50…
  25. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 25
    FOCUS AREAS WEST CENTRAL 2014 E&D expenditures of 350 360 million: Glauconite: 30 (27.1 net) wells drilled YTD 35 wells planned for H2 2014 Glauconite Production 26,500 boe/d 5 extended reach horizontal drilled; average cost…
  26. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 26
    FOCUS AREAS WEST CENTRAL Production profile: 60,000 240 50,000 200 Production (boe/d) 40,000 160 Capital (000s) 30,000 120 20,000 80 10,000 40 0 0 Jan-11 Jan-12 Jan-13 Jan-14 Production (boe/d)…
  27. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 27
    KEY PLAYS GLAUCONITE Production growth: 30,000 120 25,000 100 Current production Production (boe/d) 20,000 80 Capital (millions) 15,000 60 10,000 40 5,000 20 0 0 2009 2010 2011 2012 2013 2014 Forecast…
  28. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 28
    FOCUS AREAS DEEP BASIN 2014 E&D expenditures of 190 200 million: Wilrich: 7 (5.3 net) wells drilled YTD; 5 in Ansell Bluesky Q2 Production 5,900 boe/d H2 2014 program of 14 wells with 10 in Ansell 150 net horizontal locations…
  29. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 29
    FOCUS AREAS DEEP BASIN Production profile: 25,000 150 20,000 120 Production (boe/d) Capital (mm) 15,000 90 10,000 60 5,000 30 0 0 Jan-11 Jan-12 Jan-13 Jan-14 * 2014 Growth rate calculated using January…
  30. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 30
    KEY PLAYS WILRICH Growing Ansell: Ansell Characteristics: Acquired remaining 49% working interest in July 2014 Currently: Over 28,000 net acres ANSELL 97 net horizontal locations 100% ownership of facilities 120 mmcf/d…
  31. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 31
    KEY PLAYS WILRICH Production growth: 10,000 9,000 8,000 Current production Production (boe/d) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Oct-2012 Apr-2013 Oct-2013 Apr-2014 Oct-2014 Forecast Marlboro…
  32. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 32
    FOCUS AREAS MONTNEY 2014 E&D expenditures of 20 million: Montney: Industry Test: 10.5 mmcf/d Industry Industry 6-well pad 55 net sections of land Test: 9.6 mmcf/d Industry 12-well pad Upper, middle and lower Montney…
  33. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 33
    IN SUMMARY 34
  34. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 34
    GUIDANCE Notable 2014 guidance: 5% production increase in 2014F from 2013 levels (projected to be 76,000-78,000 boe/d) 12% forecasted increase in exit rate over 2013 (projected to be 84,000-86,000 boe/d) 11% forecasted…
  35. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 35
    WHY INVEST IN BONAVISTA BUSINESS PLAN 10%+ Total Shareholder Return FOCUSED Maximizing efficiency with a concentrated asset base EFFICIENT Finding a better way A DECADE OF INVENTORY High quality, long life asset portfolio 36
  36. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 36
    APPENDICIES 37
  37. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 37
    EFFICIENT Measuring per barrel profitability*: 2.20 2.00 Improved 1.80 recycle ratio by Recycle Ratio 19% 1.60 19% to 1.9:1 1.40 1.20 2009 2010 2013 2012 2011 1.00 * Net operating income /…
  38. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 38
    EFFICIENT Exploration and development capital efficiency: Finding and development costs* Production additions** (/boe, total proved + probable) (/boed) 15 35,000 30,000 14 25,000 35% 13 20,000 18% 15,000 12 10,000 11…
  39. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 39
    FOCUSED Concentration in focus areas: 0.8 million net acres 2.0 million net acres DEEP DEEP BASIN BASIN Added approximately 25,000 net WEST WEST acres of land in CENTRAL CENTRAL the Deep Basin in 2014 January 1, 2009 August 1,…
  40. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 40
    THIS IS BONAVISTA Concentrated asset base: 2014 Q2 Production 2013 YE 2P Reserves 74,273 boe/day 399 mmboe 11% 13% 4% 4% 22% 18% 63% 65% West Central Deep Basin Eastern Northern West Central Deep Basin Eastern…
  41. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 41
    2014 SECOND QUARTER PERFORMANCE Three months ended June 30, Financial: 2014 2013 % change ( millions except per share amounts) Production revenues 288 245 17% Funds from operations 135 123 10% - per share 0.67 0.63 6% Capital…
  42. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 42
    HEDGING STRATEGY NATURAL GAS 300 5.00 Hedged Volumes (thousand GJs/d) 250 4.50 200 4.00 C/GJ 150 3.50 100 3.00 50 37% 77% 81% 0 2.50 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1…
  43. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 43
    HEDGING STRATEGY CRUDE OIL 14 120.00 Hedged Volumes (thousand bbls/d) 12 110.00 10 100.00 Price/bbl 8 90.00 6 80.00 4 70.00 2 88% 70% 81% 0 60.00 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3…
  44. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 44
    VALUE CREATION Building value with liquids rich natural gas plays: 70 bbls/mmcf 90 bbls/mmcf 38 bbls/mmcf 155 bbls/mmcf 0% C2 22% 23% 35% 35% 29% 29% C3 42% C4 18% 52% 37% 13% C5 10% 20% 29% 6% 7.00 Revenues*…
  45. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 45
    GLAUCONITE Glauconite type curve: Type Curve Capex ( millions) 3.1 600 IP12 (boe/d) 278 EUR (mboe) 513 500 IRR (%) 66 Production (boe/d) F&D (/boe) 6.05 400 P/I 1.2 Recycle Ratio 4.4 300 Payout (years) 1.5 200…
  46. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 46
    CARDIUM Lochend type curve: 300 Type Curve Capex ( millions) 3.4 250 IP12 (boe/d) 138 EUR (mboe) 207 Production (boe/d) 200 IRR (%) 65 F&D (/boe) 16.44 150 P/I 0.8 Recycle Ratio 3.4 Payout (years) 1.4 100…
  47. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 47
    ELLERSLIE Ellerslie type curve: Type Curve 700 Capex ( millions) 5.4 IP12 (boe/d) 348 600 EUR (mboe) 542 IRR (%) 59 Production (boe/d) 500 F&D (/boe) 9.90 400 P/I 1.1 Recycle Ratio 3.4 300 Payout (years) 1.6 200…
  48. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 48
    WILRICH Ansell type curve: Type Curve 900 Capex ( millions) 5.5 IP12 (boe/d) 433 800 EUR (mboe) 779 700 IRR (%) 71 Production (boe/d) 600 F&D (/boe) 7.06 P/I 1.4 500 Recycle Ratio 3.6 400 Payout (years) 1.5 300…
  49. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 49
    BLUESKY Bluesky type curve: Type Curve 700 Capex ( millions) 4.5 IP12 (boe/d) 395 600 EUR (mboe) 517 IRR (%) 76 Production (boe/d) 500 F&D (/boe) 8.75 400 P/I 1.1 Recycle Ratio 3.1 300 Payout (years) 1.4 200…
  50. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 50
    2013 RESERVES SUMMARY Replaced 2013 annual production by 198%, adding 51.1 mmboe of 2P reserves Natural Gas Total Natural Gas Oil Liquids Reserves(2) Reserves:(1)(4) (mmcf) (mbbls) (mbbls) (mboe) Proved: Proved producing 575,880…
  51. PETERS & CO 2014 ENERGY CONFERENCE – Bonavista Energy Corp – slide 51
    1500, 525 8th Ave. SW Calgary, Alberta T2P 1G1 Tel: (403) 213-4300 Fax: (403) 262-5184 investor.relationsbonavistaenergy.com 52

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