CIBC Whistler Institutional Conference January 22 24, 2014
Corporate Summary Listing TSX: PWT NYSE: PWE Market Capitalization(1) 4.5 billion Big Hill Shares Outstanding(4) 490 million Liquidity(2) TSX: 2.4 million NYSE: 2.4 million 2014 Production Forecast 101 - 106 mboe/d (66% liquids)…
Penn West Value Proposition Maximize return to shareholders through efficient development and production of established light oil resources Focused Portfolio Target Best-in-Basin Operator Status Reliable Production Performance…
Changing to Become Canadas Leading Conventional Liquids Producer Target debt to funds flow ratio of 1.0 1.5x(1)(3) Target 1.5 2.0B in asset Expected annual sustainability ratio of 110%(1)(3) sales by 2015 Capital program on average…
Focused On Growing Cash Flow Per Share Cash Flow Growth With Concurrent Deleveraging Growing Total Cash Flow(1)(2)(3) Improving Profitability(2)(3) 200 2,000 45 100 Annual Average Production(2) 18.7% CAGR(4) 1,500 40 10.6%…
2014 Capital Budget Focused on Core Oil Resources & Balanced Across All Quarters 2014 Capital Allocation(1) (MM) Corp / Other Focus of 2014 capital budget is on maximizing 47 Infrastructure / profitability and capital efficiency…
Focus the Portfolio: A&D Strategy Early Success Asset Divestitures Improve Penn Wests Portfolio s Phase 1: Closed December 20th, 2013 Proceeds of 486MM from non-core asset sales producing 10,800 boe/d (46% heavy oil, 35%natural gas,…
Focus the Portfolio: A&D Strategy Divested Acreage Improves Focus on Core Light Oil Positions Phase 1: (Dec 20, 2013) Big Completed Hill Switchgrass 486MM; 10,800 boe/d Phase 2: (First Transaction) Expected 175MM; 6,700 boe/d…
Focus the Portfolio: A&D Strategy Next Steps in the Phase 2 A&D Strategy Successful 486MM phase 1 transaction strengthened the balance sheet entering 2014 Early phase 2 PSA reflects ongoing success in executing A&D strategy 5-6…
Debt Capital Structure Senior Debt to EBITDA of 2.2 times at December 31, 2013 (1) Credit Syndicate Private Notes(1) 3.0 billion capacity 2.1 billion private notes 20 banks 4.5 years remaining Expires June 30, 2016 6.1% coupon…
Q4/13 Operational Update Summary(1) Drilling Programs Ahead of Schedule and Below Budgeted Costs Capital Expenditures Q4 capital expenditures expected to be 208MM Full year capital expenditures expected to be 816MM (9% below…
Cardium Trend Cost Improvements Leading to Increased Activity T50 Completed and tied-in four additional wells due to cost savings J Lease and cycle time reductions while Pembina remaining below budget Less than eight day…
Viking Oil Industry Leading Production and Cost Performance R23 R20W3 H2/13 average D&C costs of 856,000 reflect a 30% improvement from H1/13 program Production performance of Q1/13 T32 program continues to outperform both…
Slave Point Positive Assessment Results At Red Earth Drilling commenced late November, Sawn Penn West land R11W5 PW 3D seismic ramped up to a 4 rig pace by year- PW 2013 well end, 2013 PW 2014 well PW long-term well PW 2013 water…
Penn Wests Barrel(1) Contribution to Cash Flow by Product 1% 9% Natural Gas NGL 13% Heavy Oil Cash flow growth driven by light oil resources 77% Light Oil (1) Netback based on reported third quarter 2013 actual adjusted…
Supplemental Information
Long-Term Plan Pricing Assumptions Maintain the 0.14 quarterly dividend through the plan period Conservative Canadian light oil price assumption of an average of 89/bbl No cash taxes in plan period See Forward-Looking Information…
Oil and Gas Information Advisory Barrels of Oil Equivalent Barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of crude oil…
Non-Canadian GAAP Measures Advisory In this presentation, we refer to certain financial measures that are not determined in accordance with International Financial Reporting Standards (Canadian GAAP). These measures as presented do not…
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