Penn West Corporate Profile Listing NYSE: PWE TSX: PWT Market Capitalization (1) 5.3 Billion Shares Outstanding (1) 477 million Liquidity (shares/day) 3.0 million 2012 Production Forecast 161 - 163 mboe/d (65% liquids) Capital…
Penn West Strategy Intrinsic Value Penn West Balanced Business Resource Financial Performance Growth Management & Execution 3
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 Europe 8% 5.8…
Acquisitions & Divestitures Asset Dispositions Value 1.3 Billion Volume 12,000+ boe/d Oil weighted Strategy & Non-operated Attributes Non-core No growth Timing Close prior to December 31, 2012 5
Balance Sheet History Balanced Financial Management MM Credit Facility Drawn 5,000 Long Term Notes Senior Debt to Trailing Cash Flow 4,000 3,000 3 2,000 1,000 2 Debt to Cash Flow Target Range 1 0 0 2009 2010…
Oil Hedging Strategy Balanced Financial Management 83%* of 2013 oil sales net of royalties collared at WTI US92 x US104 120 110 WTI US / bbl 100 Hedging Range 90 November 1, 2012 Strip Pricing 80 70 2011 2012…
Capital & Production Strategy 2013 Resource Asset Strategy Production flat Estimated decline 20 22% Target corporate capital efficiency 35k 40k/boe/d Project IRR threshold minimum of 20% Q1 activity level 18 20 rigs 8
Penn West Focus Business Performance & Execution Production Capital Reliability Efficiency 9
Business Performance Resource / Base Penn West Strategy Cordova Six million acres Slave Point Largest concentration of light oil in Western Canada Peace River Swan Hills Viking Cardium Spearfish Penn West land…
Business Performance Base Penn West Strategy Penn West land position Net of dispositions to Q3 2012. 11
Business Performance Base Production Penn West Strategy Generating 30% of 2012 H1 corporate cash flow 110,000 100,000 Base 90,000 boe/d 80,000 70,000 60,000 2010 2011 2012 12
Business Performance Resource Penn West Strategy Cordova Six million acres Slave Point Largest concentration of light oil in Western Canada Peace River Swan Hills Viking Cardium Spearfish Penn West land position 13
Business Performance Resource Penn West Strategy Cordova 75% Liquids Slave Point Dominant position in four of the five largest light oil resource plays in Peace River Western Canada Swan Hills Viking Cardium Spearfish…
Business Performance Resource Assets Production Penn West Strategy 110,000 100,000 90,000 boe/d 80,000 70,000 Resource 60,000 2010 2011 2012 15
Corporate Capital Efficiencies Oily Peers Business Performance & Execution Penn West capital efficiency includes significant assessment 90,000 drilling and land additions 80,000 70,000 60,000 C /boe/d 50,000 Industry…
Capital Efficiency Focus Business Performance & Execution 47,000/boe/d* 2010 2011 4,000/boe/d Major Facilities 2,000/boe/d 2,000/boe/d Exploration & Land 3,000/boe/d 10,000/boe/d 2,000/boe/d Service ServiceCosts…
R26 R23W1 Spearfish Trend Strategic Value & Potential Established high return inventory T3 11-30 Battery Expansion Predictable average well deliverability Cost structure improvement Oil infrastructure in place Waskada Hz…
R20 R1W5 160 miles T95 Carbonates Trend Slave Strategic Value & Potential Point 500,000 net acres 90%+ light oil Large & expanding inventory High deliverability 200 1,000 boe/d per well (IP3)* * IP3 average production over…
2012 Q1 Q3 Activity Wells rig released 39 Cardium Trend T50 Strategic Value & Potential Alder Flats 600,000 net acres Dominant infrastructure Proven secondary & EOR upside West Maximizing value Pembina 110 miles Hz…
R10 R5W5 Penn West land Industry well Exploration Duvernay Willesden Green T50 Strategic Value & Potential 10-17 Vertical Well Material position Oil Liquids rich gas fairway Industry de-risking - Resource - Drilling &…
2011 Reserves Highlights (1) Proved : 498 mmboe (1) Proved plus Probable : 719 mmboe Liquids account for over 70% of 2P; 5% 74% of 1P 29% Replaced over 230% of 2011 production 56% and achieved overall 2P reserve growth (2) 10%…
Penn West Value Proposition Established oil resource platform Oil & differential upside from transportation development Increase cash flow as oil weighting rises Balance oil development funding with non-core dispositions Hedging…
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