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BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited

Canadian Oil Sands Limited · May 21, 2013 · 37 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. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 1
    Barclays Americas Select Franchise Conference 2013 May 21, 2013
  2. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 2
    Why own COS Pure (100% light, sweet) crude oil investment in long-life resource Strongg existingg operating p g base with production p upside p p potential High-quality, undeveloped leases for future development…
  3. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 3
    Syncrude: A high quality resource Strong, g, stable production p base Integrated oil sands mining project Proven technology Predictable reservoir recovery over 90% Lower risk compared to SAGD projects Minimal exposure to…
  4. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 4
    Syncrude supported by Management Services Agreement with ExxonMobil and Imperial Oil JV ownership structure Canadian Oil Sands (COS) Imperial Oil 36.74% 25% Suncor 12% 5% 7.23% Murphy Oil SSinopec opec Mocal Nexen…
  5. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 5
    Large reserve and resource base supports d d off production decades d i Billions of Synthetic Crude Oil Barrels 6 5 4 3 2 1 0 Produced to date Proved plus probable Contingent resources Prospective resources reserves All…
  6. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 6
    2013 Outlook 20131 Sales volume (bbl/d)2 105,700 Operating expenses (/bbl) 38.41 Cash flow from operations (millions)3,4 1,097 Cash flow from operations (/share)3 2.26 Realized selling price (/bbl) 85.00 1. 2013 Outlook…
  7. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 7
    Highly leveraged to increasing crude oil prices Illustrative cash flow from operations (/share)2 4 00 4.00 3 00 3.00 2013 estimate 2 00 2.00 1 00 1.00 0 00 0.00 WTI (US/bbl) 65 75 85 95 105 All figures in Canadian…
  8. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 8
    Pure play oil sands investment Oil sands as % of total production 0% 20% 40% 60% 80% 100% COS Canadian Natural Cenovus Imperial MEG Nexen Suncor Our production is 100% light light, sweet crude oil Source: FirstEnergy…
  9. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 9
    average Cdn /bbl 40 50 60 70 80 90 100 110 120 Trailingg 3-month 130 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11…
  10. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 10
    Dividends continue to reflect free cash flow2 over time ti millions Annual Total Dividends Cumulative Dividends/FCF 2,100 7,000 1 800 1,800 6 000 6,000 1,500 5,000 Dividends 1,200 4,000 900 3,000 Cumulative Dividends…
  11. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 11
    Highest yield amongst peers COS 6.87%* 6.87% Canadian Natural 1.67% Cenovus 3 20% 3.20% Imperial 1.22% MEG 0.00% Suncor 2.5% S&P/TSX 3.05% S&P 500 Average 2.06% Bank of Canada 1.03% Source: Bloomberg as at May…
  12. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 12
    Operating leverage Syncrude production Thousand barrels per day 400 350 Average g pproduction of 290,000 , bbl/d / since 2007 300 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013F 2 million bbl change g…
  13. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 13
    Premium product and competitive operating costs result lt iin significant i ifi t margin i advantage d t 21.00 Syncrude margin advantage over nearest competitor Realized price advantage 19.00 vs. Competitor A Operating cost…
  14. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 14
    Syncrude upgrader delivers significant value per bbl 1 100 Margin Depreciation 80 Crown royalties y COS Margin Other 4 34/bbl 60 G&A 5 Operating costs 2 40 20 Upgrading cost 0 COS 2, 4 Mining & Typical SAGD 3 SAGD…
  15. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 15
    Compelling valuation relative to new mining projects Project(s) Cost estimate/ Production Product per flowing bbl Enterprise p value1 capacity p y (bbl/d) ( / ) Syncrude 9.9 billion 128,000 Light, sweet 77,000 (COS share)…
  16. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 16
    Investing in our business for sustained success Total cost Total cost Estimated % Major Capital Projects Total Costs 1 estimate Target g in- ti t estimate complete l t (B) service date accuracy (% ) 03/31/132 +15% / Mildred…
  17. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 17
    Mildred Lake Mine Extension (MLX) Project Expected p to be a highly g y economic means to access a large bitumen source Limited scope should result in a significantly lower cost than a new mine Leverages current operating and…
  18. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 18
    Major projects spending profile billions Spent to 2013 2014 2015 TOTAL Dec. 31, 2012 Canadian Oil Sands share 1.0 0.9 0.9 0.2 3.0 Costs exclude regular maintenance (estimated to average about 0.4 billion COS share) and…
  19. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 19
    Strong liquidity position to support capital program and healthy dividend millions 2500 Debt Repayment 2000 1500 Capex 1000 500 Dividends 0 Cash uses - 2013 Cash flow from Cash balance estimate operations - 2013 Mar.…
  20. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 20
    Managing a strong, efficient balance sheet Net debt1, millions 2000 1500 1000 500 0 2005 2006 2007 2008 2009 2010 2011 2012 Target T t Targeting net debt level of 1 to 2 billion 1. Non-GAAP measure.
  21. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 21
    Positioned for strong free cash flow1 millions, net to Canadian Oil Sands maintenance capital major projects capital cash flow from operations 2000 1600 1200 800 400 0 2 2007 2008 2009 2010 2011 2012 2013 2014 2015…
  22. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 22
    COS investment highlights Expect free cash flow to expand after 2014 SCO receives attractive margins, g p protected from discount on heavy ypproducts Major projects are progressing on schedule and on budget Solid finance plan…
  23. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 23
    COS has significantly outperformed the market over the h llong-term 2003-2013 cumulative returns 900% Average compound 800% annual return 700% Canadian Oil 17% Sands 600% 500% S&P/TSX Oil & Gas 11% 400% 300% S&P/TSX 10%…
  24. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 24
    Appendix
  25. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 25
    COS: a premier pure-play oil sands investment Ticker: COS on Toronto Stock Exchange Shares outstanding: 484.6 million 52 week high / low / close1: 22.34 / 18.21 / 19.76 Market cap: 9.6 billion1 Enterprise value: 9.9 billion2…
  26. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 26
    Demonstrating strong return on shareholders equity shareholders Canadian Ca ad a Oil O Sands' Sa ds ROE O 45% 45.00 40% 40.00 35% 35.00 30% 30.00 Return on Equity e Return 25% 25.00 Percentage Average ROE of 24%…
  27. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 27
    Bitumen production projects 2 mine train moves 2 new mine train builds 2 sustaining mine train builds
  28. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 28
    A mine train processes bitumen 1 Crusher 2 Surge bin 3 Mix box 4 Hydrotransport 2 1 3 4
  29. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 29
    Market access Keystone XL (KXL) Routing Hardisty to Cushing to Houston/P.A. Gulf Coast Size 700-830 kbd 700-830 kbd Timing 2015 2013 Enbridge Line 9 Reversal Enbridge Northern Routing Sarnia to Gateway (NGP) Montreal Routing…
  30. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 30
    U.S. Oil Demand and Sources of Supply Source: U.S. Energy Information Administration Annual Energy Outlook 2013
  31. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 31
    A responsible developer of the oil sands Achievements at Syncrude Reduced water intensity by 60% since the early 1980s Recycle 85% of water used First Fi operating i mine i to receive i conditional di i l approvall ffor a…
  32. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 32
    Pioneering research into environmental technologies h l i IInvesting ti iin new ttailings ili managementt technologies to accelerate reclamation Developing industrys first commercial scale end-pit lake Constructing a composite…
  33. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 33
    Oil sands industry GHG emissions are 3.5% off those th off the th UU.S. S coall iindustry d t Source: U.S. DOE/EIA, Environment Canada 2009, CAPP
  34. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 34
    Wells to wheels CO2 emissions Wells-to-wheels Average oil sands is only 9% more GHG intensive than average U.S. barrel Source: IHS CERA Special Report Oil Sands Dialogue: Oil Sands, Greenhouse Gases, and US Oil Supply:…
  35. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 35
    Environmental regulations GHG Provincial regulations require 12% reduction in emission intensity over 2003 - 2005 average for large emitters If not met, the emitter may: Pay 15/tonne levy into Climate Change and Emissions Management…
  36. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 36
    Syncrude Crown royalty terms* terms All figures gross to Syncrude Greater of 25% net bitumen revenue less capital and operating costs costs, or 1% of gross bitumen revenue* Previouslyy based on Synthetic y Crude Oil ((upgraded pg…
  37. BARCLAYS AMERICAS SELECT FRANCHISE CONFERENCE – Canadian Oil Sands Limited – slide 37
    2013 Crown Royalty Calculation Based on 2013 Outlook provided April 30/13 SCO % Mining Bitumen Revenue1 3,280 2,261 Operating expenses (1,482) 85% (1,260) Non-production Non production costs (154) 70% (108) Capital expenditures…

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