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APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc.

Whitecap Resources Inc. · Apr 10, 2015 · 33 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. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 1
    SUCCESS FOCUS = + + MOTIVATED PEOPLE QUALITY ASSETS SUSTAINABLE LIGHT OIL GROWTH + INCOME PLATFORM April 2015
  2. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 2
    Whitecap Profile Shares outstanding (MM) TSX: WCP Post-Acquisition Basic 253.5 291.1 Fully diluted 258.7 296.3 Market capitalization (B) 3.6 4.1 Annual dividend (/share) 0.75 0.75 2015 average production (boe/d) 36,000 39,700 %…
  3. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 3
    Whitecap Acquisition Rationale PrivateCo (Kerrobert Viking) Overview Adds another active waterflood to production base Kerrobert Increases light oil weighting to 78% from 76% Improves cash flow netback by 5% to 32.65/boe Kerrobert…
  4. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 4
    Long Term HZ Drilling and Waterflood Resource PrivateCo 5,100 boe/d (96% oil + NGLs), 31.47 MMboe P+P 100% of purchase value attributed to Kerrobert 247 Hz producers, 2 oil batteries, pipeline connected 715 (700 net) Hz locations…
  5. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 5
    Kerrobert Waterflood Upside De-risked and Progressing Large Platform for Waterflood Upside Waterflood 565 MMbbls OOIP targeted for waterflood Target Area Contiguous land base of 70+ sections Future Future Future 3b Mature…
  6. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 6
    Total Shareholder Return 10% / Annum MOTIVATED PEOPLE + QUALITY ASSETS + FOCUS = SUCCESS Founding Principles Employees are shareholders Light oil focus Per share growth (cash flow, production, reserves and NAV) Execution…
  7. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 7
    WCP Employee Share Ownership Total Employee Ownership 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 2012 2013 2014 2015 Since 2009 insiders increased…
  8. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 8
    2015 Outlook 2014 2015e Pro Forma % Change Operational Average production (boe/d) 32,458 39,700 22% Development capital (MM) 324 242 (25%) Wells drilled (gross) 169 138 (18%) Financial Cash flow netback (/boe) 41.00 32.65 (20%) Cash…
  9. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 9
    2015 Whitecap Sustainability Oil (USWTI) 52.75 65.00 75.00 85.00 Edm Par Diff (USWTI) (6.00) (6.00) (6.00) (6.00) FX (C/US) 0.80 0.81 0.82 0.83 AECO (C) 2.50 2.50 2.50 2.50 CF netback (/boe) 32.65 36.50 40.10 44.55 Average…
  10. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 10
    Sensitivities 2015 Cash Flow Sensitivities and Assumptions Parameter Annual Base Sensitivity Impact (000s) Oil price (USWTI) 52.75 +/- 1.00 5,700 Gas price (C/GJ AECO) 2.50 +/- 0.10 700 Production (boe/d) 39,700 +/- 100 1,200…
  11. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 11
    Financial Prudence and Risk Management C98.49 C97.04 C97.69 C97.69 15,000 100.00 12,500 95.00 Oil Hedges 10,000 90.00 C/bbl WTI bbls/d 7,500 85.00 5,000 Objective: 80.00 2,500 1) Mitigate price volatility -…
  12. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 12
    Results and Track Record Production/Share Growth 2P Reserves/Share Growth 45,000 180 250,000 2014 F&D Costs 1,000 140 TP P+P 40,000 160 848 900 Incl. FDC 19.03 13.79 139 35,000 130 140 200,000 P+P Recycle Ratio = 2.3x 746 800…
  13. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 13
    Results and Track Record Cash Flow/Share Growth 600.0 2.50 2.08 500.0 1.66 1.84 2.00 1.68 400.0 (Cash Flow / share fd) 1.34 1.50 300.0 (MM) 486.8 473.0 1.00 200.0 0.48 278.8 0.50 100.0 193.9 87.2 11.3 0.0…
  14. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 14
    1.8 Billion Value Created (September 2009 December 2014) Net Total Total Purchase Capital Total Total Present Cash Flow Rate of Price Spent Cost Cash Flow Value plus NPV Return Area (MM)(1) (MM)(2) (MM) (MM) (MM)(3) (MM) (%) NW…
  15. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 15
    7 Key Attributes to WCP Growth + Dividend Strategy Focus on organic per share growth (3 - 5% per year) within cash flow, supplement with accretive acquisitions Conservative total payout ratio and strong balance sheet Provide…
  16. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 16
    Growth Within Cash Flow Sustainable Asset Base 2015 Pro Forma Free Cash Flow by Area 120 100 80 67 34 100 60 20 5 84 40 72 52 50 60 60 47 42 20 33 0 Saskatchewan Acquisition SW AB Pembina NW AB/BC Operating Income…
  17. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 17
    2015 Development Capital (Pro Forma) 2015 Capex by Area (%) 2015 Well Count (gross) Saskatchewan 100 SW AB Other 90 21% 2% 80 14% 70 55 60 49 25% 50 21% 40 17% 30 18 NW AB/BC 20 11 5 10 Pembina 0 Acquisition Sask…
  18. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 18
    Core Areas of Operations Drilling inventory 113 Development Inventory 2,351 + 715 = 3,066 Boundary 2014/15 wells 0/3 Oil New well netback (/boe) 34 100% Light Oil 16+ Years inventory Montney Drilling inventory 61 2014/15 wells 2/0…
  19. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 19
    Predictable and Stable Production Base Base and new well production is predictable and repeatable High level of certainty of achieving forecasted volumes Key characteristics: Areally consistent reservoirs Large resource in place,…
  20. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 20
    Economic Sensitivities to WTI US/bbl Profit to Investment Ratio Rate of Return 2.8 400% 2.5 2.3 350% 2.0 300% 1.8 1.5 250% 1.3 200% 1.0 0.8 150% 0.5 100% 0.3 0.0 50% -0.3 0% -0.5 50 60 70 80 90 50 60 70 80 90…
  21. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 21
    Elnora Nisku Oil Recently consolidated to 100% WI Operated, 35o API light sweet oil, focused asset Elnora Free Cash Flow Largest Nisku oil discovery in the past 20 years Production Nisku zone at 1,900m depth, 18 - 30m thick 60…
  22. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 22
    Cardium Horizontal Resource Play Cardium oil resource play repeatable and expandable Edmonton Light sweet oil (39 API) West Pembina East Pembina Strong operating and cash flow netbacks (36 - 40/boe) Low risk optimization of 7…
  23. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 23
    West Pembina Cardium Legacy Characteristics Unitized waterfloods, 38o API light oil, 1,700m depth Industry Hz Wells 6 Units (46 100% WI) WCP Operated 83% oil + NGLs Cardium Lands CPDU1 79.1% CPOU1 Average base decline of 5%…
  24. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 24
    Exceptional Type Curve Economics East Pembina Garrington Garrington West Pembina Type Well Economics Cardium Cardium (Standard) Cardium (ERH) Cardium DCE&T (MM) 2.23 2.77 3.41 2.73 Production, IP30 (boe/d) 239 311 466 317…
  25. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 25
    Western Saskatchewan Viking Oil Light oil (36 API) Viking resource play Type Well Economics Lucky Hills/Viking Strong capital efficiencies, short payout periods Decline mitigation via waterflood SASKATCHEWAN Type A Type B Improving…
  26. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 26
    Deep Basin Dunvegan Oil Dunvegan light oil (39 - 42 API) Recently expanded opportunity base Dunvegan Type Curves 500 Play characteristics 400 416 boe/d IP30 Large OOIP of 6 to 15.5 MMboe/section Exceptional reservoir quality: 2…
  27. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 27
    Exceptional Type Curve Economics Elmworth Karr/Simonette Type Well Economics Dunvegan Dunvegan DCE&T (MM) 2.95 3.56 Production, IP30 (boe/d) 293 544 Production, IP365 (boe/d) 174 264 P+PA Reserves (Mboe) 431 514 Year 1 Oil +…
  28. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 28
    Boundary Lake Asset Characteristics Operated, 35o API light oil, focused land base Boundary Lake WI Production Avg 54% WI in 3 operated units Boundary Lake zone at 1,300m depth 34/boe netback (91% oil + NGLs) 5% decline Current: 254…
  29. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 29
    Exceptional Type Curve Economics Boundary Boundary Type Well Economics Vertical Horizontal DCE&T (MM) 1.12 1.66 Production, IP30 (boe/d) 32 80 Production, IP365 (boe/d) 30 75 P+PA Reserves (Mboe) 107 214 Year 1 Oil + NGLs (%)…
  30. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 30
    Managing the Current Low Price Environment Balance Sheet Strength Managing Production Growth Rate Capital Discipline Monitoring Cost of Services Total Payout Ratio Focus Long Term Sustainability Objective 30
  31. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 31
    The Whitecap Investment Opportunity Visible growth per share; CF, production, reserves, NAV Growth 10+ years high netback light oil development drilling locations Meaningful and consistent monthly dividends without DRIP Income…
  32. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 32
    Research Coverage Current Price Targets AltaCorp Capital Inc. 14.75 Macquarie Equity Research 19.00 CIBC World Markets Inc. 18.00 Mackie Research 16.00 Cormark Securities 18.00 National Bank Financial 18.50 Desjardins Capital…
  33. APRIL 2015 CORPORATE PRESENTATION – Whitecap Resources Inc. – slide 33
    TSX:WCP www.wcap.ca April 10, 2015 33

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