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April 2015 Investor Presentation – Pacific Rubiales Energy Corp.

Pacific Rubiales Energy Corp. · Apr 8, 2015 · 53 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 Investor Presentation – Pacific Rubiales Energy Corp. – slide 1
    Investor Presentation April 2015
  2. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 2
    The Company and Assets Production Mix 6% Heavy Oil 36% 2015 L&M Oil Base 58% Natural Gas Leading Latin American focused E&P 87 E&P blocks in seven countries (31 million gross, 23 million net acres) Diversified across…
  3. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 3
    Industry Leading Production, Reserves and Financial Growth Net Production Net Reserves Mboe/d MMboe P1 P2 2P Net Production 160 700 613 140 600 27% 514 511 120 CAGR* 52% 500 407 224 100 CAGR* 183 196 400 80 281 269 103 147…
  4. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 4
    Rubiales / Quifa SW Fields An Oil Giant Discovered by Super Major in 1981. Today, holds three large producing oil fields: Rubiales, Quifa SW and Caja Very large Original Oil In Place: Rubiales: 4.6 Billion barrels Quifa: 2.8…
  5. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 5
    Moving Along the Resource Trend from Rubiales 5
  6. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 6
    Light Oil Field Development Colombia Light Colombia oil provides secure lower cost diluent source 77 MMbbl Net 2P reserves light / medium Peru 76 MMbbl net 2P oil reserves Booked reserves (Corvina, Albacora, and Delfin)…
  7. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 7
    Mexico The Next Frontier Opportuni)es Summary Migration of existing service contracts Expected 2P Reserves Contracts Investment Fields Timing (Bboe) (B) Poza Rica - First Stage: 22 First Set 0.6 2.6 Altamira and Aug / Dec 14…
  8. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 8
    Pacific Midstream / Infrastructure Monetization of Infrastructure Assets Pacific Midstream Assets: PEL (100%), ODL (35%), BIC (41.5%), La Creciente gas pipeline (100%) IFC acquisition (43%) of Pacific Midstream closed on December…
  9. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 9
    Cost Reduction Initiatives Natural Gasoline Own Light Crude Heavy Oil Crude Diluent Cost Distribution Diluent Cost Per Sold Barrel (/Boe) /bbl Diluent Cost Reduction 100% 12% 6% 4% 2% 3% 3% 2% 2% 10 Continued replacement of…
  10. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 10
    Exploration Opportunities Large and Diversified Resources Portfolio Feeds Future Exploration PRE Total Acres 30.9 MM Gross 22.8 MM Net 87 55 Assets 226 143 Prospects* 9,574 MMboe E&P Exploration 76 Leads* Total Prospective…
  11. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 11
    Corporate Social Responsibility and Sustainability The New Way of Doing Business Our goal is to generate economic growth under social and shared value We work towards the satisfaction of our stakeholder's expectation and beyond…
  12. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 12
    Operational Milestones 4Q-FY 2014 12
  13. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 13
    2014 Results* Operational and Financial Highlights 4Q 2014 FY 2014 73.20 /bbl 92.91 /bbl WTI: -25% & -5% decrease vs. 4Q & FY13 respectively 147,075 boe/d 147,423 boe/d Net Production(2): +10% & +14% increase vs. 4Q & FY13…
  14. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 14
    Net Production Profile Mboe/d Natural Gas L&M Oil Other Heavy Oil Rubiales Heavy Oil 180 153 160 149 149 147 147 145 10 11 10 10 10 140 129 10 120 11 47 49 53 49 51 49 22 100 80 26 26 27 28 31 28 37 60 40 54% 42%…
  15. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 15
    Commercial Activity Oil & Gas Sales Trading Advantages Market Prices Realization Price /bbl WTI NYMEX BRENT ICE Combined Realized Price /boe /bbl WTI NYMEX ICE BRENT 130 150 150 120 110 100 100 100 90 80 93.95 90.66 88.05 70…
  16. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 16
    Oil Cash Operating Costs /bbl Diluent Transportation Cost Production Cost (Lifting Cost) 35.24 - 14% 34.43 33.89 32.77 32.24 5.46 2.90 2.19 2.30 2.33 28.05 1.95 28.00* 15.02 14.99 14.13 14.54 13.93 11.70 26.00 15.24…
  17. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 17
    Oil Netbacks /bbl Total Operating Cost Netback* 120 99.05 98.44 99.76 100 92.14 89.46 31.46 34.22 Company enjoyed high oil netbacks and 35.45 80 operating margins despite downturn in 4Q 35.03 68.27 32.40 2014 throughout…
  18. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 18
    4Q & FY 2014 Drilling Results 56 77 % Total Exploratory Wells success 2014 Budget 577.5 MM Executed Dec 31, 2014 561.1 MM Seismic Drilling 34.56 MM 526.57 MM Net Production Incorporated by Exploratory Activity Initial…
  19. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 19
    2014 Reserve Evaluation 4 independent auditors DeGolyer and MacNaughton: Pacific Stratus business unit and Block 131 Per NSAI: Corvina and Albacora Petrotech: Cajua, Quifa NN, CPE6, Rio Ariari, Sabanero and Block 126 Per RPS…
  20. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 20
    2014 Net 2P Certified Reserves Estimations MMboe 700 Total Proven: 315 MMboe 30 Total Probable: 196 MMboe 600 (54) (78) 500 400 300 613 511 200 100 0 2P Reserves YE 2013 Additions Production Economic & Technical 2P…
  21. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 21
    2015 Plan 4Q-FY 2014 21
  22. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 22
    2015 YTD Snapshot GUIDANCE YTD (E) DETAILS WTI /bbl: 45(1Q), ABOVE WTI WTI prices year to date better 50(2Q), 55(3Q), 60(4Q) 49 (Plan) than planned for Average Production 150 160 Mboe/d 153 Mboe/d ON TARGET Optimization &…
  23. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 23
    Unit Cost Improvement Production Cost (Lifting Costs) 2014 vs. 2015 Plan(1) Transportation Cost 2014 vs. 2015 Plan /boe 2014 2015 /boe 2014 2015 15.12 14 12.95 16 11.86 14 12 11.69 12 10 10 8 - 8% - 23% 8 6 6 4 4 2 2 0 0…
  24. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 24
    2014 vs. 2015 E&D Capital Expenditure 2014 Capital Program 2015 Capital Program Development Drilling Exploration Production Facilities Other Projects 6% 16% 37% - 55%* 33% 2.4 1.1 48% Billion 24% Billion 24% 12%…
  25. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 25
    Hedged Production 2015 Hedged Instruments* 1Q15 Notional (MMbbl) Puts (/bbl) Calls (/bbl) WTI 2.6 63.27 74.50 BRENT 3.9 56.49 60.72 TOTAL 6.5 - - 2Q15 Notional (MMbbl) Puts (/bbl) Calls (/bbl) WTI 5.4 51.60 56.66 BRENT 6.7…
  26. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 26
    Midstream/Infrastructure Assets Spin Out PACIFIC PACIFIC OCENSA MIDSTREAM INFRASTRUCTURE PNG(1) ASSETS 5% 100% 41% 12.9% 5% WI 36% WI(2) CLOSED 385 MM 240 MM 30% WI 200MM IN PROGRESS 2Q 2015(3) 1. Gross working interest…
  27. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 27
    2015 Exploration Activity Capex: 124.3 MM 2015 Seismic & Budget 2015 Drilling Exploration & Budget km-km2 Seismic 3D Seismic 2D Colombia Peru Brazil PNG Guyana Wells 400 9 20 WELLS TOTAL 350 200 8 350 km2 km 300 3.4 MM 7…
  28. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 28
    Low Oil Price Environment Management Liability Management Strategy Reduced interest rate and increased term of maturity of long-term debt. Revolver Credit Facility (1 Billion) First line of defense CAPEX Reduction from 2.4B (-56%)…
  29. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 29
    Financial Results 4Q-FY 2014 29
  30. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 30
    2014 Financial Highlights 4Q Financial Results FY Financial Results Earnings from Earnings from MM MM Revenues Adjusted EBIDTA FFO Operations* Revenues Adjusted EBIDTA FFO Operations* 1,400 6,000 1,203 1,200 4,950 5,000 4,627 992…
  31. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 31
    2014 Operational Highlights 4Q Operating Netbacks FY Operating Netbacks /boe Oil Netback Gas Netback Combined Netback /boe Oil Netback Gas Netback Combined Netback 70 70 63.60 62.31 60.77 59.43 60 60 57.06 54.84 50 50 39.45…
  32. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 32
    4Q 2014 Financial Results Breakdown Million Cash Non-cash 992 474 99 44 23 419 74 109 410 71 42 480 1,621 -1,685 24 -1,661 Revenues Operating G&A EBITDA Finance Cash taxes Other cash Funds flow Other non-cashNon-cash…
  33. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 33
    2014 YTD Financial Results Breakdown Million 4,950 2,105 Cash Non-cash 361 2,484 261 159 43(1) 2,021 26(1) 30 33 1,642 1,625 -1,335 25 -1,310 Revenues Operating G&A EBITDA Finance Cash taxes Other cash Funds flow…
  34. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 34
    2014 Impairment 9.2 bn Accounting Key Points Goodwill 7.7 bn 1.4 bn Based on IFRS accounting rules (IAS 36 .8) Impairment (before tax) assets should be impaired when its book Developed & value exceeds its recoverable amount…
  35. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 35
    Solid Debt Profile Current Debt Maturity Profile(1) Debt/Adjusted EBITDA (2) MM USD Bonds Banks Banks 1,285.3 25% 2.6x (2) 1,322 1,186.1 1,048.9 5,302 990.8 2.1x 3,980 1.9x 1.7x Bonds 75% 654.9 0.8x 0.8x 0.6x 0.6x…
  36. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 36
    Liability Management Agreement to amend 1.0 billion revolving credit facility to relax covenants of a consolidated increase leverage ratio from 3.50:1.00 to 4.50:1.00 (12 months trailing). Approval came from 100% of the lending…
  37. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 37
    Additional Information 37
  38. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 38
    Long-term Strategic Vision Targeting Material Resource Capture Focus on prospective Latin American basins with potential to provide material resource capture Active in countries with right balance of above and below ground risks…
  39. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 39
    Sub-Andean Basins in Latin America Massive Hydrocarbon Resources One of the great oil-rich hydrocarbon trends in the world. Sharing similar geologic and petroleum systems Runs from Trinidad through Venezuela, Colombia, Ecuador and…
  40. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 40
    PRE as the Main Engine in Colombias Production Growth Light/Medium Oil Fields (Other) Heavy Oil Fields (Other) Light/Medium Oil Fields (PRE) Heavy Oil Fields (PRE) Mbbl/d 1,200 Large Light Fiscal & 1,000 Oil Field Regulatory…
  41. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 41
    Organic Growth Through the Drill Bit Net 2P Reserves Organic Growth Discoveries Acquisitions Revision Production Total Incorporation MMboe Incorporation minus deincorporation Company is focused on organic reserves 200 183.9 and…
  42. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 42
    Strategic M&A Provides Elements Unavailable Organically COLOMBIA M&A ACQUISITIONS Net 2P Net Cost Acquisition Reserves Production /2Pbbl M/bbl/d (B) (MMbbl) (Mbbl/d) PetroMagdalena (Mid 2012) 0.2 16.6 3 14 71 C&C (Late 2012)…
  43. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 43
    Net Pipelines Capacities Pipeline Capacity* 1. Oleoducto de los Llanos (ODL): 119,000 bbl/d 2. OCENSA: 100,750 bbl/d (18 - 24API) BICENTENARIO: 47,334 bbl/d (24API) 3. Oleoducto Guaduas la Dorada (OGD): 38,000 bbl/d 4.…
  44. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 44
    Oil Exports Capturing Premium Pricing *2013 Oil Exports 2014 2013 WTI Nymex 92.9 WTI Differential 98.1 WTI Differential ICE BRENT 99.5 -6.5 108.7 -10.6 Region Price /bbl Volume MMbbl Price /bbl Volume MMbbl USA 89.7 9.5 99.8…
  45. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 45
    Light-Medium Oil & Gas Growing Production Continues Colombia Net Light-Medium Oil & Gas (boe/d) FY 2014 TOTAL 56,688 Peru Net Production (bbl/d) Block FY 2014 TOTAL* 2,641 Total Net Colombia & Peru (boe/d) FY 2014 TOTAL…
  46. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 46
    CPE-6 Development Moving Along the Trend Rubiales vs. CPE-6 Vertical Wells Behaviour Rubiales Wells CPE-6H-2 CPE6-1X Qo (bbl/d) PRE 50% WI and operator (Talisman 50% WI partner) Same producing formation Rubiales / Quifa fields,…
  47. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 47
    Rio Ariari Development Moving Along the Trend Mochelo Prospect PRE 100% WI and operator Progressing with development of Mochelo prospect 75% of block remains relatively unexplored with existing discoveries 600 bbl/d…
  48. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 48
    Peru 131 Block Los Angeles Discovery Los Angeles-1X discovery well on long-term test, currently producing between 2,100 - 2,300 bbl/d, no water Top Cho nta Cushabatay The well has produced 275,000 bbl of 45 API to date…
  49. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 49
    Brazil Santos Basin Resource Diversification Kangaroo-1 and Bilby-1 exploration wells, drilled to a total depth of 10,004 ft. MD and 14,489 ft. MD, encountering an oil pay oil bearing column 58 ft. and 230 ft., respectively…
  50. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 50
    Raptor-1 Well Location, Map & Seismic Profile PPL475 50
  51. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 51
    Contingent Resources Audited and Internal Estimates SOURCE VOLUME (MMboe) Audited Contingent Resources (Mar 31, 2014) 256.5 Rio Ariari* 38.6 From 2P due to economic limits* 15.9 Additional volumes Kangaroo* 60.6 Heavy oil…
  52. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 52
    PRE Estimated Net Production Profile (Annualized) Mboe/d 300 250 Exploratory (Risked) 200 Mexico 150 2P Growth 100 Base P1 50 0 2013 (E) 2016 (E) 2019 52
  53. April 2015 Investor Presentation – Pacific Rubiales Energy Corp. – slide 53
    J. Frederick Kozak Corporate VP, Investor Relations +1 (403) 6063165 +57 (1) 5117992 fkozakpacificrubiales.com Roberto Puente Senior Manager, Investor Relations rpuentepacificrubiales.com +57 (1) 5112298 Richard Oyelowo…

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