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CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc.

Cenovus Energy Inc. · Feb 8, 2011 · 34 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. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 1
    cover
  2. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 2
    Oil & gas information & non-GAAP measures Oil & gas information The resources estimates were prepared effective December 31, 2009 by McDaniel & Associates Consultants Ltd., an independent qualified reserves evaluator (IQRE), and other…
  3. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 3
    Cenovus: Building from a strong base Tickers TSX, NYSE CVE Enterprise value 27 Billion ALBERTA Shares outstanding 752 MM 2011F production Oil & NGLs 132 Mbbls/d Borealis ILLINOIS Natural gas 650 MMcf/d Region Greater 2009 proved &…
  4. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 4
    Meeting our commitments Disclosed Bitumen Initially-In-Place (BIIP), confidential lands & additional project details Q2 Announced 10-year business plan to achieve oil sands production of 300,000 barrels per day Submitted Narrows…
  5. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 5
    Building value by developing resource O W TH E GR VALU Production Reserves Contingent Prospective resources resources 2011F activities to increase the value of our barrels Stratigraphic wells support Stratigraphic Start…
  6. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 6
    SAGD development plans driving growth Mbbls/d 350 Production capacity (year end rate) Emerging Opportunities Annualized production 300 Christina Lake (developing) Foster Creek (developing) 250 Christina Lake (existing) Foster Creek…
  7. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 7
    Leading capital efficiency Foster Creek Christina Lake C/bbl/d C/bbl/d 30,000 30,000 Actual costs Projected costs Range Actual costs Projected costs 20,000 20,000 10,000 10,000 0 0 A B C D&E FG&H A&B CD&E 20Mbbls/d…
  8. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 8
    2011F - Christina Lake 9 11 Mbbls/d of production 350 - 400 MM of capital 2.4 2.7 SOR* 18.65 19.40/bbl operating Christina Lake proper costs* P&NG leases 50 60 strat wells ALBERTA Oil sands leases Cenovus land at Dec. 31, 2009.…
  9. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 9
    Increased recovery with wedge wells Illustrative well performance Percent recovery 80% Incremental recovery with wedge wells Accelerated recovery 60% with wedge wells 40% Percent recovery without wedge wells 20% 0%…
  10. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 10
    Portfolio of additional opportunities Regulatory approval Construction Steam & production Initial application bbls/d net Narrows Lake 65,000 Grand Rapids 180,000 Telephone Lake 35,000 Winefred Lake 30,000 Foster Creek Other…
  11. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 11
    Refining overview Top quality refinery assets Wood River (Post-CORE) 356 Mbbls/d crude throughput 240 Mbbls/d heavy crude capacity 89% clean product yield Borger 146 Mbbls/d crude throughput 35 Mbbls/d heavy crude capacity 89%…
  12. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 12
    Self-funding organic growth billions 5 Capital Cash flow 4 3 2 1 0 2010F 2011F 2012F 2013F 2014F Average (2015F - 2019F) 2010F based on guidance midpoints dated October 28, 2010. 2011F based on midpoint of…
  13. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 13
    Our dividend commitment Dividend growth requires: strong financial health sustainable pace of development reliable, predictable cash flow to support payments Dividend yield comparison Percent 8% 6% 4% 2% 0% COS HSE CVE…
  14. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 14
    Supplemental information The principles of the business Grow oil production by investing in high quality oil resources Maintain operating & capital cost discipline by focusing on projects with strong returns & material net…
  15. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 15
    Building value Top quality assets Foster Creek and Christina Lake are recognized as best in industry Significant growth opportunity potential for greater than 245,000 bbls/d (net) of production capacity at Foster Creek and Christina…
  16. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 16
    Timeline - illustrative SAGD phase Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Prepare application Regulatory approval(1) Engineering Procurement Initial capital Construction(2) Commissioning Steam Production (1) Receipt of…
  17. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 17
    Foster Creek - leading the way Foster Creek overview Pilot project began in 1996 Became the industrys first commercial SAGD project in 2001 largest producing SAGD operation in Alberta 120,000 bbls/d of production capacity…
  18. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 18
    Foster Creek - operational excellence Turnaround Mbbls/d Record production 120 119 Mbbls/d Sept. 24, 2010 100 80 60 40 20 0 1-Nov-09 1-Feb-10 1-May-10 1-Aug-10 1-Nov-10 Volumes are shown on a 100%…
  19. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 19
    Christina Lake overview Pilot project began in 2000 First production in 2002 18,000 bbls/d of production capacity (phases A & B) producing approximately 15,600 bbls/d from 17 wells (Q3 2010) Total planned capacity of 258,000…
  20. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 20
    Manufacturing approach to development Increased efficiency reduces execution timeline Manufacturing process staged development dedicated in-house construction management teams multiple small contractors standard designs assembly…
  21. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 21
    Emerging bitumen opportunities Narrows Lake - 50% WI ALBERTA 130 Mbbls/d (gross) production capacity 40 - 60 Mbbls/d expected first phase 2.1 SOR SAGD or 1.6 SOR SAP 9,280 net acres Grand Rapids - 100% WI ALBERTA 180 Mbbls/d…
  22. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 22
    Narrows Lake potential 50% WI 130 Mbbls/d (gross) production ALBERTA capacity 40 - 60 Mbbls/d expected first phase 2.1 SOR SAGD 1.6 SOR SAP 4 - 8 wells per section 9,280 net acres 0.5 Bbbls best estimate contingent Cenovus land…
  23. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 23
    Impact of technology development 48 history forecast 46 Wedge well optimization Supply cost reduction (US/bbl) 0 Wedge Insulated 44 tubing wells 42 2 Non-condensable gas co-injection Liner 40 4 improvements Blowdown…
  24. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 24
    Cenovuss combustion technology Wabiskaw Clearwater Air injection pilot June 2006 Gas cap Air Injection for Thermal Oil Recovery (GAITOR) 3.0 Bcf of gas recovered Pilot 2012 Heated underlying bitumen 197 MMbbls best estimate…
  25. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 25
    Bitumen integration strategy Mbbls/d Post 2012 long bitumen 350 Downstream bitumen equivalent processing capacity (year end rate) 300 Annualized bitumen production 250 200 150 100 50 0 2008 2009 2010F 2011F 2012F…
  26. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 26
    2011F conventional oil & natural gas Conventional oil 470 - 500 MM of capital in Southern Alberta & ALBERTA SASKATCHEWAN MANITOBA Saskatchewan Southern 45 50 Mbbls/d of production Alberta Shaunavon Bakken Natural gas Weyburn…
  27. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 27
    Southeast Saskatchewan Bakken Overview SASKATCHEWAN 40 API light oil 100 - 125 Mbbls/well 2.0 MM per well (drill, complete, tie-in) Roncott Cenovus land at Dec. 31, 2009. 57 undeveloped sections 3 stratigraphic, 2…
  28. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 28
    Weyburn gross production history Mbbls/d 40 30 20 10 0 Jan-75 Jan-85 Jan-95 Jan-05 Primary & waterflood Vertical infills Pre CO2 Hz infills Waterflood improvement CO2 EOR EOR = enhanced oil recovery. Natural…
  29. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 29
    Locking in cash flow stream Natural gas production View natural gas as financial asset; not Percent of production production asset 100% 70% of 2011F natural gas production hedged 75% 55% financial hedge 15% economic hedge 50%…
  30. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 30
    Risks and mitigation Stakeholders continue to integrate stakeholder relations in our business Regulatory prepare additional project applications targeting 400 500 Mbbls/d net in 2015 work with government to streamline and improve…
  31. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 31
    T100 R1W5 R20W4 R15W4 R10W4 R5W4 R1W4 T100 Cenovus PNG Lands Foster Creek Region Foster Creek Proper Christina Lake Region West Kirby Christina Lake Proper Winefred Lake Narrows Lake T95 Borealis Region T95…
  32. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 32
    2010 Corporate Guidance - C, before royalties October 28, 2010 FOSTER CREEK, CHRISTINA LAKE AND DOWNSTREAM Production (bbls/d) Q4 2010F 2010F Foster Creek 52,000 51,000 Christina Lake 7,800 7,700 Operating cash flow ( millions)…
  33. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 33
    2011 Corporate Guidance - C, before royalties December 9, 2010 OIL SANDS Foster Creek Christina Lake Total Production (Mbbls/d) 51 - 54 9 - 11 60 - 65 Operating cash flow ( millions) (1) 700 - 800 100 - 125 800 - 925 Capital…
  34. CREDIT SUISSE 2011 ENERGY SUMMIT – Cenovus Energy Inc. – slide 34
    Investor Relations Contacts Susan Grey Director, Investor Relations 403-766-4751 susan.greycenovus.com James Fann Analyst, Investor Relations 403-766-6700 james.fanncenovus.com

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