Skip to main content 2012 EARNINGS CALL – Perpetual Energy Inc Investor Presentation | Shale Experts
Loading...
Pm

2012 EARNINGS CALL – Perpetual Energy Inc

Perpetual Energy Inc · Mar 12, 2013 · 63 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. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 1
    Ye a r E n d W e b c a s t March 12, 2013
  2. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 2
    Perpetual Energy -TSX: PMT CONVENTIONAL SHALLOW GAS DISTRIBUTING TRUST DIVERSIFIED RESOURCE - STYLE GROWTH - ORIENTED ENTREPRENEURIAL EXPLORER, PRODUCER & MARKETER BUILT TO GROW BUILT TO PROSPER BUILT TO LAST 2
  3. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 3
    Perpetual Strategy Diversified Portfolio of High Return, Resource-Style Assets Establish material positions and assess with risk-managed investment Invest for growth in keepers and optimize funders Establish exposure to multiple…
  4. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 4
    Operating Profile Conventional Shallow Gas Mannville Heavy Oil Eastern Alberta Viking/Colorado Shallow Shale Gas Bitumen Panny, Marten Hills, Liege Warwick Gas Storage Edson Wilrich Deep Basin Multi-Zone Liquids-Rich Gas…
  5. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 5
    Asset Base Transformation 8 Fold Increase in Production from Resource-Style Growth Assets 5
  6. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 6
    Diversified Portfolio Built to Prosper SHALLOW LIQUIDS-RICH HEAVY OIL BITUMEN OTHER GAS GAS Maximize Invest For Invest For Advance and Advance and Cash Flow Growth Growth Optimize For Optimize For Value Value Eastern Alberta…
  7. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 7
    Portfolio Management Strategy PROVEN MEDIUM AND CASH FLOW DIVERSIFYING LONG TERM GENERATORS GROWTH STRATEGIES VALUE STRATEGIES Maximize Cash Flow Invest For Growth Optimize and Advance Conventional Shallow Gas Eastern Alberta…
  8. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 8
    2012 Annual Results
  9. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 9
    Key Priorities 2012 1. Profitable capital investment in chosen diversifying growth plays to increase oil and NGL production 2. Debt reduction 3. Downside risk management 4. Advance assessment of high impact, longer term growth…
  10. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 10
    2012 Results 1. Profitable Capital Investment in Chosen Diversifying Growth Plays to Increase oil and NGL Production Mannville Heavy Oil Profitably grew Mannville heavy oil production over 350% YOY to 2,600 bbl/d Firmed up…
  11. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 11
    2012 Results 1. Profitable Capital Investment in Chosen Diversifying Growth Plays to Increase oil and NGL Production Edson Wilrich Grew NGL production at West Edson with facility construction and new well tie-in Q4 2012 drilling…
  12. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 12
    2012 Results 2. Debt Reduction Asset dispositions totalling 167.2 MM 245 MM proforma Elmworth disposition Absolute debt reduction of 130.3 MM 207.8 MM proforma Elmworth disposition 75 MM Debenture repayment of PMT.DB.A in cash at…
  13. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 13
    2012 Results 3. Advance assessment of high impact opportunities with risk-managed investment Elmworth Sale Pending to Crystallize Value Drilled vertical well to continue majority of Wapiti block Wapiti vertical completion…
  14. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 14
    2012 Results 4. Manage downside risks Safety Performance Excellence Decreased costs Operating Costs down 15% from budget G&A down 15% from budget Rail transport deal in place for October reducing quality differential by 3.50/bbl…
  15. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 15
    2012 Exploration and Development Capital Total E&D Capital: 79.7 MM Disciplined capital spending program from 139.2 million in 2011 Total 2012 Wells Capital 35 gross Mannville Heavy Oil 45.8 MM (34.3 net) 6 gross Edson/…
  16. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 16
    2012 Production Highlights Oil & NGL production 1,472 bbl/d to 3,448 bbl/d, a 74% from 2011 levels, despite asset sales including 774 bbl/d oil & NGL Natural gas production 23% to 100.2 MMcf/d 13.2 MMcf/d of non-core asset sales 6…
  17. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 17
    Commodity Diversification Oil and Liquids Production 5,000 25% 4,500 4,000 20% 3,500 3,000 15% BOE/d 2,500 2,000 10% 1,500 1,000 5% 500 0 0% Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412…
  18. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 18
    Cash Flow Diversification Oil and Liquids Revenue 30 60% 25 50% 20 40% Revenue (MM) 15 30% 10 20% 5 10% 0 0% Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212…
  19. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 19
    2012 Dispositions 23 Transactions Closed Net Proceeds: 167.2 MM Production: 2,945 Boe/d Gas: 13.2 MMcf/d Oil and NGL: 745 bbl/d P+P Reserves: 11.3 MMBoe Change in FDC: 24.6 MM Warwick Gas Storage: 90% 1 year option to buyback…
  20. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 20
    Warwick Gas Storage 40 Bcf Storage Reservoir Commercial Park and Loan business 10 Bcf base reserves cushion gas in place 5 -11 Bcf additional operating cushion Grass Roots Gas Storage Development Up to 25 Bcf potential working gas…
  21. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 21
    Warwick Joint Venture and Option Arrangement Sale of 90% partnership interest in Warwick Gas Storage in April 2012 Option to buyback up to an additional 30% equity interest prior to April 25, 2013 30MM Option purchase price reflects…
  22. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 22
    2012 Year End Reserves and Resource Estimates Reserves Added 19.5 MMBoe of P+P reserves, excluding production, net dispositions and price- related revisions Production replacement of 265% with additions and performance-related…
  23. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 23
    2012 Year End Reserves Reserves (Mboe) 2012 2011 % Change Proved developed producing 22,332 29,798 (25) Proved developed non-producing 3,084 3,185 (3) Proved Undeveloped 10,862 6,192 75 Total Proved 36,278 39,175 (7) Probable producing,…
  24. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 24
    2012 Year end Reserves by Category Gas over bitumen 75.0 MMboe shut-in, 3.3 , 4% Proved developed Probable producing, 22.2 , 30% undeveloped, 23.3 , 31% Proved developed producing Probable developed producing Proved…
  25. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 25
    Proved and Probable Reserves by Play Gas over bitumen shut- in, 3.3 , 4% Mannville heavy oil , 4.3 , 6% Elmworth , 13.1 , 17% Deep basin, 19.9 , 27% Mannville heavy oil Deep basin Conventional shallow gas Viking , 10.9…
  26. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 26
    2012 Commodity Prices Realized gas price 13% to 3.34/Mcf (2011 - 3.82/Mcf) Gas price before derivatives 34% to 2.48/Mcf (2011 - 3.77/Mcf) AECO Monthly Index 35% year over year Hedging gains 29 MM 9.00 180 8.00 160 140 7.00…
  27. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 27
    2012 Funds Flow Change from 2011 Year Ended December 31 % Oil & Gas Price 72.8 MM ( Millions) 2012 2011 Change Revenue 207.6 251.6 (18) Oil & NGL Prodn 34.8 MM GOB Royalty 6.9 11.5 (40) Hedging Gains 26.1 MM Gas Prodn 26.9 MM…
  28. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 28
    2012 Balance Sheet Reconciliation Year Ended December 31 ( Millions) 2012 2011 % Change Exploration & Development 79.7 139.2 (43) Acquisitions, net of Dispositions (164.5) (33.4) 393 Total Capital Expenditures (84.8) 117.1 (172)…
  29. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 29
    2013 Top 5 Strategic Priorities 1. Maximize Value of Mannville Heavy Oil 2. Position for Growth of Edson Liquids-Rich Gas 3. Manage Downside Risk 4. Advance and Broaden Portfolio of High Impact Opportunities with Risk Managed…
  30. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 30
    2013 Key Priority Maximize Value of Mannville Heavy Oil
  31. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 31
    Eastern Alberta - Conventional Heavy Oil 2011/2012 Discovered 12 Mannville pools 6 Lloyd, 5 Sparky, 1 Basal Quartz Mannville 200 MMbbl Original Oil in Place(1) 10 MMbbl 5% recovery factor(1) Current Production 2,850 bbl/d Low…
  32. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 32
    Heavy Oil Production Mannville Heavy Oil Production 4,500 2012 Capital Program 4,000 2013 Capital Program 3,500 Daily Oil Production (bbl/d) BASE 3,000 2,500 2013 Capex 49.3 MM 2,000 2012 Capex 45.6MM 1,500 1,000…
  33. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 33
    Upper Mannville A Pool Lloyd Channel R9 R8W4 OOIP = 33 MMbbls Cumulative to date 530 Mbbls yr end 2012 ( 1.6% recovery) Booked Reserves (yr end 2012) 1,126 MBBL (5% RF) 00/11-35 7 wells drilled in 2012; 3 wells planned 2013…
  34. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 34
    Sparky New Developments SPARKY MID TYPE LOG 00/14-29 100/02-14-049-07W4/00 24 % DENSITY 4 m OIL PAY POROSITY Mid Sand 00/03-20 00/13-16 02/14-14 02/13-16 00/14-14 02/11-14 02/12-16 00/11-14 00/05-16 02/08-14 Regional…
  35. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 35
    Mannville Heavy Oil Value Potential Projected Economics per Assumptions Drilling Location Capital (D,C & T) 1.05 MM 90/bbl WTI; 20/bbl differential Pricing = 70 Lloydminster heavy blend NPV 10 % 1.05 MM 10.50/Boe (first year),…
  36. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 36
    Upper Mannville I2I Pool Regional Sparky OOIP = 29 MMbbls Cumulative to date 352 Mbbls 02/8-4 Recovery Factor to date 1.2 % - Expect 5-8% on Primary 00/2-4 2012 drilled 2 - 100 m infills 00/01-04 2013 plan to drill 5-6 additional…
  37. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 37
    Enhanced Oil Recovery Scope (select pools) Pool Name OOIP (1) Cumulative P+P Implied Expected Potential with production Reserves Recovery Primary Secondary to booked at Factor Recovery Recovery and 12/31/12 12/31/12 (5-8%) EOR…
  38. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 38
    Edson Wilrich Liquids-Rich Gas To Rosevear Shallow Cut Plant (15% WI) Pipeline To Edson Pipeline to Alliance Deep Cut Plant to be constructed 36 bbl/MMcf NGLs Q3, 2013 16-10 Compressor Capacity 30 MMcf/d 1-34 Compressor…
  39. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 39
    West Edson Delineation Results and Type Curve Test rates 20 to 26 MMcf/d with 10-27 bbl.MMcf NGL 1 additional well to come on stream in Q1 once compression expansion complete 2 New Wells (1.0 net) Brought Online in Q1 2013…
  40. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 40
    Edson Southern Extension Results and Type Curve Southern Extension Well Brought Online in Q1 2013 Above Type Curve Averaging 6.5 MMcf/d over First 16 days 40
  41. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 41
    Wilrich Value Potential Projected Economics per Drilling Location Assumptions Capital (D,C & T) 4.9 MM 4/Mcf; 95/bbl WTI = 66.30/bbl NGLs Pricing (3/Mcf; 105/bbl WTI = 76.50/bbl NGLs) NPV 10 % 3.6 MM BT (2.3 MM BT) Operating Costs…
  42. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 42
    2013 FULL YEAR CAPITAL BUDGET Q1 2013 *1 Remainder 2013 Total 2013 Wells Capital Wells Capital Wells Capital (MM) (MM) (MM) *1 27 gross 0 - 12 gross 27 -39 gross Mannville Heavy Oil 31.5 1.5-17.8 33.0 -49.3 (25.7 net) (0 - 11.3…
  43. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 43
    2013 Key Priority Manage Downside Risk
  44. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 44
    Balance Sheet Current Net Bank Debt: 100 million (25 million proforma Elmworth closing) Borrowing base on credit facility - 127.5 million Next semi-annual redetermination - April 30, 2013 Senior Unsecured Notes: 150 million Coupon…
  45. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 45
    Debt Reduction Profound Acquisition - 81 MM 2012 Disposition Proceeds - 147 MM Birchwavy Acquisition - 130 MM 75 MM Debenture Repayment Viking/ Colorado Shale Edson Acquisition - 71 MM Wilrich 2013 Disposition Proceeds - 77. 5 MM…
  46. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 46
    Commodity Price Risk Management Strategy Enhance or protect funds flow and balance sheet Enhance or protect the economics of an acquisition Enhance or protect capital program economics Capitalize on perceived market…
  47. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 47
    Commodity Price Risk Management Gas 2013: 10,000 GJ/d fixed 3.80/GJ (9% of estimated 2013 gas production(1)) Oil and NGL 2013: 2,250 bbl/d WTI collars with an average floor price 88.25/bbl & ceiling price 101.40/bbl (55% of…
  48. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 48
    2013 Key Priority Optimize and Advance Medium to Long Term Opportunities Elmworth Montney Viking/Colorado Shallow Shale Gas Bitumen
  49. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 49
    Elmworth Montney 92 Gross Sections of Montney Exposure 50/50 Joint Venture with Tourmaline Reserves and Contingent Resource Close to 4 Tcf OGIP (internal estimate) 1 Tcf gross OGIP in Montney B recorded by McDaniel 42 Bcfe net P+P…
  50. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 50
    Viking / Colorado Shallow Shale Gas Belly River Play Fairway Total Resource in Place 130 Tcf Cardium/ Colorado Wells Perpetual Lands Viking Proved Undeveloped Viking Booked Reserves Viking Probable Undeveloped 61 Bcf P+P…
  51. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 51
    Colorado Group Free Gas In Place OGIP estimated to average 16 Bcf/section Proven recovery from Cardium zone through horizontal development Potential in up to 6 zones within 290m shale group 2011 - 2012 Advanced detailed (3G)…
  52. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 52
    Bitumen Lands 527 net sections (329,000 net acres) of oil sand leases Various formation targets and ultimate recovery methods 7 potential project areas with varying potential 3 Billion bbls OBIP independently recognized at Liege…
  53. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 53
    Bitumen Panny Bluesky 8m Bitumen Established low rate flow without 10m Bitumen solvent or thermal assistance Average pay thickness 11 m Low viscosity bitumen 15,000 cp 25C Panny Bluesky Resource Assessment (McDaniel P50) 755 MMbbl…
  54. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 54
    Bitumen Liege Carbonates R 22 R 21 R 20 R19 W4 3 Grosmont carbonate / Leduc wells drilled in Q1 2011 to evaluate resource GROSMONT NET BITUMEN 10 - 20 m Stacking of 3 Grosmont units 30 m pay T95 20 30 m Leduc reef facies present…
  55. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 55
    Bitumen Marten Hill Clearwater PROJECT AREA OIL SANDS LEASES RECONFIGURATION WELL 100/08-30-075-25W4/00 OOIP 10m pay = 310 MMbbl Contingent Resource = 11.5 MMbbls Reconfigure 3-30-75-25 W4M horizontal well Evaluating…
  56. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 56
    2013 Key Priority Prepare to Maximize Value from Shallow Gas Assets in Gas Price Recovery
  57. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 57
    Conventional Shallow Gas East Central and Northeast Alberta Cretaceous and Devonian sweet shallow gas Belly River Current production: 70-75 MMcf/d Base declines < 20% Viking Multiple stacked zones and play types Extensive plant…
  58. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 58
    Investment Thesis
  59. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 59
    Market Profile TSX:PMT Common shares outstanding 147.5 million Management ownership 25.4% Share price (5 day weighted average) 0.86 Market capitalization 125 million Convertible debentures (PMT.DB.D; PMT.DB.E) 160 million Senior…
  60. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 60
    Sum of the Parts (Risked) 750 5.10 Bitumen In-Situ Warwick Gas Storage Viking & Colorado Shale Tight Shallow Gas 500 3.40 Risked NAV 8%: Conventional Shallow Gas 3.00/share Wilrich Reserve Based NAV 8%: Mannville Heavy Oil…
  61. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 61
    Sum of the Parts (Unrisked) 1,000 6.80 Bitumen In-Situ Unrisked NAV 8%: 5.64 /Share Warwick Gas Storage 750 5.10 Viking & Colorado Shale Tight Shallow Gas Conventional Shallow Gas Wilrich 500 3.40 Mannville Heavy Oil NPV 8%…
  62. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 62
    PMT Investment Thesis Asset base repositioning for resource style oil and liquids-focused opportunities successful Mannville heavy oil delivering results and has material secondary recovery growth potential Edson Wilrich liquids-rich…
  63. 2012 EARNINGS CALL – Perpetual Energy Inc – slide 63
    3200, 605 5 Avenue SW Calgary, Alberta CANADA T2P 3H5 800.811.5522 TOLL FREE 403.269.4400 PHONE 403.269.4444 FAX infoperpetualenergyinc.com EMAIL www.perpetualenergyinc.com WEB FOR ADDITIONAL INFORMATION: Susan L. Riddell Rose…

From the store

Browse maps, data & reports in the Shale Experts store