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MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp

Pengrowth Energy Corp · Mar 25, 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. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 1
    WEATHERING THE STORM Corporate Presentation March 2015 TSX:PGF NYSE:PGH
  2. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 2
    CORPORATE PROFILE Listings TSX: PGF NYSE: PGH Market Capitalization1 2.0 billion Enterprise Value2 3.9 billion Shares Outstanding3 533 million Monthly Dividend 0.02 per share Current Yield1 6.5% CONVENTIONAL ASSETS Q4 2014…
  3. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 3
    WHY SHOULD YOU INVEST IN PENGROWTH Strategic plan Build a sustainable dividend paying entity through the development of large accumulations of oil, bitumen and natural gas with low declines and low cost structures People Capacity…
  4. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 4
    2014, ANOTHER YEAR OF SUBSTANTIAL ACCOMPLISHMENTS Financial Expanded commodity price hedging positions protecting 2015 and 2016 cash flows Foreign exchange hedges on term debt In the Money 51 million at December 31, 2014 Covenant…
  5. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 5
    CONVENTIONAL 2014, ANOTHEROPERATIONS YEAR OF SUBSTANTIAL ACCOMPLISHMENTS Conventional Production performance exceeded top end of guidance even with mature asset sales of 1,400 boe/d Proceeds from mature asset sales of 85…
  6. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 6
    2014, ANOTHER YEAR OF SUBSTANTIAL ACCOMPLISHMENTS Thermal Lindbergh Phase I construction and commissioning completed on time First steam in December 2014 Pilot production continues to outperform expectations Optimization work of…
  7. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 7
    2014 FINANCIAL AND OPERATING HIGHLIGHTS Three Months Ended Year Ended December 31 December 31 (Cdn millions, except per share and per boe amounts) 2014 2013 2014 2013 Production (boe/d)(1) 71,802 77,371 73,288 84,527 Gas 48% 47%…
  8. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 8
    2014 RESERVES SUMMARY(1) Total Proved (1P) reserves of 310 million boe and Proved plus Probable reserves (2P) of 557 million boe 206 million boe of best estimate contingent resources Replaced 399 percent of 2014 total production…
  9. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 9
    PRESERVING OUR FINANCIAL HEALTH AND SUSTAINABILITY WHILE WEATHERING THE STORM TSX:PGF NYSE:PGH
  10. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 10
    REACTING TO THE CURRENT ENVIRONMENT Recent rapid decline in world crude oil prices and softness in North American natural gas prices demand immediate action to ensure our financial health and sustainability A significantly reduced…
  11. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 11
    OUR STRATEGY REMAINS TO BUILD A SUSTAINABLE DIVIDEND PAYING ENTITY THROUGH THE DEVELOPMENT OF LARGE ACCUMULATIONS OF OIL, BITUMEN AND NATURAL GAS WITH LOW DECLINES AND LOW COST STRUCTURES TSX:PGF NYSE:PGH
  12. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 12
    SUSTAINABLE GROWTH WITH COMMODITY AND CAPITAL OPTIONALITY SUSTAINABLE DIVIDEND PAYING ENTITY Large accumulations Long life assets Low declines Low cost structure Low sustaining capital Swan Hills Lindbergh Cardium…
  13. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 13
    WEATHERING THE STORM, STAYING THE COURSE AND DELIVERING ON OUR COMMITMENTS We have a history of delivering on our commitments and 2014 was another solid year of demonstrating this Announced extensive measures to ensure our…
  14. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 14
    FINANCIAL STRATEGY TSX:PGF NYSE:PGH
  15. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 15
    2015 GUIDANCE STRIKING A BALANCE Capital ( Millions) 190 to 210 Conventional 125 Lindbergh 75 Average daily production (boe/d) 73,000 to 75,000 Royalties (%) 12 to 15 Net operating costs (/boe) 15.50 to 16.50 Cash General &…
  16. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 16
    2015 WILL FOCUS ON A BALANCED SPENDING PROFILE Development efforts will focus on optimization vs. growth 2015 financial profile that balances cash outflows with cash inflows Reduce 2015 capital spending Adjust dividend to ensure…
  17. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 17
    PENGROWTHS CREDIT CAPACITY IS MORE THAN SUFFICIENT TO MEET OUR NEEDS Forecast year end 2014 Outstanding (Cdn Millions) Senior fixed term notes 1,531 Term Credit facilities/Bank debt 191 Convertible debentures 137 Operating line…
  18. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 18
    TOTAL DEBT1/EBITDA EXPECTED TO DECLINE EVEN IN LOWER PRICE ENVIRONMENT 4.5 Bank Covenant Limit 4.0 Total Debt/EBITDA 3.5 3.0 2.5 2.0 1.5 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016…
  19. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 19
    DEBT OUTLOOK Approximately 1.87 billion of Approximately 170 million of long-term debt as at December long-term notes maturing in 2015 31, 2014 - USD 72 million 100 million of 6.75% convertible - 50 million debentures matured on…
  20. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 20
    CORPORATE HEDGING PROVIDES A MEASURE OF STABILITY TO CASH FLOW Calendar Year Hedge positions as at February 26, 2015 Oil Volume (bbl/d) Price per bbl Current oil production Hedging Limits (Cdn) hedged* (% of production) 2015…
  21. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 21
    OPERATIONS REVIEW TSX:PGF NYSE:PGH
  22. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 22
    2014, ANOTHER SUCCESSFUL YEAR OF DELIVERING ON WHAT WE PROMISED Drilling details - 74 gross (44.3 net) wells weighted to Cardium Continued to rationalize portfolio, selling minor non-core assets with approximately 1,400 boe/d of…
  23. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 23
    WHAT TO EXPECT IN 2015 Production growth of approximately 1.5 percent at mid-point of guidance 73,000 to 75,000 boe/d Low decline rate allows for sustained production with a significantly reduced capital budget Lindbergh exit…
  24. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 24
    LINDBERGH THERMAL PROJECT TSX:PGF NYSE:PGH
  25. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 25
    LINDBERGH WHERE AND WHAT IS IT Map Area Lindbergh Target formation Lloydminster Lindbergh 2P Reserves * 243 million bbls Best Estimate 101 million bbls Contingent Resources* 2P Reserves* NPV10 2,061 million Lindberg h…
  26. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 26
    SUPERIOR PILOT PERFORMANCE HAS INCREASED OPTIONALITY FOR LINDBERGH DEVELOPMENT Strong pilot performance allows us to utilize anticipated efficiencies to gain additional value on commercial facilities Total cumulative production in…
  27. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 27
    LINDBERGH PILOT RESULTS POINT TO HIGHER RECOVERY RATES VERSUS TYPE CURVE EXPECTATIONS Bitumen Production (bbl/d) Pump efficiency issues drove a change to Electric Submersible Pump (ESP) Type Curve based on 1.2 million bbl…
  28. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 28
    LINDBERGH RESERVOIR CHARACTERISTICS High quality reservoir characterized Porosity Permeability cross plot as nearshore marine sand Core, log, seismic and model data show reservoir is homogenous Consistent, clean reservoir with…
  29. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 29
    LINDBERGH PILOT RESULTS DEMONSTRATE IMPRESSIVE INSTANTANEOUS STEAM-OIL RATIO AND WELL PRODUCTIVITY 2,000 1,800 1,600 Christina C-D 1,400 Average well productivity (bbl/d) Firebag 1,200 1,000 Lindbergh 800 Surmont…
  30. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 30
    LINDBERGH COMMERCIAL OPERATIONS UPDATE Three well pads steaming Pad D05 with eight wells pairs Pad D03 with seven well pairs Pad D02 with five well pairs All starting to make oil on circulation 3,500 bbl/d* Husky pipeline…
  31. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 31
    LINDBERGH POTENTIAL PRODUCTION PROFILE Optimized development Use steam capability of 3.6 + 10% added 50,000 from Cogen 45,000 As facility matures, infill wells and new well pads are expected to be used to balance 40,000…
  32. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 32
    CONVENTIONAL ASSETS TSX:PGF NYSE:PGH
  33. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 33
    CONVENTIONAL DRILLING INVENTORY Substantial cost effective growth potential Gross Net Locations* Locations* Cardium Oil 200 140 Montney Gas & Liquids 450 450 775 Other Gas & Liquids 125 70 Net Locations Other Oil 150 115…
  34. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 34
    GREATER OLDS/GARRINGTON AREA Large, contiguous land base Over 500 gross sections of Cardium rights Prospective Cardium sections 280 gross (150 net) 4-5 years of Tier 1 drilling locations DCET capital budget of approximately 20…
  35. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 35
    GARRINGTON CARDIUM Typical 100% Well 30 day initial production (boe/d) 170 First year average production 100 (boe/d) Reserves* Mboe 110 Metrics Drill/complete(Million/well) 3.0 Tie in Costs (Million/well) 0.4 0.6 Gross…
  36. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 36
    LOCHEND CARDIUM Typical 100% Well 30 day initial production (boe/d) 300 First year average production 215 (boe/d) Reserves* (Mboe) 290 Metrics Drill/complete (Million/well) 3.6 Tie in Costs (Million/well) 0.4 0.6 Gross…
  37. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 37
    MONTNEY GAS/LIQUIDS TSX:PGF NYSE:PGH
  38. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 38
    MONTNEY OVERVIEW Montney land holdings increased to 14,475 hectare (50 sections) in 2014 through addition of 8,350 hectare in liquids-rich corridor at Bernadet The Pengrowth best estimate for discovered petroleum initially-in-…
  39. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 39
    MONTNEY OVERVIEW SE FARRELL NW 1880m TVD 2174m TVD 2226m TVD 4 prospective and proven sub- zones are thought to exist within the Montney in the greater Bernadet and Groundbirch areas 2409m TVD Montney prospect inventory…
  40. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 40
    BERNADET RECENT DEVELOPMENTS Pengrowth successfully acquired 8,350 hectare at November 5, 2014 Crown land sale offsetting companys existing position in area The sale consisted of two blocks, Pengrowth acquired the 32.6 sections…
  41. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 41
    BERNADET OVERVIEW Bernadet is expected to provide a scalable, low risk stacked zone liquids-rich play on contiguous lands Pengrowths best estimate of discovered PIIP in place is approximately 4.6 Tcf gas (raw) Liquid yield…
  42. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 42
    BERNADET OVERVIEW* Per Well Unrisked Metrics DCET ( millions/well) 7.4 EUR (Bcf) 5.0 Liquids Yield (bbl/MMcf) 45 ROR 40% PIR 1.3 NPV10 per well ( millions) 9.5 Estimate of Discovered PIIP Gas (Tcf) 4.6 Inventory Risked…
  43. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 43
    BERNADET PLANNING & INFRASTRUCTURE Options: Build plant infrastructure Use existing third party gas gathering system Utilize other third party processing and gathering facilities currently being built 43 Corporate…
  44. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 44
    GROUNDBIRCH OVERVIEW Groundbirch land position 21 gross sections 90 percent working interest (average) 28 million cubic feet/d operated facility on-stream in December 2010 Plan is to drill to fill until longer term commodity price…
  45. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 45
    GROUNDBIRCH* Per Well Unrisked Metrics DCET ( millions/well) 7.4 EUR (Bcf) 6.0 Liquids Yield (bbl/MMcf) 0 ROR 30% PIR 0.6 NPV10 per well ( millions) 4.4 Estimate of Discovered PIIP Gas (Tcf) 3.7 Inventory Risked…
  46. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 46
    GROUNDBIRCH WELL PERFORMANCE AND TYPE CURVE * *Internal Type Well Curves characterized as P50, peak normalized, from analogous wells in same formation, updated to recognize the application of new fracing technology Wells…
  47. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 47
    SUMMARY TSX:PGF NYSE:PGH
  48. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 48
    CONCLUSION 2014 was an excellent year Continued superior execution in costs and production rates on our conventional assets On time delivery of construction, commissioning and first steam of Lindbergh Phase I Significant additional…
  49. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 49
    APPENDIX TSX:PGF NYSE:PGH
  50. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 50
    THERMAL DEVELOPMENT OFFERS SUSTAINING CAPITAL ADVANTAGES Capital reinvestment Capital reinvestment Capital reinvestment efficiency 27,000/boe/d efficiency 40,000/boe/d efficiency 40,000/boe/d 60%- 60%-80% First year…
  51. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 51
    2014 RESERVES CONTINUITY* 2014 Proved reserves increased one percent to 310 MMboe Proved plus Probable reserves increased 17 percent to 557 MMboe Proved Proved plus (Mboe) Probable (Mboe) December 31, 2013 307,016 477,385…
  52. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 52
    2014 FINDING, DEVELOPMENT AND ACQUISITION (DISPOSITION) COSTS 2014 2013 Three-year Weighted Average Proved Proved Proved Proved Proved Proved plus plus plus Probable Probable Probable Excluding Future Development costs Finding…
  53. MARCH 2015 CORPORATE PRESENTATION – Pengrowth Energy Corp – slide 53
    Pengrowth Energy Corporation Investor Relations 2100, 222 3rd Avenue SW Toll- Toll-free: 1.855.336.8814 Calgary, Alberta, Canada T2P 0B4 Email: investorrelationspengrowth.com Telephone: 403.233.0224 Website: www.pengrowth.com Toll Free:…

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