CIBC Whistler Institutional Conference January 23 25, 2013
Penn West Corporate Profile Listing NYSE: PWE TSX: PWT Market Capitalization (1) 5.0 billion Shares Outstanding (2) 477 million Liquidity (shares/day) 3.0 million 2013 Production Forecast 135 - 145 mboe/d (62% liquids) Capital…
Penn West Strategy Priorities Intrinsic Value Penn West Business Balanced Resource Performance Financial Growth & Execution Management High High Medium 3
Strategic Outlook Production Performance 120,000 600 100,000 500 80,000 400 Gas (mcf/d) Oil (bbls/d) 60,000 300 40,000 2008 to 2012 200 Dividends: 3.4B 20,000 100 Net Divestitures: 29,000 boe/d, 2.9B 0 0…
Asset Rotation Base to Resource Plays 110,000 Divested 13,000 boe/d at the end of 2012 100,000 90,000 Base boe/d 80,000 Q4 2012 Forecast 70,000 Resource 60,000 2010 2011 2012 * Compound Annual Growth Rate 5
Business Performance Resource / Base Capital Efficiency & Production Reliability Cordova Six million acres Slave Point Largest concentration of light oil in Western Canada Peace River Swan Hills Viking Cardium Spearfish…
Capital & Production Strategy 2013 Base capital spending 900 million Conditional incremental capital 300 million Production forecast 135 145 mboe/d Estimated decline 22% Target corporate capital efficiency 35k 40k/boe/d…
Capital Efficiency Focus Business Performance & Execution 47,000/boe/d 2010 2012 2,000/boe/d Major Facilities 2,000/boe/d Exploration & Land 2,000/boe/d Service Costs & Efficiencies 4,000/boe/d Capital Allocation 35,000…
2013 Capital Budget Capital Allocation by Play (900MM and +300MM Cases) Spearfish Slave Point Optimization +300 North 2013 Central Conditions for incremental spending E&D Capital EOR Commodity prices (725mm) South Realized…
Business Performance Base Production Reliability R&M focus on shortening execution cycle Revamping of field processes Proactive pipeline replacement Consolidation of under utilized facilities Penn West land position 10
Penn West Value Proposition Established oil resource platform Oil & differential upside from transportation development Increase cash flow as oil weighting rises Balance oil development funding with non-core dispositions Hedging…
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