Skip to main content Credit Suisse Energy Summit – Arc Resources Ltd. Investor Presentation | Shale Experts
Loading...
Pm

Credit Suisse Energy Summit – Arc Resources Ltd.

Arc Resources Ltd. · Feb 12, 2014 · 59 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 Energy Summit – Arc Resources Ltd. – slide 1
    Credit Suisse Energy Summit February 12, 2014
  2. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 2
    Corporate Profile Corporate Summary Production (Q4 2013) 100,880 boe/d Reserves (2P Gross YE 2013) (1) 634 mmboe Reserve Life Index (2P) (1) 15.5 years (2) Annualized Dividend / Dividend Yield 1.20 per share / 4.1% (3) Annualized…
  3. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 3
    Unique Strategy Targeting net debt to 200% Reserve funds from operations Replacement through between 1.0 1.5x the drill bit for the past Active Hedging 5 consecutive years Program Capital Discipline and Pace of Development…
  4. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 4
    Sustainable Dividend Key component of strategy Supported by active hedging and balance sheet strength Historic Dividends and Funds from Operations 5.00 120% 4.50 100% 4.00 3.50 80% Payout Ratio % 3.00 /share 2.50…
  5. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 5
    Operations Overview Production (Q4 2013) 100,880 boe/d 37% 57% 6% Oil Gas Liquids 2P Reserves (YE 2013) 634 Mmboe 31% 69% Western Canadian Producer
  6. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 6
    boe/d 0 100,000 120,000 140,000 20,000 40,000 60,000 80,000 Q4 1996 Q1 1998 Q3 1998 Q1 1999 Q3 1999 Q1 2000 Q3 2000 Q1 2001 Q3 2001 Q1 2002 Q3 2002 Q1 2003 Non-Montney Liquids Q3 2003 Q1 2004 Q3 2004…
  7. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 7
    ARCs Proven Development Model Dawson, Pembina, SE Sask/Manitoba, Redwater Ante Creek, Parkland/Tower Sunrise West Attachie, Septimus Blueberry, Sundown Inventory of Opportunities at all Stages
  8. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 8
    Significant Reserve and Resource Base 634 mmboe of 2P reserves and RLI of 15.5 years 1,600 Reserves and Resources (mmboe) 1,400 NEBC 1,200 Montney ECONOMIC 1,000 Contingent Mmboe Resource estimate 800 600 17% CAGR 2P…
  9. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 9
    Growing Our Low Cost Gas Business 15% CAGR total Natural Gas production driven by 33% CAGR Montney Natural Gas production 2009-2015 Forecast 21% CAGR in 2P Natural Gas reserves from 1 Tcf to 2.6 Tcf 2008 - 2013 500,000…
  10. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 10
    Growing Oil and Liquids since 2009 7% CAGR total Liquids production driven by 34% CAGR Montney Liquids production 2009 2015 Forecast 5% CAGR in 2P Liquids reserves from 152 Mmbbls to 194 Mmbbls 2008 - 2013 50,000 Base Pembina…
  11. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 11
    Montney Growth Assets
  12. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 12
    ARC in the Montney 100,000 2014 Sunrise 2014 Development 90,000 Parkland Gas Plant: Phase 1 2013 80,000 Construction begins on Parkland Phase 1 2011 70,000 Dawson Gas 2012 Plant: Phase 2 Ante Creek Gas 60,000 2010 / 08…
  13. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 13
    Significant Montney Land Base Grown ARCs Montney land base from 130 net sections in 2005 to 899 net sections today Significant Montney landholdings with 951 gross sections (899 net sections) including 671 gross undeveloped sections and…
  14. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 14
    NEBC Montney Reserves & Resources Corporate 2P Reserves of 634 mmboe (194 mmbbls liquids/ 2.6 Tcf gas) (1) OIL 11.3 mmbbls (7.6) 2.2 Tcf RESERVES NGL 27.6 mmbbls (2.1) (24.7) OIL 10.7 mmbbls (12.6) 4.5 Tcf (4.2) ECONOMIC…
  15. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 15
    Early Stages of Property Development* 1,000 Gross Drilling Locations 750 500 250 0 Dawson Parkland/ Tower Sunrise/ Sunset Ante Creek Total Hz wells drilled to date 2P Booked Locations Identified Locations *…
  16. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 16
    DAWSON GAS WORLD CLASS GAS RESOURCE
  17. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 17
    Dawson Asset Details Net production (boe/d) Q4 2013 27,400 Liquids (bbls/d) 970 Gas (mmcf/d) 158 Production split % (liquids/gas) 97% gas Land (Montney net sections) 130 Working Interest 96% Reserves (2P mmboe) 174 Liquids…
  18. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 18
    Dawson A Cash Flow Machine Grown production from approximately 50 Mmcfe/d in 2009 to 165 Mmcfe/d by mid 2012 At Cdn3 gas 30% Reinvestment Ratio to sustain Cash Flow and generate 100 million of Free Cash Flow annually for 15 years…
  19. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 19
    Dawson Gas Type Curve Growth Expect 2014 type curve to be consistent with 2013; plans to drill core Dawson wells to keep plant full in 2014 and into 2015 Based on delineation data from pressure and rate performance, we expect…
  20. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 20
    Dawson Development Economics 7,000 Key Metrics DCET Capex per well (MM) 4.6 2P Reserves per well (Bcf) 7.1 6,000 IP (1 mo) (MMcf/d) 5.0 IP (12 mo) (MMcf/d) 4.8 5,000 Half Cycle Economics (C85/bbl) 4/GJ 3/GJ Gas Rate (mcf/d)…
  21. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 21
    PARKLAND/TOWER REAPING ACQUISITION BENEFITS
  22. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 22
    Parkland/Tower Asset Details Parkland Tower Net production (boe/d) 10,700 1,750 Q4 2013 Liquids (bbls/d) 1,320 1,250 Gas (mmcf/d) 56 3.0 Land (net sections) 23 57 Working Interest 84% 92% Reserves (2P mmboe) 58.0 24.6 Liquids…
  23. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 23
    Parkland/Tower Infrastructure Regulatory approval for 120 Mmcf/d, sweet service with two trains of 60 Mmcf/d (staged construction) First phase of plant built with design capacity of: 64 Mmcf/d of inlet gas 3,000 bbls/day LPG…
  24. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 24
    Parkland Dual-Layer Development Stacked Well Performance to Date 8,000 100/13-21 (Upper) 7,000 102/13-21 6,000 (Lower) 100/04-28 Gas Rate (mcfd) 5,000 (Upper) 4,000 3,000 2,000 1,000 0 Layered Well Placement…
  25. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 25
    Parkland Development Economics 6,000 Key Metrics DCET Capex per well (MM) 5.0 5,000 2P Reserves per well (Bcf) 5.8 IP (1 mo) (MMcf/d) 4.5 IP (12 mo) (MMcf/d) 3.3 4,000 Half Cycle Economics (C85/bbl) 4/GJ 3/GJ Gas Rate…
  26. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 26
    Tower Dual-Layer Development Parkland and Tower have similar geology Two Layer Horizontal Development Very Thick Montney A 100M (328 ft.) Tower Also has Dual-Layer Montney Development Opportunity
  27. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 27
    Tower Development Economics Key Metrics 500 DCET Capex per well (MM) 5.9 450 2P Reserves per well (Mboe) 400 IP (1 mo) (boe/d) 440 400 IP (12 mo) (boe/d) 220 350 Half Cycle Economics (C85/bbl) 4/GJ 3/GJ Production Rate…
  28. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 28
    Parkland/Tower 2014 Budget 191MM* Parkland/Tower 2014 25,000 Operated Budgeted Volumes 2014 Budget 20,000 Capital (MM) 191.3 Total (boe/d) 20,208 Oil (bbls/d) 2,345 15,000 Gas (mmcf/d) 92 Liquids (bbls/d) 2,563 boe/d Wells…
  29. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 29
    WEST MONTNEY OIL AND GAS LONG-TERM GROWTH OPPORTUNITY
  30. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 30
    Sunrise/Sunset Asset Details Sunrise has progressed from pilot to full scale development Net production (boe/d) - Q4 2013 3,510 Liquids (bbls/d) 0 Gas (mmcf/d) 21.0 Land (net Montney sections) 32 Working Interest 89%…
  31. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 31
    Sunrise Development Planning Sunrise 02-25 Sunrise Development Model Vertical Frac Offset Proposal Upper Montney Middle Montney Montney B Montney E Multiple Zones with Economies of Scale
  32. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 32
    Sunrise Outperforming Expectations Estimated Ultimate Recovery (EUR) is Cumulative Production + Forecast or GLJ 2P Reserves 02/14-26-78-18 W6 (B02-25 HZ) A 02-25 Hz MTYA Cum to Oct.31, 2013: 3.4 Bcf 02-26-78-18 W6 (08-24 HZ) ARC…
  33. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 33
    Sunrise Development Economics Key Metrics 6,000 DCET Capex per well (MM) 5.2 2P Reserves per well (Bcf) 11.0 IP (1 mo) (MMcf/d) 5.3 5,000 IP (12 mo) (MMcf/d) 4.8 Half Cycle Economics (C85/bbl) 4/GJ 3/GJ 4,000 IRR (% AT) 80%…
  34. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 34
    ANTE CREEK OIL & GAS A MONTNEY SUCCESS STORY
  35. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 35
    Ante Creek Asset Details Net production (boe/d) Q4 2013 16,200 Liquids (bbls/d) 8,900 Gas (mmcf/d) 44 Production split % (liquids/gas) 45/55 Land (Montney net sections) 341 Working Interest 99% Reserves (2P mmboe) 50.9…
  36. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 36
    Ante Creek Opportunity for Down-Spacing Infill Hz drilling encountered near virgin (original) pressure implies substantial incremental reserves to be produced by the new wells Substantial Incremental Reserves from New Wells
  37. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 37
    Ante Creek Opportunity for Down-Spacing Testing 200m lateral horizontal well spacing in Montney through pilot schemes; ensuring future development extracts maximum value The down-spacing is aimed at greatly increasing the NPV of the…
  38. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 38
    Ante Creek Development Economics 400 Key Metrics DCET Capex per well (MM) 3.9 350 2P Reserves per well (Mboe) 276 IP (1 mo) (boe/d) 357 300 IP (12 mo) (boe/d) 214 Half Cycle Economics Production Rate (boe/d) (C85/bbl) 4/GJ…
  39. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 39
    Ante Creek 2014 Budget 198MM Ante Creek 2014 Operated Budgeted Volumes 2014 Budget 20,000 Capital (MM) 198 18,000 Total (boe/d) 15,630 Oil (bbls/d) 7,060 16,000 Gas (mmcf/d) 43 14,000 Liquids (bbls/d) 1,325 Wells Actual…
  40. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 40
    SUMMARY
  41. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 41
    Why Invest in ARC Long-term view and commitment to value creation Strong balance sheet Disciplined capital management Significant exposure to early stage development of world class assets Strategic optionality of high rate of return…
  42. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 42
    Looking Beyond 2015 ARC has a well balanced inventory of value creating opportunities which may be pursued beyond 2015 Option to grow at a rate estimated to be similar to growth for the period 2010 2014 140,000 Project Options 2016 -…
  43. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 43
    APPENDIX
  44. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 44
    2013 and 2014 Guidance 2013 Guidance 2013 Actual 2014 Guidance Oil (bbls/d) 32,00033,000 32,784 35,00037,000 Condensate (bbls/d) 1,9002,100 2,251 2,3002,500 Gas (mmcf/d) 345355 349.4 415425 NGLs (bbls/d) 2,8003,000 2,811 3,7004,000…
  45. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 45
    2014 Capital Budget 915 Million Significant spending on oil and liquids-rich gas and low cost, high rate of return Montney gas development 2014 Capital Budget Volumes Year Capital Average Gross Net MM (boe/d) Wells Wells…
  46. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 46
    Looking Forward to 2014 and 2015 Assuming economic conditions remain similar to the current outlook, 2014 would likely entail the following: Ante Creek Explore newly-acquired lands Continue testing 200m lateral horizontal well spacing…
  47. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 47
    Strong Performance Through Cycles Earnings and Funds from Operations (1)(2) 1,000 800 Millions 600 400 200 0 2007 2008 2009 2010 2011 2012 2013 Operating Income Net Income Funds from Operations (1) Amounts…
  48. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 48
    Natural Gas Commodity Marketing Ensuring Production Moves to Market Move product to the nearest and most liquid point Proactively plan for future development to ensure adequate take-away Currently Produce 360 Mmcf/d of Natural Gas
  49. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 49
    Crude Oil Marketing ARC controls the produced barrel by selling onto the feeder pipeline system or to a destination of choice for sale at a custody transfer point (Edmonton, Cromer, Hardisty) ARC is not currently a Mainline shipper
  50. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 50
    NGL Commodity Marketing Western Canadian NGL Market Propane is reliant on exports to U.S. due to limited Component Breakdown Canadian demand Butane markets well balanced due to demand from C4 C5 25% refining and crude oil blending…
  51. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 51
    Hedge Positions February 5, 2014 Summary of Hedge Positions as at February 5, 2014 (1) 2014 2015 2016 - 2017 2018 Crude Oil (2) WTI: (US/bbl) US/bbl bbl/d US/bbl bbl/d US/bbl bbl/d US/bbl bbl/d Ceiling 98.04 13,967 - - - - - -…
  52. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 52
    2014 Capital Budget ( millions) 2012 (Actual) 2013 (Actual) 2014 (Budget) Development 409 608 670 Development Facilities 73 163 123 Maintenance 23 27 30 Optimization 6 14 14 Exploration & Seismic 49 8 24 Enhanced Oil Recovery 21 21 34…
  53. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 53
    Socially Responsible Operator ARC strives to meet the highest standards in health, safety and environment Environmental Stewardship Health and Safety Commitment Ranked 1 in the CDPs Canadian Targets zero lost time incidents Carbon…
  54. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 54
    West Montney Asset Details Net production (boe/d)- Q4 2013 4,180 Liquids (bbls/d) 70 Gas (mmcf/d) 24.7 Land (net Montney sections) 278 Working Interest 90% Reserves (2P mmboe) 150 Liquids (mmbbls) 10 Gas (bcf) 842 Reserve…
  55. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 55
    West Montney Oil and Gas Geology 150 km (90 mi) Blueberry Attachie Septimus Sunrise Sundown 300 m (980 ft) Thick Multi-Zone Potential Across Entire Land Base
  56. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 56
    Production Outlook Managing decline…
  57. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 57
    Reserves and Resources Disclosure TPIIP, DPIIP and UPIIP have been estimated using a zero percent porosity cut-off for gas and a 3% cutoff for oil. This means that all gas bearing rock has been incorporated into the calculations.…
  58. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 58
    Definitions of Oil and Gas Reserves and Resources Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on the analysis…
  59. Credit Suisse Energy Summit – Arc Resources Ltd. – slide 59
    Definitions of Oil and Gas Reserves and Resources Economic Contingent Resources (ECR are those contingent resources which are currently economically recoverable. Undiscovered Petroleum Initially-In-Place (UPIIP) is that quantity of…

From the store

Browse maps, data & reports in the Shale Experts store