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May 2015 Annual General Meeting – Bonavista Energy Corp

Bonavista Energy Corp · May 7, 2015 · 47 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. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 1
    ANNUAL GENERAL MEETING May 7, 2015
  2. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 2
    CORPORATE IDENTITY
  3. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 3
    THIS IS BONAVISTA We are experienced and aligned: 17 years of 12 year average tenure 11% insider operational of our leadership team ownership presence 4
  4. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 4
    THIS IS BONAVISTA VALUE CREATION 90% of +10% total Adding production production at 17,000/boed return target in 2014 90% of reserves FOCUSED EFFICIENT in our core areas in our execution FD&A of 9.94/boe in 2014 QUALITY…
  5. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 5
    THIS IS BONAVISTA Focused in our core areas: 10% 42% 2009 Production Q1 2015 Production Blueberry Blueberry 58% 90% In 2009, Core Non Core Core Non Core Today, 0.4 1.3 million Deep Basin Deep Basin million net acres net acres were…
  6. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 6
    Q1 2015 ACCOMPLISHMENTS Production of 85,017 boe/d 15% growth * 14% below Capital spending of 102 million budget 25% Operating costs of 6.99/boe improvement * 18% Cash costs of 10.95/boe improvement * * Relative to the same…
  7. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 7
    TRACK RECORD
  8. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 8
    TRACK RECORD Production and reserves growth: 100,000 600 90,000 500 Quarterly Production (boe/d) Reserves (mmboe) 80,000 400 70,000 300 60,000 200 50,000 100 40,000 0 2014 2015YTD 2011 2012 2013 2014 2011 2012…
  9. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 9
    TRACK RECORD Finding and Development costs*: Bonavista (/boe) 2014 Peer Comparison** (/boe) 63.33 16.00 24.00 15.00 22.00 14.00 20.00 13.00 18.00 12.00 16.00 11.00 14.00 10.00 12.00 9.00 10.00 8.00 8.00 7.00 6.00 6.00…
  10. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 10
    TRACK RECORD Production addition costs: Bonavista* (/boed) 2014 Peer Comparison** (/boed) 45,000 45,000 40,000 40,000 35,000 35,000 30,000 30,000 25,000 25,000 20,000 20,000 15,000 15,000 10,000 10,000 5,000 5,000 0 0 2011 2012 2013…
  11. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 11
    TRACK RECORD Recycle Ratio*: Bonavista (x:1) 2014 Peer FD&A Recycle Ratio (x:1) 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 1.0 1.0 0.5 0.5 0.0 0.0 BNP 2011 2012 2013 2014 2015F 2015 forecasted range * Operating netback per…
  12. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 12
    TRACK RECORD Operating costs: Bonavista (/boe) 2014 Peer Comparison* (/boe) 10.00 20.00 Q1 2015 18.00 6.99/boe 9.00 16.00 14.00 8.00 12.00 10.00 7.00 8.00 6.00 6.00 4.00 2.00 5.00 0.00 2011 2012 2013 2014 2015F BNP…
  13. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 13
    ASSET QUALITY
  14. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 14
    2015 E&D SPENDING ALLOCATION Concentrated spending on profitable plays: Wells Expenditures % of Value Gross Net ( millions) Expenditures West Central: Glauconite 46 36.4 124 48 Spirit River 8 8.0 27 10 Other 2 2.0 7 3 Deep Basin:…
  15. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 15
    GLAUCONITE Extensive, predictable resource: Drilled 280 horizontal wells Drilled 14 extended reach wells demonstrating a 13-15% improvement in efficiencies 46 (36.4 net) wells planned for 2015 Operating costs of approximately…
  16. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 16
    17 Quarterly Production (boe/d) 20,000 15,000 25,000 0 30,000 10,000 5,000 2008 Q4 * Q1 2013 to Q1 2015 2009 Q1 2009 Q2 2009 Q3 2009 Q4 2012 Wells 2008 Wells GLAUCONITE 2010 Q1 2010 Q2 2010…
  17. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 17
    GLAUCONITE Developing the resource: 800 2014YE booked locations 700 NPV10 = 3.7 million/well 600 Wells/Locations () 500 400 300 200 100 0 2010 2011 2012 2013 2014 2015 YTD Cumulative Wells Drilled Booked…
  18. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 18
    GLAUCONITE Economic sensitivity to commodity pricing and costs: 90% 80% 70% Internal Rate of Return 60% 50% 40% 41% 30% 32% 25% 2014 Costs 20% 10% Cost Reduction (Current) 10% 20% Cost Reduction 0% 2.67* 2.00 2.50…
  19. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 19
    SPIRIT RIVER WILRICH Marlboro Drilled 14 wells Ansell Drilled 26 wells 17 (17.0 net) wells planned in 2015 Marlboro and Ansell operating costs of approximately 2.50/boe Type curve economics*: Capex: 5.1 MM EUR**: 790 mboe…
  20. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 20
    SPIRIT RIVER WILRICH AT ANSELL Building the opportunity: Identified the opportunity in 2012: Gross Sections 2012 0.5 2013 18.5 2014 27.0 2015 28.5 74.5 Three years later, 175 locations in inventory 2012 acquisitions 2014…
  21. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 21
    SPIRIT RIVER WILRICH Developing the opportunity: 14,000 12,000 Quarterly Production (boe/d) 10,000 8,000 6,000 4,000 2,000 0 2013 Q3 2013 Q2 2013 Q1 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014…
  22. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 22
    SPIRIT RIVER - WILRICH Substantial opportunity growth: 300 2014YE booked locations 250 NPV10 = 5.0 million/well Wells/Locations () 200 150 100 50 0 2012 2013 2014 2015 YTD Cumulative Wells Drilled Booked…
  23. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 23
    SPIRIT RIVER - WILRICH AT ANSELL Economic sensitivity to commodity pricing and costs: 80% 70% 60% Internal Rate of Return 50% 40% 34% 30% 27% 2014 Costs 20% 22% 10% Cost Reduction (Current) 10% 20% Cost Reduction…
  24. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 24
    SPIRIT RIVER - FALHER Morningside area Drilled 10 wells Delineating in 2015 Q1 2015 production of 3,100 boe/d NGL yields of 50 bbls/mmcf 7 wells planned at Morningside in 2015 Type curve economics*: Capex: 2.4 MM EUR**: 484…
  25. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 25
    SPIRIT RIVER FALHER Prolific production performance at Morningside: 4,000 3,500 3,000 Production (boe/d) 2,500 2,000 1,500 1,000 500 0 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3…
  26. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 26
    SPIRIT RIVER Falher and Notikewin inventory growth: 140 120 2014YE booked locations NPV10 = 5.0 million/well 100 Wells/Locations () 80 60 40 20 0 2012 2013 2014 2015 YTD Cumulative Wells Drilled Booked…
  27. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 27
    SPIRIT RIVER FALHER AT MORNINGSIDE Economic sensitivity to commodity pricing and costs: 120% 100% Internal Rate of Return 80% 60% 61% 49% 40% 2014 Costs 39% 10% Cost Reduction (Current) 20% 20% Cost Reduction 0%…
  28. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 28
    LOOKING FORWARD
  29. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 29
    FINANCIAL STRATEGY Natural gas hedging: 300 4.00 3.80 Hedged Volumes (thousands gjs/d) 250 3.60 3.40 200 3.20 CDN/gj 150 3.00 2.80 100 2.60 2.40 50 2.20 90% 76% 89% 66% 0 2.00 Q1-15 Q2-15 Q3-15…
  30. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 30
    FINANCIAL STRATEGY Oil hedging: 8 120.00 110.00 Hedged Volumes (mbbls/d) 6 100.00 90.00 CDN/bbl 4 80.00 70.00 2 60.00 50.00 58% 62% 62% 73% 0 40.00 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16…
  31. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 31
    LOOKING FORWARD 2015 guidance: Actual Forecast % 2014 2015 Change Capital expenditures ( millions): Exploration and development 640 300 320 (52) Divestitures, net of acquisitions (107) - - Total 533 300 320 (42) Production (boe/d)…
  32. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 32
    STRENGTHS OF BONAVISTA SUSTAINABLE BUSINESS PLAN Targeting a 10%+ Total Shareholder Return at 100% - 110% all in payout ratio FOCUSED Maximizing efficiency with a concentrated asset base EFFICIENT Finding better ways in…
  33. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 33
    APPENDIX
  34. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 34
    2015 FIRST QUARTER PERFORMANCE Three months ended March 31, Financial: 2015 2014 % change ( millions except per share amounts) Production revenues 164 315 (48%) Funds from operations 97 161 (40%) - per share 0.45 0.80 (44%)…
  35. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 35
    2014 YEAR END PERFORMANCE Years ended December 31, Financial: 2014 2013 % change ( millions except per share amounts) Production revenues 1,107 964 15% Funds from operations 561 478 17% - per share 2.69 2.42 11% Capital…
  36. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 36
    TOTAL & SENIOR DEBT (as at March 31, 2015): ( millions) Senior notes (CAD) 70 Unutilized bank capacity 365 Bank credit facility - 600 million 11 banks in Bonavista bank credit facility Unsecured, financial covenants Credit…
  37. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 37
    2015 REVENUE EXPOSURE By volume By value 7% 3% 3% 7% 9% 4% 5% 10% 7% 55% 70% 20% Ethane Propane Butane Pentane Oil Gas 38
  38. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 38
    VALUE CREATION Building value with liquids rich natural gas plays: 90 100 bbls/mmcf 15 38 bbls/mmcf bbls/mmcf bbls/mmcf 0% 9% 3% C2 14% 14% C3 48% 13% 33% 42% 29% C4 47% 29% 26% 47% C5 17% 29% 4.00 Revenues*…
  39. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 39
    VALUE CREATION Key play metrics at 2.50/gj AECO and US60.00/bbl WTI*: Recycle Ratio** (x:1) Payout (months) Glauconite Glauconite Falher Falher Wilrich Wilrich Spirit River Spirit River Bluesky Bluesky Montney Montney 0 1…
  40. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 40
    GLAUCONITE Type curve: Type Curve (Turbo) 700 Capex ( millions) 2.8 IP12 (boe/d) 280 600 /boed 9,860 500 EUR (mboe) 520 Production (boe/d) IRR (%) 26 400 F&D (/boe) 5.34 P/I 0.4 300 Recycle Ratio 2.9 Payout (years) 3.1…
  41. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 41
    SPIRIT RIVER - WILRICH Ansell type curve: Type Curve 900 Capex ( millions) 5.1 800 IP12 (boe/d) 400 /boed 12,740 700 EUR (mboe) 850 Production (boe/d) 600 IRR (%) 24 500 F&D (/boe) 6.49 P/I 0.4 400 Recycle Ratio 2.4…
  42. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 42
    SPIRIT RIVER - FALHER Morningside type curve: Type Curve 1,200 Capex ( millions) 2.4 IP12 (boe/d) 302 1,000 /boed 7,860 EUR (mboe) 484 Production (boe/d) 800 IRR (%) 39 F&D (/boe) 4.93 600 P/I 0.7 Recycle Ratio 2.8 400…
  43. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 43
    DEEP BASIN BLUESKY Type curve: Type Curve 700 Capex ( millions) 4.5 IP12 (boe/d) 381 600 /boed 11,820 500 EUR (mboe) 545 Production (boe/d) IRR (%) 18 400 F&D (/boe) 8.25 P/I 0.2 300 Recycle Ratio 2.0 Payout (years)…
  44. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 44
    MONTNEY Type curve: 900 Type Curve Capex ( millions) 6.5 800 IP12 (boe/d) 426 700 /boed 15,210 EUR (mboe) 671 Production (boe/d) 600 IRR (%) 9 500 F&D (/boe) 9.65 P/I 0 400 Recycle Ratio 1.9 300 Payout (years) 7.0…
  45. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 45
    2014 RESERVES SUMMARY Replaced 2014 annual production by 200%, adding 56 mmboe of 2P reserves Natural Gas Total Natural Gas Oil Liquids Reserves(2) Reserves:(1)(4) (mmcf) (mbbls) (mbbls) (mboe) Proved: Proved producing 661,960…
  46. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 46
    FINANCIAL STRATEGY Estimated tax pools (as at December 31, 2014): Category millions % of Total Canadian Oil & Gas Property Expense 817 30% Canadian Development Expense 802 30% Canadian Exploration Expense 295 11% Undepreciated…
  47. May 2015 Annual General Meeting – Bonavista Energy Corp – slide 47
    1500, 525 8th Ave. SW Calgary, Alberta T2P 1G1 Tel: (403) 213-4300 Fax: (403) 262-5184 investor.relationsbonavistaenergy.com 48

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