OUR ASSET BASE Business Units Q1 Production Drilling Inventory (boepd) (locations) Bakken 13,811 1,050 Q1 2015 Production: Cardium 17,661 460 35,179 boepd; 76% liquids weighted AB / BC 3,707 295 Total 35,179 1,865 3
BUSINESS UNIT RESERVES BU Proved + Probable Reserves Mix (161 MMboe) 2014 Year-end Valuation (millions) 13 MMboe 2P Reserves (NPV 10%) 3,150 79 MMboe Total Debt (1,647) Hedges 67 69 MMboe Decommissioning Liability (198)…
2015 CORPORATE STRATEGY Retain long-term value and preserve financial flexibility in current low commodity price environment Operational Plan Suspension of monthly dividend Capital program of 100 - 120 million, funded by internally…
2015 CAPITAL & DRILLING PROGRAM Our 2015 capital & drilling program is 110 million1 with a suspended second half operated drilling program given low commodity prices and current capital costs 2015 Planned Capital Activity Net Wells…
CAPITAL & FUNDS FLOW We expect to generate funds flow well above our capital spending in 2015 800 200% 600 150% Amount ('000,000) 400 100% 100% 200 50% 0 0% 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2011 2012 2013 2014…
FOCUS ON FREE CASH FLOW Our long term light-oil business model Initial capital investment in light oil resource plays generates near-term FUTURE GROWTH production growth and early payout GROWING INTO FREE CASH FLOW Maturing…
DEBT AND LIQUIDITY Our amended credit facility contains a single financial covenant and the revised borrowing base provides ongoing financial flexibility for 2015 and beyond, given our commitment to spend within cash flow. DEBT CAPITAL…
DEBT POSITION We have decreased our overall debt positon since 2012, with continuous access to an appropriate level of liquidity Total Debt Outstanding 1,500 1,000 Amount ('000,000) 500 0 2010 2011 2012 2013 2014…
GUIDANCE Our 2015 guidance reflects a lower commodity price environment; in the current commodity price and service cost environment, we do not intend to invest in an operated, new well drilling program in the second half of 2015 2015…
Q1 2015 NETBACKS & HEDGING EFFECTS In Q1 2015 we realized gains of 28 million on crude oil contracts, resulting in a netback of 29.83/boe Q1 Operating Netback Plus Commodity Hedges 40 35 30 25 20 15 10 5 0 WCP VET LTS…
FUNDS FLOW PROTECTION Our WTI hedge position helps protects against downside in the current pricing environment Commodity Apr Jun 2015 Jul Dec 2015 Apr Dec 2015 Oil hedged - WTI (bbl/d) 7,750 4,795 1,364 Net production hedged 1,2 39%…
ECONOMIC SENSITIVITIES Sensitivities and assumptions on remaining nine months 2015 funds flow from operations Funds Flow Impact Parameter Assumption Change of: ( millions) WTI Oil1,2 US53.33/bbl +/- 1.00 2.5 Production (Q2 Q4 2015)…
CASH COSTS In this low commodity price environment, we continue to generate positive funds flow from operations Quarterly Cash Costs and Oil Prices 120 110 100 90 80 70 /boe 60 50 40 30 20 10 0 Q1 Q2 Q3…
BAKKEN ASSETS Focus on optimization and EOR Our assets produce light oil from the Bakken and the conventional Mississippian formations with a relatively low decline rate. In 2015 we are continuing to focus on optimizing and expanding our…
IMPROVING TIGHT OIL RECOVERIES Future value generation through natural gas flooding Bakken With Bakken EOR projects we expect to: Attenuate declines and extend production life Increase DPIIP recovery factors from 15% to potentially…
CARDIUM ASSETS Generating positive operating cash flow Our extensive land base stretches from southwest of LTS Land Calgary to northwest of Edmonton and our assets LTS Batteries primarily produce light oil from the Cardium formation.…
CARDIUM GROWTH Carduim Production and Cummulative Well Count 25,000 500 20,000 400 Net Wells on Production Production (boepd) 15,000 300 10,000 200 5,000 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3…
AB / BC ASSETS The Swan Hills is our next growth target Production has grown to 2,500 boepd New 3,500 bopd battery operational in Q2 2014 Future Operations Reserve bookings confirm long-term prospectivity Drilling is not expected to…
SWAN HILLS PRODUCTION Swan Hills production has increased our liquids weighting for the Alberta/BC business unit 5,000 25 4,000 20 Net Wells on Production Production (boepd) 3,000 15 2,000 10 1,000 5 0 0 Q1…
LONG-TERM WELL ECONOMICS We focus on well economics that reinforce our business model with quick payouts and strong capital efficiencies < 2 year capital payout 2 recycle ratio Business Unit Bakken Business Unit Cardium Alberta/BC Type…
LONG-TERM OPPORTUNITY PRESERVE LONG TERM EXTENSIVE ASSETS SUSTAINABILITY VALUE Drilling inventory of 10+ 2014 capital program 2014 reserve value years (before A&D) and significantly exceeds dividends fully financed enterprise…
Trading Symbol LTS: TSX Share Price (May 27, 2015) 1.20 Market Capitalization 237 million Shares Outstanding (Mar 31, 2015 Basic) 197 MM Total Debt (Q1 2015) 1.73 billion Options/Incentive shares 4.8 MM Enterprise Value 1.97 billion…
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