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CORPORATE PRESENTATION – Rmp Energy Inc.

Rmp Energy Inc. · Jun 1, 2014 · 26 slides

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Slides

  1. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 1
    JUNE 2014 CORPORATE PRESENTATION
  2. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 2
    DISCLAIMER - CONTD Any well economics provided in this presentation are based on the average historical estimates of reserves for wells drilled in the respective areas in which RMP has an interest and there is no certainty that future…
  3. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 3
    CORPORATE PROFILE TSX Trading Symbol RMP Current Market Capitalization 1.0 billion Common Shares outstanding 121.1 million Stock Options outstanding 9.3 million Warrants outstanding 2.0 million Directors & Officers ownership (fully…
  4. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 4
    COMPANY ATTRIBUTES Balance Sheet Strength - low leverage relative to peers Net Debt estimate: 92 million (YE 2014) Bank line of credit: 175 million - significant unutilized credit capacity Free Cash Flow 2014 Capital Budget enhancing…
  5. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 5
    2014 BUDGET GUIDANCE Fiscal 2014 E&D Capital Spending 130 million Production: 53% over Annual Avg. (boe/d) 10,500 FY2013 Oil/NGL (%) 60 Cash Flow (Funds from Operations) 150 million 72% over Per basic share 1.24 FY2013…
  6. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 6
    STRONG ORGANIC PRODUCTION GROWTH SIGNIFICANTLY INCREASED LIGHT OIL WEIGHTING 12,000 - 218% production increase (FY2014e) 10,500 since Orleans RTO (Q211) 10,000 8,000 6,860 60% boe/d 6,000 5,356 53% 4,000 43%…
  7. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 7
    FIELD OPERATING NETBACK EXPANSION INCREASED INTERNAL CASH FLOW GENERATING CAPABILITY 50.00 Field Netbacks Opex 46.42 45.00 40.00 Field Netbacks 35.12 35.00 30.40 Operating Costs 30.00 25.00 23.66 20.00 15.00 9.56…
  8. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 8
    CORE OPERATING AREAS Light oil exploration and development Waskahigan/Grizzly Ante Creek Big Muddy Natural gas potential Kaybob Pine Creek Ricinus 9
  9. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 9
    MONTNEY LIGHT OIL FAIRWAY Significant land position in the Montney oil fairway 108 gross (107.15 net) sections in fairway; 99% W.I. + 300 locations at 4 wells/section Significant low risk development inventory 10
  10. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 10
    ANTE CREEK MONTNEY LIGHT OIL Development 36.75 sections 97.2% W.I. 4 wells drilled in Q1 2014 7 wells planned for balance of 2014 Well performance continues to be exceptional. Infrastructure build-out facilitates significant…
  11. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 11
    ANTE CREEK MONTNEY HORIZONTAL OIL WELL PRODUCTION Ante Creek Well Economics: (D,C &T/I) (Light Oil) (Oil equiv.) Well Cost Reserves Reserves F&D Netback ROR NPV 10% (1) 3.6 MM 450 Mbbls 540 MBOE 6.75/boe 46/boe 200% 15.2 MM Note…
  12. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 12
    ANTE CREEK WELL PERFORMANCE 85 days 61 days 74 days 28 days 55 days 77 days 78 days 209 days 248 days 360 days 405 days 13
  13. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 13
    ANTE CREEK INFRASTRUCTURE The major facility expansion was completed end-February 2014 on-time and on-budget, and included a dual, 35 km 8 gas and 8 oil pipelines connection to Waskahigan Pipeline Capacity: 10,000 20,000 bbls/d…
  14. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 14
    WASKAHIGAN / GRIZZLY MONTNEY LIGHT OIL 68.25 sections 100% W.I. 12 wells drilled in 2013; 9 wells planned for balance of 2014 Potential for up to 205 additional locations. Pool details Avg. OOIP/Section: 8 MMBOE 38o API…
  15. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 15
    WASKAHIGAN MONTNEY LIGHT OIL 100% RMP-owned Oil Battery Current capacity: 6,000 bbls/d oil 10 mmcf/d natural gas Facility ownership benefits: Very low operating cost 6 - 7/boe Quick tie-in of new wells 16
  16. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 16
    WASKAHIGAN MONTNEY OIL Waskahigan Netback Breakdown 80.00 70.00 60.00 50.00 Netback /boe 57.03 Royalties 40.00 50.21 49.46 Trans. 46.57 Opex 30.00 20.00 Increased opex 10.00 due to work-overs 8.79…
  17. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 17
    WASKAHIGAN MONTNEY OIL Waskahigan Well Economics: (D,C &T/I) (Light Oil) (Oil equiv.) Well Cost Reserves Reserves F&D Netback ROR NPV 10% (1) 3.9 MM 118 Mbbls 191 MBOE 20/boe 55/boe 62% 3.2 MM Note 1: Assumed pricing of 86/bbl oil…
  18. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 18
    KAYBOB MONTNEY NATURAL GAS 28 sections 92% W.I. Significant low risk gas inventory 25 development locations identified Infrastructure is established; quick tie-in and onstream projects 19
  19. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 19
    APPENDIX 20
  20. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 20
    DIRECTORS Craig Stewart Executive Chairman of RMP Energy Inc. Doug Baker Independent Businessman John Brussa Partner, Burnet Duckworth & Palmer LLP John Ferguson President and CEO of RMP Energy Inc. Andrew Hogg President and CEO of…
  21. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 21
    MANAGEMENT TEAM Craig Stewart Executive Chairman John Ferguson President and CEO Dean Bernhard Vice President, Finance and CFO Brent DesBrisay Vice President, Geosciences Jon Grimwood Vice President, Exploration Greg Kubat…
  22. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 22
    MANAGEMENT TRACK RECORD Senior management team has worked together for over 20 years Successfully grown and managed companies from 1,000 boe/d to 120,000 boe/d Team has invested over 5.0 billion in WCSB since 1992 Team is a…
  23. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 23
    PINE CREEK WILRICH NATURAL GAS 6.25 net sections, 63% W.I. Wilrich development 7 wells currently producing from Wilrich (40% W.I.; Peyto operated) Currently producing 500 boe/d 24
  24. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 24
    RICINUS LIQUID RICH NATURAL GAS 53 sections, 65% W.I. Deep Basin stratigraphy provides a resource style area Potential zones: Cardium Viking Glauconite Ellerslie Cadomin 25
  25. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 25
    FIRST QUARTER 2014 FINANCIAL RESULTS Three Months ended March 31, (thousands except share data) 2014 2013 % Change Funds from operations 35,534 20,128 77 Per share basic 0.30 0.19 58 Net Income 9,896 1,733 471 Net debt period…
  26. CORPORATE PRESENTATION – Rmp Energy Inc. – slide 26
    FIRST QUARTER 2014 OPERATING RESULTS Three months ended March 31, (6:1 oil equivalent conversion) 2014 2013 % Change E&D Capital Spending ( thousands) 55,774 35,401 58 Average Daily Production: Crude Oil (bbls/d) 5,310 3,428 55…

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