Skip to main content CORPORATE PRESENTATION – Peyto Exploration & Development Corp | Shale Experts
Loading...
Pm

CORPORATE PRESENTATION – Peyto Exploration & Development Corp

Peyto Exploration & Development Corp · Jun 30, 2014 · 48 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. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 1
    15th 19982013
  2. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 2
    The Peyto Strategy 15th19982013 What We Believe N We believe natures gas is the fuel for the future. N We believe we can make a real profit by being the lowest cost, most efficient producer in the industry. N We believe in…
  3. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 3
    The Peyto Strategy 15th 19982013 How We Do It Invest in our own ideas Build it ourselves Operate it ourselves Focus on maximum return Stay concentrated, lean & efficient 4 7/11/2014
  4. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 4
    The Peyto Strategy 15th 19982013 Superior Shareholder Returns 60 700,000 14 50 45% 12 Total 40 Return Shareholder IRR last yr. 10 30 8 20 6 10 4 1,000 0 2 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007…
  5. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 5
    The Peyto Strategy 15th 19982013 Profitably Grow Our Assets Production Growth Reserves Growth PDP FD&A Operating Costs (MMcfe/mm sh) (2P Bcfe/mm sh) (/Mcfe) w/transportation 18.9 2.95 2.88 (/Mcfe) 872 16.7 2.35 2.39 2.22…
  6. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 6
    The Peyto Strategy 15th 19982013 Growth per Share 600 2014 YE Target 15 75 81,500 boe/d Production per Unit or Share (boe/d per million) 500 60 12 400 Gas Price (/GJ) PEY+ Cum Div 9 45 (2014 Forecast)…
  7. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 7
    Peyto Profile 15th 19982013 N TSX Listing: PEY N Shares Outstanding: 153.7 million, 4.4% insiders (as of Feb. 5/14) N Monthly Dividend: 0.10/share (incr. from 0.08 effective May/14) N Current Production: 445 MMCFe/d (74,000…
  8. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 8
    15th 19982013 Peytos Profitable Business
  9. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 9
    Peytos Profitable Business 15th 19982013 Build it for less than we sell it PEY 2013 Land/Acq Seismic 9MM 3MM Drilling 254MM PDP FD&A (2.35) Compl. 152MM Wellsite 48MM /mcfe Facilities 112MM 578MM PDP Reserves (before…
  10. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 10
    Peytos Profitable Business 15th 19982013 Profitable Even Through The Lows AECO Monthly 10 Peyto Realized Gas Price (/mcfe) /GJ 37% Ave. Profit Cum To Date 8 6 Bonus 1.02 4 Cash Costs (1.06) 2 PDP FD&A…
  11. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 11
    Peytos Profitable Business 15th 19982013 Profitability Challenges for the Canadian Gas Industry 2013 2012 2011 20101 PDP FD&A /mcfe (2.93) (3.43) (3.68) (3.11) Cash Costs /mcfe (3.13) (2.98) (3.31) (3.19) Sales Price…
  12. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 12
    15th 19982013 Peytos Unique Assets
  13. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 13
    Peytos Assets 15th 19982013 Geographically Focused Core Areas 425,000 net acres R10 R5W6 R27 R22 R17 9 operated R12 R7W5 gas plants Cutbank ---(525 mmcf/d net capacity) 1000+ km pipelines 900+ producing zones T60 Kakwa 75,000…
  14. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 14
    Peytos Assets 15th19982013 Deep Basin Permeability Segregation Ante Ck FOOTHILLS STRUCTURES Elmworth GAS AS ING INCRE BILITY EA PERM WATER Kaybob TRANSITION ZONE WATER Kakwa GAS Gas INCREAH DEPT SE AREA OF GAS…
  15. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 15
    Peytos Assets 15th 19982013 Multi Zone Stacked Sandstone Reservoirs Detailed Petrophysical work on the Spirit River sands revealed 30% more reserves per section Up to per section* 16 *NGL recoveries can…
  16. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 16
    Peytos Assets 15th 19982013 Production By Formation 80,000 70,000 60,000 BOE/D 50,000 Wilrich 40,000 30,000 Notikewin Falher 20,000 Cardium 10,000 Bluesky 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014…
  17. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 17
    Peytos Assets 15th 19982013 Deep Basin Lands Go A Long Way 450 Peyto Lands 400 Net Lands (000's acres) 350 300 250 200 150 Net Peyto Sections 100 50 - Net Sections of Cardium, Dunvegan, Notikewin, Falher,…
  18. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 18
    Peytos Assets 15th 19982013 Spirit River Group Potential Land Expiries 24 Month Expiries Earliest Expiry Date out to 2015-09-30 ( 1700 agreements) Peyto Land 19 7/11/2014
  19. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 19
    Peytos Assets 15th 19982013 Greater Sundance Area FF F A AFF CF ACF CF F CF C F AAC AA F A F LF F G CF I F F J F F C G G CL K CCF K F AG C FA F AFAF AF A A F FA F AF C G K FA FACF FAA F AGAF A F A F A F F AF F A CCF F G FC G…
  20. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 20
    Peytos Assets 15th 19982013 Brazeau River Area F U JM LE Keyera F F F S V F F GG L F G K G FG M CG Brazeau GE JS EE E E FC F G K J GA F U V W E G A G F E F C U U F KC F F A AG V F F C A E V E E U U C F F C KF G FSour GF…
  21. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 21
    Peytos Assets 15th 19982013 Facility Ownership and Control R9 R4W6 R26 R21 R16 R11 R6W5 Cutbank Waskahigan W Chicken T60 W Smoky/Kakwa Cutpick Leland/Berland Oldman North T55 Wildhay W W Nosehill W W Sundance Galloway…
  22. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 22
    Peytos Assets 15th 19982013 Large Hz MSF Inventory To Do Done1 Total Total Hz Hz Locations Total Total Locations Unbooked Vertical Hz Booked* Wells Wells 56 432 63 200 356 5 1 5 1 14 90 56 87 43 7 27 37 23 27 56…
  23. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 23
    Peytos Assets 15th 19982013 Longest Reserve Life 10.0 8.7 7.6 7.2 6.9 6.3 6.1 6.0 6.0 5.8 5.7 5.6 5.5 5.4 5.1 5.0 5.0 4.6 4.5 4.4 Peyto 2013 PP RLI (yrs) 3.9 3.6 3.4 3 3 0.0 NVA PEYTO BXE AAV…
  24. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 24
    Peytos Assets 15th 19982013 Low FD&A Costs = High Recycle Ratio Proved Producing 50 Total Proved Proved + Probable 40 Field Netback 30 20 Peyto PP Recycle Ratio 10 (14 yr average) 0 2002 2003 2004 2005 2006…
  25. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 25
    Peytos Assets 15th 19982013 Lowest Operating Costs Gas Producers How We operate Full facilities No water No sour Chemical recycle Nat gas fuel Continuous innovation CAGR 0.5 %/yr 26 BOE factor - 6 mcf = 1 bbl of…
  26. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 26
    Peytos Assets 15th 19982013 Deep Gas Drilling Royalty Incentives 3,500-4,000 m MD Trigger depth for Natural Gas Deep Drilling Program 2,200 m reduced from TVD 2,500m TVD to 2,000m TVD 3,700-4,000 m MD 2,650-2,850 m…
  27. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 27
    Peytos Assets 15th 19982013 Liquids Rich Natural Gas Peyto Q1 2014 Realized Prices1 Natural Gas 4.57/GJ Ethane C2H6 27/bbl =…
  28. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 28
    Peytos Assets 15th 19982013 Self Sufficient Energy Inputs 5MM Estimated Savings/yr. 29 Diesel 1.00/litre Nat Gas 3.00/Mcf (0.10/litre) 7/11/2014
  29. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 29
    15th 19982013 Peytos Incredible Returns
  30. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 30
    Peytos Business 15th 19982013 Focus on Returns Drives Capital Discipline 2013 - 15,100/boe/d 2012 - 17,600/boe/d ONR Acq - 38,600/boe/d 60,000 Annual Production Wedge (boe/d) 2011 - 17,500/boe/d 80,000 2010 - 17,300/boe/d…
  31. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 31
    Peytos Returns 15th 19982013 Hypothetical Returns Upper Middle Brazeau Brazeau Species Cardium Notikewin Falher Falher Wilrich Bluesky Falher Wilrich Well Costs D&C (M) (M) 3,500 4,300 4,100 4,200 4,300 4,200 4,600 4,800…
  32. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 32
    ROR, % 0 20 40 60 80 100 120 140 160 100/01295421W5/0 HZ 100/11325421W5/0 HZ 102/04335421W5/0 HZ 100/16165621W5/0 HZ 102/16295421W5/0 HZ 102/13325421W5/0 HZ 103/05045521W5/0 HZ 100/01055119W5/0 HZ…
  33. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 33
    Peytos Returns 15th 19982013 Returns Driven Organic Activity 80,000 70,000 60,000 2013 50,000 Boe/d 40,000 30,000 Net Capital (after NOI) to PV5 20,000 10,000 0 2013 Capital Program Production/share growth 99…
  34. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 34
    Peytos Returns 15th 19982013 High Returns On Your Capital And Equity 60% 10 50% 8 40% 6 30% 15 yr Average ROE 4 20% 12% 10% 10% 2 0% 0 Return On Capital Employed (%) Return On Equity (%) Earnings/share Realized Gas…
  35. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 35
    Peytos Returns 15th 19982013 Shareholder Returns = NAV Growth + Income 60 Cum Div/Dist P+P 50 PV5 debt adj./share TP 40 PDP 30 20 10 Compound Annual - Growth Rate (14 yr) 36 PV5 DA/share is Before Tax Net…
  36. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 36
    15th 19982013 Peytos Future
  37. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 37
    2014 Outlook 15th 19982013 Biggest Year Ever (again) Drill 110-122 Hz Wells (100% Hz-MSF, Liquids Rich Natural Gas) Expand & Extract Increase Processing Capacity & NGL Yield Increase Undeveloped Land Base Shoot Seismic…
  38. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 38
    2014 Outlook Large Resource + Low Cost = Profitable Growth 2014 Budget 575MM625MM 100,000 110 122G (101112N) Wells, 910 rigs 100,000 Add 32k to 35k boe/d for 18,000/boe/d 78,500 to 81,500 boe/d exit 90,000 90,000 75,200 boe/d…
  39. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 39
    2014 Outlook 15th19982013 Continuously Improve Profitability 2014 Goals* Pad drilling CNG powered rigs PDP FD&A…
  40. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 40
    Peytos Future 15th 19982013 Road to 100,000 boe/d 120,000 100,000 boed 25% CAGR 110,000 90,000 boed 100,000 80,000 boed 90,000 72,600 boed 17,500/boe/d 80,000 17,500/boe/d 70,000 BOED 17,500/boe/d 60,000 61,600…
  41. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 41
    Appendix 15th 19982013 N Quarterly Track Record N Tax Pools N Payout N Hedging Strategy N Gas Marketing N Liquids Marketing N FAQ 42 7/11/2014
  42. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 42
    Quarterly Track Record 15th 19982013 2014 2013 2012 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Operations Production Oil & NGLs (bbl/d) 7,375 6,376 6,984 6,295 6,374 5,840 4,778 5,286 5,236 4,480 4,101 3,856 3,947 Natural…
  43. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 43
    Organic Business Model 15th 19982013 Peytos Tax Pools 1,600 1,400 1,200 1,000 Federal Tax Pools Millions 800 Q1/14 600 400 200 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 CEC UCC…
  44. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 44
    Peytos Payout 15th 19982013 Dividend Sustainability Peyto Dividend Sustainability 1,800 1,600 1,400 1,200 Peyto Cum. Earnings 1,000 Q1/14 800 600 400 200 0 Cum Dist/Div (before DRIP) Cum Earnings Peyto Cum.…
  45. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 45
    Successful Hedging Strategy 15th 19982013 Peyto Realized Price History 2003 2004 2006 2010 2012 2013 16.00 2005 2007 2008 2009 2011 Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto 7.51/mcf 7.38/mcf 8.78/mcf…
  46. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 46
    Gas Marketing 15th 19982013 Future Sales (contracts before 2013) Financial Hedges - Gas Pricing 2013 2014 2015 2016 Da te contra cte d GJ/d (/GJ) A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S…
  47. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 47
    Gas Marketing 15th 19982013 Future Sales (Contracted in 2013) Financial Hedges - Gas Pricing 2013 2014 2015 2016 Da te contra cte d GJ/d (/GJ) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A…
  48. CORPORATE PRESENTATION – Peyto Exploration & Development Corp – slide 48
    Liquids Marketing 15th 19982013 Future Sales Financial Hedges - Propane 2012 2013 2014 Term bbl/d Pricing (/bbl) A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M From To 01-Sep-12 31-Mar-13 66 49.56…

From the store

Browse maps, data & reports in the Shale Experts store