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Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp.

Pacific Rubiales Energy Corp. · Mar 18, 2015 · 33 slides

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Slides

  1. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 1
    4Q & Full Year 2014 Conference Call Financial & Operational Results
  2. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 2
    Operational Milestones 4Q-FY 2014 4
  3. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 3
    2014 Results* Operational and Financial Highlights 4Q 2014 FY 2014 73.20 /bbl 92.91 /bbl WTI: -25% & -5% decrease vs. 4Q & FY13 respectively 147,075 boe/d 147,423 boe/d Net Production(2): +10% & +14% increase vs. 4Q & FY13…
  4. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 4
    Net Production Profile Mboe/d Natural Gas L&M Oil Other Heavy Oil Rubiales Heavy Oil 180 153 160 149 149 147 147 145 10 140 11 10 10 10 129 10 120 11 47 49 53 49 51 49 22 100 80 26 26 27 28 31 28 37 60 40 54% 42%…
  5. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 5
    Commercial Activity Oil & Gas Sales Trading Advantages Market Prices Realization Price /bbl WTI NYMEX BRENT ICE Combined Realized Price /boe /bbl WTI NYMEX ICE BRENT 130 150 150 120 110 100 100 100 90 80 93.95 90.66 88.05 70…
  6. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 6
    Oil Cash Operating Costs /bbl Diluent Transportation Cost Production Cost (Lifting Cost) 35.24 34.43 33.89 - 14% 32.77 32.24 5.46 2.90 2.19 2.30 2.33 28.05 1.95 15.02 14.99 14.13 14.54 13.93 11.70 15.24 16.51 16.71…
  7. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 7
    Oil Netbacks /bbl Total Operating Cost Netback* 120 99.05 98.44 99.76 100 92.14 89.46 31.46 34.22 Company enjoyed high oil netbacks and 35.45 80 operating margins despite downturn in 4Q 35.03 68.27 32.40 2014 throughout 2014…
  8. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 8
    2015 Plan 4Q-FY 2014 10
  9. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 9
    Unit Cost Improvement Production Cost (Lifting Costs) 2014 vs. 2015 Plan(1) Transportation Cost 2014 vs. 2015 Plan /boe 2014 2015 /boe 2014 2015 15.12 14 12.95 16 11.86 14 12 11.69 12 10 10 8 - 8% - 23% 8 6 6 4 4 2 2 0 0…
  10. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 10
    2014 vs. 2015 E&D Capital Expenditure 2014 Capital Program 2015 Capital Program Development Drilling Exploration Production Facilities Other Projects 6% 16% - 55%* 37% 33% 2.4 1.1 48% Billion 24% Billion 24% 12% Development…
  11. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 11
    Hedged Production 2015 Hedged Instruments* 1Q15 Notional (MMbbl) Puts (/bbl) Calls (/bbl) WTI 2.6 63.27 74.50 BRENT 3.9 56.49 60.72 TOTAL 6.5 - - 2Q15 Notional (MMbbl) Puts (/bbl) Calls (/bbl) WTI 5.4 51.60 56.66 BRENT 6.7…
  12. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 12
    Midstream/Infrastructure Assets Spin Out PACIFIC PACIFIC OCENSA MIDSTREAM INFRASTRUCTURE PNG(1) ASSETS 5% 100% 41% 12.9% 5% WI 36% WI(2) CLOSED 385 MM 240 MM 30% WI 200MM IN PROGRESS 2Q 2015(3) 1. Gross working interest…
  13. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 13
    Liability Management Agreement to amend 1.0 billion revolving credit facility to relax covenants of a consolidated increase leverage ratio from 3.50:1.00 to 4.50:1.00 (12 months trailing). Approval came from 100% of the lending…
  14. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 14
    2015 YTD Snapshot GUIDANCE YTD (E) DETAILS WTI /bbl: 45(1Q), ABOVE WTI WTI prices year to date better 49 than planned for 50(2Q), 55(3Q), 60(4Q) (Plan) Average Production 153 Mboe/d ON TARGET Optimization & efficiencies 150 160…
  15. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 15
    Pacific Rubiales & Ecopetrols Decision on Rubiales Field Contract Pacific Rubiales and Ecopetrol announced mutual decision not to extend Rubiales Field Contract Pacific Rubiales will consider contract operating the field after…
  16. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 16
    PRE Estimated Net Production Profile (Annualized) Mboe/d 300 250 Exploratory (Risked) 200 Mexico 150 2P Growth 100 Base P1 50 0 2013 (E) 2016 (E) 2019 18
  17. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 17
    Exploration Highlights 4Q-FY 2014 19
  18. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 18
    4Q & FY 2014 Drilling Results 56 77% Total Exploratory Wells success 2014 Budget 577.5 MM Executed Dec 31, 2014 561.1 MM Seismic Drilling 34.56 MM 526.57 MM Net Production Incorporated by Exploratory Activity Initial…
  19. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 19
    2015 Exploration Activity Capex: 124.3 MM 2015 Seismic & Budget 2015 Drilling Exploration & Budget km-km2 Seismic 3D Seismic 2D Colombia Peru Brazil PNG Guyana Wells 400 9 WELLS TOTAL 350 350 km2 200 km 8 20 3.4 MM 7 300…
  20. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 20
    2014 Reserve Evaluation 4 independent auditors DeGolyer and MacNaughton: Pacific Stratus business unit and Block 131 Per NSAI: Corvina and Albacora Petrotech: Cajua, Quifa NN, CPE6, Rio Ariari, Sabanero and Block 126 Per RPS…
  21. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 21
    PRE 2014 Net 2P Certified Reserves Estimations MMboe 700 Total Proven: 315 MMboe 30 Total Probable: 196 MMboe 600 (54) (78) 500 400 300 613 511 200 100 0 2P Reserves YE 2013 Additions Production Economic &…
  22. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 22
    2P Reserves by Category MMboe Proven Probable 250 233 Total Proven: 315 MMboe Total Probable: 196 MMboe 202 200 96 45 150 100 76 157 137 50 55 21 0 Heavy Oil Light/Medium/Nat. Gas Peru 24
  23. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 23
    Contingent Resources Audited and Internal Estimates SOURCE VOLUME (MMboe) Audited Contingent Resources (Mar 31, 2014) 256.5 Rio Ariari* 38.6 From 2P due to economic limits* 15.9 Additional volumes Kangaroo* 60.6 Heavy oil…
  24. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 24
    Net Present Value of Reserves (Before Tax) 7.2 Billion Proved 10% 4.95 Probable 10% 2.24 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Billion 26
  25. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 25
    Financial Results 4Q-FY 2014 27
  26. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 26
    2014 Financial Highlights 4Q Financial Results FY Financial Results Earnings from Earnings from MM MM Revenues Adjusted EBIDTA FFO Operations* Revenues Adjusted EBIDTA FFO Operations* 1,400 6,000 1,203 1,200 4,950 5,000 4,627 992…
  27. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 27
    2014 Operational Highlights 4Q Operating Netbacks FY Operating Netbacks /boe Oil Netback Gas Netback Combined Netback Oil Netback Gas Netback Combined Netback 70 70 63.60 62.31 60.77 59.43 60 60 57.06 54.84 50 50 39.45 40…
  28. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 28
    4Q 2014 Financial Results Breakdown Million Cash Non-cash 992 474 99 44 23 419 74 109 410 71 42 480 1,621 -1,685 24 -1,661 Revenues Operating G&A EBITDA Finance Cash taxes Other cash Funds flow Other non- Non-cash Foreign…
  29. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 29
    2014 YTD Financial Results Breakdown Million 4,950 2,105 Cash Non-cash 361 2,484 261 159 43(1) 2,021 26(1) 30 33 1,642 1,625 -1,335 25 -1,310 Revenues Operating G&A EBITDA Finance Cash taxes Other cash Funds flow Other…
  30. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 30
    2014 Impairment 9.2 bn Accounting Key Points Goodwill 7.7 bn 1.4 bn Impairment Based on IFRS accounting rules (IAS 36 .8) (before tax) assets should be impaired when its book Developed & value exceeds its recoverable amount…
  31. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 31
    Solid Debt Profile Current Debt Maturity Profile(1) Debt/Adjusted EBITDA MM Bonds Banks Banks 1,285.3 15% 674 2.1x 1,048.9 1.9x 990.8 1.7x 4,654 3,970 654.9 Bonds 85% 0.8x 0.8x 0.6x 0.6x 321.7 182.8 150.8 18.6 - 2015 2016…
  32. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 32
    Low Oil Price Environment Management Liability Management Strategy Reduced interest rate and increased term of maturity of long-term debt. Revolver Credit Facility (1 Billion) First line of defense CAPEX Reduction from 2.4B (-56%)…
  33. Q4 2014 EARNINGS CALL – Pacific Rubiales Energy Corp. – slide 33
    J. Frederick Kozak Corporate VP, Investor Relations +1 (403) 6063165 +57 (1) 5117992 fkozakpacicrubiales.com Christopher LeGallais Senior VP, Investor Relations clegallaispacicrubiales.com +1 (647) 2953700 Roberto Puente…

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