Bank Of America Merrill Lynch 2014 Leveraged Finance Conference December 3, 2014
OUR FOCUS We are an upstream energy company, focused on light oil development in western Canada EXTENSIVE PORTFOLIO SUSTAINABLE SHAREHOLDER VALUE OF ASSETS BUSINESS MODEL CREATION Drilling inventory of 10+ Growth platform with a…
OUR ASSET BASE Oil Gas 9 Month Average Production 41,750 boepd Business Units Q3 Production1 Drilling Inventory1 (boepd) (locations) Bakken and Conventional 16,941 1,075 October 2014 Cardium 17,699 520 Average Production:…
GROWING FREE CASH FLOW Initial capital investment in light oil resource plays generates near-term FUTURE GROWTH production growth and early payout GROWING INTO FREE CASH FLOW Maturing production base generates growing free…
DEBT AND LIQUIDITY Term debt provides certainty; balance sheet liquidity provides flexibility 600 million of available DEBT CAPITAL COMPOSITION Term Secured Debt liquidity 2 Term subject to 1.15 billion Credit further…
TOTAL DEBT POSITION 2010 2011 2012 2013 Total Year-End Debt Q3 Pro Forma 2014 2,500 50,000 2,000 40,000 Production (boepd) Debt and Liquidity (mm) 1,500 30,000 1,000 20,000 500 10,000 0 0 2010 2011 2012 2013 Q3…
DISPOSITION ACTIVITY 2014 asset sales total 729 million Dispositions To-Date Metric Production 6,315 boepd 115,400/boepd 1 Reserves (2P) 20.9 mmboe 39.12/boe Annualized Net Operating 2 112 million 6.5x Income We exceeded…
GUIDANCE UPDATE Guidance reflects actual results for the first nine months of 2014 and fourth quarter pricing assumptions GUIDANCE UPDATE (Oct. 30, 2014 ) Revised Previous 1 Average Production (boe/d) 40,000 41,000 1 40,000 42,000…
WE HEDGE OUR RISK Hedging Outlook 2014(e) Production 40,500 boepd 20,000 125 16,000 100 Royalties 3 Hedged Volume (bbl/d) Hedged Price (/bbl) (Unhedged) 15% 12,000 75 8,000 50 Hedged Oil Unhedged 38% Production 4,000…
MATURING ASSET BASE As our remaining assets mature, our declines are expected to decrease Our 2014 dispositions have increased our base decline range slightly Annual Corporate Decline Rate 50% 40% 30% 20% 10% 0% 2010…
PRODUCTION PLATFORM In 2014, we reduced our capital expenditures and applied disposition proceeds to our balance sheet 50,000 1,000 Extensive light oil assets 78% light oil and liquids 40,000 800 Asset base underpins our…
IMPROVING SUSTAINABILITY Our sustainability ratio continues to improve as our production matures All-in Sustainability Maturing production 200% 190% attenuates the base decline rate and generates higher free 161% 150% 150% operating…
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. With a moderate drilling program in 2014, we focused on optimizing…
IMPROVING TIGHT OIL RECOVERIES Future value generation through natural gas flooding With Bakken EOR projects we Bakken Creelman EOR Performance expect to: 1600 12 Attenuate declines and extend production life 1400 Increase DPIIP…
CARDIUM ASSETS Generating positive operating cash flow Our extensive land base stretches from Calgary to LTS Land Edmonton and our assets primarily produce light oil LTS Batteries from the Cardium formation. We are continuously Sales…
CARDIUM GROWTH Cardium Production and Cumulative 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…
PROVEN RESULTS THROUGH INNOVATION Innovations in drilling and completion techniques improve production and lower costs Performance in West Pembina Slickwater fracturing has 100,000 reduced costs and improved production Cumulative…
AB / BC ASSETS The Swan Hills has become our next growth target Our focus for new growth is in the Swan Hills area of northern Alberta. We started drilling in the area in 2012 and have since grown production rates to 2,700 boepd and…
SWAN HILLS REVIEW: RESULTS Technical review confirms long term growth potential Production from Q1 2014 wells Swan Hills Production below expectations 100,000 In Q1 2014 we suspended our remaining drilling program and…
GROWING SWAN HILLS PRODUCTION In 2013/14 we drilled 7 new wells which were tied-in to our new 3,500 bopd battery in June 5,000 25 4,000 20 Net Wells on Production Production (boepd) 3,000 15 2,000 10 1,000 5 0…
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 Bakken Business Unit Type Well Mississippian Bakken Cardium Swan…
LONG-TERM OPPORTUNITY EXTENSIVE ASSETS SUSTAINABILITY SHAREHOLDER VALUE Drilling inventory of 10+ 2014 sustainability ratio Strong cash netbacks years of 100% Long-term growth with Undeveloped land of Attractive annual a…
Appendix
CONSISTENTLY DELIVERING RESULTS Our assets have built a reliable foundation providing consistent results year-over-year Average Production (boepd) Operating Netback (/boe) 46,438 42,784 54.76 41,688 40,998 40,500 50.00 47.76…
CASH NETBACK Our strong cash netbacks are the result of our light oil focus 2014 Q3 Cash Netback 50 40 30 /boe 20 10 0 CPG BNE* TOG VET* WCP* BTE* SGY LTS* ARX PWT PEY ERF* PGF* BNP Cash netback = funds flow from…
DIVIDEND PAYOUT RATIO Lightstream maintains the lowest dividend payout ratio in our peer group 2014 Q3 Dividend Payout Ratio 60% 50% % of Cash Flow 40% 30% 20% 10% 0% LTS TOG ERF PEY PWT BNP ARX VET WCP BTE PGF SGY…
CASH NETBACK AFTER DIVIDENDS Our low dividend payout ratio and high cash netbacks generate significant discretionary cash 2014 Q3 Cash Netbacks Including Declared Dividend 40 30 /boe 20 10 0 TOG LTS* VET* WCP* CPG…
SUSTAINABILITY We are targeting a sustainability ratio of 100% for 2014 2014 (e) Consensus All-in Susatainability 189% 150% 125% 100% 75% 50% 25% 0% SGY LTS* VET* TOG ARX PWT WCP* CPG BNE* ERF* PEY BTE* BNP PGF* All-in…
Trading Symbol LTS: TSX Market Capitalization 706 million Share Price (November 25, 2014) 3.52 Total Debt 1.56 billion Shares Outstanding (Q3 2014 Basic) 200.6 MM Enterprise Value 2.27 billion Options/Incentive shares 6.0 MM Annual…
Loading...
