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DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc.

Whitecap Resources Inc. · Dec 15, 2011 · 30 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. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 1
    Whitecap Corporate Acquisition December 15, 2011
  2. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 2
    Whitecap Announces Compass Acquisition Transaction Summary Total acquisition cost - 97.8 MM Compass shareholders receive 80% WCP equity and 20% cash WCP assumes 4 MM of positive working capital Establishes Dodsland Viking footprint…
  3. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 3
    Whitecap Transaction Rationale Adds light oil, high netback assets with significant upside Increases low-risk, oil growth drilling inventory by 134 wells Accretive on per share basis to cash flow, production, reserves and NAV…
  4. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 4
    The Resulting Whitecap Pre-Acq Pro Forma % Increase Production (boe/d) Current 8,300 9,700 17% % Oil + NGLs 66% 67% 2% Operating netback (/boe) 47.00 48.50 3% Reserves (MMboe) Proved 23 (76% Oil + NGLs) 26.8 (76% Oil + NGLs)…
  5. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 5
    Whitecap Acquisition History Sept 17, 2009 Acquired Valhalla North asset for 58 MM 850 boe/d; 4.8 MMboe(1) (50% Oil + NGLs) June 25, 2010 ALBERTA Acquired Fosterton pool through RTO SASKATCHEWAN transaction of Spitfire Energy Ltd.…
  6. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 6
    Current Corporate Profile Pre-Transaction Trading symbol / exchange WCP TSX Corporate start date (September 2009) Shares outstanding (MM) Basic 72.2 Fully diluted 77.8 Total market capitalization (MM) 660 Management, employees and…
  7. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 7
    The Business Plan Motivated people + quality assets + focus = SUCCESS Founding Principles All employees are shareholders Light oil focus (80 to 100 WTI platform) Per share growth (cash flow, production, reserves and NAV)…
  8. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 8
    Focus & Results Production Production Growth 10,000 140 118 9,000 120 8,000 9,200 (Production / mm shares - FD) 7,000 100 83 6,000 80 (boe/d) 5,000 61 5,600 49 60 4,000 3,000 40 2,000 20 1,000 1,433 0 275 -…
  9. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 9
    Focus & Results Cash Flow Cash Flow Growth 160.0 2.00 1.81 1.80 140.0 141 1.60 120.0 1.27 1.40 (Cash Flow / shares FD) 100.0 1.20 (MM) 80.0 86 1.00 0.80 60.0 0.50 0.60 40.0 0.40 0.18 20.0 0.20 11.7 - 1.0 -…
  10. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 10
    Focus & Results Reserves Reserves Growth 40,000 500 437 450 35,000 367 34,000 400 30,000 329 350 301 (BOE/MM shares FD) 25,000 28,200 300 239 25,300 (Mboe) 20,000 250 200 15,000 13,676 150 10,000 100 5,000…
  11. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 11
    Value Added Rate of Return of 36% Net Total Total Purchase Capital Total Total Present Cash Flow Rate of Price Spent Cost Cash Flow Value plus NPV Return (MM) (MM) (1) (MM) (1) (MM) (2) (MM) (2) (MM) (2) (%) Area Peace River Arch…
  12. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 12
    Core Areas of Operation - Expanded Visible Oil Growth expanded from 14,000 to 18,000 boe/d ALBERTA Oil drilling inventory 88 Operating netback (/boe) (1) SASKATCHEWAN current / new wells 40 / 60 Peace River Arch Valhalla Oil…
  13. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 13
    West Central Saskatchewan Viking Oil Sask Viking Summary OOIP 6 Billion Barrels+, 200 MMbbls recovered (3% RF) 865 producing horizontal wells, 400+ Lucky Hills licensed wells True resource play, aerially extensive and results can…
  14. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 14
    Lucky Hills Core Develop and Enhance Concentrated Major Asset to Optimize Similar to Spry transaction, de-risked asset Lucky Hills with development upside Contiguous land base Large capital program allows optimization of drilling…
  15. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 15
    Dodsland Viking Oil Strong Economics Capital Sensitivity: Completion Technique Used Ported Collar Limited Entry Viking Horizontal Type Curve Compass Lucky Hills Completion Completion DCE&T (MM) 1.2 1.0 50 Bopd 15-20 Bopd 12 months…
  16. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 16
    Valhalla North An Oil Foundation Montney Oil Underpins Whitecaps value Montney Sexsmith Montney Sexsmith Pool Large DPIIP 83 MMbbls in place Recovered to date 9% (7.6 MMbbls) Light oil (36 API) strong netback 2.5 miles Low decline…
  17. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 17
    Montney Waterflood - Value Growth Project Whitecap Share Valhalla North Production Provides a balance between production 3500 Exit 2011 and reserves growth 3000 PRA base PRA Growth Sexsmith Base Sexsmith Growth Current 2,850…
  18. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 18
    Valhalla Montney Waterflood Plan Simulation Match Oil Saturation Remaining as of December 2010 Large oil in place, minimal recovery Minimal Current WF Less than of recoverable oil being Phase 1 WF Expansion accessed under current…
  19. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 19
    Valhalla North Economics and Type Curves Average Well WTI US/bbl 80.00 90.00 100.00 DCE&T (MM) 4.80 4.80 4.80 Production, IP 3 months (boe/d) 230 230 230 Reserves (Mboe) 550 550 550 Oil (%) 80% 80% 80% NPV BT10 (MM) 4.80 6.36 7.77…
  20. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 20
    Valhalla Montney Upside Summary Montney Middle Total Gross Sexsmith Montney DPIIP (MMbbls) 83 38 121 Total unbooked (MMboe) 26 14 40 Incremental FDC (1) (MM) 56 37 93 Risk on recovery (COS%) 80% 70% Net Incremental reserves…
  21. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 21
    Pembina Cardium Light Oil Growth Potential Strong concentration in East Pembina Light sweet oil (41 API) High netbacks Contiguous land base and infrastructure Lower DCE&T costs Improved drill to onstream times Low operating costs…
  22. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 22
    Pembina Excellent Results to Date Rapidly climbing the learning curve Using 18 frac stages per well Cardium Horizontal Type Curves Using foamed water frac 2.2MM drill & complete cost per well (2.5MM including tie-in) Expect 150+…
  23. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 23
    Cardium Exceptional Well Economics East Pembina Cardium Horizontals WTI US/bbl 80.00 90.00 100.00 DCE&T (MM) 2.5 2.5 2.5 Production, IP 3 months (boe/d) 150 150 150 Reserves (Mboe) 150 150 150 Oil (%) 90% 90% 90% NPV BT10 (MM)…
  24. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 24
    Fosterton South Oil Recovery Optimization Whitecap Roseray DPIIP 21 MMbbls Shallow decline Low recovery to date 9% (1.9 MMbbls) Expected Ultimate Recovery 40% (8.4 MMbbls) Optimize oil recovery through downspacing, WCP Fosterton…
  25. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 25
    Whitecap Stand Alone 2010 2011e % Change Operational Average production (boe/d) 1,433 5,600 291% Per MM share basic 62 89 44% Exit production (boe/d) 3,200 8,300 159% % oil + NGLs 55% 67% 12% E&D capital (MM) 42 135 221% Wells…
  26. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 26
    Exercising Financial Prudence Q4 2011 Hedging Summary 2012 Hedging Summary Type Volume Price Type Volume Price (bbls/d) (C/bbl WTI) (bbls/d) (C/bbl WTI) Q4 swaps 2,000 104 1H swap 2,200 98 Q4 collars 800 82 / 107 1H collar 750 82 /…
  27. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 27
    Increased 2012 Pro Forma Guidance WCP Pro Forma % Increase Operational Average production (boe/d) 9,000 - 9,200 10,600 11,000 20% Per MM share basic 127 135 6% Exit production (boe/d) 9,900 10,100 11,800 12,200 21% E&D capital…
  28. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 28
    The Whitecap Investment Opportunity Experienced & Motivated Team Track record of success knowledgeable, determined and care Sound Capital Structure Objective: per share growth combined with prudent debt management Strong Balance…
  29. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 29
    Active Research Coverage Current Price Targets AltaCorp Capital 9.75 Casimir Capital 11.25 Cormark Securities 11.00 Desjardins Capital Markets 11.00 Dundee Securities Ltd. 10.25 FirstEnergy Capital 10.00 GMP Securities 11.00…
  30. DECEMBER 2011 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 30
    TSX:WCP www.wcap.ca December 15, 2011

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