Corporate Profile Corporate Summary Q1 2015 Production 69,334 boe/d Production Mix1 52 liquids/48% gas Corporate Decline2 17% Undeveloped Land 600,000 acres Reserves (2P YE 2014)3 557.4 million boe Reserve Life Index (2P YE…
OUR STRATEGY REMAINS TO BUILD A SUSTAINABLE DIVIDEND PAYING ENTITY THROUGH THE DEVELOPMENT OF LARGE ACCUMULATIONS OF OIL, BITUMEN AND NATURAL GAS WITH LOW DECLINES AND LOW COST STRUCTURES
Sustainable growth with commodity and capital optionality SUSTAINABLE DIVIDEND PAYING IDENTITY Large accumulations CONVENTIONAL Long life assets THERMAL ASSETS Low declines ASSETS Low cost structure Swan Hills Low sustaining…
2014 Achievements ANOTHER YEAR OF SUCCESSFULLY DELIVERING ON OUR COMMITMENTS Production performance exceeded top end of guidance even with mature asset sales of 1,400 boe/d Lindbergh Phase I construction and commissioning completed…
Dealing with the uncertainty in 2015 IN THE CONTEXT OF A DECLINING COMMODITY PRICE ENVIRONMENT, PENGROWTH INITIATED THE FOLLOWING ACTIONS TO ENSURE THE SUSTAINABILITY OF THE COMPANY.. A significantly reduced capital program for 2015 of…
First quarter 2015 highlights Generated strong funds flow from operations Funds flow declined only two percent from Q4, 2014 despite 30 percent reduction in commodity prices Lindbergh ramped up as expected Current production in…
2015 expected to generate free funds flow to reduce debt Development efforts will focus on optimizing vs. growth 2015 financial profile that balances cash outflows with cash inflows Surplus funds flow will be directed to debt…
Corporate hedging provides a measure of stability and strength to cash flow Hedge positions as at June 22, 2015 Crude Oil Natural Gas Power Volume Average Volume Average Volume Average Price Price Price (bbl/d) (Cdn/bbl)…
Stable funds flow anticipated even if low commodity price environment extends into 2017 Growth in liquids production expected to provide sufficient funds flow to execute on strategy and address debt maturities through 2017 2014A…
Strategy to reduce outstanding debt and strengthen balance sheet Continue to maintain a balanced spending Maintain profile Capital expenditures plus dividends equal Balanced to or less than internally generated funds flow…
Lindbergh Thermal Project
Lindbergh Where and what is it Lindbergh Lindbergh Target formation Lloydminster 2P Reserves * 243 million bbls Best Estimate Contingent 101 million bbls Resources* 2P Reserves* NPV10 2,061 million Best Estimate Contingent…
Lindbergh commercial ramp-up following same performance trajectory as pilot wells* 700 600 Bitumen Production (bbl/d) 500 400 300 200 100 ESP Conversions 0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 3.9 4.4 4.9 5.4…
Lindbergh results demonstrate top quartile instantaneous steam-oil ratios and well productivity 2,000 1,800 1,600 1,400 Christina Lake (CVE) Firebag Average well productivity (bbl/d) 1,200 1,000 800 Jackfish 1…
Lindbergh economics are top quartile within SAGD space Break even NPV10 = 0 US 43.07 WTI Cash flow =0 US 27.86 WTI 30% 70 Netback BT IRR 60 25% 50 Cash Netback (Cdn/bbl) 20% 40 IRR (%) 15% 30 10% 20 5%…
Lindbergh competes with lowest cost production on world cost curve 120 Average break even 100 Oil Extra heavy oil Sands Ultra Deepwater 80 Onshore rest of world Deepwater Onshore 72 Russia Cost (US per barrel)…
Carbon costs are not expected to be punitive on Lindbergh development Phase 1 - 12,500 bopd Phase 1+2 - 30,000 bbl/d CO2 Emissions Source CSOR = 3.6, GOR=15m3 /m3 CSOR = 3.6, GOR=15m3 /m3 Combustion 328,000 tonnes/yr 788,000…
Summary
Conclusion Building on our momentum 2014 was an excellent year Continued superior execution in cost reduction and production rates on our conventional assets On-time delivery of construction, commissioning and first steam of Lindbergh…
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