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MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd.

Bellatrix Exploration Ltd. · May 29, 2015 · 39 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. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 1
    Full Cycle Profitable Growth AGM PRESENTATION MAY 2015 TSX: BXE NYSE: BXE
  2. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 2
    Bellatrix Core Values Focus on per Technically strong Strategic direction Flexible financial share profitability & vision position Track record of Early stage adoption of 20+ years drilling Balance sheet production, reserve &…
  3. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 3
    Corporate Profile MARKET SUMMARY Ticker Symbol TSX / NYSE: BXE Average Daily Volume1 Canada: 2.2 million / U.S.: 0.9 million Shares Outstanding 192.0 million basic / 202.7 million diluted Market Capitalization2 668 million Net…
  4. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 4
    Doing More with Less in 2015 2015/2014 2015 FORECAST 2014 ACTUAL CHANGE Net Capital Budget (MM) 200 504 -60% Infrastructure (MM) 70 188 -63% Drilling & Completions (MM) 120 298 -60% Other (MM) 1 10 18 -44% Average Production Low…
  5. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 5
    Commodity Price Risk Management NATURAL GAS HEDGES OIL HEDGES 100% 60% C2.93 C2.93 % of total forecast oil & condi volumes 90% C70.34 C70.34 C70.34 % of total forecast gas volumes 80% 50% 70% 40% 60% C2.95 50% 30%…
  6. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 6
    Track Record of Production and Reserves Growth HISTORICAL PRODUCTION HISTORICAL RESERVES Natural Gas Oil and Liquids Production per share (right side) Natural Gas Oil and Liquids Reserves per share (right side) 40,000 38,065 80 260…
  7. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 7
    Track Record of Cash Flow and Earnings Growth OPERATING FUNDS FLOW EARNINGS 300 1.60 175 1.05 Operating Funds Flow Earnings 150 163 0.90 FFO Per Share 1.40 EPS 271 250 125 0.75 1.20 Operating Funds Flow ( millions) 200…
  8. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 8
    NAV of 1.7 Billion or 9.01 Per Basic Share 2P NAVPS BUILD-UP1 14.00 12.00 1.31 (3.32) 10.00 3.67 Value ( per basic share) 8.00 2.50 6.00 9.01 4.00 4.86 2.00 0.00 PDP (2) 1P (2) 2P (2) Undev land + Net debt (5) 2P…
  9. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 9
    Peer Group Comparison OPERATING COSTS/ BOE1 2P FD&A (INCLUDING FDC)2 16.00 22.00 20.00 14.00 18.00 12.00 16.00 10.00 14.00 12.00 8.00 10.00 6.00 8.00 6.00 4.00 4.00 2.00 2.00 0.00 0.00 BXE BXE Low cost operator Top…
  10. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 10
    Top Quartile Historical Results PEER LEADING RESULTS 200% 179% CASH FLOW PER SHARE GROWTH (2010-2014)1,2 Peers 166% 160% 120% 106% 120% BXE 80% 31% 40% 14% 8% 0% (40%) (0%) (10%) (22%) (80%) (58%) 200% 153%…
  11. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 11
    Concentrated Land Base FERRIER WEST CENTRAL ALBERTA STRACHAN Production1 (% of total): 74% Production1 (% of total): 8% Land2 (net acres): 75,333 Land2 (net acres): 50,750 P+P net locations: 178 P+P net locations: 33 Unbooked net…
  12. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 12
    Significant Drilling Inventory NET ACREAGE1 NET DRILLING LOCATIONS2 Net dev. Net undev. Proved Probable Unbooked Total Area sections sections Total locations locations locations locations Ferrier 59 59 118 137 41 549 727 Willesden…
  13. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 13
    Spirit River Liquids Rich Gas BXE Land Sections FERRIER CORE SPIRIT RIVER PLAY 287 Gross1 162 Net1 BXE Net Drilling Inventory 44 proved 15 probable 339 unbooked 398 total Spirit River Resource Play Summary Regional Stacked…
  14. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 14
    Spirit River Geology Summary Broad, thick, extensive sand rich valleys in Notikewin, Falher and Wilrich members Average thickness 25-40m 2 to 3 stacked channels per section 2-6 wells per pad 3 wells per zone to fully develop a section…
  15. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 15
    Low Supply Cost Bellatrix Spirit River wells compare favorably with other top plays across the Western Canadian Sedimentary Basin PAYOUT & IRR PLAY COMPARISON 5.0 70% 4.5 60% 4.0 3.5 50% 3.0 40% Payout (years) 2.5 IRR…
  16. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 16
    Industry Leader in Spirit River Development COMPARATIVE 2014 NOTIKEWIN & FALHER COST & EFFICIENCY METRICS Frac stages 40 Number of completion days Average days per stage 20 3.0 35 Days per completion stage 2.5 30 Days to…
  17. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 17
    Spirit River Type Curves 7.4 BCF TYPE CURVE SPIRIT RIVER TYPE CURVES 2,000 EUR 1,421 Mboe / 20% oil + liq. 7.4 Bcf Type Curve 5.2 Bcf Type Curve 1,800 IP30 1,887 boe/d (11.3 MMcfe/d) Average Production (boe/d) 1,600 Half Cycle…
  18. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 18
    Spirit River All-In Profitability Full cycle F&D costs Drill 2.1MM Full cycle F&D costs /Mcfe (1.11) Complete 1.7MM Equip & tie-in 0.8MM Half cycle costs 4.7MM Cash costs /Mcfe (1.57) Land/seismic/facilities 1.1MM Full cycle costs…
  19. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 19
    Cardium Light Oil Resource Play BXE Cardium Sections 494 Gross Edson 334 Net BXE Net Drilling Inventory 157 proved 50 probable Pembina 348 unbooked Ferrier 555 total Lease Operate Expense < 9.00/boe Cardium Resource Play…
  20. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 20
    Proven Innovative Development The leading Cardium driller since 2013 APPLYING CUTTING EDGE EXPLOITATION TECHNIQUES Horizontal well placement and applying cutting edge exploitation techniques results in top-tier well results…
  21. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 21
    Cardium Type Curves CARDIUM TYPE CURVES 700 CARDIUM OIL WEIGHTED TYPE CURVE1 Cardium Oil Weighted Ferrier Gas 600 EUR 454 Mboe / 41% oil + liq. Average Production (boe/d) IP30 650 boe/d 500 Half Cycle Full Cycle 400 Capex 3.9…
  22. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 22
    Cardium (P-Mean Type Curve) Provides Long-Term Low Risk Optionality At Higher Oil Prices Base case (US70/bbl WTI) Full cycle F&D costs Drill 2.00MM WTI US40/bbl US50/bbl US60/bbl US70/bbl US80/bbl US90/bbl Complete 1.50MM Edm Par…
  23. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 23
    Early Stage Adoption of Leading Technological Advancements 2009 Enhanced recovery using horizontal wells and Increased recoveries and 2010 multistage reduced per well costs frac technology 2011 Began to transfer technology…
  24. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 24
    Greater Ferrier Area Infrastructure Overview GREATER FERRIER EXISTING GREATER FERRIER AREA STRATEGIC INFRASTRUCTURE INFRASTRUCTURE ACCESS: Infrastructure gives Bellatrix control of production and growth Working interest or…
  25. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 25
    Growing Firm Capacity Within Core Areas TOTAL BELLATRIX GROSS PROCESSING CAPACITY GREATER FERRIER BXE Phase 2 deep cut incremental 600 110 MMcf/d Bellatrix net processing Total Gross Raw Gas Processing Capacity (MMcf/d) BXE…
  26. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 26
    Bellatrix Facility NGL Yield Uplift Bellatrix Deep Cut Facilities (Phase I & II) Raw Gas (MMcf/d) 245 Shrinkage 10% Sales Gas (MMcf/d) 220 NGL Yields1 Current Third Party Bellatrix Facilities Combined Facilities(2) Facilities…
  27. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 27
    Strategic Infrastructure Enhances Netbacks THIRD PARTY FACILITIES(1) BELLATRIX FACILITIES(1) COMBINED FACILITIES(2) Yield Revenue Yield Revenue Yield Revenue Price Bbl/MMcf Sales 000s Bbl/MMcf Sales 000s Bbl/MMcf Sales 000s Dry Gas…
  28. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 28
    Financial Position 2015 A YEAR OF BALANCE SHEET PRESERVATION Up to 200 million CAPEX budget with flexibility to adjust second half 2015 spending plans Further capital reductions or transactions possible to reduce debt further Bank…
  29. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 29
    Differentiated Joint Venture Strategy Bellatrix has entered into a series of Joint Venture (JV) transactions providing up to 700 million in development cost funding This clearly differentiated strategy provides significant benefits:…
  30. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 30
    Joint Ventures & Strategic Partnerships JOINT VENTURES STRATEGIC PARTNERSHIPS Grafton JV (GJV) Troika JV (TJV) CNOR JV - 500 MM Daewoo/Devonian JV OChiese Partnership 305 MM 240 MM (Grafton managed co.) 200 MM Effective Date: July…
  31. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 31
    Compelling Investment Opportunity Experienced management team Industry leading well results Low cost operator and finder A large inventory of high rate of return drilling locations Unfettered growth potential with firm…
  32. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 32
    Appendix: Additional Long Term Opportunities
  33. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 33
    Lower Mannville: Liquids-rich Gas Play Drill locations identified across GR Porosity three play types 31 horizontal Ellerslie wells drilled by Angle/BXE at Harmattan to date Net Drilling Inventory: 12 proved 15 probable 77 unbooked…
  34. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 34
    Duvernay Unconventional Resource BXE Land Sections 130 Gross1 129 Net1 BXE Net Drilling Inventory 415 unbooked +95 Duvernay wells licensed in Greater Ferrier and Edson 18 wells currently on production BXE 09-24 HZ highest…
  35. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 35
    Second White Specks: Tight Oil Resource Laterally continuous fairway: 6,000 sq miles Thick: 75-225m Over-pressured: 9-14KPA/m Thermally mature for oil: Tmax 435-455C High Organic Content (TOC): 1.5-4wt% Existing vertical production 15…
  36. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 36
    Belly River: Regional Oil & Gas Play Significant oil production in the Basal Belly River from extensive marine shoreface deposits Gas & oil production from lower to upper Belly River fluvial channel deposits 37
  37. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 37
    Rock Creek: Willesden Green Laterally extensive tight marine sandstone 10 horizontal well inventory 33 BXE gross sections Core Area 55% average BXE WI Numerous vertical industry producers 38
  38. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 38
    Corporate Information BOARD OF DIRECTORS OFFICERS BANKERS W.C. (Mickey) Dunn Raymond G. Smith, P.Eng. National Bank of Canada Chairman President & CEO Alberta Treasury Branches HSBC Bank Canada Edward J. Brown, C.A. Canadian Imperial…
  39. MAY 2015 ANNUAL GENERAL MEETING – Bellatrix Exploration Ltd. – slide 39
    1920, 800 5th Avenue SW Calgary, Alberta Canada T2P 3T6 Tel: (403) 266-8670 Fax: (403) 264-8163 www.bellatrixexploration.com

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