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JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc.

Whitecap Resources Inc. · Jul 1, 2015 · 31 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. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 1
    SUCCESS FOCUS = + + MOTIVATED PEOPLE QUALITY ASSETS SUSTAINABLE LIGHT OIL GROWTH + INCOME PLATFORM July 2015
  2. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 2
    Whitecap Profile Shares outstanding (MM) TSX: WCP Basic 298.6 Fully diluted 303.1 Market capitalization (B) 4.0 Annual dividend (/share) 0.75 2015 average production (boe/d) 39,700 % oil + NGLs 76% 2015 netback (/boe) Operating…
  3. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 3
    Total Shareholder Return 10% / Annum MOTIVATED PEOPLE + QUALITY ASSETS + FOCUS = SUCCESS Founding Principles Employees are shareholders Light oil focus Per share growth (cash flow, production, reserves and NAV) Execution…
  4. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 4
    WCP Employee Share Ownership Total Employee Ownership 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 2012 2013 2014 2015 Since 2009 insiders increased…
  5. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 5
    2015 Outlook 2014 2015 % Change Operational Average production (boe/d) 32,458 39,700 22% Development capital (MM) 324 235 (27%) Wells drilled (gross) 169 129 (24%) Financial Cash flow netback (/boe) 41.00 32.85 (20%) Cash flow (MM) 487…
  6. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 6
    2015 Whitecap Sustainability Oil (USWTI) 56.00 65.00 75.00 85.00 Edm Par Diff (USWTI) (6.00) (6.00) (6.00) (6.00) FX (C/US) 0.82 0.83 0.84 0.85 AECO (C) 2.50 2.50 2.50 2.50 Cash flow netback (/boe) 32.85 36.96 40.68 44.40 Average…
  7. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 7
    Sensitivities 2015 Cash Flow Sensitivities and Assumptions Parameter Annual Base Sensitivity Impact (000s) Oil price (USWTI) 56.00 +/- 1.00 5,700 Gas price (C/GJ AECO) 2.50 +/- 0.10 700 Production (boe/d) 39,700 +/- 100 1,200…
  8. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 8
    Financial Prudence and Risk Management C98.87 C98.16 C98.30 C98.30 15,000 105.00 12,500 100.00 Oil Hedges 10,000 95.00 C/bbl WTI bbls/d 7,500 90.00 5,000 85.00 Objective: 2,500 80.00 1) Mitigate price volatility…
  9. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 9
    Results and Track Record Production/Share Growth 2P Reserves/Share Growth 45,000 180 250,000 2014 F&D Costs 1,000 139 TP P+P 40,000 160 848 900 Incl. FDC 19.03 13.79 139 35,000 130 140 200,000 P+P Recycle Ratio = 2.3x 746 800…
  10. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 10
    Results and Track Record Cash Flow/Share Growth 600.0 2.50 2.08 1.65 500.0 1.84 2.00 1.68 400.0 (Cash Flow / share fd) 1.34 1.50 300.0 (MM) 486.8 476.0 1.00 200.0 0.48 278.8 0.50 100.0 193.9 87.2 11.3 0.0…
  11. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 11
    Upside Potential WCP Oil Resource Plays Locations (Gross) Total Booked Unbooked 1,855 852 1,003 Total DOOIP = 4,466.1 MMbbls 858 272 586 Recovered to date 8.7% 125 25 100 Booked 12.4% RF 61 38 23 113 51 62 Upside 17.4% RF 0 0…
  12. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 12
    7 Key Attributes to WCP Growth + Dividend Strategy Focus on organic per share growth (3 - 5% per year) within cash flow, supplement with accretive acquisitions Conservative total payout ratio and strong balance sheet Provide…
  13. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 13
    Growth Within Cash Flow Sustainable Asset Base 2015 Free Cash Flow by Area 140 120 32 100 124 80 76 107 41 60 92 88 40 47 60 60 20 31 0 Saskatchewan SW AB Pembina NW AB/BC Operating Income Development Capital Free…
  14. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 14
    2015 Development Capital 2015 Capex by Area (%) 2015 Well Count (gross) 98 Saskatchewan 110 SW AB 100 39% 90 13% 80 70 60 20% 2% 50 Other 40 21 26% 30 7 20 3 10 Pembina NW AB/BC 0 Viking Cardium Dunvegan Boundary…
  15. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 15
    Core Areas of Operations Drilling inventory 113 Development Inventory = 3,066 Boundary 2014/15 wells 0/3 Oil New well netback (/boe) 34 100% Light Oil 16+ Years inventory Montney Drilling inventory 61 2014/15 wells 2/0 BRITISH…
  16. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 16
    Predictable and Stable Production Base Base and new well production is predictable and repeatable High level of certainty of achieving forecasted volumes Key characteristics: Areally consistent reservoirs Large resource in place,…
  17. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 17
    Economic Sensitivities to WTI US/bbl 2.8 Profit to Investment Ratio 400% Rate of Return 2.5 350% 2.3 2.0 300% 1.8 1.5 250% 1.3 200% 1.0 0.8 150% 0.5 0.3 100% 0.0 50% -0.3 -0.5 0% 50 60 70 80 90 50 60 70 80 90 6.0 Payout (yrs)…
  18. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 18
    Elnora Nisku Oil Recently consolidated to 100% WI Operated, 35o API light sweet oil, focused asset Elnora Free Cash Flow Largest Nisku oil discovery in the past 20 years Production Nisku zone at 1,900m depth, 18 - 30m thick 70…
  19. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 19
    Whitecap Acquisition Rationale Beaumont (Kerrobert Viking) Overview Adds another active waterflood to production base Kerrobert Increases WCP light oil weighting to 78% from 76% Improves WCP cash flow netback by 5% Kerrobert…
  20. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 20
    Long Term HZ Drilling and Waterflood Resource Beaumont 5,100 boe/d (97% oil + NGLs), 31.47 MMboe P+P 247 Hz producers, 2 oil batteries, pipeline connected Early Hz Response Character & Timing 715 (700 net) Hz locations Similar to…
  21. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 21
    Cardium Horizontal Resource Play Cardium oil resource play repeatable and expandable Edmonton Light sweet oil (39 API) West Pembina East Pembina Strong operating and cash flow netbacks (36 - 40/boe) Low risk optimization of 7…
  22. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 22
    West Pembina Cardium Legacy Characteristics Unitized waterfloods, 38o API light oil, 1,700m depth Industry Hz Wells 6 Units (46 100% WI) WCP Operated 83% oil + NGLs Cardium Lands CPDU1 79.1% CPOU1 Average base decline of 5%…
  23. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 23
    Exceptional Type Curve Economics East Pembina Garrington Garrington West Pembina Type Well Economics Cardium Cardium (Standard) Cardium (ERH) Cardium DCE&T (MM) 2.23 2.77 3.41 2.73 Production, IP30 (boe/d) 239 311 466 317…
  24. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 24
    Western Saskatchewan Viking Oil Light oil (36 API) Viking resource play Type Well Economics Lucky Hills/Viking Strong capital efficiencies, short payout periods Decline mitigation via waterflood SASKATCHEWAN Type A Type B Improving…
  25. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 25
    Deep Basin Dunvegan Oil Dunvegan light oil (39 - 42 API) Recently expanded opportunity base Dunvegan Type Curves 500 Play characteristics 400 416 boe/d IP30 Large OOIP of 6 to 15.5 MMboe/section Exceptional reservoir quality: 2…
  26. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 26
    Exceptional Type Curve Economics Elmworth Karr/Simonette Type Well Economics Dunvegan Dunvegan DCE&T (MM) 2.95 3.56 Production, IP30 (boe/d) 293 544 Production, IP365 (boe/d) 174 264 P+PA Reserves (Mboe) 431 514 Year 1 Oil +…
  27. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 27
    Boundary Lake Asset Characteristics Operated, 35o API light oil, focused land base Boundary Lake WI Production Avg 54% WI in 3 operated units Boundary Lake zone at 1,300m depth 34/boe netback (91% oil + NGLs) 5% decline Current: 254…
  28. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 28
    Exceptional Type Curve Economics Boundary Boundary Type Well Economics Vertical Horizontal DCE&T (MM) 1.12 1.66 Production, IP30 (boe/d) 32 80 Production, IP365 (boe/d) 30 75 P+PA Reserves (Mboe) 107 214 Year 1 Oil + NGLs (%)…
  29. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 29
    The Whitecap Investment Opportunity Visible growth per share; CF, production, reserves, NAV Growth 10+ years high netback light oil development drilling locations Meaningful and consistent monthly dividends without DRIP Income…
  30. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 30
    Research Coverage Current Price Targets AltaCorp Capital Inc. 16.00 Haywood Securities 17.50 BMO 16.50 Macquarie Equity Research 19.00 CIBC World Markets Inc. 18.50 Mackie Research 16.00 Cormark Securities 18.50 National Bank…
  31. JULY 2015 INVESTOR PRESENTATION – Whitecap Resources Inc. – slide 31
    TSX:WCP www.wcap.ca July 1, 2015 31

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