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Investor UPDATE – Whitecap Resources Inc.

Whitecap Resources Inc. · Dec 2, 2014 · 32 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. Investor UPDATE – Whitecap Resources Inc. – slide 1
    SUCCESS FOCUS = + MOTIVATED PEOPLE + QUALITY ASSETS SUSTAINABLE LIGHT OIL GROWTH + INCOME PLATFORM December 2014
  2. Investor UPDATE – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 253.3 Fully diluted 258.6 Market capitalization (B) 3.0 Annual dividend (/share)(1) 0.75 0.84 2015 average production (boe/d) 40,000 2015 netback (/boe) Operating 41.60…
  3. Investor UPDATE – Whitecap Resources Inc. – slide 3
    Total Shareholder Return 10% / Annum MOTIVATED PEOPLE + QUALITY ASSETS + FOCUS = SUCCESS Founding Principles Employees are shareholders Light oil focus (80 to 100 WTI platform) Per share growth (cash flow, production, reserves and…
  4. Investor UPDATE – 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 Since 2009 insiders increased…
  5. Investor UPDATE – Whitecap Resources Inc. – slide 5
    Results and Track Record Production/Share Growth 2P Reserves/Share Growth 45,000 180 250,000 2013 F&D Costs 900 TP P+P 793 154 40,000 160 Incl. FDC 20.31 16.96 746 800 137 35,000 130 140 200,000 P+P Recycle Ratio = 2.3x 700 643…
  6. Investor UPDATE – Whitecap Resources Inc. – slide 6
    Results and Track Record Cash Flow/Share Growth 600.0 2.50 2.09 500.0 2.03 1.84 2.00 1.68 400.0 (Cash Flow / share fd) 1.34 1.50 300.0 (MM) 542.0 480.0 1.00 200.0 0.48 278.8 0.50 100.0 193.9 87.2 11.3 0.0…
  7. Investor UPDATE – Whitecap Resources Inc. – slide 7
    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…
  8. Investor UPDATE – Whitecap Resources Inc. – slide 8
    Growth Within Cash Flow Sustainable Asset Base 2015 Free Cash Flow by Area Growth 5% 23% 28% 23% 250 200 171 152 150 139 54 94 117 54 21 100 98 77 85 96 50 0 Saskatchewan SW AB Pembina NW AB/BC Operating Income…
  9. Investor UPDATE – Whitecap Resources Inc. – slide 9
    2015 Development Capital 2015 Capex by Area (%) 2015 Well Count (gross) Saskatchewan 140 SW AB 130 27% 120 102 21% 110 100 1% 90 80 Other 70 60 24% 27% 50 31 40 24 23 30 20 10 NW AB/BC 0 Pembina Sask SW AB Pembina NW…
  10. Investor UPDATE – Whitecap Resources Inc. – slide 10
    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,…
  11. Investor UPDATE – Whitecap Resources Inc. – slide 11
    Financial Prudence and Risk Management C99.21 C98.00 C97.71 17,500 105.00 15,000 100.00 Oil Hedges 12,500 95.00 C/bbl WTI 10,000 bbls/d 90.00 7,500 Objective: 85.00 5,000 2,500 80.00 1) Mitigate price…
  12. Investor UPDATE – Whitecap Resources Inc. – slide 12
    Sensitivities 2015 Cash Flow Sensitivities and Assumptions Parameter Annual Base Sensitivity Impact (000s) Oil price (USWTI) 80.00 +/- 1.00 5,020 Gas price (C/GJ AECO) 3.50 +/- 0.10 1,351 Production (boe/d) 40,000 +/- 100…
  13. Investor UPDATE – Whitecap Resources Inc. – slide 13
    2015 Whitecap Sustainability Oil (USWTI) 65.00 70.00 75.00 80.00 85.00 Edm Par Diff (USWTI) (7.00) (7.00) (7.00) (7.00) (6.00) FX (C/US) 0.80 0.82 0.85 0.88 0.88 AECO (C) 3.50 3.50 3.50 3.50 3.80 CF netback (/boe) 33.75 35.13 36.17…
  14. Investor UPDATE – Whitecap Resources Inc. – slide 14
    Core Areas of Operations Development Inventory 2,229 Boundary Drilling inventory 115 2014/15 wells 0 / 10 Oil New well netback (/boe) 54 100% Light Oil 10+ Years inventory Drilling inventory 60 Montney 2014/15 wells 4/2 BRITISH…
  15. Investor UPDATE – Whitecap Resources Inc. – slide 15
    Elnora Nisku Oil Acquisition Recently consolidated to 100% WI Operated, 35o API light sweet oil, focused asset Largest Nisku oil discovery in the past 20 years Elnora Free Cash Flow 90 Nisku zone at 1,900m depth, 18 30m thick…
  16. Investor UPDATE – Whitecap Resources Inc. – slide 16
    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 (58 - 63/boe) Low risk optimization of 7…
  17. Investor UPDATE – Whitecap Resources Inc. – slide 17
    West Pembina Cardium Legacy Characteristics Unitized waterfloods, 38o API light oil, 1,700m depth 6 Units (46 100% WI) Industry Hz Wells Acquired Hz Wells 83% oil + NGLs WCP Drilling CPDU1 79.1% Non-Unit Lands Average base decline…
  18. Investor UPDATE – Whitecap Resources Inc. – slide 18
    Exceptional Type Curve Economics East Pembina Garrington Garrington West Pembina Type Well Economics Cardium Cardium (Standard) Cardium (ERH) Cardium DCE&T (MM) 2.50 3.00 3.60 3.00 Production, IP30 (boe/d) 230 320 476 317…
  19. Investor UPDATE – Whitecap Resources Inc. – slide 19
    Western Saskatchewan Viking Oil Light oil (36 API) Viking resource play Lucky Hills/ Strong capital efficiencies, short payout periods Type Well Economics Whiteside Viking Decline mitigation via waterflood Improving capital…
  20. Investor UPDATE – Whitecap Resources Inc. – slide 20
    Deep Basin Dunvegan Oil Dunvegan light oil (39 - 42 API) Recently expanded opportunity base Dunvegan Type Curves 500 Play characteristics 416 boe/d 400 IP30 Large OOIP of 6 to 15.5 MMboe/section Exceptional reservoir quality:…
  21. Investor UPDATE – Whitecap Resources Inc. – slide 21
    Exceptional Type Curve Economics Elmworth Karr/Simonette Type Well Economics Dunvegan Dunvegan DCE&T (MM) 3.25 4.30 Production, IP30 (boe/d) 293 543 Production, IP365 (boe/d) 174 264 P+PA Reserves (Mboe) 431 514 Year 1 Oil +…
  22. Investor UPDATE – Whitecap Resources Inc. – slide 22
    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 54/boe netback (91% oil + NGLs) 5% decline Current: 254…
  23. Investor UPDATE – Whitecap Resources Inc. – slide 23
    Exceptional Type Curve Economics Boundary Boundary Type Well Economics Vertical Horizontal DCE&T (MM) 1.20 1.80 Production, IP30 (boe/d) 32 80 Production, IP365 (boe/d) 30 74 P+PA Reserves (Mboe) 107 214 Year 1 Oil + NGLs (%)…
  24. Investor UPDATE – Whitecap Resources Inc. – slide 24
    Economic Sensitivities to WTI US/bbl Profit to Investment Ratio Rate of Return 3.5 400% 3.3 3.0 350% 2.8 2.5 300% 2.3 2.0 250% 1.8 1.5 200% 1.3 1.0 150% 0.8 0.5 100% 0.3 0.0 50% -0.3 -0.5 0% 60 70 80 90 100 110 120…
  25. Investor UPDATE – Whitecap Resources Inc. – slide 25
    2015 Outlook 2013 2014e 2015e Operational Average production (boe/d) 19,769 32,050 40,000 Development capital (MM) 190 311 360 Wells drilled (gross) 100 163 180 Financial Cash flow netback (/boe) 38.64 41.00 37.15 Cash flow (MM) 279 480…
  26. Investor UPDATE – Whitecap Resources Inc. – slide 26
    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…
  27. Investor UPDATE – Whitecap Resources Inc. – slide 27
    Research Coverage Current Price Targets AltaCorp Capital Inc. 17.50 GMP Securities 19.25 Barclays 19.00 Macquarie Equity Research 24.00 BMO 19.00 National Bank Financial 21.00 CIBC World Markets Inc. 20.00 Peters & Co. 19.00…
  28. Investor UPDATE – Whitecap Resources Inc. – slide 28
    TSX:WCP www.wcap.ca December 2, 2014 28
  29. Investor UPDATE – Whitecap Resources Inc. – slide 29
    Whitecap IMO Acquisition (May 1, 2014) Purchase Price - 692.7MM Boundary Lake Production Current 6,500 boe/d (83% oil + NGLs) Valhalla Capability 7,550 boe/d (83% oil + NGLs) 92,000 / boe/d 16% base decline 96% operated 60.5%…
  30. Investor UPDATE – Whitecap Resources Inc. – slide 30
    Whitecap Elnora Acquisition (Oct 1, 2014) Purchase Price 240MM Production: 2,000 boe/d (97% oil + NGLs), 0% decline for 2 years - 14% after Reserves: TP 9.4 MMboe (94% oil + NGLs) P+P 13.6 MMboe (94% oil + NGLs), 15 year RLI…
  31. Investor UPDATE – Whitecap Resources Inc. – slide 31
    Growth + Free Cash Flow Viking Type Economics Increases Whitecap sustainability + Outstanding capital efficiency of 17,000/boe/d (930K DCE&T, 56 boe/d IP(365)) + Excellent netbacks - 58.00/boe (79% oil & liquids) = Payout of initial…
  32. Investor UPDATE – Whitecap Resources Inc. – slide 32
    Footnotes 2014 price assumptions throughout this presentation are actual commodity prices for January to September. Q4 2014 WTI US78.00/bbl, C/US0.88, Edmonton Par Differential (US6.40) and AECO C4.05/GJ. 2015 WTI US80.00/bbl, C/US0.88,…

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