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August 2015 Investor Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Aug 10, 2015 · 27 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. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 1
    SUCCESS DISCIPLINE = + + MOTIVATED PEOPLE QUALITY ASSETS SUSTAINABLE LIGHT OIL GROWTH + INCOME PLATFORM August 2015
  2. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile Shares outstanding (MM) TSX: WCP Basic 298.7 Fully diluted 304.2 Market capitalization (B) 3.5 Annual dividend (/share) 0.75 2015 average production (boe/d) revised upwards 40,100 % oil + NGLs 76% 2015 netback…
  3. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 3
    2015 Outlook 2014 2015 % Change Operational Average production (boe/d) 32,458 40,100 24% Development capital (MM) 324 235 (27%) Wells drilled (gross) 169 123 (27%) Financial Cash flow netback (/boe) 41.00 32.50 (21%) Cash flow (MM) 487…
  4. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 4
    Total Shareholder Return 10% / Annum MOTIVATED PEOPLE + QUALITY ASSETS + DISCIPLINE = SUCCESS Founding Principles Employees are shareholders Light oil focus Per share growth (cash flow, production, reserves and NAV) Pillars of…
  5. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 5
    WCP Employee Share Ownership Total Employee Ownership 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4.5MM Investment by Insiders and Employees 4,000,000 YTD 2015 3,000,000 2,000,000 1,000,000 0 2009 2010 2011…
  6. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 6
    2015 Whitecap Sustainability Oil (USWTI) 45.00 53.00 60.00 65.00 Edm Par Diff (USWTI) (5.00) (5.00) (5.00) (5.00) FX (C/US) 0.76 0.79 0.80 0.82 Edmonton Par (C/bbl) 65.79 73.42 81.25 85.37 AECO (C) 2.70 2.70 2.70 2.70 Cash flow…
  7. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 7
    Sensitivities 2015 Cash Flow Sensitivities and Assumptions Parameter Annual Base Sensitivity Impact (000s) Oil price (USWTI) 53.00 +/- 1.00 5,700 Gas price (C/GJ AECO) 2.70 +/- 0.10 700 Production (boe/d) 40,100 +/- 100 1,200…
  8. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 8
    Financial Prudence and Risk Management C97.16 C98.18 (1) C98.18 (1) 15,000 100 12,500 95 10,000 Oil Hedges 90 C/bbl WTI bbls/d 7,500 85 5,000 80 Objective: 2,500 1) Mitigate price volatility 0 42% 27%…
  9. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 9
    8 Key Attributes to WCP Growth + Dividend Strategy Focus on organic per share growth (1 - 5% per year) within cash flow, supplement with accretive acquisitions Total payout ratio < 100% Strong balance sheet < 2x debt to cash flow…
  10. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 10
    Growth Within Cash Flow Sustainable Asset Base 2015 Free Cash Flow by Area 140 120 35 100 124 80 75 108 40 60 6 89 92 40 52 62 56 20 33 0 Saskatchewan SW AB Pembina NW AB/BC Operating Income Development Capital Free…
  11. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 11
    2015 Development Capital 2015 Capex by Area (%) 2015 Well Count (gross) Saskatchewan 110 92 SW AB 100 14% 90 38% 80 70 60 22% 50 2% Other 40 21 24% 30 7 20 3 10 Pembina NW AB/BC 0 Viking Cardium Dunvegan Boundary…
  12. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 12
    Core Areas of Operations Drilling inventory 113 Boundary 2014/15 wells 0/3 Drilling Inventory = 3,066 Oil New well netback (/boe) 41 100% Light Oil Montney Drilling inventory 61 2014/15 wells 2/0 BRITISH COLUMBIA Oil New well…
  13. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 13
    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,…
  14. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 14
    Economic Sensitivities to WTI US/bbl Profit to Investment Ratio Rate of Return 2.3 400% 2.0 350% 1.8 300% 1.5 250% 1.3 200% 1.0 150% 0.8 100% 0.5 50% 0.3 0% 0.0 40 50 60 70 80 40 50 60 70 80 Payout (yrs) NPV / Well (M)…
  15. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 15
    Kerrobert Viking Light Oil Premier Viking asset Predictable type curve with exceptional economics Kerrobert 10 years of drilling inventory High netback and recycle ratio Kerrobert Avg royalty rate at 1.6% Operated with a 98% WI…
  16. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 16
    Western Saskatchewan Viking Oil Light oil (36 API) Viking resource play Type Well Economics Viking Resource Strong capital efficiencies, short payout SASKATCHEWAN Type A Type B Decline mitigation via waterflood DCE&T (MM)…
  17. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 17
    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 (47 - 53/boe) Low risk optimization of 7…
  18. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 18
    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%…
  19. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 19
    Exceptional Type Curve Economics West Pembina West Pembina Type Well Economics Cardium Cardium (ERH) DCE&T (MM) 2.6 3.4 Production, IP30 (boe/d) 317 476 Production, IP365 (boe/d) 159 239 P+PA Reserves (Mboe) 222 323 Year 1 Oil + NGLs…
  20. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 20
    Deep Basin Dunvegan Oil Elmworth Karr Dunvegan light oil (39 - 42 API) Type Well Economics Dunvegan Dunvegan Strong and expanding DCE&T (MM) 3.0 3.6 Play characteristics Production, IP30 (boe/d) 293 544 Large OOIP of 6 to 15.5…
  21. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 21
    Elnora Nisku Oil 100% operated, 35o API light sweet oil Elnora Free Cash Flow Largest Nisku oil discovery in the past 20 years Production Nisku zone at 1,900m depth, 18 - 30m thick 60 (boe/d) 4,500 5,100 4,400 3,800 3,200…
  22. August 2015 Investor Presentation – 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 34/boe netback (91% oil + NGLs) 5% decline Current: 254…
  23. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 23
    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…
  24. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 24
    Research Coverage Current Price Targets Barclays 14.00 Haywood Securities 16.00 BMO 16.50 Macquarie Equity Research 19.00 CIBC World Markets Inc. 18.00 Mackie Research 16.00 Cormark Securities 18.00 National Bank Financial 17.50…
  25. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 25
    TSX:WCP www.wcap.ca August 10, 2015 25
  26. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 26
    Appendix - 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…
  27. August 2015 Investor Presentation – Whitecap Resources Inc. – slide 27
    Appendix - 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…

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