OUR ASSET BASE Business Units Q2 Production Drilling Inventory (boepd) (locations) Q2 2015 Production: 31,966 boepd; Bakken 11,720 1,050 72% liquids weighted Cardium 17,455 460 Year-to-Date Production: AB / BC 2,791 295 33,563…
2015 CORPORATE STRATEGY Retain long-term value and preserve financial flexibility in current low commodity price environment Operational Plan Suspension of monthly dividend Capital program of 100 - 120 million, funded by internally…
2015 CAPITAL & DRILLING PROGRAM Our 2015 capital & drilling program is 110 million1 with a suspended second half operated drilling program given low commodity prices and current capital costs 2015 Planned Capital Activity Workovers,…
CAPITAL & FUNDS FLOW We expect to generate funds flow well above our capital spending in 2015 800 200% 600 150% Amount ('000,000) 400 100% 100% 200 50% 0 0% 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2011 2012 2013 2014…
DEBT AND LIQUIDITY Our amended credit facility contains a single financial covenant and the borrowing base provides ongoing financial flexibility for 2015 and beyond DEBT CAPITAL COMPOSITION 375 million of available liquidity Term…
SECOND LIEN OVERVIEW We entered into definitive agreements with our lenders for the issuance of US650mm of second lien notes with a semi-annual coupon of 9.875% US465 million of senior unsecured notes exchanged for US395 million of…
DEBT POSITION We have decreased our overall debt positon since 2012, with continuous access to an appropriate level of liquidity. Total Debt Outstanding 1,500 Forecasted 2015 year end debt reduced by 800 million3 since 2013…
GUIDANCE Our 2015 guidance reflects a lower commodity price environment; in the current commodity price and service cost environment we intend to limit our investment in new well drilling in the second half of 2015 2015 Guidance 2015…
Q1 2015 NETBACKS & HEDGING EFFECTS In Q1 2015 we realized gains of 28 million on crude oil contracts, resulting in a netback of 29.83/boe Q1 Operating Netback Plus Commodity Hedges 40 Q2 35 Q1 30 25 20 15 10 5 0 WCP VET…
FUNDS FLOW PROTECTION Our WTI hedge position helps protects against downside in the current pricing environment Commodity Jul Dec 2015 Jul Dec 2015 Oil hedged - WTI (bbl/d) 4,795 1,500 Net production hedged 1,2 26% 8% Ceiling (US/bbl)…
ECONOMIC SENSITIVITIES Sensitivities and assumptions on remaining six months 2015 funds flow from operations Funds Flow Impact Parameter Assumption Change of: ( millions) WTI Oil1,2 US50.00/bbl +/- 1.00 2.0 Production (2H 2015)…
CASH COSTS In this low commodity price environment, we continue to generate positive funds flow from operations Quarterly Cash Costs and Oil Prices 120 100 80 /boe 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1…
BAKKEN ASSETS Focus on optimization and EOR Our assets produce light oil from the Bakken and the conventional Mississippian formations with a relatively low decline rate. In 2015 we are continuing to focus on optimizing and expanding our…
IMPROVING TIGHT OIL RECOVERIES Future value generation through natural gas flooding Bakken With Bakken EOR projects we expect to: Attenuate declines and extend production life Increase DPIIP recovery factors from 15% to potentially…
CARDIUM ASSETS Generating positive operating cash flow Our extensive land base stretches from southwest of LTS Land Calgary to northwest of Edmonton and our assets LTS Batteries primarily produce light oil from the Cardium formation.…
CARDIUM GROWTH Cardium Production and Cumulative Well Count 25,000 500 20,000 400 Net Wells on Production Production (boepd) 15,000 300 10,000 200 5,000 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3…
AB / BC ASSETS The Swan Hills is our next growth target Production has grown to 2,500 boepd New 3,500 bopd battery operational in Q2 2014 Future Operations Reserve bookings confirm long-term prospectivity Drilling is not expected…
SWAN HILLS PRODUCTION Swan Hills production has increased our liquids weighting for the Alberta/BC business unit Swan Hills Production and Cumulative Well Count 5,000 25 Net Wells on Production 4,000 20 Production (boepd)…
LONG-TERM WELL ECONOMICS We focus on well economics that reinforce our business model with quick payouts and strong capital efficiencies < 2 year capital payout 2 recycle ratio Business Unit Bakken Business Unit Cardium Alberta/BC Type…
LONG-TERM OPPORTUNITY PRESERVE LONG TERM EXTENSIVE ASSETS SUSTAINABILITY VALUE Drilling inventory of 10+ 2015 capital expected to 2014 reserve value years be funded by cash flow significantly exceeds enterprise value…
Trading Symbol LTS: TSX Share Price (August 7, 2015) 0.54 Market Capitalization 107 million Shares Outstanding (Jun 30, 2015 Basic) 198 MM Total Debt (Q2 2015) 1.67 billion Options/Incentive shares 5.1 MM Enterprise Value 1.78…
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