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Q3 2015 Earnings Call – Twin Butte Energy Ltd.

Twin Butte Energy Ltd. · Aug 13, 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. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 1
    Q3 - 2015 Prudent Balance Sheet Management Successful Operational Transition Reduced Cost Structure TSX: TBE www.twinbutteenergy.com
  2. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 2
    Corporate Snapshot Deliver 10%+ average annual return (income and growth) Basic shares 354 MM Oil leveraged production (90% Fully diluted 372 MM liquids) Insiders own - Basic / FD 3.5 /5.7% Current production 16,500 17,000 Share…
  3. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 3
    2015 Key Priorities Q2 Update Maintain and Enhance Balance Sheet Flexibility Maintain financial discipline (Total…
  4. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 4
    2015 Guidance 2015* August Update 2015 May Average Production (boe/d) 17,500 17,500 Liquids Production (%) 90 90 Capital expenditures (net MM) 100 100 Cash Dividend (MM) 30 42 Dividend per share 0.085 0.12 Cash Flow (MM) 180 180…
  5. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 5
    Hedge Book Support Oil Hedging Reduces Cash Flow Volatility 50% Percentage of Oil Production 45% 40% 35% 30% 25% 20% 79.67 79.67 15% 10% 5% 65.00 65.00 65.00 65.00 0% Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 WCS…
  6. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 6
    2016 Preliminary Planning Planning around 45-65 per bbl WTI US Maintain minimum investment hurdles 2:1 recycle…
  7. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 7
    Focused Asset Base 91% of Corporate production in core area…
  8. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 8
    The Facts - Transition Scorecard Q2 Operational Results - Quality Focus Transition score sheet Q2 2015 Q1 2015 Q2 2014 Focus on value and sustainability over short Production (boe/d) 17,351 19,158 21,109 term volume Heavy (boe/d)…
  9. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 9
    Transition Scorecard Q2 Financial Results Prudence, Discipline Q2 2015 Q1 2015 Q2 2014 Field Netback (per boe) 24.77 11.65 41.87 Hedging (per boe) 16.05 24.81 -12.02 Higher realized prices reduced hedging impact versus Q1 Operating…
  10. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 10
    Quality Focus Netback Comparison TBE Provost Lloyd Area Provost Lloyd (Q2 2015) Area TBE Hzs Heavy Hzs Revenue (/boe) 48.97 53.12 49.75 53.11 49.98 Royalties(/boe) (4.99) (5.45) (4.72) (6.94) (2.26) Operating and (19.21) (15.46)…
  11. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 11
    Lower Operating Costs 28.00 Corporate Operating and Transportation costs reduced by 26.00 4.50/boe or 19% over past 18 months. Lloyd Heavy 24.00 Lloyd - Heavy Oil Cost Reductions: Operating and Transportation Costs (/boe)…
  12. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 12
    Lower Royalties 100.00 25.0% 90.00 Royalty reductions 80.00 20.0% Corporate royalty costs decreased by 70.00 10/boe from Q2 2014 to Q2 2015 Equally impacted by increased Average Royalty Rate 60.00 15.0% horizontal…
  13. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 13
    Lower Capital Costs Fractured Lithic 1.50 Activity resumed in Q3 Anticipate significant reduction Drill, Complete and Equip Average Well Cost (Million) 1.30 Fractured Sparky Single-Leg Heavy Hz Decreased drill times…
  14. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 14
    Inventory Average Per Well Provost Provost Sparky + Lithic Heavy Horizontals Estimates Dina/ Cummings (700m short laterals) D,C,E Capital (k) 790 800 780 IP365 55 65 57 (boed) Capital Efficiency (DCET / 14,400 12,310…
  15. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 15
    Provost Medium Oil Core Area G G R6 G L G G R5 G G R4 G G G H CC G K C G F G G C G G R3 C G C G G F G G G G R2 G G E G G G GJ GE EJ E J R1W4 G GG G G F L G G Multi-zone oil potential…
  16. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 16
    Provost Dina-Cummings Large oil in place with high recovery factors - natural water flood 2015 - Select extensions and infills - Expand water handling - Expand footprint Potential for horizontal injectors to further reduce…
  17. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 17
    Provost Sparky H G G G G G G E F G L G G G G G G R6 G G G R5 G G R4 G G CC G K C G F G G C R3 G G R2 G G G G GJ E J R1W4 G GG G H2 activity focused at Sounding L C GE EJ G G G G G G G G C F G G F C E G…
  18. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 18
    Provost Lithic Channel Play Multiple, thick (10m) oil charged prospective channel siltstones intervals crisscross TBE land base 2H 2015 drilling program focused at Gillespie and Cadogan Expanding footprint, expanding inventory…
  19. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 19
    Lloydminster - Heavy Lower operating and transportation costs, lower royalties Significantly lower per well (single lateral) drill, complete and equip costs 800k Multilateral potential to further reduce costs Targeting primarily…
  20. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 20
    Lloyd Area Single vs Dual Lateral Test Multiphase capital and risk reduction 250 G G I HH H H K C J E Single leg horizontal development 9 T E E E D D D A DDE E J E J E J E E J J E D E 1. Reduce casing…
  21. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 21
    Conservative, Disciplined Balance sheet management is a priority. Total payout (dividend and capital) will not exceed cash flow. 2015 capital plan adjusted down to reflect lower commodity prices. Dividend reduced to reflect lower…
  22. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 22
    Appendix 22 TSX: TBE
  23. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 23
    Analyst Coverage Company Analyst Target Action Acumen Trevor Reynolds 0.90 Speculative Buy BMO Capital Gordon Tait 0.80 Market Perform Canaccord Genutiy Dennis Fong 0.60 Hold CIBC Capital Jeremy Kaliel 0.80 Sector Perform GMP…
  24. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 24
    Management and Board Management Rob Wollmann President and CEO Alan Steele Vice President, Finance & CFO David Middleton Chief Operating Officer Claude Gamache Vice President, Geosciences Gord Howe Vice President, Land Preston…
  25. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 25
    Debt & Liquidity June 30, 2015 millions Current bank credit facility 275 Bank debt (68% drawn) (225) Working Capital (deficit) (4) Liquidity (available credit facility) 46 Net debt Bank debt & working capital 229 Convertible…
  26. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 26
    Heavy Oil Differential - WCS USD Heavy Crude Oil Monthly Basis (5) (10) (15) (20) USD per Bbl (25) Avg - 19.43 (30) (35) (40) (45) Aug-11 Aug-12 Aug-13 Aug-14 Nov-11 May-12 Nov-12 May-13…
  27. Q3 2015 Earnings Call – Twin Butte Energy Ltd. – slide 27
    Positioned to succeed Rob Wollmann President & CEO rwollmanntwinbutteenergy.com Alan Steele CFO asteeletwinbutteenergy.com TSX: TBE www.twinbutteenergy.com 410, 396 11th Avenue SW Calgary, Alberta T2R 0C5 Tel: 403-215-2045

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