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March 2014 Investor Presentation – Pengrowth Energy Corp

Pengrowth Energy Corp · Mar 20, 2014 · 49 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. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 1
    Corporate Presentation BUILDING SUSTAINABLE CASH FLOW March, 2014
  2. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 2
    TSX:PGF NYSE:PGH WHO WE ARE 1 CORPORATE PRESENTATION Listings: Market Capitalization1 Enterprise Value2 Shares Outstanding3 Monthly Dividend Current Yield1 Q4 2013 Production Production Mix Corporate Decline Undeveloped Land…
  3. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 3
    TSX:PGF NYSE:PGH WHY SHOULD YOU INVEST IN PENGROWTH? Strategic plan ? We have one ? Become a long-term sustainable dividend paying entity by shifting to thermal oil production with lower declines, better capital efficiency and…
  4. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 4
    TSX:PGF NYSE:PGH 2013 A YEAR OF SUBSTANTIAL ACCOMPLISHMENTS: 3 CORPORATE PRESENTATION Financial ? Continued to pay monthly dividend of $0.04 per share ? Sold $1 billion of non-core assets ? Reduced outstanding debt by $175 million…
  5. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 5
    TSX:PGF NYSE:PGH ? Lindbergh 2P reserves increased by 48 MMbbls* to 143 MMbbls on pilot, seismic and core hole drilling results in conjunction with regulatory approval ? Pilot delivered another year of strong results ? Initial…
  6. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 6
    TSX:PGF NYSE:PGH 2013 FINANCIAL AND OPERATING HIGHLIGHTS 5 CORPORATE PRESENTATION Three Months Ended December 31 Year Ended December 31 (Cdn$ millions, except per share and per boe amounts) 2013 2012 2013 2012 Production…
  7. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 7
    TSX:PGF NYSE:PGH 22% 6% 30% 7% 35% Light oil Heavy oil Bitumen NGLs Natural gas 2013 RESERVES SUMMARY(1) ? Total Proved (1P) reserves of 307 MMboe and Proved plus Probable reserves (2P) of 477 MMboe ? Replaced 211 percent of…
  8. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 8
    TSX:PGF NYSE:PGH 2013 RESERVES CONTINUITY* 7 CORPORATE PRESENTATION Proved (Mboe) Proved plus Probable (Mboe) December 31, 2012 300,078 511,960 Technical Revisions 4,943 181 Economic Factors (473) (870) Drilling 78,860 65,783…
  9. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 9
    TSX:PGF NYSE:PGH WHERE ARE WE TODAY? ? Maintaining current $0.04/share monthly dividend ? Material asset sales are complete ? Construction of initial 12,500 bbl/d commercial phase of Lindbergh is on time and on budget ? Lindbergh…
  10. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 10
    TSX:PGF NYSE:PGH WHERE ARE WE GOING? Sustainable dividend paying entity with free cash flow and growth capacity ? Exploit existing inventory of oil and liquids-rich opportunities to maximize funds flow from operations ? Bring…
  11. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 11
    TSX:PGF NYSE:PGH THERMAL STRATEGY MAKES MORE SENSE THAN EVER 10 CORPORATE PRESENTATION Supply cost Thermal offers the lowest supply cost as compared to global alternatives Growth Niche thermal opportunities continue to exist for…
  12. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 12
    11 CORPORATE PRESENTATION TSX:PGF NYSE:PGH STRATEGY DELIVERS STRONG RETURNS 15% 70% 15% Natural gas Oil NGLs Operating funds flow by product 6% 89% 5% Natural gas Oil NGLs 2012 2018 ? Strategy expected to generate a 12% CAGR…
  13. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 13
    TSX:PGF NYSE:PGH 2014 CAPITAL GUIDANCE & ASSET OVERVIEW CORPORATE PRESENTATION12
  14. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 14
    TSX:PGF NYSE:PGH 2014 GUIDANCE 13 CORPORATE PRESENTATION Capital ($MM) 700 - 730 Non-thermal(1) 350 Lindbergh(1) 365 Average daily production (boe/d) 71,000 ? 73,000 EBITDA ($MM)(2) 575 ? 625 Funds Flow ($MM)(2) 500 ? 540…
  15. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 15
    TSX:PGF NYSE:PGH FOCUSED 2014 NON-THERMAL PROGRAM 2014 Capital allocation 2014 Development capital 14 CORPORATE PRESENTATION $350 MM Conventional Program $270 MM Development Drilling 77% 19% 4% Development Maintenance Other…
  16. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 16
    15 CORPORATE PRESENTATION TSX:PGF NYSE:PGH SUNDRE OLDS CALGARY COCHRANE AIRDRIE INNISFAIL RED DEER LOCHEND HARMATTAN GARRINGTON WESTWARD HO SYLVAN LAKE PGF OLDS GAS PLANT PGF 03-20 BATTERY ? Large, contiguous land base ?…
  17. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 17
    16 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Assumptions: Edm Par Cad$90.34/bbl with ($3.45/bbl) differential and AECO $3.80/Mcf. * Internal estimate . 30 day initial production (boe/d) 170 First year average production (boe/d) 77…
  18. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 18
    17 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Assumptions: Edm Par Cad $90.34/bbl with ($2.24/bbl) differential and AECO $3.80/Mcf. * Internal estimate. 30 day initial production (boe/d) 285 First year average production (boe/d) 132…
  19. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 19
    TSX:PGF NYSE:PGH ? 2.3 Billion(1) barrels of original oil in place net to Pengrowth ? Base decline of 10% ? 2014 development capital program of $35 MM ? $11 MM on optimization activities ? 9 (6.8 net) wells forecast to be drilled…
  20. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 20
    19 CORPORATE PRESENTATION TSX:PGF NYSE:PGH ? Targeting the Lloydminster formation ? Land position: ? 43 sections with 100% working interest ? Resource potential of 769 million barrels of exploitable Bitumen Initially In Place(1), a…
  21. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 21
    20 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Pengrowth has mitigated the major risks associated with SAGD projects: 1) Facility cost over-runs and delays: Experienced construction contractor has brought on four projects of similar type…
  22. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 22
    21 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Location advantages ? All season access off of a paved highway ? Parts and services are 20 minutes away in Bonnyville ? Located east of Edmonton - no need to drive highway 63 ? Local labour…
  23. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 23
    22 CORPORATE PRESENTATION TSX:PGF NYSE:PGH 65% OF THE 12,500 BBL/D COMMERCIAL PROJECT CAPITAL IS SPENT OR COMMITTED AND PROJECT CONTINUES TO BE ON TIME AND ON BUDGET $590 Million 65% ? $384MM of capital spent/committed (1-2%…
  24. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 24
    TSX:PGF NYSE:PGH 200 400 600 800 1,000 1,200 1,400 1.0 1.5 2.0 2.5 3.0 3.5 4.0 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 SOR Well Pair 1 (103/06-24) SOR Well Pair 2 (104/06-24) Well Pair 1…
  25. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 25
    24 CORPORATE PRESENTATION TSX:PGF NYSE:PGH 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 Christina ?C-D? Christina (MEG) Leismer Jackfish 1 Lindbergh Foster Creek Tucker…
  26. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 26
    TSX:PGF NYSE:PGH WHY WE EXPECT THE COMMERCIAL PROJECT TO PERFORM AS WELL AS THE PILOT ? Core, log, seismic and model data show reservoir is homogenous ? Consistent reservoir characteristics evident in 150 coreholes ? Homogeneous…
  27. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 27
    26 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Production (bbl/d) EIA application submitted in December 2013 for the 17,500 bbl/d expansion - approval expected in Q1 2016 $300 MM $365 MM $350 MM $490 MM $450 MM $360 MM $100 MM…
  28. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 28
    TSX:PGF NYSE:PGH FINANCIAL STRATEGY CORPORATE PRESENTATION27
  29. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 29
    28 CORPORATE PRESENTATION TSX:PGF NYSE:PGH $450 Cash on hand $520 Anticipated funds flow from operations $50 Anticipated DRIP proceeds Capex Dividends $715 $250 $1.0 B of Cash inflows $965 MM of Cash outflows MAINTAINING A…
  30. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 30
    29 CORPORATE PRESENTATION TSX:PGF NYSE:PGH 2014 2015 2016 2017 2018 Production boe/d 72,100 78,200 78,400 84,700 95,500 Liquids content % 53% 62% 67% 74% 79% EBITDA $MM 602 783 882 1,084 1,382 Per share $1.15 $1.47 $1.63 $1.98 $…
  31. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 31
    30 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Average production (boe/d) Lindbergh oil growth Natural Gas Liquids LINDBERGH SIGNIFICANTLY INCREASES FUNDS FLOW WHILE REPLACING NON-THERMAL PRODUCTION Total liquids production *CAGR ?…
  32. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 32
    31 CORPORATE PRESENTATION TSX:PGF NYSE:PGH DEBT/EBITDA EXPECTED TO DECLINE FROM 2.8X IN 2014 TO 1.5X IN 2018 * Total debt includes notes, convertible debentures and drawings on credit facilities Total Debt/EBITDA ? Pengrowth has a…
  33. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 33
    32 CORPORATE PRESENTATION TSX:PGF NYSE:PGH TOTAL PAYOUT RATIOS DECLINE FROM 2014 ONWARDS Payout Ratio Total payout defined as capex + dividends divided by funds flow
  34. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 34
    33 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Outstanding December 31, 2013 ($MM) Forecast year end 2014 ($MM) Forecast year end 2015 ($MM) Senior fixed term notes 1,413 1,393 1,350 Term Credit facilities/Bank debt $0 190 425…
  35. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 35
    34 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Calendar Year Hedge positions as at February 24, 2014 Oil Volume (bbl/d) Price per bbl ($Cad) Current oil production hedged* Hedging Limits (% of production) 2014 23,000 $94.51 76% Up to…
  36. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 36
    35 CORPORATE PRESENTATION TSX:PGF NYSE:PGH ? Pengrowth entered 2014 with approximately $450 million of cash on hand. ? We aim to maintain a balance between cash inflows and cash outflows, which protects the dividend and ensures…
  37. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 37
    TSX:PGF NYSE:PGH SUMMARY CORPORATE PRESENTATION36
  38. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 38
    TSX:PGF NYSE:PGH WE ARE FIRING ON ALL CYLINDERS 37 CORPORATE PRESENTATION ? We did what we said we would do ? Monthly $0.04/share dividend will continue to be protected ? Lindbergh pilot performance has exceeded expectations for an…
  39. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 39
    TSX:PGF NYSE:PGH 2013 FINDING, DEVELOPMENT AND ACQUISITION (DISPOSITION) COSTS 41 CORPORATE PRESENTATION 2013 Three-year Weighted Average Proved Proved plus Probable Proved Proved plus Probable Excluding Future Development…
  40. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 40
    42 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Type Well: IP 30 Production 170 boe/d (25% gas); EUR 137 Mboe; DCET = $3.5 MM IRR is before tax Flat oil price noted; Opex not escalated. Flat gas price average $3.50/Mcf Differential:…
  41. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 41
    43 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Type Well: IP 30 Production 285 boe/d (26% gas); EUR 239 Mboe; DCET = $3.9 MM IRR is before tax Flat oil price noted; Opex not escalated. Flat gas price average $3.50/Mcf Differential:…
  42. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 42
    44 CORPORATE PRESENTATION TSX:PGF NYSE:PGH $80 WTI $90 WTI $100 WTI Bitumen production (bbls/d) 12,500 12,500 12,500 Design SOR 3.6 3.6 3.6 Gross bitumen revenue ($/bbl unblended) $61.39 $69.06 $76.74 Opex, lifting ($/bbl unblended)…
  43. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 43
    45 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Lindbergh Flat Pricing Internal Economic Sensitivity Phase I current Phase I previous Change Production 12,500 bbl/d 12,500 bbl/d Capex ($MM) 590 590 - Design SOR 3.6 3.6 - IRR IRR Change…
  44. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 44
    46 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Exploitable original bitumen in place Recoverable reserves and resources Net present value before income tax discounted at 10% (MM bbls) (MM bbls) ($MM) Total 1P Reserves 206 82…
  45. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 45
    47 CORPORATE PRESENTATION TSX:PGF NYSE:PGH 2014 EBITDA SENSITIVITY TO VARIOUS COMMODITY PRICES AND FX Assumptions: 8.0 % light oil differential 21.0% heavy oil differential $3.50 per Mcf AECO Natural Gas price Assumptions:…
  46. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 46
    48 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Assumptions: 21.0% heavy oil differential $3.50 per Mcf AECO Natural Gas price $0.95 USD/Cad FX Assumptions: 8.0 % light oil differential $3.50 per Mcf AECO Natural Gas price $0.95…
  47. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 47
    TSX:PGF NYSE:PGH RESERVES GROWTH HAS OUTPACED DEBT 49 CORPORATE PRESENTATION 10.63 10.45 11.64 11.81 14.92 4.94 3.85 3.22 3.05 3.45 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 9.00 10.00 11.00 12.00 13.00 14.00…
  48. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 48
    50 CORPORATE PRESENTATION TSX:PGF NYSE:PGH $50 ? $400 US $265 US $15 Cad $116 US (all amounts in millions) $72 US $100 Cad $0 $0 $0 $138 Cad $105 US $195 $15 ? US $25 Cad Convertible Debentures Weighted average…
  49. March 2014 Investor Presentation – Pengrowth Energy Corp – slide 49
    51 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Category ($MM) Canadian Oil and Gas Property Expense 708 Canadian Development Expense 845 Undepreciated Capital Cost 792 Canadian Exploration Expense 167 Other 1,139 Total 3,652 Tax Pools…

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