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May 2014 Investor Presentation – Pengrowth Energy Corp

Pengrowth Energy Corp · May 6, 2014 · 48 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. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 1
    Corporate Presentation BUILDING SUSTAINABLE CASH FLOW May, 2014
  2. May 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 Q1 2014 Production Production Mix Corporate Decline Undeveloped Land…
  3. May 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. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 4
    TSX:PGF NYSE:PGH FIRST QUARTER 2014 HIGHLIGHTS ? Achieved strong quarterly production of 75,102 boe/d ? Generated funds flow from operations of $140 million ($0.27 per share), an increase of 32 percent compared to Q4, 2014 ?…
  5. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 5
    TSX:PGF NYSE:PGH 2013 A YEAR OF SUBSTANTIAL ACCOMPLISHMENTS: ? Initial 12,500 bbl/d commercial development received regulatory approval in July 2013 with construction commencing in September 2013 ? Additional 17,500 bbl/d EIA…
  6. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 6
    TSX:PGF NYSE:PGH THERMAL STRATEGY MAKES MORE SENSE THAN EVER 5 CORPORATE PRESENTATION Supply cost Thermal offers the lowest supply cost as compared to global alternatives Growth Niche thermal opportunities continue to exist for…
  7. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 7
    6 TSX:PGF NYSE:PGH THERMAL OFFERS THE LOWEST OIL SUPPLY COST Supply Costs (US$/bbl) Source: BMO Capital Markets ? Oil & Gas Global Cost Study August 2013 * Average supply cost per barrel across all types of oil plays Supply costs are…
  8. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 8
    7 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 $ 2.50…
  9. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 9
    8 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 ?…
  10. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 10
    TSX:PGF NYSE:PGH 2014 CAPITAL GUIDANCE & ASSET OVERVIEW CORPORATE PRESENTATION9
  11. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 11
    TSX:PGF NYSE:PGH 2014 GUIDANCE 10 CORPORATE PRESENTATION 2014 Guidance1 Capital ($MM) 740 - 770 Non-thermal(2) 350 Lindbergh(2) 405 Average daily production (boe/d) 71,000 ? 73,000 EBITDA ($MM)(3)(4) 575 ? 625 Funds Flow…
  12. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 12
    TSX:PGF NYSE:PGH FOCUSED 2014 NON-THERMAL PROGRAM 2014 Capital allocation 2014 Development capital 11 CORPORATE PRESENTATION $350 MM Conventional Program $270 MM Development Drilling 77% 19% 4% Development Maintenance Other…
  13. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 13
    12 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 ?…
  14. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 14
    13 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…
  15. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 15
    14 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…
  16. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 16
    15 CORPORATE PRESENTATION TSX:PGF NYSE:PGH ? Targeting the Lloydminster formation ? Land position: ? 43 sections with 100% working interest ? Resource potential of 770 million barrels of exploitable Bitumen Initially In Place(1), a…
  17. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 17
    16 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Pengrowth has mitigated the major risks associated with SAGD projects: 1) Reservoir performance: Very successful pilot with significant production history and top quartile SOR and production…
  18. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 18
    17 CORPORATE PRESENTATION TSX:PGF NYSE:PGH 75% OF THE 12,500 BBL/D COMMERCIAL PROJECT CAPITAL IS SPENT OR COMMITTED* AND PROJECT CONTINUES TO BE ON TIME $630 Million 75% ? $470 MM of capital spent/committed ? Includes - civil…
  19. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 19
    TSX:PGF NYSE:PGH REVISED PHASE ONE CAPITAL COST FOR LINDBERGH 18 CORPORATE PRESENTATION Original November 2012 capital forecast $590 MM Base cost and F/X ? Actual costs higher than estimated on last design/final costs for well pad…
  20. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 20
    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 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 SOR Well Pair 1 (103/06-24) SOR Well Pair 2 (104/06-24) Well Pair 1 prod\'n…
  21. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 21
    20 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 Lindbergh Jackfish 1 Foster Creek Tucker…
  22. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 22
    TSX:PGF NYSE:PGH 1 10 100 1000 10000 0 10 20 30 40 50 Permeability (mD) Dean Stark Data Porosity (%) ? Core, log, seismic and model data show reservoir is homogenous ? Consistent reservoir characteristics evident in 150…
  23. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 23
    TSX:PGF NYSE:PGH LINDBERGH PILOT RESULTS HAVE EXCEEDED TYPE CURVE EXPECTATIONS 22 0 200 400 600 800 1,000 1,200 1,400 0 6 12 18 24 30 36 42 48 54 60 66 72 78 84 90 96 102 108 114 120 Type Curve Lindbergh Actual* Bitumen…
  24. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 24
    23 CORPORATE PRESENTATION TSX:PGF NYSE:PGH ACHIEVING AVERAGE LINDBERGH PRODUCTION OF 12,500 BBL/D IN 2015 IS REALISTIC. 2015 Implied average production (bbl/d) Base case No discounting of pilot data 15,000 Case one Assumes pilot…
  25. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 25
    12 24 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 $405 MM $350 MM $490 MM $450 MM $360 MM $100 MM…
  26. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 26
    TSX:PGF NYSE:PGH FINANCIAL STRATEGY CORPORATE PRESENTATION25
  27. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 27
    26 CORPORATE PRESENTATION TSX:PGF NYSE:PGH $450 Cash on hand $520 Anticipated funds flow from operations $50 Anticipated DRIP proceeds Capex Dividends $755 $250 ~$1.0 B of Cash inflows ~$1.0B of Cash outflows MAINTAINING A…
  28. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 28
    TSX:PGF NYSE:PGH FIRST QUARTER FINANCIAL AND OPERATING HIGHLIGHTS 27 CORPORATE PRESENTATION Three Months Ended (Cdn$ millions, except per share and per boe amounts) March 31, 2014 December 31, 2013 March 31, 2013 Production…
  29. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 29
    28 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Calendar Year Hedge positions as at May 2, 2014 Oil Volume (bbl/d) Price per bbl ($Cad) Current oil production hedged* Hedging Limits (% of production) Rest of year 2014 23,000 $94.51 77%…
  30. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 30
    29 CORPORATE PRESENTATION TSX:PGF NYSE:PGH DEBT/EBITDA EXPECTED TO DECLINE FROM 2.8X IN 2014 TO 1.5X IN 2018 * Total debt includes notes, convertible debentures and drawings on credit facilities Total Debt/EBITDA ? Pengrowth has a…
  31. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 31
    30 CORPORATE PRESENTATION TSX:PGF NYSE:PGH TOTAL PAYOUT RATIOS DECLINE FROM 2014 ONWARDS Payout Ratio Total payout defined as capex + dividends divided by funds flow
  32. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 32
    31 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Outstanding March 31, 2014 ($MM) Forecast year end 2014 ($MM) Forecast year end 2015 ($MM) Senior fixed term notes 1,468 1,393 1,350 Term Credit facilities/Bank debt $0 190 425…
  33. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 33
    32 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…
  34. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 34
    TSX:PGF NYSE:PGH WE ARE FIRING ON ALL CYLINDERS 34 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…
  35. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 35
    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…
  36. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 36
    TSX:PGF NYSE:PGH 2013 RESERVES CONTINUITY* 39 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…
  37. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 37
    TSX:PGF NYSE:PGH 2013 FINDING, DEVELOPMENT AND ACQUISITION (DISPOSITION) COSTS 40 CORPORATE PRESENTATION 2013 Three-year Weighted Average Proved Proved plus Probable Proved Proved plus Probable Excluding Future Development…
  38. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 38
    41 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:…
  39. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 39
    42 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:…
  40. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 40
    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…
  41. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 41
    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)…
  42. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 42
    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 ($MM) 630 590 7% Design SOR 3.6 3.6 - IRR IRR Change…
  43. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 43
    46 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Exploitable original bitumen in place Recoverable reserves and resources Net present value before income tax discounted at 10% (MM bbls) (MM bbls) ($MM) Total 1P Reserves 206 82…
  44. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 44
    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:…
  45. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 45
    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…
  46. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 46
    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…
  47. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 47
    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 $25 Cad Convertible Debentures Weighted average…
  48. May 2014 Investor Presentation – Pengrowth Energy Corp – slide 48
    51 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Category ($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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