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September 2014 Investor Presentation – Pengrowth Energy Corp

Pengrowth Energy Corp · Sep 9, 2014 · 53 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. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 1
    Corporate Presentation BUILDING SUSTAINABLE CASH FLOW January, 2014 September, 2014
  2. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 2
    TSX:PGF NYSE:PGH CORPORATE PROFILE 1 CORPORATE PRESENTATION Based on September 1, 2014 TSX closing price of $6.85. Defined as market capitalization + long-term + short-term debt as at June 30, 2014 less cash on hand. As at June 30,…
  3. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 3
    TSX:PGF NYSE:PGH PENGROWTH OVERVIEW ? Lindbergh commercial facility construction near completion ? Commissioning expected in mid-October ? First steam expected in early December ? Significant year-over-year growth in production and…
  4. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 4
    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…
  5. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 5
    TSX:PGF NYSE:PGH SECOND QUARTER 2014 HIGHLIGHTS ? Achieved average daily production of 73,823 boe/d ? Generated funds flow from operations of $121 million ($0.23 per share) ? Maintained current $0.04/share monthly dividend ?…
  6. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 6
    TSX:PGF NYSE:PGH 2013 A YEAR OF SUBSTANTIAL ACCOMPLISHMENTS: ? Initial 12,500 bbl/d commercial development received regulatory approval in July 2013 with construction commencing in September 2013 ? Additional 17,500 bbl/d EIA…
  7. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 7
    TSX:PGF NYSE:PGH THERMAL STRATEGY MAKES MORE SENSE THAN EVER 6 CORPORATE PRESENTATION Supply cost Thermal offers the lowest supply cost as compared to global alternatives Growth Niche thermal opportunities continue to exist for a…
  8. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 8
    7 TSX:PGF NYSE:PGH THERMAL OFFERS THE LOWEST OIL SUPPLY COST Supply Costs (US$/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…
  9. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 9
    TSX:PGF NYSE:PGH THERMAL DEVELOPMENT OFFERS SUSTAINING CAPITAL ADVANTAGES 8 CORPORATE PRESENTATION Sustaining capital index ($/boe/d) = decline rate X capital reinvestment efficiency $9,500/boe/d $28,000/boe/d $4,000/boe/d Capital…
  10. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 10
    9 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…
  11. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 11
    TSX:PGF NYSE:PGH STRONG YEAR OVER YEAR PRODUCTION GROWTH THROUGH 2018 IS PROJECTED Production (boe/day) Y-O-Y Growth 2014E 71,000 ? 73,000 2015E 78,200 9.0%* 2016E 78,400 - 2017E 84,700 8.0% 2018E 95,500 13.0% CAGR 7.0% 0…
  12. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 12
    TSX:PGF NYSE:PGH Funds Flow ($MM) Y-O-Y FF Growth Funds Flow per Share 2014E $520 $1.00 2015E $700 35.0% $1.31 2016E $795 14.0% $1.47 2017E $1,000 26.0% $1.83 2018E $1,315 32.0% $2.38 CAGR 26.0% 11 CORPORATE PRESENTATION…
  13. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 13
    TSX:PGF NYSE:PGH 2014 CAPITAL GUIDANCE & ASSET OVERVIEW 12 CORPORATE PRESENTATION
  14. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 14
    TSX:PGF NYSE:PGH 2014 GUIDANCE 13 CORPORATE PRESENTATION Guidance Capital ($MM) 740 - 770 Non-thermal(1) 350 Lindbergh(1) 405 Average daily production (boe/d) 71,000 ? 73,000 EBITDA ($MM)(2)(3) 575 ? 625 Funds Flow ($MM)(2)(3)…
  15. September 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. September 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. September 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. September 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. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 19
    TSX:PGF NYSE:PGH PENGROWTH IS A LEADER IN DEVELOPING THE CARDIUM FORMATION Pengrowth Cardium economics have improved: ? In 2013, Pengrowth achieved lower capital costs and shorter cycle times, better than expected production…
  20. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 20
    19 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Lindberg h Lindbergh LINDBERGH ? WHERE AND WHAT IS IT? Map Area Lindbergh Target formation Lloydminster 2P Reserves * 230 MMbbls Best Estimate Contingent Resources* 96 MMbbls 2P…
  21. September 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) Reservoir performance: Very successful pilot with significant production history and top quartile SOR and production…
  22. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 22
    21 CORPORATE PRESENTATION TSX:PGF NYSE:PGH 90% OF THE 12,500 BBL/D COMMERCIAL PROJECT CAPITAL IS SPENT OR COMMITTED* AND PROJECT CONTINUES TO BE ON TIME $630 Million 90% ? $567 MM of capital spent/committed ? Includes - civil…
  23. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 23
    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 Jun-14 SOR Well Pair 1 (103/06-24) SOR Well Pair 2 (104/06-24) Well Pair 1 prod\'n…
  24. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 24
    23 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…
  25. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 25
    TSX:PGF NYSE:PGH LINDBERGH PILOT RESULTS HAVE EXCEEDED TYPE CURVE EXPECTATIONS 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* 24 CORPORATE…
  26. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 26
    TSX:PGF NYSE:PGH ? Core, log, seismic and model data show reservoir is homogenous ? Consistent reservoir characteristics evident in coreholes ? Homogeneous sands with no significant shales ? Cap rock is laterally extensive ?…
  27. September 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 $405 MM $350 MM $490 MM $450 MM $360 MM $100 MM…
  28. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 28
    TSX:PGF NYSE:PGH OPTIONALITY TO MOVE PRODUCTION BY RAIL AND PIPELINE TO MAXIMIZE NETBACKS WITH FINANCIAL/TAKE OR PAY FLEXIBILITY 27 CORPORATE PRESENTATION ? 10 year take or pay transportation agreement with Husky Energy ? Committed…
  29. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 29
    TSX:PGF NYSE:PGH MAY 2014 LINDBERGH PROJECT UPDATE HIGHLIGHTS 2P RESERVE VALUE HAS MORE THAN DOUBLED ON A PER SHARE BASIS SINCE DECEMBER 31, 2013 ? 61% increase in Lindbergh 2P reserves ? 18% increase in total Pengrowth 2P reserves…
  30. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 30
    TSX:PGF NYSE:PGH FINANCIAL STRATEGY 29 CORPORATE PRESENTATION
  31. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 31
    30 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…
  32. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 32
    31 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 ~$1.0B of Cash outflows MAINTAINING A…
  33. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 33
    TSX:PGF NYSE:PGH SECOND QUARTER FINANCIAL AND OPERATING HIGHLIGHTS 32 CORPORATE PRESENTATION Three Months Ended (Cdn$ millions, except per share and per boe amounts) June 30, 2014 March 31, 2014 June 30, 2013 Production…
  34. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 34
    33 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Calendar Year Hedge positions as at June 30, 2014 Oil Volume (bbl/d) Price per bbl ($Cad) Current oil production hedged* Hedging Limits (% of production) Rest of year 2014 23,000 $94.51 77%…
  35. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 35
    34 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Outstanding June 30, 2014 ($MM) Forecast year end 2014 ($MM) Forecast year end 2015 ($MM) Senior fixed term notes 1,421 1,393 1,350 Term Credit facilities/Bank debt $0 190 425…
  36. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 36
    35 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…
  37. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 37
    36 CORPORATE PRESENTATION TSX:PGF NYSE:PGH TOTAL PAYOUT RATIOS* EXPECTED TO DECLINE FROM 2014 ONWARDS Payout Ratio *Total payout defined as capex + dividends divided by funds flow 50% 70% 90% 110% 130% 150% 170% 190% 210%…
  38. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 38
    TSX:PGF NYSE:PGH SUMMARY 37 CORPORATE PRESENTATION
  39. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 39
    TSX:PGF NYSE:PGH WE ARE FIRING ON ALL CYLINDERS 38 CORPORATE PRESENTATION ? We did what we said we would do in 2013 ? Monthly $0.04/share dividend will continue to be protected ? Lindbergh pilot performance has exceeded expectations…
  40. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 40
    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…
  41. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 41
    TSX:PGF NYSE:PGH 2013 RESERVES CONTINUITY* 43 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…
  42. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 42
    TSX:PGF NYSE:PGH 2013 FINDING, DEVELOPMENT AND ACQUISITION (DISPOSITION) COSTS 44 CORPORATE PRESENTATION 2013 Three-year Weighted Average Proved Proved plus Probable Proved Proved plus Probable Excluding Future Development…
  43. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 43
    45 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Reserves December 31, 2013(1) May 31, 2014(2) % Change Total 1P Reserves (MMbbl) 82 101 23 Total 2P Reserves (MMbbl) 143 230 61 Best Estimate Contingent Resource (MMbbl) 163 96 (41)…
  44. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 44
    46 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:…
  45. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 45
    47 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:…
  46. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 46
    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…
  47. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 47
    49 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)…
  48. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 48
    50 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Lindbergh Flat Pricing Internal Economic Sensitivity Phase 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 - IRRIRR…
  49. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 49
    51 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:…
  50. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 50
    52 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…
  51. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 51
    TSX:PGF NYSE:PGH RESERVES GROWTH HAS OUTPACED DEBT 53 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 15.00…
  52. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 52
    54 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 $25 Cad Convertible Debentures Weighted average…
  53. September 2014 Investor Presentation – Pengrowth Energy Corp – slide 53
    55 CORPORATE PRESENTATION TSX:PGF NYSE:PGH Category ($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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