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September 2015 Investor Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Sep 3, 2015 · 29 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 2015 Investor Presentation – Whitecap Resources Inc. – slide 1
    RELIABLE & STRONG = SUSTAINABLE RETURNS CASH FLOW NETBACKS + CAPITAL EFFICIENCY FOCUS LOW DECLINE ASSETS + September 2015
  2. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 298.7 Fully diluted 304.2 Market capitalization (B) 3.5 Annual dividend (/share) 0.75 2015 average production (boe/d) revised upwards 40,100 % oil + NGLs 76% 2015 cash…
  3. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 3
    2015 Outlook 2014 2015 % Change Operational Average production (boe/d) 32,458 40,100 24% Development capital (MM) 324 235 (27%) Wells drilled (gross) 169 123 (27%) Financial Cash flow netback (/boe) 41.00 32.60 (20%) Cash flow (MM) 487…
  4. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 4
    Total Shareholder Return 10% / Annum Founding Principles Employees are shareholders Light oil, high netback focus Per share growth (cash flow, production, reserves and NAV) Pillars of Sustainability Low decline rate Capital…
  5. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 5
    WCP Employee Share Ownership Total Employee Ownership 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4.5MM invested by Insiders and Employees 4,000,000 YTD 2015 3,000,000 2,000,000 1,000,000 0 2009 2010 2011 2012…
  6. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 6
    2015 Whitecap Sustainability 2H/2015 Price Assumptions Oil (USWTI) 40.00 45.00 50.00 55.00 Edm Par Diff (USWTI) (5.00) (5.00) (5.00) (5.00) FX (C/US) 0.73 0.74 0.75 0.78 Edmonton Par (C/bbl) 47.95 54.05 60.00 64.10 AECO (C/GJ)…
  7. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 7
    2016 Preliminary Outlook Oil (USWTI) 45.00 50.00 55.00 60.00 Edm Par Diff (USWTI) (5.00) (5.00) (5.00) (5.00) FX (C/US) 0.74 0.75 0.78 0.80 Edmonton Par (C/bbl) 54.05 60.00 64.10 68.75 AECO (C/GJ) 3.00 3.00 3.00 3.00 Cash flow…
  8. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 8
    Sustainable Dividends Focus on long-term sustainability with reliable dividends funded by cash flow NO DRIP Total dividends paid to date: 400.6MM (1.83/share) 0.0700 2.0000 1.8000 0.0600 1.6000 Cumulative Dividend…
  9. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 9
    Financial Prudence and Risk Management C95.33 C96.95 C96.95 15,000 100.00 12,500 95.00 10,000 Oil Hedges 90.00 C/bbl WTI bbls/d 7,500 85.00 5,000 80.00 Objective: 2,500 1) Mitigate price volatility 0 44%…
  10. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 10
    8 Key Attributes to WCP Growth + Dividend Strategy Focus on organic per share growth (1 - 5% per year) within cash flow, supplement with value adding acquisitions Total payout ratio including capital plus dividend < 100% Strong…
  11. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 11
    Growth Within Cash Flow Sustainable Asset Base 2015 Free Cash Flow by Area 140 120 28 100 80 119 72 106 42 60 5 91 92 40 50 60 20 55 34 0 Saskatchewan SW AB Pembina NW AB/BC Operating Income Development Capital Free…
  12. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 12
    2015 Development Capital 2015 Capex by Area (%) 2015 Well Count (gross) 110 SW AB Saskatchewan 92 100 15% 90 39% 80 70 60 21% 50 2% 40 21 23% 30 7 Other 20 3 10 Pembina 0 NW AB/BC Viking Cardium Dunvegan Boundary…
  13. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 13
    Core Areas of Operations Drilling Inventory = 3,161 100% Light Oil 63% Low Risk Type Curve Equivalent BRITISH COLUMBIA Drilling 2014 / 15 Boundary Lake ALBERTA Inventory wells SASKATCHEWAN Valhalla NW AB/BC Boundary Oil 113 0/3…
  14. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 14
    Predictable and Stable Production Base Base and new well production is predictable and repeatable High level of certainty of achieving forecasted volumes Key characteristics: Areally consistent reservoirs Large resource in place,…
  15. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 15
    Operational Excellence Whitecap - Capital Efficiency Improvements 20,000 19,000 18,000 17,000 16,000 15,000 DCE&T Capital per Boepd IP(30) 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 East…
  16. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 16
    Economic Sensitivities to WTI US/bbl 2.8 Profit to Investment Ratio 400% Rate of Return 2.5 350% 2.3 2.0 300% 1.8 250% 1.5 200% 1.3 1.0 150% 0.8 100% 0.5 50% 0.3 0.0 0% 40 50 60 70 80 40 50 60 70 80 4.0 Payout (yrs) 8,000…
  17. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 17
    Kerrobert Viking Light Oil Premier Viking asset Predictable type curve with exceptional economics Kerrobert 10 years of drilling inventory High netback and recycle ratio Kerrobert Avg royalty rate at 1.6% Operated with a 98% WI…
  18. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 18
    Western Saskatchewan Viking Oil Light oil (36 API) Viking resource play Viking Resource Waterflood Strong capital efficiencies, short payout SASKATCHEWAN Type Well Economics Type A Type B Infill Decline mitigation via waterflood…
  19. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 19
    Cardium Horizontal Resource Play Cardium oil resource play repeatable and expandable Edmonton Light sweet oil (39 API) West Pembina East Pembina Strong operating and cash flow netbacks (48/boe) Low risk optimization of 7 legacy…
  20. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 20
    West Pembina Cardium Legacy Characteristics Unitized waterfloods, 38o API light oil, 1,700m depth Industry Hz Wells 6 Units (46 - 100% WI) WCP Operated 83% oil + NGLs Cardium Lands Average base decline of 5% CPDU1 CPOU1 79.1%…
  21. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 21
    Exceptional Type Curve Economics West Pembina West Pembina West Pembina Type Well Economics Cardium Cardium (ERH) WF Infill Drill, Complete, Equip, Tie-in (MM) 2.63 3.34 2.63 Production, IP30 (boe/d) 317 476 180 Production, IP365…
  22. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 22
    Deep Basin Dunvegan & Cardium Oil Play characteristics Elmworth Wapiti Type Well Economics Dunvegan Cardium ERH 39 - 42 API Large OOIP of 6 to 15.5 MMboe/section Drill, Complete, Equip, Tie-in (MM) 3.04 3.43 Exceptional reservoir…
  23. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 23
    Elnora Nisku Oil 100% operated, 35o API light sweet oil Largest Nisku oil discovery in the past 20 years Elnora Free Cash Flow Nisku zone at 1,900m depth, 18 - 30m thick Production Waterflood significant support provided by aquifer…
  24. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 24
    Boundary Lake Asset Characteristics Operated, 35o API light oil, focused land base Boundary Lake WI Production Avg 54% WI in 3 operated units Boundary Lake zone at 1,300m depth 34/boe netback (91% oil + NGLs) 5% decline Current:…
  25. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 25
    The Whitecap Investment Opportunity Balance sheet strength < 2X D/CF Financial Flexibility Unutilized debt capacity Growth within Capital + Dividend < Cash Flow Cash Flow Return on capital discipline Disciplined focus on…
  26. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 26
    Research Coverage Current Price Targets Barclays 14.00 Haywood Securities 16.00 BMO 16.50 Macquarie Equity Research 19.00 CIBC World Markets Inc. 18.00 Mackie Research 16.00 Cormark Securities 18.00 National Bank Financial 17.50…
  27. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 27
    TSX:WCP www.wcap.ca September 3, 2015 27
  28. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 28
    Appendix - Results and Track Record Production/Share Growth 2P Reserves/Share Growth 45,000 180 250,000 2014 F&D Costs 1,000 139 TP P+P 40,000 160 848 900 Incl. FDC 19.03 13.79 139 35,000 130 140 200,000 P+P Recycle Ratio = 2.3x…
  29. September 2015 Investor Presentation – Whitecap Resources Inc. – slide 29
    Appendix - Results and Track Record Cash Flow/Share Growth 600.0 2.50 2.08 1.65 500.0 1.84 2.00 1.68 400.0 (Cash Flow / share fd) 1.34 1.50 300.0 (MM) 486.8 479.0 1.00 200.0 0.48 278.8 0.50 100.0 193.9 87.2…

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