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UBS Energy One on One Conference – Canadian Oil Sands Limited

Canadian Oil Sands Limited · Nov 23, 2015 · 26 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. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 1
    UBS Energy 1x1 Conference Boston November 23, 2015 Ryan Kubik President and Chief Executive Officer
  2. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 2
    Suncors Hostile Bid Suncor has offered 0.25 Suncor shares for each COS share COS board has recommended that shareholders reject the Suncor bid: 1. The value offered substantially undervalues COS 2. Timing is entirely opportunistic…
  3. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 3
    Suncors Offer Substantially Undervalues COS 1. High quality lease position 2. Valuable upgrader 3. Reduced cost structure 4. Higher oil price leverage 5. Anticipated production increases 6. Value-enhancing strategic…
  4. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 4
    COS Unique Strategic Assets: Prime Position Largest directly investable public oil sands mining resource High quality leases located in the heart of the Athabasca oil sands Borders every oil sands mining project in the region…
  5. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 5
    COS Unique Strategic Assets: High Quality, Producing Reserves Large Reserve Base Supports Decades of The Suncor hostile bid provides staggering 2,500 SCO Production 50 46 Years dilution to COS Shareholders: 2,000 40 % change in…
  6. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 6
    COS Unique Strategic Assets: Long Life Reserve Base Best Remaining Undeveloped Oil Sands Mining Leases (1) Represents the total volume of material to be excavated (overburden, interburden and ore) to bitumen in place. See Oil and…
  7. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 7
    Lease Optimization: Lease 29 Location of Syncrude Lease 29 Relative to Suncors North Steepbank Mine Syncrudes high quality Lease 29 is contiguous with Suncors North Steepbank Syncrudes Lease 29 mine Continue mining Minimal…
  8. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 8
    COS Unique Strategic Assets: High Value Syncrude Barrel 2 3 2 29 28 16 Syncrude barrel has larger cuts 37 37 48 of the premium priced 25 26 33 fractions 8 6 1 WTI Bakken Syncrude SCO LPG Naptha Distillate VGO Resid…
  9. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 9
    COS Unique Strategic Assets: A Valuable Upgrader Value of Syncrudes upgrader is clear when comparing Syncrude pricing to bitumen pricing Syncrudes SCO has averaged a 40-55% premium to bitumen Since 2009, Syncrudes upgrader generated…
  10. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 10
    COS upgrader provides a distinct advantage over bitumen-only project Mine Only Project vs. Canadian Oil COS should attract a Sands Mine + Upgrader Implied Capital Efficiency (/bbl/d) significant premium over a bitumen…
  11. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 11
    Syncrude Entering Era of Lower Cost Operations Progress on cost reductions exceeding expectations Over 1 billion, 367 million net to COS, of cost savings realized in first 9 months of 2015 Operating expenses down 18% from last year1…
  12. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 12
    Syncrudes improving cost structure Operating Expenses (C/bbl) Capital Expenditures (CMM) 48.86 930 45.69 40.56 37.00 564 368 300 2014 2015 Original 2015 Guidance Avg. 2014 2015 Original 2015 Guidance Avg. Budget 2016-2019…
  13. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 13
    Strong financial position Net debt1 of 2.2 billion2 Long-term debt-to-total capitalization1 of 38%2 No debt maturities until 2019 Credit facilities totalling 1.5 billion, extended to 2019 320 million drawn2 Canadian Oil…
  14. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 14
    COS Shareholders Benefit Significantly When Oil Prices Rise COS cash flow from operations1 and free cash flow1 are significantly levered to even small increases in oil prices Since 2001, COS has paid approximately 7.9 billion, or 17…
  15. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 15
    COS Shareholders Benefit Significantly When Oil Prices Rise COS share price is 98% correlated to oil prices vs. 66% for Suncor When oil prices rise, COS share price has increased more than two and a half times as much as Suncors1…
  16. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 16
    Significant Investments Have Recently Been Made to Improve Production 4.6 billion (1.7 billion net to COS) to rebuild, redesign and expand mine trains Bitumen Production and Extraction Retrofit, reconfigure and debottleneck…
  17. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 17
    COS is Strongly Positioned to Withstand Low Oil Prices and Emerge With Even Greater Value COS investment proposition remains sound: 1. A proven cash generating business that returns cash to shareholders 2. A premier oil sands mining…
  18. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 18
    Appendix
  19. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 19
    Suncor Substantially Undervalues COS Unique Strategic Assets: No Control Premium COS interest in Syncrude offers a unique opportunity for a Canadian Oil Sands third party to potentially (COS) achieve control of Imperial Oil…
  20. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 20
    Markets for COS Syncrude Production Kitimat Syncrude Edmonton Burnaby Hardisty Quebec City Montreal Sarnia Chicago Patoka Cushing Current synthetic crude oil markets Houston Potential new markets
  21. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 21
    Lease Optimization: Mildred Lake Extension (MLX)
  22. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 22
    Syncrude Crown Royalty Terms* All figures gross to Syncrude Greater of 25% net bitumen revenue less capital and operating costs, or 1% of gross bitumen revenue* Previously based on Synthetic Crude Oil (upgraded from bitumen) revenues…
  23. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 23
    2015 Crown Royalty Calculation Based on 2015 Guidance provided October 19, 2015 SCO % Mining Bitumen Revenue1 2,165 1,559 Operating expenses (1,416) 77% (1,090) Development expense (98) 88% (87) Capital expenditures3 (324) 56%…
  24. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 24
    New Royalty Framework Effective January 1, 2016, Syncrude will be subject to the generic Crown royalty framework that applies to most of Albertas oil sands industry Greater of: Gross deemed bitumen revenues less capital and operating…
  25. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 25
    Quality and Location Differentials Cdn /bbl Trailing 3-Month Average 125 115 Brent 105 95 SCO US per bbl 85 75 WTI 65 55 WCS 45 35 25 Bitumen
  26. UBS Energy One on One Conference – Canadian Oil Sands Limited – slide 26
    Syncrude: A Leader in Responsible Oil Sands Development Reflects industry best practices Aboriginal relations Mining Association Toward Sustainable Mining Recognized with Gold Level accreditation by the Canadian Council of Aboriginal…

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