Skip to main content November 2015 Investor Presentation – Cenovus Energy Inc. | Shale Experts
Loading...
Pm

November 2015 Investor Presentation – Cenovus Energy Inc.

Cenovus Energy Inc. · Nov 10, 2015 · 28 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. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 1
    TSX, NYSE | CVE Enterprise value C$18 billion Shares outstanding 833 million 2015F production Oil & NGLs Natural gas 208 Mbbls/d 437 MMcf/d 2014 proved & probable reserves 3.9 BBOE Bitumen Economic contingent resources*…
  2. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 2
    ? Strong balance sheet Net debt to capitalization* ? Heritage Royalty Limited Partnership (HRP) sale generated $3.3 billion of proceeds ? $4.4 billion cash on the balance sheet (Q3 2015) ? net debt to capitalization of 13%, net debt…
  3. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 3
    ? Significant liquidity and long-term debt maturities ? $1.0 billion committed credit facility maturing November 30, 2017 ? $3.0 billion committed credit facility maturing November 30, 2019 ? US$4.75 billion in notes with no maturities…
  4. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 4
    ? Significant liquidity and long-term debt maturities ? $1.0 billion committed credit facility maturing November 30, 2017 ? $3.0 billion committed credit facility maturing November 30, 2019 ? US$4.75 billion in notes with no maturities…
  5. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 5
    Continuing to focus on financial strength Stress testing the balance sheet Net debt to capitalization* 0% 5% 10% 15% 20% 25% 30% 2015F 2016F 2017F US$50/bbl WTI US$65/bbl WTI ? Three-year business plan based on US$65/bbl WTI…
  6. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 6
    0 100 200 300 400 500 600 Opex Capital G&A Opex Capital G&A *Additional workforce cuts 2016E Original target: $200 million Additional 2016 opportunities: ? Additional staff reductions ? Further reduction in costs ? zero…
  7. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 7
    Achieving sustainable cost reductions Improving SAGD well cost performance $7.0 $9.4 5.0 6.0 7.0 8.0 9.0 10.0 2014 basis Drilling Completions Pipelines Well pads Earthworks Tie-in Future basis Targeted SAGD well cost…
  8. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 8
    5 0 10 15 20 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Foster Creek Christina Lake $/bbl Foster Creek Q3 operating costs down 23% year-over-year Christina Lake Q3 operating costs down 24% year-over-year Achieving sustainable cost…
  9. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 9
    5 0 10 15 20 25 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 $/bbl Conventional oil Q3 operating costs down 15% year-over-year Achieving sustainable cost reductions Conventional oil operating costs
  10. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 10
    Capital Total capital ~$11 - $14/bbl full cycle $2 - $3/bbl Growth capital: ? Phase expansion (includes all infrastructure and initial wells) ? Phase debottlenecking and optimization ? Numerator for capital efficiency calculation…
  11. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 11
    Undiscovered BIIP 50 Bbbls Discovered BIIP 93 Bbbls 2.4 Bbbls 1.5 Bbbls Contingent 9.3 Bbbls Proved See advisory for information on resource estimates. There is uncertainty that it will be commercially viable to produce any…
  12. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 12
    0 50 100 150 200 250 300 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F Foster Creek Christina Lake Oil sands production Mbbls/d Production is shown before royalties…
  13. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 13
    0 100 200 300 400 500 600 US$50/bbl WTI US$60/bbl WTI US$70/bbl WTI Forecasted incremental operating cash flow from 50,000 bbls/d at full production rates Forecasted incremental operating cash flow* ? Adding 50,000 bbls/d net of…
  14. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 14
    0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 GR FC TL CL NL ? Lower capital cost ? Lower operating cost ? Smaller surface footprint ? Lower energy usage ? Lower emissions ? Less water usage Steam to oil ratio Low SOR…
  15. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 15
    0 500 1,000 1,500 Foster Creek Christina Lake Source: IHS. Peer projects include: Algar, Christina Lake, Cold Lake, Firebag, Hangingstone, Jackfish, Kirby South, Leismer, Long Lake, MacKay, Orion, Paradise Hill, Peace River, Pikes…
  16. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 16
    Mbbls/d 0 20 40 60 80 100 120 140 160 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 production capacity…
  17. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 17
    0 20 40 60 80 100 120 140 160 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Mbbls/d Foster Creek daily…
  18. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 18
    $ billion Conventional oil and natural gas ? Focusing a modest amount of incremental capital in SE Alberta and Weyburn ? No plans for spending at Pelican Lake and Suffield ? Scalable and flexible capital program ? Over $5.0 billion…
  19. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 19
    ? Refineries have access to discounted crudes ? Wood River accesses multiple pipelines ? Keystone, Express-Platte, Mustang, Ozark ? Borger has access to Canadian heavy, West Texas Sour and growing Permian supply ? Debottlenecking at…
  20. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 20
    (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2010 2011 2012 2013 2014 2015 YTD Cumulative operating free cash flow* ? Downstream operations have generated ~$2.5 billion in operating free cash flow* since 2010 ? Provides…
  21. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 21
    Current pipeline access: ? West Coast: Trans Mountain ? 11,500 bbls/d ? US Gulf Coast: Enbridge USGC/Flanagan South 75,000 bbls/d Adding pipeline commitments: ? US Gulf Coast: TCPL Keystone XL ? 75,000 bbls/d ? East Coast: TCPL…
  22. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 22
    ? Long-term optionality to ship 10% to 20% of corporate volumes by rail ? Taken delivery of 825 coiled and insulated rail cars ? Secured 70,000 bbls/d of loading capacity between: ? Bruderheim Energy terminal (Edmonton) ? acquired…
  23. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 23
    SAGD portfolio provides development opportunity and growth potential Totals may not add due to rounding. For additional information about our economic contingent resources please see the advisory. There is uncertainty that it will be…
  24. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 24
    Progressing engineering at Narrows Lake Narrows Lake commercial project: ? First commercial SAGD project to incorporate solvent aided process (SAP) ? Evaluating development options to leverage existing infrastructure at nearby…
  25. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 25
    Assessing development options at Telephone Lake Borealis region Telephone Lake project area Steepbank & East McMurray Saskatchewan Alberta Telephone Lake commercial project: ? Regulatory approval received in 2014 ? Continuing…
  26. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 26
    Continuing to evaluate Grand Rapids Grand Rapids Pilot location Central plant facility site SAGD pilot update: ? Operating since 2010 ? Two well pairs currently producing ? Third pilot well pair completed Q1 2015; steam…
  27. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 27
    (1) Internal use 180 MMcf, long- term fixed price sale 29 MMcf. 2015F production based on October 29, 2015 guidance. Volume % hedged represents rest of year (Q4) hedged production. Hedges at September 30, 2015 Volume hedged Hedge price…
  28. November 2015 Investor Presentation – Cenovus Energy Inc. – slide 28
    October 29, 2015 Q4 2015 2015 Q4 2015 2015 Q4 2015 2015 2015 Production (Mbbls/d) 66 - 68 66 66 66 74 - 76 75 75 75 140 - 144 140 141 141 Capital expenditures ($ millions) 100 - 120 415 - 435 170 - 190 685 - 705 5 - 10 45 - 50 275 -…

From the store

Browse maps, data & reports in the Shale Experts store