Q4 - 2015 Conventional Medium and Heavy Oil Low Cost, Strong Returns Long Term Growth and Income TSX: TBE www.twinbutteenergy.com
Why TBE Positioned for a recovery in oil prices significant torque Oil weighted (88% in Q3) +10 per bbl move in WTI doubles netback vs Q3 (ex hedges) Asset base major change in quality and competitiveness Legacy heavy vertical…
Corporate Snapshot Deliver 10%+ average annual return (income and growth) Basic shares 354 MM Oil leveraged production (88% Fully diluted 373 MM liquids) Insiders own - Basic / FD 3.8 /6.3% Current production 16,000 boe/d Share…
Debt & Liquidity September 30, 2015 millions Current bank credit facility 275 Bank debt (68% drawn) (210) Working Capital (deficit) (18) Liquidity (available credit facility) 47 Net debt Bank debt & working capital 228…
TBE Transitioned The majority of the street still views TBE in its pre 2014 state Old view Current reality Operating costs per boe down 16%, High cost production base competitive cost structure, impact of growth High opex, high…
Focused Asset Base 91% of Corporate production in core area…
Quality Focus Q3 2015 Netbacks Provost Hz Lloyd Hz Lloyd Verts Company Provost Lloyd Other post 2012 Provost base post 2012 and Base boepd 16303 7855 6783 1666 3957 3898 1828 4954 % production 48% 42% 10% revenue per boe 37.72…
Lower Operating Costs 28 Corporate Operating and Transportation costs reduced by 26 3.60/boe or 15% over past 21 months. 24 Operating and Transportation Costs (/boe) Heavy Lloyd - Heavy Oil Cost Reductions: 22 Transition to…
Lower Royalties 80.00 30.0% 70.00 25.0% Royalty reductions 60.00 Corporate royalty costs decreased by 10/boe from Q2 2014 to Q2 2015 20.0% 50.00 Equally impacted by increased horizontal weighting and lower 40.00 15.0% realized…
Deploying Appropriate Technology Technology Deployment Impact (Lloyd Provost) High operating cost, variable results, reaching full maturity, limited Vertical (CHOPS) 1980s inventory Lined Heavy Hzs 2000s High cost, selective…
Lower Capital Costs 1.60 1.50 Provost 1400m Frac Hz Decreased drill times 1.40 Reduced casing size Coil vs annular fracs Drill, Complete & Equip Average Well Cost ( Million) Adjusted frac fluid system 1.30 Provost 700m…
Outperforming Type Wells TBE Sparky vs Provost Hz Frac (700m) Type Curve TBE Lithics vs Provost Hz Frac (1400m) Type Curve 120 120 100 100 80 80 boed boed 60 60 40 40 20 20 0 0 0 6 12 18 24 0 6 12 18 24 Producing…
TBE Type Wells vs the Viking 120 HzFrac HzFrac Hz Hz Provost Provost Open Hole Open Hole Viking Tier 6 Sparky Lithic Lloyd Lloyd (Sproule) (700m Hz) (1400m Hz) Single Lateral Dual Lateral 100 IP(90) boed 58 75 98 67 91 IP(365)…
Provost Medium Oil Core Area G G R6 G L G G R5 G G R4 G G G H CC G K C G F G G C G G R3 C G C G G F G G G G R2 G G E G G G GJ GE EJ E J R1W4 G GG G G F L G G Multi-zone oil potential…
Provost Sparky HH H E D G GE G E G IKIG G G R4 G G G G D G I R3 DI C I S IG J G K DS G J G GG G G L G G R2W4 G G G I E I E G I GG G EJ KE E I JD G J IG S E I E E G D D G G D H M L G G I DJ JG G K E E I E G…
Provost Lithic Channel Play G G GG G JJE G K G SIE G GSDGG D G R4 G G R3 G G R2W4 G A C D EEEJJ HHH D G G I GEEG JSDJ GD G GD E G G A GA G ISEEEEEEI ED HHH I DS ED G E GJ G IEIG III ISIEJ EJ E S G G IK K G CJ H E EEDSIS…
Provost Dina-Cummings Large oil in place with high recovery factors - natural water flood 2015 - Select extensions and infills - Expand water handling - Expand footprint Potential for horizontal injectors to further reduce…
Lloydminster - Heavy Lower operating and transportation costs, lower royalties Significantly lower per well (single lateral) drill, complete and equip costs 700k Targeting primarily intervals not previously developed vertically…
Lloyd Area Testing Technology Silverdale - Single vs Dual Lateral Multiphase capital and risk reduction 200 G G I HH H H K C J E Single leg horizontal development 180 9 E E E T D D D A DDE Dual lateral E J…
Lloyd Area Adopting Technology Lashburn - Single vs Dual Lateral 300 Dual lateral Expanding opportunity base 250 Derisked technology 200 Strong production results Oil Rate (bopd) Targeting low water, low sand 150…
2016 Guidance Targeted for December release Planning range 45-65 per bbl WTI US Maintain minimum investment hurdles 2:1 recycle…
Conservative, Disciplined Balance sheet management is a priority. Total payout (dividend and capital) will not exceed cash flow. Dividend reduced to reflect lower commodity prices. Strong 2015 development results Technology…
Appendix 26 TSX: TBE
2015 Guidance 2015* November Update Average Production (boe/d) 17,200 Liquids Production (%) 90 Capital expenditures (net MM) 90 Cash Dividend (MM) 30 Dividend per share 0.085 Cash Flow (MM) 175 Cash Flow (/share) 0.49 2015…
Analyst Coverage Company Analyst Target Action Acumen Trevor Reynolds 0.50 Speculative Buy BMO Capital Gordon Tait 0.80 Market Perform Canaccord Genutiy Dennis Fong 0.35 Hold CIBC Capital Jeremy Kaliel 0.50 Sector Perform GMP…
Management and Board Management Rob Wollmann President and CEO Alan Steele Vice President, Finance & CFO David Middleton Chief Operating Officer Claude Gamache Vice President, Geosciences Gord Howe Vice President, Land Preston…
Loading...
