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January 2016 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jan 12, 2016 · 27 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. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 1
    RELIABLE & SUSTAINABLE RETURNS STRONG = CASH FLOW NETBACKS + CAPITAL EFFICIENCY FOCUS LOW DECLINE ASSETS + January 2016
  2. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 300.6 Fully diluted 304.9 Market capitalization (B) 2.7 Annual dividend (/share) 0.75 2016 average production (boe/d) 40,100 % oil + NGLs 77% 2016 cash flow netback…
  3. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 3
    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…
  4. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 4
    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…
  5. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 5
    2016 Outlook 2015 2016 % Change Operational Average production (boe/d) 40,800* 40,100 (2%) Development capital (MM) 235 150 (36%) Wells drilled (gross) 123 88 (28%) Financial Cash flow netback (/boe) 32.30 25.60 (21%) Cash flow (MM)…
  6. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 6
    2016 Sensitivities Oil (USWTI) 40.00 46.25 50.00 55.00 FX (C/US) 0.72 0.73 0.74 0.75 Oil (Cdn/WTI) 55.56 63.36 67.57 73.33 AECO (C/GJ) 2.40 2.40 2.40 2.40 Cash flow netback (/boe) 20.35 25.60 28.60 31.50 Average production…
  7. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 7
    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…
  8. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Financial Prudence and Risk Management C94.20 C83.52 10,500 100.00 9,000 95.00 7,500 Oil Hedges 90.00 C/bbl WTI 6,000 bbls/d 4,500 85.00 3,000 80.00 Objective: 1,500 1) Mitigate price volatility - % Hedged…
  9. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 9
    Growth Within Cash Flow Sustainable Asset Base 2016 Free Cash Flow by Area 140 120 100 51 80 111 60 31 99 86 58 87 77 40 20 60 29 46 13 0 Saskatchewan SW AB Pembina NW AB/BC Viking Cardium Cardium Dunvegan/Boundary…
  10. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 10
    2016 Development Capital 2016 Capex by Area (%) 2016 Well Count (gross) Saskatchewan 100 SW AB 40% 90 80 66 9% 70 1% 60 Other 50 19% 40 31% 30 11 9 20 2 10 Pembina 0 Saskatchewan Pembina NW AB/BC SW AB NW AB/BC 2015…
  11. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Core Areas of Operations Drilling Inventory = 3,161 100% Light Oil 63% Low Risk Type Curve Equivalent BRITISH COLUMBIA Boundary ALBERTA Lake Drilling 2015 / 16 SASKATCHEWAN Inventory wells Valhalla North NW AB/BC NW AB/BC…
  12. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 12
    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,…
  13. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 13
    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…
  14. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 14
    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…
  15. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 15
    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…
  16. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 16
    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…
  17. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 17
    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…
  18. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 18
    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%…
  19. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 19
    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…
  20. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 20
    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…
  21. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 21
    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…
  22. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Boundary Lake Asset Characteristics Operated, 35o API light oil, focused land base Boundary Lake WI Production Avg 75% WI in 3 operated units Boundary Lake zone at 1,300m depth 34/boe netback (91% oil + NGLs) 5% decline Current:…
  23. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 23
    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 Per…
  24. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 24
    Research Coverage Current Price Targets AltaCorp 14.50 Haywood Securities 14.00 CIBC World Markets Inc. 17.00 Macquarie Equity Research 16.00 Clarus Securities Inc. 15.00 National Bank Financial 16.00 Cormark Securities 17.00…
  25. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 25
    TSX:WCP www.wcap.ca January 5, 2016 25
  26. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Appendix - Results and Track Record Production/Share Growth 2P Reserves/Share Growth 45,000 180 250,000 2014 F&D Costs 1,000 TP P+P 40,000 160 848 900 Incl. FDC 19.03 13.79 139 140 35,000 130 140 200,000 P+P Recycle Ratio = 2.3x…
  27. January 2016 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Appendix - Results and Track Record Cash Flow/Share Growth 600.0 2.50 2.08 500.0 1.84 2.00 1.68 1.66 400.0 (Cash Flow / share fd) 1.34 1.50 300.0 (MM) 486.8 481.0 1.00 200.0 0.48 278.8 0.50 100.0 193.9 87.2…

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