OUR ASSET BASE First Nine Months Business Units Q3 Production Drilling Inventory (boepd) Production (locations) (boepd) Bakken 11,173 12,225 1,050 Cardium 16,089 17,062 460 AB / BC 2,993 3,161 295 Total 30,255 32,448 1,865 3
2015 CORPORATE STRATEGY Retain long-term value and preserve financial flexibility in the current low commodity price environment Operational Plan Suspension of monthly dividend Capital program of 100 - 120 million, funded by…
2015 CAPITAL & DRILLING PROGRAM We have an attenuated second half operated drilling program given low commodity prices and current capital costs 2015 Planned Capital Activity Workovers, Business Optimization Net DCET Facilities Unit…
CAPITAL & FUNDS FLOW We expect to generate funds flow well above our capital spending in 2015 800 200% 600 150% Amount ('000,000) 400 100% 100% 200 50% 0 0% 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2011 2012 2013 2014…
DEBT AND LIQUIDITY Our second lien debt transactions in Q3 reduced overall debt 200 million of available liquidity DEBT CAPITAL COMPOSITION Term Secured Debt Term subject to 550 million Credit Facility1 350 million drawn…
SECOND LIEN OVERVIEW In Q3 we issued US650mm of second lien notes with a semi-annual coupon of 9.875% US546 million of senior unsecured notes exchanged for US450 million of second lien notes Immediate debt reduction of 125 million1…
DEBT POSITION We have decreased our overall debt positon since 2012, with continuous access to an appropriate level of liquidity Total Debt Outstanding 1,500 Forecasted 2015 year end debt reduced by 900 million3 since 2013…
GUIDANCE Although we continue to restrict the amount of capital invested into new operated wells, we expect to remain within our guidance range for annual average production and exit production rates 2015 Actual 2015 Guidance First 9…
Q3 2015 NETBACKS & HEDGING EFFECTS In Q3 2015, we realized a gain of 25 million on crude oil derivative contracts, resulting in a netback of 30.94/boe Q3 Operating Netback Plus Commodity Hedges 40 35 30 25 20 15 10 5 0…
FUNDS FLOW PROTECTION Our 2015 crude oil hedge position helped provide funds flow downside protection We continue to build our 2016 hedge portfolio Commodity Oct Dec 2015 Oct Dec 2015 1H 2016 2H 2016 Light oil: WTI (bbl/d) 4,289 1,500…
ECONOMIC SENSITIVITIES Sensitivities and assumptions on remaining three months of 2015 on funds flow from operations Funds Flow Impact Parameter Assumption Change of: ( millions) WTI Oil1,2 US50.00/bbl +/- 1.00 1.2 Production (Q4…
CASH COSTS In this low commodity price environment, we have generated positive funds flow from operations Quarterly Cash Costs and Oil Prices 120 100 80 /boe 60 40 20 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3…
BAKKEN ASSETS Focus on optimization and EOR Our assets produce light oil from the Bakken and the conventional Mississippian formations with a relatively low decline rate. In 2015 we continued to focus on optimizing and expanding our…
IMPROVING TIGHT OIL RECOVERIES Future value generation through natural gas flooding With Bakken EOR projects we expect to: Bakken Attenuate declines and extend production life Increase DPIIP recovery factors from 15% to potentially…
CARDIUM ASSETS Generating positive operating cash flow Our extensive land base stretches from southwest of LTS Land Calgary to northwest of Edmonton and our assets LTS Batteries primarily produce light oil from the Cardium formation.…
CARDIUM GROWTH Cardium Production and Cumulative Well Count 25,000 500 20,000 400 Net Wells on Production Production (boepd) 15,000 300 10,000 200 5,000 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3…
AB / BC ASSETS The Swan Hills provides us with another growth platform Production has grown to 2,500 boepd Available capacity in our 3,500 bopd battery Reserve bookings confirm long-term prospectivity Implementation of EOR water…
SWAN HILLS PRODUCTION Swan Hills production has increased our liquids weighting for the Alberta/BC business unit Swan Hills Production and Cumulative Well Count 5,000 25 4,000 20 Net Wells on Production Production…
LONG-TERM WELL ECONOMICS We focus on well economics that reinforce our business model with quick payouts and strong capital efficiencies < 2 year capital payout 2 recycle ratio Business Unit Bakken Business Unit Cardium Alberta/BC Type…
LONG-TERM OPPORTUNITY PRESERVE LONG TERM EXTENSIVE ASSETS SUSTAINABILITY VALUE Drilling inventory of 10+ 2015 capital funded by 2014 reserve value years cash flow significantly exceeds enterprise value Undeveloped land of…
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