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February 2016 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Feb 11, 2016 · 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. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 1
    RELIABLE & SUSTAINABLE RETURNS STRONG = CASH NETBACKS + CAPITAL EFFICIENCY FOCUS LOW DECLINE ASSETS + CALIBRATING TO THE CURRENT PRICE ENVIRONMENT February 2016
  2. February 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) 2.0 Annual dividend (/share) 0.45 2016 average production (boe/d) 37,000 % oil + NGLs 75% 2016 cash netback (/boe)…
  3. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Motivated people + quality assets + discipline = Success Total Annual Shareholder Return Focus Growth + Yield Founding Principles Employees are shareholders Light oil, high netback focus Per share growth (funds flow, production,…
  4. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 4
    2015 Year End Reserve Summary PDP TP TPP W.I. Reserves - (MMBoe) 113.19 199.95 278.85 - (BT10 Value MM) 1,947 3,003 4,134 Reserve Life Index - (Years) 7.6 13.4 18.7 2015 F&D - (/Boe) 12.57 8.86 6.97 - (Recycle Ratio) 2.87x…
  5. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Upside Potential WCP Oil Drilling Inventory Locations (Gross) Formations Total Booked Unbooked % Booked Viking 1,791 849 942 47% Cardium 954 339 615 36% Dunvegan 137 29 108 21% Montney 61 37 24 61% Boundary Lake 114 51 63…
  6. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Core Areas of Operations Light Oil Drilling Inventory 3,111 63% Low Risk Type A 37% Low Risk Type B BRITISH COLUMBIA Boundary ALBERTA Lake Drilling 2015 / 16 SASKATCHEWAN Inventory wells Valhalla North NW AB/BC NW AB/BC 562…
  7. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Economic Sensitivities to WTI US/bbl 2.5 Profit to Investment Ratio 400% Rate of Return 350% 2.0 300% 250% 1.5 200% 1.0 150% 100% 0.5 50% 0.0 0% 35 40 45 50 55 60 65 35 40 45 50 55 60 65 3.0 Payout (yrs) 6,000 NPV / Well…
  8. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 8
    2016 Guidance 2016 Operational Average production (boe/d) 37,000 Development capital (MM) 70 Wells drilled (gross) 23 Financial Cash netback (/boe) 18.50 Operating costs 10.00 Transportation costs 1.50 Funds flow (MM) 251 G&A costs…
  9. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 9
    2016 Sensitivities Oil (USWTI) 35.00 40.00 45.00 50.00 FX (C/US) 0.69 0.70 0.71 0.72 Oil (Cdn/WTI) 44.93 51.43 57.75 63.89 AECO (C/GJ) 2.50 2.50 2.50 2.50 Funds flow netback (/boe) 16.90 21.25 25.55 28.75 Average production…
  10. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 10
    8 Key Attributes to WCP Growth + Dividend Strategy Focus on organic per share growth (1 - 5% per year) within funds flow, supplement with value adding acquisitions Total payout ratio including capital plus dividend < 100% Maintain…
  11. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Sustainable Asset Base: Funds Flow Capital 2016 Free Funds Flow by Area 100 80 60 81 71 50 71 27 40 50 57 59 20 30 21 10 9 0 Saskatchewan SW AB Pembina NW AB/BC Viking Cardium Cardium Dunvegan/Boundary Lake Operating…
  12. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 12
    2016 Development Capital 2016 Capex by Area (%) 2016 Well Count (gross) Saskatchewan 40 SW AB 30% 14% 30 20 15 14% 42% 10 4 3 1 Pembina NW AB/BC 0 Saskatchewan Pembina NW AB/BC SW AB 2015 2016 Development Capital…
  13. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 13
    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,…
  14. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 14
    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…
  15. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Financial Prudence and Risk Management Mitigate price volatility Funds flow predictability for stable dividend payments and capital reinvestments Hedge up to 75% for 3 years at prices that support our business plan 2016 Crude Oil…
  16. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 16
    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…
  17. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 17
    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 Infill Decline mitigation via waterflood…
  18. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 18
    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 netbacks Low risk optimization of 7 legacy Cardium oil…
  19. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 19
    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%…
  20. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 20
    Exceptional Type Curve Economics West Pembina West Pembina Type Well Economics Cardium Cardium (ERH) Drill, Complete, Equip, Tie-in (MM) 2.33 3.34 Production, IP30 (boe/d) 317 476 Production, IP365 (boe/d) 160 239 P+PA Reserves…
  21. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 21
    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) 2.83 3.57 Exceptional reservoir…
  22. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Elnora Nisku Oil 100% operated, 35o API light sweet oil Largest Nisku oil discovery in the past 20 years Elnora Free Funds Flow Nisku zone at 1,900m depth, 18 - 30m thick Production Waterflood significant support provided by aquifer…
  23. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 23
    Boundary Lake Asset Characteristics Boundary Lake WI Production Operated, 35o API light oil, focused land base Avg 75% WI in 3 operated units Boundary Lake zone at 1,300m depth 5% decline 34/boe netback (91% oil + NGLs) Legacy…
  24. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 24
    The Whitecap Investment Opportunity Balance sheet strength Financial Flexibility Unutilized debt capacity Growth within Capital + Dividend < Funds Flow Funds Flow Return on capital discipline Disciplined focus on Per share…
  25. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 25
    Research Coverage AltaCorp Capital Haywood Securities BMO Capital Markets Macquarie Equity Research CIBC World Markets National Bank Financial Clarus Securities Peters & Co. Cormark Securities RBC Capital Markets Dundee Securities…
  26. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 26
    TSX:WCP www.wcap.ca February 10, 2016 26
  27. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Appendix - Results and Track Record Production/Share Growth 2P Reserves/Share Growth 45,000 180 300,000 2015 F&D Costs 1,100 TP P+P 941 1,000 40,000 160 Incl. FDC 8.86 6.97 139 140 250,000 848 900 35,000 130 140 P+P Recycle Ratio…
  28. February 2016 Corporate Presentation – Whitecap Resources Inc. – slide 28
    Appendix - Results and Track Record Funds Flow/Share Growth 600.0 2.50 2.08 500.0 1.84 2.00 1.68 1.66 400.0 (Funds 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…

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