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ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp.

Delphi Energy Corp. · May 27, 2014 · 36 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. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 1
    MAY DEE 2014 PRESENTATION ANNUAL GENERAL MEETING OF SHAREHOLDERS May 27, 2014
  2. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 2
    3 CORPORATE SNAPSHOT DEE Bigstone Montney was the driver of significant growth in 2013 24% increase in production 43% increase in proved 58% increase in (Q4/13 over Q4/12) plus probable reserves net asset value per share to…
  3. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 3
    4 BIGSTONE MONTNEY: A COMPANY MAKER DEE Significant Montney production growth at East Bigstone: Montney production increased to 7,000 boe/d in Mar/14 from 700 boe/d in Mar/13 8 new Montney wells on-stream bringing total to 11…
  4. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 4
    5 CORPORATE: RESERVES DEE Dec. 31, 2013 Categories December 31, 2013 Reserves TP reserves increased 52 percent from YE 2012 24% PDP 41% PV10 reserve value increased 79 percent PDNP 3% P+P reserves increased 43 percent from…
  5. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 5
    6 CORPORATE: PRODUCTION DEE Q1 2014 Production 10,302 boe/d Montney production growth starting to show Hythe 2013 a year of transition with slickwater fracs Bigstone Cretaceous applied to Montney resource Bigstone Montney…
  6. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 6
    7 BIGSTONE MONTNEY: A GREAT PIECE OF REAL ESTATE DEE Montney land position has grown to 127 gross sections since 2010 Delphi one of the largest Montney landowners on map sheet Exxon Delphi is a leader in the technical…
  7. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 7
    8 BIGSTONE MONTNEY: ASSEMBLED 127 SECTIONS DEE East Bigstone: 67 sections Held 4 sections of legacy Montney rights West Bigstone: 27 sections below existing DEE production Acquired (100% WI) in 2010/11 Added 12 sections of…
  8. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 8
    9 EAST BIGSTONE: UPPER/MIDDLE MONTNEY DEE East Bigstone Development/Manufacturing Mode +100 Locations East Bigstone 16 producing wells 11 DEE Producing Montney Horizontals West Bigstone Upper Montney +100 Locations…
  9. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 9
    10 EAST BIGSTONE MONTNEY: DEVELOPMENT DEE Drilled 3 HZ wells in 2012: Two mile HZs with laterals of 2,200 m to 3,000 m To KA Sour Fracd using conventional frac designs Plant Drilled 6 HZ wells in 2013: HZs with laterals of…
  10. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 10
    11 BIGSTONE MONTNEY: EVOLUTION OF FRAC DESIGN DEE 150 m Slickwater Hybrid Frac System Pumping: 5 times the fluid 2+ times the sand Evolution of Montney Completions 200 40 Ave tonnes/frac Average tonnes per frac…
  11. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 11
    12 BIGSTONE MONTNEY: WELL PERFORMANCE COMPARISON DEE New wells 3X better: At Payout: 500-700 boe/d Significant free cash flow
  12. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 12
    13 PRODUCTION: EXCEEDING EXPECTATIONS DEE Variability in initial rates: Flow primarily from fractures Initial clean-up efficiency 30 - 40% frac fluid recovery in first 60 days Convergence of rates at 3 to 5 months: Flow…
  13. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 13
    14 PRODUCTION: EXCEEDING EXPECTATIONS DEE Stabilized wellhead condensate yield
  14. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 14
    15 PRODUCTION: EXCEEDING EXPECTATIONS DEE Average first year rate = 1020 boe/d
  15. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 15
    16 PRODUCTION: EXCEEDING EXPECTATIONS DEE New wells generating up to 3 times more revenue: Higher condensate yields Lower decline profiles Faster payouts Greater NPVs and ROR
  16. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 16
    17 BIGSTONE MONTNEY: WELL DESIGN DEE Extended Reach Evolution of Montney Drilling Depths 6000 HZ Drilling Over 4,000 Montney wells drilled in last 5 years 5000 Ave. HZ Length Depth (m) Ave. TVD 2,700 4000 Two - single…
  17. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 17
    18 BIGSTONE MONTNEY: COMPLETION OPTIMIZATION DEE Completions 100,000 bbl water cell Have now completed 9 Slickwater Hybrid Fracs Significantly greater stimulated rock volume Pumped 5X fluid and 2X sand Water handling in place…
  18. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 18
    19 BIGSTONE MONTNEY: ECONOMIC MODEL DEE Two Section Montney Horizontal w/ 30 stage Slickwater Hybrid Completion Delphi Montney Type Well Forecast & Comparisons 10,000 100 Revised Type Well (1) Average 30 Stage SWH Revised Type…
  19. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 19
    20 WEST BIGSTONE MONTNEY: INDUSTRY IS ACTIVE DEE West Bigstone: 27 sections Encana Drill Acquired (100% WI) in 2010/11 Liquids-rich Upper Montney being de-risked at West Bigstone Acquired (100% WI) in 2010/11 Delphi 9-4…
  20. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 20
    21 LOOKING AT THE FUTURE: 5 YEAR OUTLOOK DEE Bigstone Montney will be the driver of significant future growth Major Themes: Maximize value creation for the shareholder Focus on per share growth Efficient use of incremental…
  21. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 21
    22 5 YEAR OUTLOOK: FINANCIAL FLEXIBILITY DEE ( millions) (Net Debt/FFO) 500 3.0 Total Debt Credit Capacity Net Debt/FFO Over 320 million excess 400 credit capacity by 2018 2.4 funding additional growth opportunities 300…
  22. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 22
    23 5 YEAR OUTLOOK: 70 WELL MONTNEY PROGRAM DEE Corporate Maintenance Montney Wells ( millions) ( Wells) 250 25 14 Drilled 24 Surveyed or Licensed 770 million (70 well) Montney 68 Future Locations capital expenditure program at…
  23. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 23
    24 5 YEAR OUTLOOK: FUNDING THE GROWTH DEE ( millions) 300 2014 to 2018 Forecast Cumulative Cash Flow: 796 million 250 Cumulative Capital: 770 million Near term source of funding: cash flow, credit capacity, 200 JV partnership…
  24. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 24
    25 FURTHER FOCUSING THE DEEP BASIN ASSET BASE DEE Cash Generating Capability by Play Type Concentrated land base of over 340 sections Percent of Capital Recovered Bigstone Montney HZ Significant HZ drilling inventory on…
  25. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 25
    26 THE DEEP BASIN: INFRASTRUCTURE IS CRITICAL DEE Sexsmith Gas Plant 210 mmcf/d Hythe Knopcik Gas Plant 71 mmcf/d Goodfare Gas Plant 24 mmcf/d Wapiti Deep Cut Plant 355 mmcf/d Wapiti Shallow Cut Plant 125 mmcf/d…
  26. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 26
    27 5 YEAR OUTLOOK: PRODUCTION VOLUMES DEE (Boe/d) (Boe/d per million shares) 30,000 240 Other Hythe Wapiti Bigstone Cretaceous Bigstone Montney Boe/d per million shares 25,000 200 2014 to 2018 Forecast Growth Boe/d per…
  27. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 27
    28 CASH GENERATING CAPABILITY: NETBACKS MOVING HIGHER DEE Cash Netback (/Boe) Cash Netbacks continuing higher in 2014 35.00 Hedging Netback from Production 30.00 Montney production growth: 25.00 Montney netback almost 2 times…
  28. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 28
    29 5 YEAR OUTLOOK: CASH FLOW GROWTH DEE ( millions) (/share) 300 2.40 Funds from Operations FFOPS 250 2.00 2014 to 2018 Forecast Growth Cash netbacks: 116% 200 CAGR: 17% 1.60 Cash flow per share: 619% 290 million CAGR: 48%…
  29. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 29
    30 BIGSTONE MONTNEY: 2014 DRILLING PROGRAM DEE Area of 5 year / 70 well Development plan 16 10 8 1 East Bigstone 9 3 6 7 13 5 4 2 14 12 11 15 DEE 12-17 Whipstock 2014 drilling plans include: 7 8 HZ wells at…
  30. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 30
    31 BIGSTONE MONTNEY: INFRASTRUCTURE OVERVIEW DEE 8000 16 Bigstone Montney Production Growth 7000 14 Montney Production (boe/d) 6000 12 GAS COND NGL WELLS 5000 10 Well Count 4000 8 3000 6 2000 4 1000 2 0…
  31. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 31
    32 2014 MARKET GUIDANCE DEE 2013 2014 Forecast Change Average Production (BOE/d) 8,241 10,000 10,500 24% Exit Production (BOE/d) 9,638 11,500 12,000 22% Percentage NGL/light oil 27% 29% 7% Natural gas price (AECO /mcf) 3.17…
  32. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 32
    33 DELPHI SUMMARY DEE Current inventory of scalable development opportunities: Montney land base has grown to 127 sections Application of slickwater frac technology is successful Gas rates / NGL yields / costs Field operations…
  33. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 33
    34 DEE APPENDIX
  34. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 34
    35 HEDGING PROGRAM: PROTECTING CASH FLOW DEE Natural Gas Apr - Dec 2014 2015 2016 Volume (mmcf/d) 29.1 12.3 8.5 % Hedged * 65 27 19 Fixed Price (/mcf) 3.62 3.59 3.62 Crude Oil Apr Jul 2014 Volume (bbls/d) 367 % Hedged * 25 Floor…
  35. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 35
    36 BOARD OF DIRECTORS DEE Harry Campbell - Burnet Duckworth & Palmer Robert Lehodey - Osler, Hoskin & Harcourt Andrew Osis - Independent Businessman David Reid - Delphi Energy Corp. Lamont Tolley - Independent Businessman Tony…
  36. ANNUAL GENERAL MEETING OF SHAREHOLDERS – Delphi Energy Corp. – slide 36
    37 DEE 300, 500 4th Avenue S.W. Calgary, Alberta T2P 2V6 Telephone: (403) 265-6171 Facsimile: (403) 265-6207 Email: infodelphienergy.ca Website: www.delphienergy.ca

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