CORPORATE SNAPSHOT Strategy: Disciplined Growth + Sustainable Yield Focus: High quality, large oilinplace reservoirs Symbol: TSX : TOG Average Daily Volume: (1) 1.5mm shares Basic Shares Outstanding: 162mm Market…
FOUNDATION OF TORC BUILDING A LIGHT OIL GROWTH PLATFORM Focus on reserves, production and cash flow per share growth over the long term Operational excellence Maintain strong, flexible balance sheet Focus on sustainability…
BALANCED LIGHT OIL ASSET BASE Low decline, high netback, light oil assets Southeast 360 net undrilled locations Saskatchewan: (stable production and 93% liquids free cash flow) Significant management experience in area…
Southeast Saskatchewan Cash Flow Generation Plus Upside Potential
SE SASKATCHEWAN CONVENTIONAL CASH FLOW ENGINE SE Saskatchewan Large OilinPlace:1 Conventional Pools 5 100+ mmbbls Depth: 1000 2000m Oil Quality: 30 40 API Well Spacing: 75 150m interwell Est. RF: Up to 50% Undrilled…
SE SASKATCHEWAN CONVENTIONAL CASH FLOW ENGINE Historical Asset Results vs 50 mbbl Curve 120 Economic Parameters 2008 2009 DCE&T (mm) 0.9 2010 100 2011 2012 IP (365) (bopd) 46 2013 80 (boepd) 51 2014 Production Rate…
SE SASKATCHEWAN TORQUAY / THREE FORKS UPSIDE Economic Parameters 6 miles 1 Mile Well DCE&T (mm) 3.2 IP (365) (bopd) 98 Reserves (mbbls) 175 Capital Efficiency (/boepd) 32,700 Reserve Cost (/boe) 18.30 NPV 10 (mm) 3.3…
Cardium Development
CARDIUM TREND SIGNIFICANT UNDRILLED DEVELOPMENT INVENTORY WEST PEMBINA CARDIUM TREND Large OilinPlace:1 5 mmbbls / section Land: 95 net light oil sections Depth: 1600 2000m Oil Quality: 40 API sweet Well Spacing: 4 wells /…
DEVELOPMENT DRILLING CARDIUM RESULTS Rate Time Economic Parameters 300 Cardium 185 mbbl Curve DCE&T (mm) 2.9 Average Production Rate, 30 Day Avg (BOPD) IP (365) (bopd) 93 (boepd) 115 200 Reserves (mbbls) 183 (mboe) 226…
Financial Overview
2016 CAPITAL PROGRAM BALANCED APPROACH TO MARKET VOLATILITY Budget Philosophy Capital Spending Measured approach given market volatility 2016 capital budget conservatively set at 90mm (25mm in 1st half; 65mm in 2nd half)…
LOWER PRICE ENVIRONMENT DRIVING COSTS DOWN Improving Decline Profile Improving Cost Structure Capital Allocation Lower growth results in lower Operational efficiencies and service Capital allocation to most efficient decline profile…
SUSTAINABILITY ANALYSIS Sustainability Highlights Sustainability Production Run Rate Production boepd 18,200 Run rate production of 18,200 boe/d ( 87% oil & NGLs) Decline Rate % 23.0% Annual Production Decline boepd 4,186 2016…
SUSTAINABILITY ANALYSIS Commodity Sensitivity Run Rate = 18,200 boepd WTI (USD) /bbl 35.00 40.00 45.00 50.00 FX US/C 0.70 0.70 0.72 0.74 WTI (CAD) /bbl 50.00 57.14 62.50 67.57 Edm Lt vs C WTI Differential /bbl 3.00 3.00 3.00…
BALANCE SHEET STRENGTH & HEDGING Strong Financial Position Hedging Bank Facility 450mm Hedging program with up to 60% of volumes using a rolling two year price risk management program Drawn (2015E Exit) 235mm Program to be layered in…
DIVIDEND + DISCIPLINED GROWTH CHECKLIST Sustainability of business model driven by: Decline Rate 23% Operating Netback (60 Edm Lt) 25 Capital Efficiency Allin IP 365 22,000 per boepd (current) 300mm net debt Strong Balance…
Summary
INVESTMENT HIGHLIGHTS WELL POSITIONED FOR CONTROLLED GROWTH Low Decline, High Netback Production Base Focused light oil asset base Sustainable Yield Allin payout ratio targeted below 100% Opportunity for CPPIB to support…
CORPORATE INFORMATION Management Independent Reserve Engineers Analyst Coverage BMO Capital Markets Brett Herman Sproule Associates Limited President & Chief Executive Officer Ray Kwan Canaccord Genuity Jason Zabinsky Banks Anthony…
HEDGING PROGRAM Hedge Summary Volume (Bbl/d) Type (C/Bbl) Index Low High Jul 1, 2014 Dec 31, 2015 250 Collar 90.00 110.55 CWTI Jul 1, 2014 Dec 31, 2015 250 Collar 90.00 112.00 CWTI Jan 1, 2015 Dec 31, 2015 250 Collar 90.00 108.15…
SIGNIFICANT CORNERSTONE INVESTMENT FROM CPPIB CPPIBs Relationship Investments group provides longterm strategic capital to select companies CPPIB believes are positioned to be leaders in their respective industries Ownership of 25%…
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