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February 2016 Corporate Presentation – Crescent Point Energy Corp.

Crescent Point Energy Corp. · Feb 26, 2016 · 36 slides

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Slides

  1. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 1
    February 2016 Crescent Point Energy Corporate Presentation 1
  2. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 2
    HIGH-QUALITY, LOW-COST PRODUCER: CPG (TSX AND NYSE) Market Capitalization 8.2 billion (508.6 million shares fully diluted)(1) Net Debt* 4.2 billion (incl. hedged USD denominated debt) Enterprise Value 12.4 billion 2016 Average…
  3. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 3
    BUSINESS STRATEGY Develop and Enhance Assets Increase recovery factors through step-out and infill drilling, waterflood optimization and improved technology Acquire Focus on high-quality, large resource-in-place pools with…
  4. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 4
    HEDGING STRATEGY Current Oil Hedges 2016 average: 34% 2016 average floor price CAD 83.00/bbl 50,000 2017 average floor price CAD 81.00/bbl 40% 2018 average floor price CAD 80.00/bbl 40,000 30% Oil volumes (bbl/d) Percent…
  5. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 5
    FOCUSED GROWTH: LARGE OIL IN PLACE 22 billion barrels of Original Oil in Place 3% recovered to date Viewfield Bakken Saskatchewan focused (75% of production) Shaunavon No material impact from ongoing Alberta Flat Lake / Midale…
  6. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 6
    2016 CAPITAL BUDGET: LIVING WITHIN CASH FLOW Disciplined Capital Spending Plan US40/bbl WTI US60/bbl WTI 2016 Guidance Ranges US/Cdn0.72 US/Cdn0.76 Total Capital Expenditures Capital Expenditures () Production (boe/d) 165,000…
  7. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 7
    EFFICIENT ALLOCATION OF CAPITAL 2016 Budget: % of 2016 Capital Budget Half-Cycle Capital Corporate Inventory Inventory Key Focus Areas (% of 2015 Guidance) Efficiency (/boe/d)(5) (net locations) In Years Viewfield 23% (25%) 17,000…
  8. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 8
    COST-FOCUSED Viewfield Bakken Play: Drilling & Completion Cost Reductions Long-Term Operational Efficiencies: 1/3 of cost savings are a result of company 2.0M initiatives to improve processes and practices 0.4M due to cost…
  9. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 9
    HIGH-RETURN, QUICK-PAYOUT ASSET BASE Type Well Payouts by Play Current capital costs 60 10% reduction 26% 48 Rate of Return Payout (Months) 36 Payouts: less than 3 Years 24 Payouts: less than 2 Years 12 2/3rds of…
  10. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 10
    WATERFLOOD SCALE AND STRATEGY Water Injection Well Conversions and Horizontal Waterflood Comparison Corporate Decline Rate Tight Oil Total Affected 285 Unconventional Waterflood Pilot 300 45% Cumulative Injection well count*…
  11. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 11
    VIEWFIELD BAKKEN WATERFLOOD Viewfield Waterflood Offset Well Example of Per Section 160 EURs 3x greater versus Primary(6)(7) Bakken Recoveries and Economics 140 Estimated Cumulative OOIP Recovery Incremental F&D costs 120…
  12. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 12
    FOCUSED ON LONG-TERM SUSTAINABILITY Improving Long-Term Sustainability 200,000 2.50 165,000 - 2.1 B 172,000 2016 Capital Budget Break-Down (In Millions) 2016E Range 160,000 2.00 150 Average Production (boe/d) Long-Term…
  13. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 13
    SUSTAINABLE ORGANIC GROWTH 4-Year CAGR 250,000 Production per share of 3% to 5% + Dividend Yield 210,000* 200,000 194,000** Estimated cumulative free 4-Year CAGR Production per share of cash flow, after dividends, 7% +…
  14. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 14
    SUMMARY Proven Management Team Proven track record of per share reserves, production and cash flow growth 5-year weighted average F&D of 19.33 per 2P boe of reserves (2.6 times recycle ratio)(9) Cost-focused producer with strong…
  15. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 15
    APPENDIX 16
  16. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 16
    ORIGINAL OIL IN PLACE 22 BILLION BARRELS Independent Recovery Factor Key Focus Areas OOIP (mmbbls) Recovery to Date* (P+P)** Shaunavon 5,300 1.0% 3.9% Uinta Basin 5,200 0.5% 3.5% Viewfield Bakken 4,600 3.5% 10.3% Viking 1,241…
  17. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 17
    LARGE UNBOOKED INVENTORY Remaining Unbooked Internally Identified Key Focus Areas Total Net locations(4) Proved Locations Probable Locations Locations(4) Shaunavon 1,800 568 225 1,007 Viewfield Bakken 1,400 703 152 545 Uinta…
  18. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 18
    VIEWFIELD BAKKEN Q3/15 production: 62,000 boe/d 1,400 net drilling locations 4.6 billion barrels of Original Oil in Place with recovery to date of 3.5% Continue to implement new completions technology resulting in improved…
  19. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 19
    STRATEGIC ASSET BASE WITH STRONG ECONOMICS Viewfield Bakken Infill Type Well (75 mbbls) Comparison Viewfield North Dakota 160 Land Majority crown Majority freehold 140 120 Crown holiday, No holiday, Production (boe/d)…
  20. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 20
    SHAUNAVON Q3/15 production: 25,000 boe/d 1,800 net drilling locations 5.3 billion barrels of Original Oil in Place with recovery to date of 1.0% Upper Shaunavon wells exceeding expectations Producing oil wells directly…
  21. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 21
    SHAUNAVON WATERFLOOD 140 Shaunavon Waterflood Offset Well Example of Per Section EURs 2x greater versus Primary(6)(7) Shaunavon Recoveries and Economics 120 Estimated Cumulative 100 OOIP Recovery Incremental F&D costs EUR NPV…
  22. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 22
    FLAT LAKE / MIDALE UNCONVENTIONAL Q3/15 area production: 16,000 boe/d Flat Lake: (Torquay/Three Forks, Bakken and Ratcliffe) Viewfield Bakken 460 net drilling locations 1 billion barrels of Original Oil in Place with recovery to…
  23. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 23
    UINTA BASIN Multi-Zone Basin Ouray Valley Gusher Horseshoe Bend Rocky Point Randlett Aurora Blacktail Ridge Greater Monument Butte Lake Canyon Crescent Point Energy lands Zones tested horizontally since late…
  24. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 24
    CREATING LONG-TERM VALUE FOR SHAREHOLDERS Growth + Dividend Strategy CPG Waterflood Technology M&A Base Business Expansion Initiatives Large OOIP resources with low Lower decline rates and Increase recoveries and capital…
  25. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 25
    PROVEN TRACK RECORD 200,000 Production Growth (boe/d) 3,000 Funds Flow (millions) 160,000 2,500 2,000 120,000 1,500 80,000 1,000 40,000 500 0 0 2007 2004 2005 2006 2008 2009 2010 2011 2012 2013 2014…
  26. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 26
    PER SHARE FOCUS Production per Share 2P Reserves per Share 375 CAGR 6.7% + Dividend Yield 2 CAGR 6.1% + Dividend Yield 300 1.75 225 1.5 150 75 1.25 0 1 (2) 2010 2011 2012 2013 2014 2015E 2016E* 2010 2011 2012 2013 2014…
  27. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 27
    FAVOURABLE WATERFLOOD RESERVOIRS Low Mobility Ratios* Enhance Waterflood Oil Recovery Crescent Point benefits from shallow, low-cost Viewfield Shaunavon Battrum Bakken reservoirs with characteristics attractive for Mobility…
  28. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 28
    ORGANIC VERSUS ACQUISITION GROWTH 160 2007 to 2014 2P Reserve Additions 140 Organic: 491 MMboe(10) Acquired: 447 MMboe 120 Reserve additions (Mmboe) 100 80 60 40 20 0 2007 2008 2009 2010 2011 2012 2013 2014…
  29. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 29
    ACQUISITION HISTORY: RESERVES MORE THAN DOUBLED Initial 2P Estimated Current 2P Total 2P Increase in Reserves Production Reserves Reserves 2P Reserves % Increase Property (Mboe) (Mboe) (Mboe) (Mboe) (Mboe) in Reserves Sounding Lake…
  30. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 30
    PIONEER IN ADVANCING NEW TECHNOLOGY 2008 - 2009 2010 - 2012 2013 - 2015 Completed first cemented liner in the Expanded waterflood area within the core of the Became the largest driller of horizontal wells in Canada Bakken oil…
  31. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 31
    VIEWFIELD BAKKEN TECHNOLOGY ADVANCEMENTS Viewfield Bakken Independent type well changes(11) Change in Ultimate Recoverable Reserves (MMboe) (Primary recovery 3 twp core) assigned by Independent Evaluators due to % change since…
  32. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 32
    IMPACT OF TECHNOLOGY IMPROVEMENTS Viewfield Bakken Viewfield Bakken Fresh Water Usage Drilling Progression Spud to Rig Release 900 16.00 800 Water (m3) per well 700 12.00 Days per well 600 500 8.00 400 300 Targeting…
  33. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 33
    BALANCE SHEET STRENGTH Debt Composition Senior Guaranteed Notes Maturity Schedule 250 200 1.8B 1.4B Senior Unutilized 150 Million CAD Guaranteed Credit Notes* Capacity 100 2.2B Drawn from Bank 50 Credit Facilities…
  34. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 34
    QUARTERLY OPERATING COST ANALYSIS 15.00 0.17 0.88 0.49 12.61 12.75 (1.40) Operating Costs () / boe 10.00 5.00 0.00 Q3/14 A Impact from cost Timing of annual Impact of USD Operating cost Q3/15 A structure of…
  35. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 35
    INDUSTRY LOW G&A CPG G&A History and 2014 Peer Comparison 3.00 8% G&A as a % of operating netback 7% 2.50 6% G&A/boe 2.00 5% 1.50 4% 3% 1.00 2% 0.50 1% - 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  36. February 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 36
    COMPANY INFORMATION BANKER Bank of Nova Scotia AUDITOR PricewaterhouseCoopers LLP LEGAL COUNSEL Norton Rose Fulbright Canada LLP GLJ Petroleum Consultants Ltd EVALUATION ENGINEERS Sproule Associates Ltd REGISTRAR & TRANSFER…

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