CORPORATE PRESENTATION March 2016 CORPORATE PRESENTATION 1
CORPORATE PROFILE Corporate Summary Q4/2015 Avg. Daily Production 67,934 boe/d Production Mix1 60% liquids/40% gas Corporate Decline2 12% Undeveloped Land (net) 503,000 acres Reserves (2P YE 2015)3 569.1 million boe Reserve Life…
RESPONDING TO LOW COMMODITY PRICES WE DID WHAT WE SAID WE WOULD DO IN 2015 A significantly reduced capital program for 2015 of 200 million, representing an 78 percent reduction from 2014 (Actual capital reduced from 904 to 184…
2015 OBJECTIVES DELIVERING ON OUR PROMISES Original Actual Guidance Result Production (boe/d) 70,000 to 72,000 71,409 Capital Budget ( million) 190 to 2101 184 Operating Costs (/boe) 15.50 to 16.50 14.282 Cash G&A Expenses (/boe)…
2015 FINANCIAL AND OPERATING HIGHLIGHTS CONTINUED PERFORMANCE IN DELIVERING RESULTS Three Months Ended Twelve Months Ended December 31 December 31 ( millions except per share and per boe amounts) 2015 2014 2015 2014 Production…
2015 DEBT CONTINUITY TOTAL DEBT BEFORE WORKING CAPITAL CONTINUITY (Cdn millions) Total debt at December 31, 2014 1,869.9 Increase (decrease) due to: Foreign exchange impact of the weakening Canadian dollar on US 264.7…
2015 RESERVES SUMMARY BUILDING THE FOUNDATION FOR LONG-TERM GROWTH Company interest Total Proved (1P) reserves of 252 million boe and Proved plus Probable reserves (2P) of 569 million boe1 Replaced 282 percent of 2015 total 569…
2015 RESERVES CONTINUITY* CONTINUED RESERVES GROWTH DESPITE SIGNIFICANT ASSET DISPOSITIONS AND REDUCED CAPITAL SPENDING Proved Proved plus probable (Mboe) (Mboe) December 31, 2014 310,051 557,350 Extensions and improved recovery…
LARGE RESOURCE BASED ASSETS BUILDING THE FOUNDATION FOR LONG-TERM GROWTH 569 Million boe of 2P reserves* Extensions and improved recovery reserve gains of approximately 88 million boe in 2015 Positive technical revisions of…
CONTINUING ACTIONS IN 2016 FOCUSED ON REDUCING OUTSTANDING DEBT AND STRENGTHENING BALANCE SHEET Suspension of the dividend (As at January 20, 2016) 2016 capital program of 60 to 70 million Corporate hedge book with market value…
2016 CORPORATE GUIDANCE PRESERVING FINANCIAL HEALTH IN A LOW PRICE ENVIRONMENT Metric Guidance* Production breakout Capital Budget (million) 60 to 70 Light oil (bbl/d) 12,500 Average daily production (boe/d) 59,000 to 61,000 Heavy…
FINANCIAL OVERVIEW CORPORATE PRESENTATION 12
MANAGING WITHIN DEBT COVENANTS DEBT IS MANAGEABLE AND EXPECTED TO REMAIN BELOW COVENANT LIMITS Value of unrealized F/X hedge book as at February 19, 2016: 84 million Bank and Noteholder Covenant limits Senior Debt/EBITDA…
OTHER DEBT COVENANTS WE DO NOT FORECAST TRIGGERING ANY OF OUR DEBT COVENANTS IN 2016 With low oil and gas prices expected in 2016: Will Pengrowth trigger a debt covenant Covenant YE 2015 YE 2016E Senior Debt to…
RISK MANAGEMENT PROGRAM ENSURING EXCESS FUNDS FLOW AFTER CAPITAL PROGRAM AND DIVIDENDS Hedge positions as at December 31, 2015 Crude Oil1 Natural Gas Volume Percentage Average Price Volume Percentage Average Price Hedged2 Hedged2…
HEDGES ENSURE STABLE FUNDS FLOW DESPITE SIGNIFICANT DECLINES IN COMMODITY PRICES Funds flow from operations ( million) % change in prices CORPORATE PRESENTATION 16
MANAGING OUR COST STRUCTURE 2015/2016 YEAR OVER YEAR SAVINGS IN OPEX AND G&A 23 million 25 million Operating Costs Fuel savings, reduced service 30 percent reduction in head costs office staffing levels G&A Costs…
BALANCE SHEET MANAGEMENT LONG-TERM DEBT MATURITIES ARE MANAGEABLE ( million) No maturities in 2016 Expected to generate approximately 355 million* of free cash flow from operations including partial liquidation of F/X gains…
2017 DEBT STRATEGY PLANS FOR HANDLING MATURING DEBT AVAILABLE OPTIONS TO RETIRE TERM NOTES AND CONVERTIBLE DEBT Term Notes Convertible Debentures Least costly Repay with cash on hand Repay with cash on hand Long-term costs…
2016 FINANCIAL HIGHLIGHTS SURVIVE TO THRIVE No debt maturities in 2016 requiring new capital Hedging providing cash flow protection through end of year Excess cash flow will be used to reduce debt Disposition proceeds will…
OPERATIONS OVERVIEW CORPORATE PRESENTATION 22
LONG-TERM STRATEGY THRIVE TO GROW Focus on long-life, low cost and 1 competitively advantaged assets Continue with disciplined capital 2 investment strategy Significant long-term development and resource 3 opportunities Balance…
PENGROWTHS RESOURCE BASE PORTFOLIO WITH INCREASING FOCUS ON OIL AND LIQUIDS DEVELOPMENT CORPORATE PRESENTATION 24
LONG-TERM DEVELOPMENT OVER 11 BILLION OF DEVELOPMENT OPPORTUNITIES Large accumulations Long life assets CONVENTIONAL ASSETS Low declines THERMAL Low cost structure ASSETS Swan Hills Low sustaining capital Cardium Lindbergh…
LONG-TERM DEVELOPMENT OVER 11 BILLION OF DEVELOPMENT OPPORTUNITIES Thermal oil Montney gas Lindbergh Groundbirch/Bernadet 6.6 billion 4.7 billion GROWTH VEHICLES CORPORATE PRESENTATION 26
LINDBERGH THERMAL OIL 6.7 BILLION OF LONG-TERM REINVESTMENT OPPORTUNITIES 263 MMbbls 15,098 bbl/d 2P reserves1 Current production2 Large high quality resource 6.7 billion of future capital reinvestment potential (2P 3.9…
GLOBAL RESOURCE COSTS LINDBERGH COMPETES WITH LOWEST COST PRODUCTION ON WORLD COST CURVE Average break even Oil Extra heavy oil Sands Ultra Deepwater Onshore rest of world Deepwater Onshore 72 Cost (US per barrel)…
LINDBERGH CHARACTERISTICS TOP TIER SAGD OPERATION 9o 11o API oil, 50,000 to 350,000 cP Clean continuous sands with no significant shales Reservoir characterized as nearshore marine sand Laterally extensive high quality cap rock…
LINDBERGH OPERATING NETBACKS PROVIDING STRONG NETBACKS TO SUPPORT CASH FLOWS Cash flow =0 US 29.43 WTI/boe Three Months Ended (Cdn unless noted otherwise) December 31, 2015 September 30, 2015 June 30, 2015 WTI (US/bbl) 42.17…
LINDBERGH COMMERCIAL PRODUCTION PHASE ONE PRODUCTION CONTINUES TO GROW 2016 Average Annual Production Instantaneous Steam-Oil Ratio (ISOR) 16,500 bbl/d Commenced steaming Bitumen Production (bbl/d) operations on…
LINDBERGH PILOT PERFORMANCE PILOT WELL PAIR RESULTS POINT TO HIGHER RECOVERY RATES VERSUS TYPE CURVE Bitumen Production (bbl/d) Type Curve based on 1.2 million bbl EUR Month *Average producing day rates from original two…
LINDBERGH COMMERCIAL RESULTS RESULTS DEMONSTRATE TOP QUARTILE RESULTS IN PRODUCTIVITY AND SORS 2,000 1,800 1,600 Average well productivity (bbl/d) 1,400 1,200 Christina Lake (CVE) Firebag 1,000 800 Jackfish 1…
MONTNEY GAS SIGNIFICANT DEVELOPMENT INVENTORY 8.0 Tcf 2,444 boe/d Petroleum Current production2 initially-in-place (PIIP)1 Large high quality resource 4.7 billion of future capital reinvestment potential Groundbirch (2P 690…
PENGROWTH MONTNEY OVERVIEW SIGNIFICANT DEVELOPMENT INVENTORY Montney land holdings in excess of 50 net sections Groundbirch (dry gas) Bernadet (liquids-rich) Pengrowths best estimate for total petroleum initially-in-place (PIIP)…
PENGROWTH MONTNEY OVERVIEW MULTIPLE PLAYS WITHY LONG-TERM GROWTH POTENTIAL Bernadet Groundbirch 32.6 sections (100 percent working 21 gross sections (90 percent working interest) interest) Expected to provide a scalable, low risk…
MONTNEY PLAY ECONOMICS PROVIDE STRONG RETURNS THAT COMPETE WITH OIL PLAYS Bernadet1 Groundbirch1 Per Well Unrisked Per Well Unrisked Metrics Case 1 Case 2 Case 3 Metrics Case 1 Case 2 Case 3 DCET ( million/well) 5.5 5.5 5.5 DCET (…
GROUNDBIRCH MONTNEY WELL PERFORMANCE WELLS DRILLED IN 2014 OUTPERFORMING FIRST GENERATION WELLS 1000.0 Initial 2014 900.0 IP 30 Rate (MMcf/d) 1.7 5.4 800.0 EUR (Bcf) 6.0 8.0 DCET ( million/well) 7.4 5.5 700.0 Frac Stages 8-10…
OLDS/GARRINGTON MULTI-TIER LIQUIDS DEVELOPMENT OPPORTUNITIES 62.9 MMboe 17,800 boe/d 2P reserves 1 Current production2 Large, contiguous land base with access to multi-tier development opportunities Over 500 net (unrisked)…
OLDS/GARRINGTION DOMINANT POSITION WITH OPPORTUNITIES FOR GROWTH Pengrowth has been one of the RED DEER most active players in the area SYLVAN LAKE Focus has been on Cardium development INNISFAIL Over 480 gross sections of…
OLDS/GARRINGTION DEVELOPMENT DOMINANT POSITION WITH OPPORTUNITIES FOR GROWTH Light oil (35o to 50o oil) Control of key Technology continues and liquids-rich natural INFRASTRUCTURE processing ( 112 to unlock large new gas with…
OLDS/GARRINGTION LIGHT OIL AND LIQUIDS-RICH GAS IN STACKED RESERVOIRS Horizontal potential in all layers Technology continues to unlock new resource plays Stacked reservoirs (Cardium, Viking, Mannville, Elkton, Pekisko and Wabamun)…
CONVENTIONAL OPERATIONS KEY TAKEAWAYS FOR 2016 AND BEYOND Safe and efficient operations with a plan for delivery of budgeted results 2016 capital spending focused on safety, integrity and asset reliability Leverage our operated…
SUMMARY CORPORATE PRESENTATION 45
SURVIVE TO THRIVE EXECUTING ON WHAT IS IN OUR CONTROL We have a plan to survive and thrive Focusing on preserving and improving financial strength Targeting debt reduction through free cash flow and proceeds from asset sales…
APPENDIX CORPORATE PRESENTATION 47
2015 RESERVE REPLACEMENT COSTS FINDING, DEVELOPMENT AND ACQUISITION COSTS IMPROVING Three-year Weighted 2015 2014 Average Proved Proved Proved Proved Proved Proved plus plus plus Probable Probable Probable Excluding Future…
TAX POOLS NO CASH INCOME TAX EXPECTED TO BE PAYABLE UNTIL AT LEAST 2021 Tax Pools as at December 31, 2015 Category (million) Canadian Oil and Gas Property Expense 445 Canadian Development Expense 564 Undepreciated Capital…
Loading...
