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February 2016 Investor Presentation – Cenovus Energy Inc.

Cenovus Energy Inc. · Feb 23, 2016 · 29 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 Investor Presentation – Cenovus Energy Inc. – slide 1
  2. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 2
    TSX, NYSE | CVE Enterprise value C$14 billion Shares outstanding 833 million 2016F production Oil & NGLs Natural gas 205 Mbbls/d 385 MMcf/d 2015 proved & probable reserves 3.8 BBOE Bitumen Economic contingent resources*…
  3. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 3
    ? Significant liquidity ? $4.1 billion in cash at Dec. 31, 2015 ? $4.0 billion committed credit facility, fully undrawn, maturing Nov. 2017 / Nov. 2019 ? Long-dated debt maturities ? US$4.75 billion in notes with weighted average…
  4. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 4
    December 31, 2015 December 31, 2014 Net debt to capitalization* 16% 31% Net debt to adjusted EBITDA* 1.2x 1.2x Cash & cash equivalents $4.1 billion $0.9 billion Credit ratings & outlooks at February 18, 2016 S&P Moody?s DBRS Senior…
  5. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 5
    Achieving sustainable cost reductions Improving SAGD well cost performance $7.0 $9.4 5.0 6.0 7.0 8.0 9.0 10.0 2014 basis Drilling Completions Pipelines Well pads Earthworks Tie-in Future basis Targeted SAGD well cost…
  6. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 6
    5 0 10 15 20 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Foster Creek Christina Lake $/bbl Foster Creek Q4 operating costs down 15% year-over-year Christina Lake Q4 operating costs down 16% year-over-year Achieving sustainable cost…
  7. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 7
    5 0 10 15 20 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 $/bbl Conventional oil Q4 operating costs down 17% year-over-year Achieving sustainable cost reductions Conventional oil operating costs
  8. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 8
    Capital Total capital ~$11 - $14/bbl full cycle $2 - $3/bbl Growth capital: ? Phase expansion (includes all infrastructure and initial wells) ? Phase debottlenecking and optimization ? Numerator for capital efficiency calculation…
  9. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 9
    Undiscovered BIIP 50 Bbbls Discovered BIIP 93 Bbbls 2.5 Bbbls 1.3 Bbbls Contingent 9.3 Bbbls Proved See advisory for information on resource estimates. There is uncertainty that it will be commercially viable to produce any…
  10. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 10
    0 50 100 150 200 250 300 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F Foster Creek Christina Lake Oil sands production Mbbls/d Production is shown before…
  11. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 11
    FCCL growth Emerging plays Capital allocation priorities Conventional Oil sands and downstream sustaining capital Dividend Growth projects: Foster Creek/Christina Lake Narrows Lake Conventional Emerging projects…
  12. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 12
    0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 GR FC TL CL NL ? Lower capital cost ? Lower operating cost ? Smaller surface footprint ? Lower energy usage ? Lower emissions ? Less water usage Steam to oil ratio bbl/bbl Low…
  13. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 13
    0 500 1,000 1,500 CVE Foster Creek CVE Christina Lake Source: IHS. Peer projects include: Algar, Christina Lake, Cold Lake, Firebag, Hangingstone, Jackfish, Kirby South, Leismer, Long Lake, MacKay, Orion, Paradise Hill, Peace River,…
  14. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 14
    Mbbls/d 0 20 40 60 80 100 120 140 160 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 production capacity Christina Lake daily production…
  15. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 15
    0 20 40 60 80 100 120 140 160 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 Mbbls/d Foster Creek daily production Production is shown before…
  16. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 16
    0% 2% 4% 6% 8% 10% 0 50 100 150 200 250 300 350 Days on production W08(2015) (2008) E20 ? Despite the E20 (2008) pad having superior quality, improving conformance on new pads of lesser quality such as the W08 (2015) pad, has…
  17. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 17
    8 7 6 5 4 3 2 1 0 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 SOR Oil production (boe/d) Foster Creek mature east…
  18. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 18
    Poor conformance Improved conformance Illustrative SAGD production profile Wedge Wells drilled to reduce impact of poor conformance Improving conformance should reduce need for Wedge Wells Returns-focused capital allocation to top…
  19. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 19
    $ billion Conventional oil and natural gas ? Focusing a modest amount of incremental capital in SE Alberta and Weyburn ? No plans for spending at Pelican Lake and Suffield ? Scalable and flexible capital program ? Over $5.0 billion…
  20. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 20
    ? Refineries have access to discounted crudes ? Wood River accesses multiple pipelines ? Keystone, Express-Platte, Mustang, Ozark ? Borger has access to Canadian heavy, West Texas Sour and growing Permian supply ? Debottlenecking at…
  21. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 21
    (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2010 2011 2012 2013 2014 2015 Cumulative operating free cash flow* ? Downstream operations have generated ~$2.4 billion in operating free cash flow* since 2010 ? Provides integration…
  22. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 22
    Current pipeline access: ? West Coast: Trans Mountain ? 11,500 bbls/d ? US Gulf Coast: Enbridge USGC/Flanagan South 75,000 bbls/d Adding pipeline commitments: ? US Gulf Coast: TCPL Keystone XL ? 75,000 bbls/d ? East Coast: TCPL…
  23. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 23
    ? Long-term optionality to ship 10% to 20% of corporate volumes by rail ? Taken delivery of 825 coiled and insulated rail cars ? Secured 70,000 bbls/d of loading capacity between: ? Bruderheim Energy terminal (Edmonton) ? acquired…
  24. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 24
    SAGD portfolio provides development opportunity and growth potential Totals may not add due to rounding. For additional information about our economic contingent resources please see the advisory. There is uncertainty that it will be…
  25. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 25
    Progressing engineering at Narrows Lake Narrows Lake project area Christina Lake core Christina Lake region Narrows Lake commercial project: ? First commercial SAGD project to incorporate solvent aided process (SAP) ? Evaluating…
  26. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 26
    Assessing development options at Telephone Lake Borealis region Telephone Lake project area Steepbank & East McMurray Saskatchewan Alberta Contingent resources are best estimates, shown before royalties and on a working interest…
  27. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 27
    Continuing to evaluate Grand Rapids Grand Rapids Pilot location Central plant facility site *Contingent resources are bitumen best estimates, shown before royalties and on a working interest basis at December 31, 2015. See advisory.…
  28. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 28
    (1) Cenovus entered into fixed-price swaps and futures to protect against widening light/heavy price differential for heavy crudes. 2016F production based on February 11, 2016 production guidance update. 2016 Hedges at February 11, 2016…
  29. February 2016 Investor Presentation – Cenovus Energy Inc. – slide 29
    February 11, 2016 Steam to oil rates (%) ratio Foster Creek 66 - 72 325 - 350 Fuel 2.75 - 3.25 1 - 3 2.6 - 3.0 Non-fuel 8.00 - 10.00 Total 10.75 - 13.25 Christina Lake 78 - 85 350 - 375 Fuel 2.00 - 2.50 1 - 3 1.8 - 2.2 Non-fuel…

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