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Corporate Presentation March 2016 – Delphi Energy Corp.

Delphi Energy Corp. · Mar 31, 2016 · 31 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. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 1
    CORPORATE PRESENTATION MARCH 2016
  2. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 2
    A MONTNEY FOCUSED SUSTAINABLE BUSINESS MODEL Delphis Bigstone Montney remains a Top Tier growth asset: Maintains favorable economics in the current commodity price environment Well payouts at 1.9 years on current strip Free cash…
  3. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 3
    DELPHI: CORPORATE DEEP BASIN NORTHWEST ALBERTA CORPORATE INFO Dawson Creek Trading Symbol TSX:DEE Hythe Basic Shares Outstanding 155.5 million Hythe and Wapiti Grande Prairie sold in 2015 Market Capitalization 157 million…
  4. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 4
    DELPHI: BIGSTONE - A SINGULAR FOCUS Negus Gas Plant 7-11 Montney Facility 15 mmcf/d 55 mmcf/d K3 Facility Bigstone West Gas Plant 16-34-59-21W5 85 mmcf/d Disposal Facility 5-8 Montney Facility 10 mmcf/d 7-11…
  5. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 5
    BIGSTONE MONTNEY: DOMINANT LAND POSITION Montney land position has grown to 139 gross (117.1 net) sections since 2010 Continue to pursue additional Delphi one of the largest Montney landowners on map sheet Montney…
  6. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 6
    BIGSTONE MONTNEY: STRATEGIC INFRASTRUCTURE Rge25W5 Delphi owns Rge24 significant infrastructure at Rge23 Rge22 Rge19 Rge18 SemCAMS KA TCPL Bigstone 100% owned 55 mmcf/d sour dehy and Alliance compression facilities 26% ownership…
  7. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 7
    BIGSTONE MONTNEY: STRATEGIC INFRASTRUCTURE Delphi 100% owned Water Disposal Facility 3 million project Less than 1 year payout Targeted operating costs savings of: 2.0 to 2.5 million per year or 0.70 per Montney boe Targeted…
  8. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 8
    BIGSTONE MONTNEY: TCPL/ALLIANCE SERVICE 80.0 TCPL/Alliance Capacity (mmcf/d) 70.0 60.0 Q4 2015 Average Natural Gas Production 50.0 Staged firm service capacity on Alliance to deliver natural gas to the Chicago gas market with…
  9. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 9
    DELPHI MONTNEY: OPEX AND NGL YIELDS Montney Operating Costs (/boe) Montney Operating Costs 14.00 Operating costs being reduced as a result of 12.00 economies of scale, processing arrangements 10.00 and reduction in cost of…
  10. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 10
    BIGSTONE MONTNEY: 26 WELLS DRILLED Drilled 3 HZ wells in 2012 To KA Sour Two mile HZs with laterals of 2,200 Plant m to 3,000 m ATH 16-30 DEI Fracd using conventional gelled oil 5 wells 3 wells frac designs 8-21 Drilled 7 HZ wells…
  11. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 11
    WEST BIGSTONE: ADDITIONAL MONTNEY UPSIDE West Bigstone Montney: Competitor well producing 95 bbl/mmcf condensate Competitor well 27 sections (100% WI) drilled and completed Upper and middle Montney increasing pay 3 Competitor…
  12. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 12
    BIGSTONE MONTNEY: PRODUCTION GROWTH Montney Production (boe/d) Montney Production Still Growing in 2016 8,000 10-15% Growth in Average Montney production for 2016 forecast to 6,000 2016 vs 2015 grow by 10 to 15 percent 4,000…
  13. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 13
    BIGSTONE MONTNEY: INDIVIDUAL WELL DATA Initial Production (IP) Rate Well Performance (1) Number IP30 IP30 IP30 IP90 IP180 IP270 IP365 IP 2yr HZ Length of Fracs Total Sales FCond Rate Total NGL Total Sales Total Sales Total Sales Total…
  14. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 14
    BIGSTONE MONTNEY COMPARED TO A LARGER DATA SET Elmworth Large data set 488 Montney wells on production Wapiti Delphi Kakwa Bigstone Source of Data: geoSCOUT March 2016 15
  15. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 15
    EVOLUTION: WELL PRODUCTIVITY INCREASING IP90 (mcf/d) IP180 (mcf/d) 4,500 15 18 441 wells 4,500 17 362 wells 4,000 19 60 36 4,000 14 46 3,500 59 3,500 18 30 48 33 38 3,000 3,000 25 2,500 66 2,500 36 18 55 2,000 2,000 15 1,500…
  16. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 16
    EVOLUTION: DELPHI WELL COST IMPROVEMENTS D&C Costs ( 000) DEE Well Costs Cost per Frac Stage (000) 12,000 Avg. Drill Costs Avg. Comp. Costs Avg. Comp. /Stage 700 10,000 600 Montney Capital Efficiencies 500 Average drilling and…
  17. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 17
    BIGSTONE MONTNEY: ECONOMIC MODEL Delphi Energy - Bigstone Montney Two Section Horizontal Type Well 30 to 40 stage Slickwater Completion Original Economics Jan. 13, 2016 GLJ Jan. 2014 GLJ Jan. 2016 Pricing(2) Strip Pricing(1)…
  18. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 18
    DELPHI: A DIRECTIONAL LOOK AT 2016 2016 Priorities Through This Structural Reset: Maintain financial flexibility Capex in the context of cash flow Significant hedge position for 2016 volumes 75% of natural gas and 43% of field and…
  19. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 19
    DELPHI: 2017 AND BEYOND Levers Still to be Pulled in an Oil Lower for Much Longer Scenario: Operating efficiency gains lifting unhedged netbacks through 2016 and 2017 Capital efficiency gains New well innovations are continuing…
  20. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 20
    DELPHI: CONSISTENCY OF RISK MANAGEMENT PROGRAM Risk management contracts generally put in place 12-18 months in advance Contracts often undertaken around price spike events Over a 10 year period risk management program has…
  21. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 21
    DELPHI: HEDGES PROTECTING CASH FLOW Natural Gas (Cdn) 2016 2017 Volume (mmcf/d) 2.8 2.4 % Hedged (1) 8% 7% Hedge Price (Cdn /mcf) (2) 3.84 3.96 Strip Price (Cdn /mcf) 1.83 2.77 Natural Gas (US) 2016 2017 2018 2019 Volume (mmcf/d)…
  22. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 22
    DELPHI: 2016 GUIDANCE 2016 Guidance Average Annual Production (boe/d) 8,300 8,800 Exit Production Rate (boe/d) 8,500 9,500 NYMEX Natural Gas Price (US per mmbtu) 2.00 WTI Oil Price (US per bbl) 38.00 Natural Gas Liquids…
  23. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 23
    DELPHI: SENSITIVITIES TO 2016 2016 CAPEX / CF MATRIX Number of 2016 Exit Rate US WTI / US2.00 NYMEX Gross Wells Production Growth 30.00 40.00 50.00 60.00 4 0% 122% 106% 96% 87% 5 15% 140% 122% 110% 100% 6 25% 152% 131% 118% 107%…
  24. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 24
    DELPHI: SUMMARY Bigstone Montney is a Top Tier growth asset: Large Montney land base of 139 sections Favorable economics and attractive capital efficiencies Remains economic in the trough of the commodity price cycle Hedges in place…
  25. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 25
    APPENDIX 26
  26. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 26
    EVOLUTION OF THE WORLD-CLASS MONTNEY PLAY Elmworth Large data set 488 Montney wells on production Wapiti Delphi Kakwa Bigstone Source of Data: geoSCOUT March 2016 27
  27. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 27
    EVOLUTION: PACE OF DRILLING ACCELERATING Producing Wells by Rig Release Date Drilling remains active with 106 Montney Total Wells: 488 wells rig released YTD 2015 200 Only 10 wells reporting Montney 150 production as of the date of…
  28. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 28
    EVOLUTION: WELL LENGTH INCREASING 180 Number of Wells 3,000 Average Horizontal Length (m) 160 Delphi Ave 2,500 140 120 2,000 100 1,500 80 60 1,000 40 500 20 0 0 0-1,000 1,001-1,500 1,501-2,000 2,001-2,500 2,501-3,000…
  29. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 29
    EVOLUTION: FRAC STAGES INCREASING Number of Wells Average Number of Frac Stages/Well 160 30 Delphi Ave 140 25 120 20 100 80 15 60 Evolution of frac design/recipe 10 40 has also had a significant 20 5 positive impact to…
  30. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 30
    EVOLUTION: WELL PRODUCTIVITY INCREASING IP90 (mcf/d) IP180 (mcf/d) 4,500 15 18 441 wells 4,500 17 362 wells 4,000 19 60 36 4,000 14 46 3,500 59 3,500 18 30 48 33 38 3,000 3,000 25 2,500 66 2,500 36 18 55 2,000 2,000 15 1,500…
  31. Corporate Presentation March 2016 – Delphi Energy Corp. – slide 31
    300, 500 4th Avenue SW Calgary, Alberta T2P 2V6 P (403) 265-6171 F (403) 265-6207 infodelphienergy.ca www.delphienergy.ca 32

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