Strengthened Balance Sheet with Industry leading Total Cash Costs of 0.77 per mcfe, capital efficiencies and strong hedging positions Advantage for continual organic growth. Investor Presentation TSX / NYSE: AAV April 2016
ADVANTAGE AT A GLANCE TSX, NYSE: AAV TSX 52-week trading range 5.85 - 8.36 Shares Outstanding (basic) 184.4 million 2016 Annual Production Target 39% Annual Production Growth 200 mmcfe/d (33,300 boe/d) Market Capitalization March 31,…
POSITIONED FOR PROFITABLE & SUSTAINABLE GROWTH World Class Glacier Montney Asset 1,000 future drill Strong Balance Sheet locations Industry Leading Low Cost 2016 Budget (2) Cdn 2.00 per mcf Producer 26 million surplus cash flow…
FOCUSED ON GLACIER DEVELOPMENT ADDITIONAL MONTNEY LANDS PROVIDES FUTURE UPSIDE Current development at Glacier including dry and liquids rich gas drilling with a Progress (Future) future drilling inventory 1,000 locations 100% owned…
CONTINUOUS IMPROVEMENT HAS CREATED INDUSTRY LEADING EFFICIENCIES 5
DRIVING STRONG GROWTH AND FINANCIAL FLEXIBILITY IN OUR 2016 BUDGET KEY ASSUMPTIONS DELIVERABLES 120 Million Capital 146 Million Cash Flow (1) (26 million surplus) 32 Standing Wells 39% Production Growth 13 Wells to Drill for 2017…
WITH SURPLUS CASH FLOW TARGETED AT BUDGET COMMODITY PRICES ( million) Surplus Cash 163 146 43 26 123 120 Drilled 13 wells 35 70 million in H2 2016 Complete 13 wells 41 Pipeline looping 18 50 million in H1 2016…
ADVANTAGE DEVELOPMENT PLAN 2015 THROUGH 2017(1) Annual Average Production 22% Capital Spending CAGR (2) (mmcfe/d) ( millions) 18% 235 40% 485 million Total (original 200 estimate 700 million) 200 165 141 120 2015 Actual…
DEVELOPMENT PLAN SENSITIVITY & HEDGING POSITIONS Current hedging program reduces downside risk and maintains upside torque Production Average Period Hedged (net) AECO Floor Price 2016 52% 3.62/mcf 2017 31% 3.24/mcf 2018 Q1 37%…
MAINTENANCE CAPITAL AND CASH FLOW SENSITIVITY Staying Flat is achievable at AECO 2.00/Mcf (NO HEDGING INCLUDED) Based on average well type curve (1) 115 million 200 million Based 155 million on top 115 million quartile 90…
INDUSTRY LEADING LOW COST STRUCTURE PROVIDES STRONG NETBACKS & RECYCLE RATIO EVEN WITHOUT HEDGING NO HEDGING INCLUDED Illustrative AECO Cdn Glacier Operating Netback 2.00/mcf Revenue (Realized Price) 1.80 (1) Royalties (0.09) AAV…
100% OWNED GLACIER GAS PLANT TO BE EXPANDED TO 350 MMCF/D Plant Process Capacity expanded in 2015 to 250 mmcf/d provides additional plant capacity for 2016 & 2017 growth Next plant expansion to 350 mmcf/d begins in H2 2017 to…
OPERATIONAL EXCELLENCE 13
LARGE INVENTORY OF STANDING WELLS & PRODUCTION CAPABILITY 2016 Annual Target of 200 mmcfe/d attainable with current standing inventory of wells 18 Wells Completed & Standing (as of April 2, 2016) 14 Wells Drilled, uncompleted…
PENTASTACK DEVELOPMENT WITH DECADES OF DRILLING INVENTORY AT GLACIER Capable of maintaining 245 mmcfe/d (40,830 boe/d) for 50 years (1) 1,000 Future Drill Locations at Glacier support future growth (1) 297 undeveloped locations booked…
ROBUST UPPER & LOWER MONTNEY DRY GAS WELL ECONOMICS Upper & Lower Montney Middle Montney (Dry Gas) (50 bbls/mmcf C3+, 45% C5+) 68% Advantage achieved 20% cost reduction to average 5.1 million DC & E 45% 33% Type Higher IP…
2013 UPPER & LOWER MONTNEY WELLS OUTPERFORM LONG TERM PRODUCTION EXPECTATIONS. 2014 WELLS JUST STARTED New wells are normally restricted to 10 mmcf/d for frac sand flowback control during initial 6 months Ten wells from our 2014…
IMPROVING LIQUIDS RICH MIDDLE MONTNEY WELL PERFORMANCE AT GLACIER 10 New MM wells could exceed type curve Production Test Rate On-production Rate New 8-35 well (2014) cumulative production 1.4 Bcf in 8 months (restricted) 12-2…
GROWTH BEYOND 350 MMCF/D CAN BE ACCOMMODATED ON EXISTING PLANT SITE R14 R13 R12 R11 R10 R9 R8 R7W6 100% Owned Glacier Gas Plant Positioned for T78 T78 Advantage Gas Plant Production Ramp-up T77 T77 Alliance Sales Gas Line…
Clear Vision for Growth Financial Strength Proven Expertise
APPENDIX 21
FULLY FUNDED GLACIER GROWTH PLAN DETAILS: 22% ANNUAL AVERAGE PRODUCTION GROWTH FOR 2015 TO 2017 Annual Average Production Development Plan (1) (2) (mmcfe/d) 2014 2015 2016 2017 235 Pro Forma Actual Actual Budget Estimate 200…
UPPER AND LOWER MONTNEY WELLS - IMPROVING PERFORMANCE SINCE 2008 Budget Type Curve (IP30 7.2 mmcf/d & 7.2 Bcf) Data: updated to March 2016 23
(1) EXCEPTIONAL UPPER & LOWER MONTNEY WELL ECONOMICS Upper & Lower Montney Dry Gas (2) Budget Type Curve. Some recent Upper & Lower Montney wells are outperforming type curve (3) (1) Management estimates. NPV 10%…
STRONG EAST GLACIER MIDDLE MONTNEY WELL (1) ECONOMICS Middle Montney at 50 bbls/mmcf C3+ (2) Budget type curve. Some recent MM wells are exceeding type curve. (3) (1) Management estimates. NPV 10% pre-tax (2) Capital of 5.8…
2014 MIDDLE MONTNEY PROGRAM FOCUSED ON HIGHER LIQUID CONTENT IN EAST GLACIER Glacier C5+ 57 Middle Montney wells to date illustrate higher liquid content(1) from west to east deg API 10 MM wells drilled in 2014 program at Glacier…
GLACIER MONTNEY ASSIGNED 2P EUR PER WELL & INTERVAL 2P Recoveries per Interval(1) of Gross HZ Wells 2P Recovery [bcf/well] Interval Developed Undeveloped TOTAL Developed Undeveloped TOTAL YE YE YE YE YE YE YE YE YE YE YE YE YE YE…
GLACIER LOCATED IN THE HEART OF THE MONTNEY RESOURCE PLAY Montney Siltstone Comparison: 700 times more permeability 4x more formation thickness Very low clay content Liquids & Improved well efficiencies strong economics Up…
2012 CORE AND COMPLETION STUDIES: INCREASED RESOURCE AND IMPROVED WELL RESULTS Core study determined original density porosity logs have to be re- calibrated IP30s on open hole Re-calibration aligned log to actual wells improved by…
INVESTMENT ANALYSIS OF 2013 DRILLING PROGRAM (25 Wells, No Hedging Gains Included) Capital Investment DC & E 25 Wells in 2013(1) (150) million Allocation of Plant, GGS, P/L cost to 25 wells (2) (13) million Total Capital investment…
ADVANTAGE COMPARED TO NORTH AMERICAN GAS WEIGHTED PRODUCERS 16E/15E Production Growth (%) 2016E Total Cash Costs (Cdn /boe) 12.78 12.43 38% 17% 4.48 13% AAV Canadian E&P US E&P AAV Canadian E&P US E&P (Gas Weighted) (Gas…
Loading...
