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May 2016 Corporate Presentation – Bellatrix Exploration Ltd.

Bellatrix Exploration Ltd. · May 11, 2016 · 36 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. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 1
    TSX: BXE NYSE: BXE Full Cycle Profitable Growth CORPORATE PRESENTATION MAY 2016
  2. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 2
    Corporate Profile MARKET SUMMARY Ticker Symbol TSX / NYSE: BXE Average Daily Volume1 Canada: 2.1 million / U.S.: 1.6 million Shares Outstanding 192.0 million basic / 203.5 million diluted Market Capitalization2 270 million Bank…
  3. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 3
    Bellatrix Differentiated Strategic Value TOP TIER ACREAGE POSITION AND RESULTS IN THE SPIRIT RIVER One of North Americas lowest supply cost natural gas plays Leading well results deliver superior economic returns and industry leading…
  4. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 4
    2016 First Half Capital Plan FIRST HALF 2016 GUIDANCE BALANCES FINANCIAL FLEXIBILITY & FOCUSED INVESTMENT 40MM H1 2016 CAPITAL PLAN CAPITAL ALLOCATION ACTIVITY / METRICS 140 Capital by Area H1 2016 capital plan 40 million 120 67%…
  5. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 5
    Commodity Price Risk Management NATURAL GAS HEDGES OIL HEDGES 60% 2.91 3.37 3.37 3.37 3.37 60% 2.95 % of oil & condensate volumes hedged 3.02 % of total gas volumes hedged 50% 50% 40% 40% 30% 30% 20% 20% 10% 10%…
  6. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 6
    Concentrated Land Base GREATER FERRIER / WEST CENTRAL ALBERTA STRACHAN WILLESDEN GREEN Production1 (% of total): 6% Production1 (% of total): 80% Land2 (net acres): 43,390 Land2 (net acres): 99,120 P+P net locations: 27 P+P net…
  7. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 7
    Spirit River is the Growth Engine SPIRIT RIVER PRODUCTION GROWTH 22,000 2010 20,000 18,000 Spirit River Average monthly production (mboe/d) 16,000 Other 14,000 12,000 10,000 March 2016 8,000 6,000 4,000 Spirit…
  8. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 8
    Spirit River Productivity Results Consistently Rank Best in Class 2015 HIGHEST DELIVERABILITY WELLS IN ALBERTA 20.0 18.0 16.0 First month calendar day rate (Mmcfe/d) 14.0 12.0 10.0 8.0 6.0 4.0 Spirit River Spirit…
  9. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 9
    North American Supply Cost Comparison 4.00 3.50 3.00 Henry Hub (US/MMbtu) 2.50 2.00 1.50 1.00 0.50 0.00 Economics assume 15% Before tax IRR, assumes US0.83 = CDN1.00, US0.75/MMbtu AECO basis, and a 20:1…
  10. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 10
    Bellatrix Spirit River Competitiveness BXE SPIRIT RIVER COMPETITIVE WITH TOP TIER MARCELLUS OPERATOR F&D COSTS AND EFFICIENCIES BXE Marcellus Type Curves1 Blended SW PA Spirit River SW PA SW PA SW PA 50% Wet Type Curve Super rich…
  11. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 11
    Spirit River Geology Summary SPIRIT RIVER STACKED SANDS Broad, thick, extensive sand rich valleys in Notikewin, Falher and Wilrich members Tight sandstone: long life reserves with long term hyperbolic decline profile Average…
  12. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 12
    Spirit River Liquids Rich Gas FERRIER CORE SPIRIT RIVER PLAY BXE Land Sections 266 Gross1 157 Net1 BXE Net Drilling Inventory2 62 proved 28 probable 292 unbooked 382 total Formation depth 2,400 meters Currently drilling 1 mile…
  13. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 13
    Spirit River All-In Profitability C1.75/GJ C2.63/GJ Full Cycle F&D costs Drill 1.7MM Full cycle F&D costs /Mcfe (0.85) (0.85) Complete 1.6MM Equip & tie in 0.7MM Half cycle costs 4.0MM Land/seismic/facilities 1.1MM Cash costs…
  14. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 14
    Bellatrix Well Results Rank Top Decile DISTRIBUTION OF THE TOP CANADIAN NATURAL GAS WELLS DRILLED IN 2015 10 150 9 135 Average Natural Gas Rate (MMcf/d) 8 120 Number of Wells 7 105 Number of wells 6 90 MMcf/d 5 75 4…
  15. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 15
    Spirit River Well Costs & Capital Efficiencies FOCUSED CAPITAL COST REDUCTIONS 6.0 Long reach Long reach 5.0 4.0 Costs (millions) Equip & Tie-in 3.0 Complete Drill 2.0 1.0 0.0 2015 - 24 wells 2016 - 10 wells…
  16. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 16
    Efficiency Gains AVERAGE SPIRIT RIVER DRILLING CURVES SPUD TO RIG RELEASE BY YEAR 0 20 Days (Spud to Rig Release) 2014 Spirit River Average 500 2015 Spirit River Average 15 1,000 2016 Spirit River Average 10 2016 Spirit…
  17. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 17
    Spirit River Development Comparison COMPARATIVE 2015 NOTIKEWIN & FALHER COST & EFFICIENCY METRICS 20 Frac stages 30 Number of completion days Average days per stage 2.0 Days per completion stage 25 Number of stages Days…
  18. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 18
    Greater Ferrier Area Infrastructure Overview GREATER FERRIER EXISTING GREATER FERRIER AREA STRATEGIC INFRASTRUCTURE INFRASTRUCTURE ACCESS: Infrastructure gives Bellatrix control of production and growth Working interest or…
  19. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 19
    Significant Investment in Strategic Infrastructure OVER 300 MILLION INVESTED SINCE 2013 IN STRATEGIC INFRASTRUCTURE ASSETS 60% owner and operator of the BXE Alder Flats deep-cut gas plant +300MM BREAKDOWN Phase 1: 110 MMcf/d Phase…
  20. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 20
    BXE Alder Flats Superior Operational Performance in Core West Central AB Area SUPERIOR & CONSISTENT PLANT PERFORMANCE FUEL/DISPOSITION EFFICIENCY 120% Highest utilization Bellatrix Alder Flats Most efficient 100% 3rd Party Plant…
  21. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 21
    Growing Firm Capacity Within Core Areas TOTAL BELLATRIX GROSS PROCESSING CAPACITY GREATER FERRIER 600 BXE Phase 2 deep Total cut incremental 110 MMcf/d processing capacity net to Total Gross Raw Gas Processing Capacity…
  22. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 22
    Firm Service Capacity Provides Value in a Potentially Constrained Takeaway Market CURRENT OUTLOOK ON NGTL SYSTEM (USJR) Upstream James Upstream James River Receipt Forecast reduction in receipt capability through summer and into fall…
  23. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 23
    Focus on Continued Cost Reductions OPERATING COSTS NET G&A COSTS 13.00 3.50 12.00 3.00 11.00 2.50 Net G&A expense (/boe) Operating cost (/boe) 10.00 2.00 9.00 1.50 8.00 1.00 7.00 6.00 0.50 5.00 0.00 2010…
  24. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 24
    Track Record of Production and Reserves Growth HISTORICAL PRODUCTION HISTORICAL RESERVES Natural Gas Oil and Liquids Production per share (right side) Natural Gas Oil and Liquids Reserves per share (right side) 45,000 90 260 1.4…
  25. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 25
    Balance Sheet & Financial Flexibility Effective capital resource management, balancing liquidity and flexibility BANK CAPACITY OF 175 CREDIT FACILITY CONTAINS UNSECURED USD NOTES MILLION AS AT MAY 3, 20161 ONE FINANCIAL COVENANT…
  26. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 26
    Compelling Investment Opportunity Experienced Unfettered growth Leadership management potential with firm Excellent Organic with a history of creating value processing capacity Growth Potential Large inventory World Class of…
  27. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 27
    Supplemental Information
  28. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 28
    Peer Group Comparison OPERATING & TRANSPORTATION COSTS/ BOE1 16 14 12 10 Costs (/boe) 8 6 4 2 0 BXE NET G&A & STOCK BASED COMPENSATION EXPENSE/ BOE1 5.00 4.00 Expense (/boe) 3.00 2.00 1.00 0.00…
  29. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 29
    Joint Ventures JOINT VENTURES Bellatrixs differentiated JV strategy Grafton JV (GJV) CNOR JV - 500 MM provides significant benefits 305 MM (Grafton managed co.) Accelerates development potential of our multi-billion dollar Effective…
  30. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 30
    Additional Long Term Opportunities
  31. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 31
    Cardium Light Oil Resource Play BXE Cardium Sections 412 Gross Edson 277 Net BXE Net Drilling Inventory1 141 proved 42 probable Pembina 273 unbooked Ferrier 456 total Lease Operate Expense 9.00/boe Cardium Resource Play Summary…
  32. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 32
    Balanced Cardium Inventory Provides Long Term Optionality on Oil Prices Cardium Gas Cardium High GOR Cardium Oil 96 net drilling locations 140 net drilling locations 220 net drilling locations 76% gas / 24% oil & liquids 64% gas /…
  33. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 33
    Cardium Proven Innovative Development Leading Cardium driller in 2013/2014 APPLYING CUTTING EDGE EXPLOITATION TECHNIQUES Horizontal well placement and applying cutting edge exploitation techniques results in top-tier well results…
  34. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 34
    Lower Mannville: Liquids-rich Gas Play Drill locations identified across three GR Porosity play types 31 horizontal Ellerslie wells drilled by Angle/BXE at Harmattan to date Net Drilling Inventory: 16 proved 18 probable 89 unbooked…
  35. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 35
    Second White Specks: Tight Oil Resource Laterally continuous fairway: 6,000 sq miles Thick: 75-225m Over-pressured: 9-14KPA/m Thermally mature for oil: Tmax 435-455C High Organic Content (TOC): 1.5-4wt% Existing vertical production 15…
  36. May 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 36
    Belly River: Regional Oil & Gas Play Significant oil production in the Basal Belly River from extensive marine shoreface deposits Gas & oil production from lower to upper Belly River fluvial channel deposits 37

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