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Creating a Sustainable Business – Tamarack Valley Energy Ltd.

Tamarack Valley Energy Ltd. · Apr 29, 2016 · 25 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. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 1
    Creating a Sustainable Business April 2016 TVE : TSX www.tamarackvalley.ca 1
  2. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 2
    What Sets TVE Apart Culture: Results: Focus on delivering results 2015 exceeded expectations CUT COSTS low cost producer Bankline held at 165 mm Manage the down cycle (experience) Only 97 million drawn vs. guidance of 115-120…
  3. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 3
    2016 Budget Principles Top priorities: First balance sheet and bank line liquidity Second modest per share growth Third build low cost inventory through land sales and tuck-ins in core areas; drill non-PUD locations to allow for…
  4. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 4
    Tamarack Wells in the Top 10th Percentile Top 10th Percentile Top 25th Percentile Note: The above IRR calculations assume CIBCs base commodity price forecast of US45.00/Bbl WTI & C2.78/Mcf AECO in 2016, and US65.00Bbl WTI &…
  5. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 5
    Top 2015 Alberta Wells 6
  6. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 6
    Control What We Can Control - Costs Capital Costs Savings in 2016 Budget CAPEX: 4,500 Equip+Tie-in Completions Drilling Shift to sleeve from ball drop 4,000 Eliminate nitrogen Reduce flaring and conserve 3,500 3,373 Shorten…
  7. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 7
    Wilson Creek Technology Driving Costs Down & Production Up O/H Ball Drop 1-mile Industry IP 30 Rates Capital 4.2 million Stages 8-10 800 2009-2013 *ROR n/a Oil frac 5-10 tons 700 710** NPV (2.2) 600 500 578 578 BOEPD O/H…
  8. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 8
    Control What We Can Control - Costs Operating & Transportation Costs Top 10 Corporate Operating Cost 16 Corporate 14.84 Corporate Accounts Q4/15 Wilson Creek Budget Trucking - Clean 14 12.00 Oil Gas Processing 12.88* Electrical…
  9. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 9
    The Evolution of a Core Area Journey Alder Flats Battery Keyera TVE land Minnehik Buck Lake 2014 Acquisition land Entry in 2013 2015 Acquisition land Existing Cardium producers 42 net sections Existing vertical Cardium oil wells…
  10. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 10
    Economic Sensitivity Type 1 Well Wilson Creek 700% 1.0 mile well 1.5 mile well 600% TVE Economics suggest elimination of 2.0 mile well 2016 Hedging 1-mile wells Current Oil Price Average 500% Land consolidation has resulted in…
  11. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 11
    TVE Quick Payback Drilling Inventory…
  12. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 12
    Wilson Creek Mannville Competes for Capital 180 3.5 Pre Case 100% Post Case 2016 AECO Price 1.89/GJ 160 ROR (Strip March 15, 2016) WI 100% WI 3 Payout 140 Capital (mm) 2,800 2,800 2.5 Payout (years) 120 Risking 90% 100% 100…
  13. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 13
    Tamarack Profile TVE : TSX Operational 2013 2014 2015e 2016B Production (boe/d) 3,276 5,717 8,425 8,700 9,700 Exit Q4 avg. production (boe/d) 4,718 7,681 9,870 8,600 9,800 % Liquids 60 62 59 51 57 Cash flow (mm) 38.2 66.2 n/a n/a…
  14. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 14
    2016 Realistic Budgets on Realistic Prices AECO - Gas /GJ Edmonton Par - Oil /bbl 4.00 70 3.50 60 3.00 50 Edmonton Par (/bbl) Gas Price (/ GJ) 2.50 40 2.00 30 Assumptions: 1.50 WTI / Edm Par Diff - 4.00 USD/bbl…
  15. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 15
    Free Cash Flow Sensitivity & Debt to CF Sensitivity (at 9,300 boe/d & 53% Liquids) 2.5 60 At 9,000 boe/d At 9,300 boe/d 50 2 2016 year end trailing Debt to CF (trailing year) 40 Free Cash Flow ( millions) 1.5 30 20…
  16. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 16
    2015 - 2016 Budget Financial Stats per BOE 2014 Actuals 2015 Actuals 2016 Budget Average pricing 48.80/bbl WTI 33.00-40.00/bbl WTI Edm Par 94.09/bbl 56.91/bbl 41.00-51.45/bbl AECO (monthly index) 4.40/GJ 2.69/GJ 2.00-2.45/GJ…
  17. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 17
    Current Hedges as at March 18, 2016 Term Hedge Type Volume Cdn Pricing January 1, 2016 to March 31, 2016 WTI fixed price 2,000 bbls/d Cdn 76.58/bbl April 1, 2016 to June 30, 2016 WTI fixed price 2,400 bbls/d Cdn 76.21/bbl 2016…
  18. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 18
    Building Per Share Growth While De-levering Achieving Production Per Share Growth Well Inventory…
  19. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 19
    Key 6 Month Objectives and Look-back What we did in Objectives for What we said we would do Q3 2015 / Q4 2015 Q1 2016 / Q2 2016 Assuming 57 million capex case: spend approx. 33.5 Cautiously proceed with drilling program to…
  20. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 20
    Why Buy/Continue to Own Tamarack Cost Focus: Low cost producer & trending lower. G&A, Lifting Cost & Capital Costs have all been reduced. Prudent Capital Allocation: Well Results in top 10th percentile Adding top quality inventory…
  21. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 21
    APPENDIX 22
  22. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 22
    The Tamarack Team Management Board of Directors Brian Schmidt, President & CEO Floyd Price, Chairman Current: CAPP Chair, IOGC Advisor, Director Aspenleaf Energy Current Directorships: Cimarex Energy, Source Energy Former: Spearpoint…
  23. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 23
    Tamarack Perspective and Culture 1. Build a sustainable, predictable and reliable growth company Full cycle rate of return driven Development inventory with payout 1 to 1.5 years maximum (top quartile in the industry) Clear line of…
  24. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 24
    Reserves Summary by FD Shares P+P Reserves (mmboe) Proved Developed Production Reserves (BOE) 0.600 Gas Boe 16.0 45.00 Natural Gas NGL & Oil Boe 50.0 NGLs FD&A 14.4 Oil 45.0 0.500 14.0 40.00 39.63 Boe /sh FD 35.00 40.0 0.418…
  25. Creating a Sustainable Business – Tamarack Valley Energy Ltd. – slide 25
    Tamarack Wells in the Top 10 Percentile Source: CIBC Resource Play Watch: January 2016 Report 26

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