Skip to main content January 2016 Corporate Update – Cenovus Energy Inc. Investor Presentation | Shale Experts
Loading...
Pm

January 2016 Corporate Update – Cenovus Energy Inc.

Cenovus Energy Inc. · Jan 31, 2016 · 28 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. January 2016 Corporate Update – Cenovus Energy Inc. – slide 1
  2. January 2016 Corporate Update – Cenovus Energy Inc. – slide 2
    TSX, NYSE | CVE Enterprise value C$18 billion Shares outstanding 833 million 2015F production Oil & NGLs Natural gas 208 Mbbls/d 437 MMcf/d 2014 proved & probable reserves 3.9 BBOE Bitumen Economic contingent resources*…
  3. January 2016 Corporate Update – Cenovus Energy Inc. – slide 3
    2015 Q1 Q2 Q4 Capex $700MM reduction Balance sheet $1.5B equity issue Workforce reduction of 800 Operating costs decline 23% YoY Cost savings targeting cost savings of $200MM in 2015 Heritage Limited Royalty Partnership…
  4. January 2016 Corporate Update – Cenovus Energy Inc. – slide 4
    • Significant liquidity • $4.4 billion in cash as at Sept. 30, 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…
  5. January 2016 Corporate Update – Cenovus Energy Inc. – slide 5
    September 30, 2015 December 31, 2014 Net debt to capitalization* 13% 31% Net debt to adjusted EBITDA* 0.8x 1.2x Cash & cash equivalents $4.4 billion $0.9 billion Credit ratings & outlooks at October 16, 2015 S&P Moody’s DBRS…
  6. January 2016 Corporate Update – Cenovus Energy Inc. – slide 6
    0 100 200 300 400 500 600 Opex Capital G&A Opex Capital G&A *Additional workforce cuts 2016E Original target: $200 million Additional 2016 opportunities: • Additional staff reductions • Further reduction in costs • zero…
  7. January 2016 Corporate Update – Cenovus Energy Inc. – slide 7
    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…
  8. January 2016 Corporate Update – Cenovus Energy Inc. – slide 8
    5 0 10 15 20 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Foster Creek Christina Lake $/bbl Foster Creek Q3 operating costs down 23% year-over-year Christina Lake Q3 operating costs down 24% year-over-year Achieving sustainable cost…
  9. January 2016 Corporate Update – Cenovus Energy Inc. – slide 9
    5 0 10 15 20 25 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 $/bbl Conventional oil Q3 operating costs down 15% year-over-year Achieving sustainable cost reductions Conventional oil operating costs
  10. January 2016 Corporate Update – Cenovus Energy Inc. – slide 10
    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…
  11. January 2016 Corporate Update – Cenovus Energy Inc. – slide 11
    Undiscovered BIIP 50 Bbbls Discovered BIIP 93 Bbbls 2.4 Bbbls 1.5 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…
  12. January 2016 Corporate Update – Cenovus Energy Inc. – slide 12
    0 50 100 150 200 250 300 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F 2016F Foster Creek Christina Lake Oil sands production Mbbls/d Production is shown before…
  13. January 2016 Corporate Update – Cenovus Energy Inc. – slide 13
    FCCL growth Emerging plays Capital allocation priorities Conventional Oil sands and downstream sustaining capital Dividend (20% to 25% of cash flow) Growth projects: Foster Creek/Christina Lake Narrows Lake Conventional…
  14. January 2016 Corporate Update – Cenovus Energy Inc. – slide 14
    0 100 200 300 400 500 600 US$50/bbl WTI US$60/bbl WTI US$70/bbl WTI Forecasted incremental operating cash flow from 50,000 bbls/d at full production rates Forecasted incremental operating cash flow* • Adding 50,000 bbls/d net of…
  15. January 2016 Corporate Update – Cenovus Energy Inc. – slide 15
    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 Low SOR…
  16. January 2016 Corporate Update – Cenovus Energy Inc. – slide 16
    0 500 1,000 1,500 Foster Creek 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, Pikes…
  17. January 2016 Corporate Update – Cenovus Energy Inc. – slide 17
    Mbbls/d 0 20 40 60 80 100 120 140 160 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 production capacity…
  18. January 2016 Corporate Update – Cenovus Energy Inc. – slide 18
    0 20 40 60 80 100 120 140 160 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Mbbls/d Foster Creek daily…
  19. January 2016 Corporate Update – 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. January 2016 Corporate Update – Cenovus Energy Inc. – slide 20
    (1.0) (0.5) 0.0 0.5 1.0 1.5 2.0 2.5 3.0 2010 2011 2012 2013 2014 2015 YTD Cumulative operating free cash flow* • Downstream operations have generated ~$2.5 billion in operating free cash flow* since 2010 • Provides…
  21. January 2016 Corporate Update – Cenovus Energy Inc. – slide 21
    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…
  22. January 2016 Corporate Update – Cenovus Energy Inc. – slide 22
    • 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…
  23. January 2016 Corporate Update – Cenovus Energy Inc. – slide 23
    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…
  24. January 2016 Corporate Update – Cenovus Energy Inc. – slide 24
    Progressing engineering at Narrows Lake Narrows Lake commercial project: • First commercial SAGD project to incorporate solvent aided process (SAP) • Evaluating development options to leverage existing infrastructure at nearby…
  25. January 2016 Corporate Update – Cenovus Energy Inc. – slide 25
    Assessing development options at Telephone Lake Borealis region Telephone Lake project area Steepbank & East McMurray Saskatchewan Alberta Telephone Lake commercial project: • Regulatory approval received in 2014 • Continuing…
  26. January 2016 Corporate Update – Cenovus Energy Inc. – slide 26
    Continuing to evaluate Grand Rapids Grand Rapids Pilot location Central plant facility site SAGD pilot update: • Operating since 2010 • Two well pairs currently producing • Third pilot well pair completed Q1 2015; steam…
  27. January 2016 Corporate Update – Cenovus Energy Inc. – slide 27
    Advancing our environmental performance • Rigorous regulatory framework ensures environment considerations throughout project lifecycle • Dedicated internal environment team focused on mitigating environmental risks • Ongoing…
  28. January 2016 Corporate Update – Cenovus Energy Inc. – slide 28
    (1) Internal use 180 MMcf, long- term fixed price sale 29 MMcf. 2015F production based on October 29, 2015 guidance. Volume % hedged represents rest of year (Q4) hedged production. Hedges at September 30, 2015 Volume hedged Hedge price…

From the store

Browse maps, data & reports in the Shale Experts store