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December 2015 Corporate Presentation – Cenovus Energy Inc.

Cenovus Energy Inc. · Dec 31, 2015 · 20 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. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 1
  2. December 2015 Corporate Presentation – 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. December 2015 Corporate Presentation – 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. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 4
    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…
  5. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 5
    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…
  6. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 6
    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 Achieving sustainable cost…
  7. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 7
    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…
  8. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 8
    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…
  9. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 9
    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…
  10. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 10
    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…
  11. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 11
    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…
  12. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 12
    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…
  13. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 13
    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…
  14. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 14
    $ 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…
  15. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 15
    (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…
  16. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 16
    ? 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…
  17. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 17
    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…
  18. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 18
    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…
  19. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 19
    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…
  20. December 2015 Corporate Presentation – Cenovus Energy Inc. – slide 20
    (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…

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