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June 2016 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jun 2, 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. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 1
    RELIABLE & SUSTAINABLE RETURNS CAPITAL = EFFICIENCY FOCUS STRONG+ CASH NETBACKS LOW DECLINE ASSETS + PROFITABLE GROWTH IN THE CURRENT PRICE ENVIRONMENT June 2016
  2. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Current Pro Forma Basic 314.6 365.7 Fully diluted 318.6 369.7 Market capitalization (B) 3.0 3.6 Annual dividend (/share) 0.28 0.28 2016 average production (boe/d) 39,500 45,300…
  3. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 3
    SW Saskatchewan Acquisition Rationale Purchase price - 595MM Overview Adds sustainable new region with 11,600 boe/d (98% oil) Budgeted 8% base decline in 2016, and 9% in 2017, historically 2.5% 2017 accretion per FD share Funds…
  4. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Stable Production Base with Multiyear Development KEY CHARACTERISTICS 78% op 67% WI (22% non-op, 2,680 bopd) 92% under enhanced oil recovery (EOR) 2.3% Decline 61% unit oil production, 39% non-unit Last 5 ASP polymer net capital:…
  5. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Successful ASP Floods with Future Potential Husky has 6 successful ASP floods in Canada Whitecap Net ASP Production 3 Alberta projects have completed chemical injection with 9.0% current and 11.2% forecast ASP recovery Whitecap is…
  6. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Success = motivated people + quality assets + discipline Total Annual Shareholder Return Focus Return on capital employed Founding Principles Employees are shareholders Light oil, high netback focus Per share growth (funds flow,…
  7. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 7
    2016 Guidance Setting up for Strong 2017 Previous Pro Forma % Change Average production (boe/d) 39,500 45,300 15% % oil + NGLs 76% 79% 3% Cash netbacks (/boe) 22.10 21.20 (4%) Funds flow (MM) 319 351 10% Development capital (MM)…
  8. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Sustainable Asset Base: Funds Flow Capital + Dividend 2016 Pro Forma Free Funds Flow by Area 100 90 80 70 60 47 60 50 86 83 42 40 30 65 57 57 11 20 38 39 23 23 27 10 0 Saskatchewan SW AB Pembina NW AB/BC Acquisition…
  9. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 9
    2016 Development Capital 2016 Capex by Area (%) 2016 Well Count (gross) Saskatchewan 60 Other SW AB 22% 3% 50 13% 40 30 13% 34% 49 20 15% 10 12 11 10 7 Pembina NW AB/BC 0 Saskatchewan Acquisition NW AB/BC Pembina SW AB…
  10. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 10
    2017 Preliminary Outlook 2016 Pro Forma 2017 Outlook % Change Average production (boe/d) 45,300 53,900 19% per million shares 129 145 12% Funds flow (MM) 351 413 17% per share 1.00 1.11 11% Development capital (MM) 175 205 17%…
  11. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 11
    2017 Sensitivities Oil (USWTI) 45.00 50.00 55.00 60.00 65.00 FX (C/US) 0.76 0.78 0.80 0.82 0.84 Oil (Cdn/WTI) 59.21 64.10 68.75 73.17 77.38 AECO (C/GJ) 2.50 2.50 2.50 2.50 2.50 Funds flow netback (/boe) 17.70 21.00 23.90 26.80…
  12. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Fully Funded Growth + Dividend Model No DRIP 120% 102% 101% 100% 93% 83% 80% 75% Total Payout Ratio 69% 66% 49% 60% 50% 50% 40% 20% 44% 33% 35% 33% 25% 0% 2013 2014 2015 2016e 2017e Cash Dividends Capital…
  13. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Core Areas of Operations Light Oil Drilling Inventory 3,817 67% Low Risk Type A 33% Low Risk Type B BRITISH COLUMBIA ALBERTA Drilling 2015 / 16 Inventory wells SASKATCHEWAN NW AB/BC 563 11 / 11 Boundary Lake Valhalla…
  14. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Operational Excellence Whitecap - Capital Efficiency Improvements 20,000 19,000 18,000 17,000 16,000 DCE&T Capital per boe/d IP(30) 15,000 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 East…
  15. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Financial Prudence and Risk Management Mitigate price volatility and protect economic returns Predictability for WCP funds flow Capital reinvestment and Dividend payments 2H 2016 hedges: 44% crude oil at 71.63/bbl CAD WTI, 53%…
  16. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Upside Potential WCP Oil Resource Plays Produced (Oil - MMbbls) Booked (Oil MMbbls) Upside Unbooked (Oil - MMbbls) Cum Recovery 2P 2P Possible Possible Formations DOIIP Oil(1) % To Date DOIIP Reserves(2) Rf %(3) Rf % Reserves(4) Avg WI…
  17. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Saskatchewan Viking Oil concentrated land base, superior economics Light oil (36 API) Viking resource play WCP Lands Gas Kerrobert High netback and short payout Conventional Oil Halo Oil Kerrobert Industry-leading capital…
  18. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 18
    Cardium Resource Play repeatable and expandable Cardium horizontal oil resource play Edmonton Light sweet oil (39 API), strong cash netbacks West Pembina East Pembina 7 low decline legacy waterfloods with growth potential…
  19. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Exceptional Type Curve Economics West Pembina West Pembina Type Well Economics Cardium Cardium (ERH) Drill, Complete, Equip, Tie-in (MM) 2.33 2.90 Production, IP30 (boe/d) 317 476 Production, IP365 (boe/d) 160 239 P+PA Reserves…
  20. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 20
    Deep Basin Dunvegan and Cardium Oil Strong play characteristics Elmworth Wapiti Type Well Economics Dunvegan Cardium ERH 39 to 42 API oil Large OOIP of 6 to 15.5 MMboe/section Drill, Complete, Equip, Tie-in (MM) 2.83 3.57 No…
  21. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Elnora Nisku Oil stable and predictable 100% operated, 35o API light sweet oil Elnora Free Funds Flow Largest Nisku oil discovery in the past 20 years Production (boe/d) Waterflood - aquifer provides significant support 4,624 5,100…
  22. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Boundary Lake large shallow decline resource with growth potential Boundary Lake WI Production Consistent low decline asset Operated, 35 API light oil, 91% oil & NGLs Avg 90% WI in 3 operated units 5% decline Legacy oil pool…
  23. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 23
    The Whitecap Investment Opportunity Long Term Value Growth Orientation Return on capital discipline Per share growth focus Growth within Funds Flow Capital + Dividend < Funds Flow Sustainable dividend, NO DRIP Maintaining…
  24. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 24
    Research Coverage AltaCorp Capital Haywood Securities Barclays Capital Canada Macquarie Equity Research BMO Capital Markets National Bank Financial Clarus Securities Peters & Co. Cormark Securities Raymond James Desjardins Capital…
  25. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 25
    TSX:WCP www.wcap.ca June 1 , 2016 25
  26. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Play Optionality Multiple Zones Actively Developed Geological Characteristics Fosterton Success Verlo OOIP Resource and Inventory Beverley Gull Lake Butte Drilling Activity 26
  27. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Results and Track Record Production/Share Growth 2P Reserves/Share Growth 45,000 180 300,000 2015 F&D Costs 1,100 143 TP TPP 915 1,000 40,000 160 Incl. FDC 8.86 6.97 139 250,000 848 900 35,000 130 140 TPP Recycle Ratio = 5.2x…
  28. June 2016 Corporate Presentation – Whitecap Resources Inc. – slide 28
    Results and Track Record Funds Flow/Share Growth 600.0 2.50 2.08 500.0 1.68 1.84 2.00 1.68 400.0 (Funds Flow / share fd) 1.34 1.50 300.0 (MM) 486.8 482.7 1.00 200.0 0.48 278.8 0.50 100.0 193.9 87.2 0.0 11.3…

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