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BAML Energy Credit Conference – Baytex Energy Corp.

Baytex Energy Corp. · Jun 7, 2016 · 31 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. BAML Energy Credit Conference – Baytex Energy Corp. – slide 1
    June Presentation
  2. BAML Energy Credit Conference – Baytex Energy Corp. – slide 2
    Baytex Key Attributes Making the Right Choices In a Low Oil Price Environment Pro-actively worked with our bank lending Cost reduction focus syndicate to provide across all facets of our increased financial organization while…
  3. BAML Energy Credit Conference – Baytex Energy Corp. – slide 3
    Corporate Profile Market Summary Ticker Symbol TSX / NYSE: BTE Average Daily Volume (1) CAN: 10,200,000 / US: 2,800,000 Shares Outstanding 210.7 million Market Capitalization / Enterprise Value 1.3 billion / 3.3 billion Net Debt…
  4. BAML Energy Credit Conference – Baytex Energy Corp. – slide 4
    Three Key Resource Plays Eagle FordTexas 34% Peace River Q1/16 production of Texas 34% Q1/16 production of 14,200 41,100 boe/d boe/d Heavy Oil 51% Expect to bring 30 net Developed Light Oil 22% via multi-lateral wells on…
  5. BAML Energy Credit Conference – Baytex Energy Corp. – slide 5
    Q1 2016 Highlights Generated production of 75,800 boe/d (78% oil and NGL) Continued to Meet the Challenges of Low Oil Prices Directed 96% of exploration and development spending to the Eagle Ford which generates the highest rates…
  6. BAML Energy Credit Conference – Baytex Energy Corp. – slide 6
    2016 Capital Budget Summary of 2016 Expectations Exploration and Development Capital 225-265 million Production 68,000 72,000 boe/d We are targeting capital expenditures to approximate funds from operations in order to minimize…
  7. BAML Energy Credit Conference – Baytex Energy Corp. – slide 7
    Balance Sheet / Debt Composition At March 31, 2016, long-term debt (bank loan and long-term notes) totaled 1.8 billion and we were 39% drawn on our credit facilities. Credit Capacity 2.3 Billion Long-Term Notes Maturity Schedule…
  8. BAML Energy Credit Conference – Baytex Energy Corp. – slide 8
    Financial Covenant Flexibility Baytex Position as at March 31, 2016 Senior Secured Debt (1) to Bank EBITDA (2) 0.61 : 1.00 Interest Coverage (3) 4.82 : 1.00 Ratio for the Quarter(s) ending: March 31, 2016 to June 30, 2018 to…
  9. BAML Energy Credit Conference – Baytex Energy Corp. – slide 9
    Crude Oil Hedge Portfolio Q2/2016 Q3/2016 Q4/2016 Balance of Full-Year 2016 2017 WTI Fixed Hedges Volumes (bbl/d) 8,000 5,000 5,000 6,000 --- Fixed Price (US/bbl) 59.84 63.79 63.79 62.03 --- WTI 3-Way Option Volumes (bbl/d) 9,500…
  10. BAML Energy Credit Conference – Baytex Energy Corp. – slide 10
    Natural Gas Hedge Portfolio Balance of Full-Year Q2/2016 Q3/2016 Q4/2016 2016 2017 AECO Fixed Hedges Volumes (GJ/day) 28,333 32,500 32,500 31,111 10,000 Price (C/GJ) 2.50 2.50 2.39 2.46 2.65 NYMEX Fixed Hedges Volumes (mmbtu/d)…
  11. BAML Energy Credit Conference – Baytex Energy Corp. – slide 11
    Cost Reduction Focus Baytex continues to take active measures to reduce costs where possible while maintaining efficiency in our operations and the safety of our employees and contractors. Drilling costs reduced 27% in the Eagle…
  12. BAML Energy Credit Conference – Baytex Energy Corp. – slide 12
    Strong Capital Efficiencies Driving Down Costs Capital efficiency improvement since 2014 driven by portfolio enhancements, including: Addition of the Eagle Ford Divestiture of North Dakota and other non-core assets Reduced thermal…
  13. BAML Energy Credit Conference – Baytex Energy Corp. – slide 13
    Attractive Rates of Return 175% 150% Eagle Ford - US5.6M/well Rate of Return (1) (2) (3) Peace River - C2.8M/well 125% Lloydminster - C750K/well Break-Even WTI (4) 100% 75% 50% 25% 0% 45 50 55 60 65 70 WTI…
  14. BAML Energy Credit Conference – Baytex Energy Corp. – slide 14
    High Quality Investment Opportunities Single Well Economics Eagle Ford Peace River Lloydminster Well Costs DC&E (1) ( millions) US5.6 2.8 0.75 Production (boe/d) IP30 1,000 - 1,200 300 - 500 70 - 80 % Liquids 60% - 70% 100%…
  15. BAML Energy Credit Conference – Baytex Energy Corp. – slide 15
    The Eagle Ford
  16. BAML Energy Credit Conference – Baytex Energy Corp. – slide 16
    Baytex Acreage Position The Eagle Ford Provides Baytex With Exposure to a World Class Oil Resource Play Overview of Acreage 23,000 net contiguous acres in the Sugarkane Field in the core of the liquids-rich Eagle Ford shale The…
  17. BAML Energy Credit Conference – Baytex Energy Corp. – slide 17
    Eagle Ford Development Significant advancements have been made to delineate the multi-zone development potential of our Sugarkane acreage Commenced production from 34 wells in Q1/2016 (47% Upper Eagle Ford, 35% Lower Eagle Ford,…
  18. BAML Energy Credit Conference – Baytex Energy Corp. – slide 18
    Eagle Ford Stack and Frac Highlights Chapman Rogers - Q4 2015 Sienkiewicz - Q2 2015 5 well pad 5 well pad Avg 30 day IPs Avg 30 day IPs 1,164 boepd 1,575 boepd 13 Multi-Zone Projects in Various Stages of Execution and Development…
  19. BAML Energy Credit Conference – Baytex Energy Corp. – slide 19
    Eagle Ford Performance Increasing Performance and Efficiency Improvements in drilling and completion design have increased 30-day IP rates by approximately 106% since Q4/2011 with 180-day cumulative recovery increasing 74% over the…
  20. BAML Energy Credit Conference – Baytex Energy Corp. – slide 20
    Completion Improvements Increasing Lateral Length, Frac Stages and Proppant Lateral Length and Total Depth Per Well Frac Stages and Proppant Per Well 23
  21. BAML Energy Credit Conference – Baytex Energy Corp. – slide 21
    Pricing Exposure The Eagle Ford Significantly Enhances Our Operating Netback Our light oil and condensate production in the Eagle Ford is priced primarily off a Louisiana Light Sweet (LLS) benchmark, which typically trades at a…
  22. BAML Energy Credit Conference – Baytex Energy Corp. – slide 22
    Heavy Oil Overview 25
  23. BAML Energy Credit Conference – Baytex Energy Corp. – slide 23
    Peace River Oil Sands Multi-Lateral Drilling Drives Strong Capital Efficiencies Area Statistics Land Holdings 338 net sections Production (Q1/2016) 14,200 boe/d 2P Reserves (YE15) (1) 73.6 mmboe Drilling Inventory (2) 7.5…
  24. BAML Energy Credit Conference – Baytex Energy Corp. – slide 24
    Multi-Lateral Cold Horizontal Wells Reservoir Characteristics (1) Formation Bluesky Depth 600 metres Completion Open Hole Oil Quality 11 API Average Porosity 28% Permeability 1 - 5 darcies Oil Saturation 70% Recovery Factor 5 -…
  25. BAML Energy Credit Conference – Baytex Energy Corp. – slide 25
    Lloydminster Lloydminster Heavy Oil Heavy Oil Shift to Horizontal Drilling Expands Inventory Area Statistics Land Position 652 net sections Production (Q1/2015) 11,500 boe/d 2P Reserves (YE15) (1) 33.2 mmboe Drilling…
  26. BAML Energy Credit Conference – Baytex Energy Corp. – slide 26
    Lloydminster Development Reservoir Characteristics (1) Formation Mannville Group Depth 350 800 metres Completion Horizontal Slotted Liner / Vertical Stacked Pays Oil Quality 10 16 API Average Porosity 30% Permeability 0.5…
  27. BAML Energy Credit Conference – Baytex Energy Corp. – slide 27
    Summary We are well positioned to benefit from an oil price recovery Retain significant leverage to a rising crude oil price environment Exceptional asset base focused on crude oil & liquids Significant inventory of development…
  28. BAML Energy Credit Conference – Baytex Energy Corp. – slide 28
    Supplementary Information 31
  29. BAML Energy Credit Conference – Baytex Energy Corp. – slide 29
    2016 Funds from Operations Sensitivities Estimated Effect on Annual Funds from Operations ( Millions) Sensitivities Excluding Hedges Including Hedges Change of US1.00/bbl WTI crude oil 17.8 15.1 Change of US1.00/bbl WCS heavy…
  30. BAML Energy Credit Conference – Baytex Energy Corp. – slide 30
    Capital Program Efficiency 3-Year 2013 2014 2015 Total / Average 2013-15 Capital Expenditures (millions) Exploration and development 550.9 766.1 521.0 1,838.0 Acquisitions (net of dispositions) (39.1) 2,545.1 1.6 2,507.7 Total 511.8…
  31. BAML Energy Credit Conference – Baytex Energy Corp. – slide 31
    Contact Information Suite 2800, Centennial Place James L. Bowzer 520 3rd Avenue S.W. President & Chief Executive Officer Calgary, Alberta T2P 0R3 (587) 952-3000 T: (587) 952-3000 1-800-524-5521 Rodney D. Gray www.baytexenergy.com…

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