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June 2016 Corporate Presentation – Crescent Point Energy Corp.

Crescent Point Energy Corp. · Jun 8, 2016 · 38 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 – Crescent Point Energy Corp. – slide 1
    Crescent Point Energy Corporate Presentation June 2016 1
  2. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 2
    HIGH-QUALITY, LOW-COST PRODUCER: CPG (TSX AND NYSE) Market Capitalization 10.3 billion (511.2 million shares fully diluted)(1) Net Debt* 4.3 billion (incl. hedged US denominated debt) Enterprise Value 14.6 billion 2016 Average…
  3. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 3
    Q1 2016 HIGHLIGHTS Record production of 178,241 boe/d (16% increase over Q1 2015) Production outperformance during Q1 2016 provides increased flexibility to manage low oil prices during 2016 and improves positioning for 2017…
  4. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 4
    BUSINESS STRATEGY Develop and Enhance Assets Increase recovery factors through step-out and infill drilling, waterflood optimization and improved technology Maintain high netbacks with low operating, royalty and transportation…
  5. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 5
    COMMODITY HEDGING STRATEGY Current Oil Hedges 2016 Average: 2016 average floor price CAD 77.00/bbl 60,000 40% 2017 average floor price CAD 71.00/bbl 50% 50,000 2017 H1 Average: 40% 25% % hedged 40,000 bbl/d 30%…
  6. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 6
    FOCUSED GROWTH Large Oil in Place with significant running room Only 3.0% recovered to date with significant growth potential 14 years of drilling inventory Viewfield Bakken Shaunavon Flat Lake / Midale Viking Conventional…
  7. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 7
    SIGNIFICANT GROWTH POTENTIAL Total Net Years of OOIP Recovery to Key Focus Areas locations(4) 2016 Net Drills Inventory (mmbbls) Date Shaunavon 1,850 102 18 5,500 1.2% Conventional 1,225 80 15 2,900 14.4% Viewfield Bakken 1,200…
  8. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 8
    VIEWFIELD BAKKEN AND SHAUNAVON RESOURCE PLAYS VALUE DRIVERS Waterflood Closable Sliding Sleeve Technology Source: NCS Multistage Infill drilling and optimized well density patterns allow for greater recovery rates and optimal…
  9. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 9
    VIEWFIELD BAKKEN WATERFLOOD: SIGNIFICANTLY INCREASING VALUE 160 Example of Per Section Viewfield Waterflood Offset Well EURs 3x greater versus Primary(5)(6) Bakken Recoveries and Economics 140 Estimated Cumulative 120 OOIP…
  10. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 10
    EMERGING-GROWTH RESOURCE PLAYS VALUE DRIVERS Mahogany Garden Gulch Douglas Creek Marly Midale Black Shale Ratcliffe Conventional Vuggy Midale Castle Peak Bakken Bakken Uteland Butte Torquay/Three Forks Torquay/Three Forks…
  11. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 11
    FLAT LAKE UNCONVENTIONAL Q1/16 area production: 17,500 boe/d Viewfield Bakken 825 net drilling locations (113% growth since 2012) 2.8 billion barrels of Original Oil-In-Place (recovery to date 0.9%) Successful step-out program…
  12. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 12
    UINTA BASIN Q1/16 production: 14,000 boe/d Ouray Valley Gusher 1,150 net low-risk vertical drilling locations Horseshoe plus horizontal drilling opportunities Aurora Bend Rocky Point Blacktail Ridge Randlett North Monument…
  13. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 13
    2016 CAPITAL PROGRAM SUPPORTED BY QUICK PAYOUTS Type Well Payouts by Play (Excluding Upside from Waterflood and New Technology) 48 36 Months 24 12 US 35 WTI US 45 WTI 0 Viewfield Bakken Flat Lake Midale SE SK…
  14. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 14
    LIVING WITHIN CASH FLOW 2016 US 35 WTI 2017 US 45 WTI Total Payout Ratio: 96% Total Payout Ratio: 95% Excess Funds Flow US45WTI 300MM Excess Funds 200MM Flow US50 WTI Cash Cash Dividends Dividends Funds Flow Funds Flow US35…
  15. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 15
    CONTINUING HISTORY OF PER SHARE GROWTH 5-Year Production Per Share Growth to 2015 Canadian Senior E&Ps 100,000 boe/d 8% 5% CPG PEER AVG Debt and Dividend Adjusted. Peer group includes: CNQ,CVE,HSE,IMO,SU Source: CIBC World…
  16. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 16
    SUMMARY Proven Management Team Proven track record of per share reserves, production and cash flow growth 5-year weighted average F&D of 20.39 per 2P boe of reserves (2.2 times recycle ratio)(8) Cost-focused producer with strong…
  17. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 17
    APPENDIX 18
  18. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 18
    BALANCE SHEET STRENGTH Debt Composition (CAD) as of Mar 31, 2016 Net Debt to Funds Flow from Operations 4.0x 3.0x 1.3B Unutilized 1.8B 2.0x Credit Senior Capacity Guaranteed Notes* 1.0x 2.3B 0.0x Drawn on Bank 2005 2006…
  19. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 19
    ORGANIC RESERVES GROWTH Cumulative Technical and Development 700 2P Reserve Additions (mmboe)(9) 600 578 mmboe 500 400 300 200 100 0 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  20. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 20
    INDUSTRY-LEADING CASH NETBACKS Cash Netbacks US30 WTI (Excluding Hedging Gains) 15.00 CPG Canadian Peers Cash Netbacks /boe 10.00 USA Peers Saskatchewan Focused 5.00 - Source: Macquarie Capital Markets Canada Ltd.…
  21. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 21
    HIGH-RETURN, QUICK-PAYOUT ASSET BASE Top Light and Medium Oil Resource Plays in North America 25 (ranked by half-cycle payout) 20 19th CPG Eight of Crescent Points nine core resource 18th plays ranked in the top 20 across North…
  22. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 22
    ADVANCING WATERFLOODS Water Injection Well Conversions and Viewfield Bakken Cumulative Oil Reserves Corporate Decline Rate due to Waterflood(10) 285 12 Cumulative Injection well count* 300 45% Corporate Decline Rate (%)…
  23. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 23
    VIEWFIELD BAKKEN Q1/16 production: 65,000 boe/d 1,200 net drilling locations 4.6 billion barrels of Original Oil-In-Place with recovery to date of 3.4% Continue to implement new completions technology resulting in improved…
  24. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 24
    STRATEGIC ASSET BASE WITH STRONG ECONOMICS Viewfield Bakken Infill Type Well (75 mbbls) Comparison Viewfield North Dakota 160 Land Majority crown Majority freehold 140 120 Crown holiday, No holiday, Production (boe/d)…
  25. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 25
    SHAUNAVON Q1/16 production: 26,000 boe/d 1,850 net drilling locations 5.5 billion barrels of Original Oil-In-Place with recovery to date of 1.2% Optimized tonnage and stages during completions process resulting in increased…
  26. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 26
    WATERFLOOD ECONOMICS Example of Per Section Example of Per Section Bakken Recoveries and Economics Shaunavon Recoveries and Economics Estimated Cumulative OOIP Recovery Incremental F&D costs Estimated Cumulative (MMbbls)…
  27. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 27
    FLAT LAKE UNCONVENTIONAL Q1/16 area production: 17,500 boe/d 825 net drilling locations Viewfield Bakken 2.8 billion barrels of Original Oil-In-Place (recovery to date 0.9%) Flat Lake Torquay: (Torquay/Three Forks, Bakken and…
  28. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 28
    UINTA BASIN Multi-Zone Basin Ouray Valley Gusher Horseshoe Aurora Bend Rocky Point Blacktail Ridge Randlett North Monument Butte Lake Canyon Crescent Point Energy lands Zones tested horizontally since late 2014…
  29. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 29
    CREATING LONG-TERM VALUE FOR SHAREHOLDERS Growth + Dividend Strategy CPG Waterflood Technology M&A Base Business Expansion Initiatives Large OOIP resources with low Lower decline rates and Increase recoveries and capital…
  30. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 30
    PROVEN TRACK RECORD 200,000 Production Growth (boe/d) 3,000 Funds Flow (millions) 160,000 2,500 120,000 2,000 1,500 80,000 1,000 40,000 500 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015…
  31. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 31
    PER SHARE FOCUS Production per Share Reserves per Share 400 CAGR: 6% 2 CAGR: 6% + Dividend Yield + Dividend Yield 300 1.75 200 1.5 100 1.25 0 1 (2) 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015…
  32. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 32
    FAVOURABLE WATERFLOOD RESERVOIRS Low Mobility Ratios* Enhance Waterflood Oil Recovery Horizontal Waterflood Comparison Tight Oil Total Affected Unconventional Waterflood Pilot Resource Plays Province E&P Companies Production (bbl/d)…
  33. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 33
    ACQUISITION HISTORY: RESERVES MORE THAN DOUBLED Initial 2P Estimated Current 2P Total 2P Increase in Reserves Production Reserves Reserves 2P Reserves % Increase Property (Mboe) (Mboe) (Mboe) (Mboe) (Mboe) in Reserves Sounding Lake…
  34. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 34
    REDUCING DRILLING & DEVELOPMENT COSTS Viewfield Bakken Shaunavon Drilling and Development Cost Drilling and Development Cost 2.5 3.0 Cost per well (Millions) Cost per well (Millions) 2.0 2.0 1.5 1.0 1.0 2008 2009 2010…
  35. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 35
    PIONEER IN ADVANCING NEW TECHNOLOGY 2008 - 2009 2010 - 2012 2013 - 2015 Completed first cemented liner in the Expanded waterflood area within the core of the Became the largest driller of horizontal wells in Canada Bakken oil…
  36. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 36
    VIEWFIELD BAKKEN TECHNOLOGY ADVANCEMENTS Viewfield Bakken Independent type well changes(11) (Primary recovery 3 twp core) 300 Technology has shown to be a significant value creator over time; net present value ( 10%) per- well…
  37. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 37
    IMPACT OF TECHNOLOGY IMPROVEMENTS Viewfield Bakken Fresh Water Usage Viewfield Bakken 900 Drilling Progression Spud to Rig Release 16.00 800 700 12.00 600 Water (m3) 500 Days 400 8.00 300 200 4.00 100 0 0.00 2009…
  38. June 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 38
    INDUSTRY-LOW G&A G&A as a % of Netback 20% G&A as a percentage of netback 44% lower G&A in 15% comparison to peers 10% 5% 0% 2015 CPG 2015 PEER AVG Crescent Point Energy G&A/boe includes capitalized expenses…

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