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July 2016 Corporate Presentation – Crescent Point Energy Corp.

Crescent Point Energy Corp. · Jul 1, 2016 · 38 slides

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Slides

  1. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 1
    Crescent Point Energy Corporate Presentation July 2016 1
  2. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 2
    HIGH-QUALITY, LOW-COST PRODUCER: CPG (TSX AND NYSE) Market Capitalization 10.2 billion (511.2 million shares fully diluted)(1) Net Debt* 4.3 billion (incl. hedged US denominated debt) Enterprise Value 14.5 billion 2016 Average…
  3. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 3
    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…
  4. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 4
    2016 PRIORITIES Protecting against volatile short-term oil prices while positioning for long-term growth Maintain production levels at 165,000 boe/d for 2016 and 2017 Protect and further strengthen balance sheet Realize additional…
  5. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 5
    COMMODITY HEDGING STRATEGY Current Oil Hedges 2016 H2 Average: 2017 H1 Average: 2017 H2 Average: 43% 28% 9% 60,000 110.00 50,000 90.00 40,000 CAD bbl/d 70.00 30,000 50.00 20,000 30.00 10,000 - 10.00…
  6. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 6
    FOCUSED GROWTH Large Original Oil in Place with significant running room Only 3.0% recovered to date with significant growth Viewfield Bakken potential Shaunavon 14 years of drilling inventory Flat Lake / Midale Viking…
  7. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 7
    SIGNIFICANT GROWTH POTENTIAL Total Net Years of OOIP Recovery to Key Focus Areas locations(4) Inventory (mmbbls) Date Shaunavon 1,850 18 5,500 1.2% Conventional 1,225 15 2,900 14.4% Viewfield Bakken 1,200 10 4,600 3.4% Uinta…
  8. July 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. July 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. July 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. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 11
    FLAT LAKE Q1/16 area production: 17,500 boe/d 1,000 net drilling locations (154% growth since 2012) Viewfield Bakken 825 unconventional and 160 conventional 2.8 billion barrels of unconventional Original Oil-In-Place (recovery…
  12. July 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. July 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) 36 24 Months Payouts of 12 2 years or less 0 Viewfield Bakken Flat Lake Midale SE SK…
  14. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 14
    GENERATING EXCESS FUNDS FLOW 2016 US 45 WTI 2017 US 50 WTI Total Payout Ratio: 78% Total Payout Ratio: 83% Excess Funds Excess Funds 200MM Flow 300MM Flow Cash Cash Dividends Dividends Capital Capital Expenditures…
  15. July 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. July 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. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 17
    APPENDIX 18
  18. July 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. July 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. July 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. July 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. July 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. July 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. July 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. July 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. July 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. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 27
    FLAT LAKE Q1/16 area production: 17,500 boe/d 1,000 net drilling locations (825 unconventional, 160 conventional) Viewfield Bakken 2.8 billion barrels unconventional Original Oil-In-Place (recovery to date 0.9%) Flat Lake Torquay:…
  28. July 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. July 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. July 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. July 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. July 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. July 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. July 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. July 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. July 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. July 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. July 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 38
    INDUSTRY-LOW G&A G&A as a % of Netback 20% 44% lower G&A G&A as a percentage of netback (as a percentage of netback) 15% in comparison to peers 10% 5% 0% 2015 CPG 2015 PEER AVG Crescent Point Energy G&A/boe…

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