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June 2016 Investor Presentation – Bonavista Energy Corp

Bonavista Energy Corp · Jun 30, 2016 · 33 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 Investor Presentation – Bonavista Energy Corp – slide 1
    INVESTOR PRESENTATION JUNE 2016 1
  2. June 2016 Investor Presentation – Bonavista Energy Corp – slide 2
    IDENTITY This is Bonavista Our leadership team is experienced: Our interests are aligned average tenure of 13 years with our shareholders: 8% insider ownership We always strive to be We have a focused more efficient: asset…
  3. June 2016 Investor Presentation – Bonavista Energy Corp – slide 3
    IDENTITY Q1 ACCOMPLISHMENTS Capital Expenditures of 46 million 10% below budget Operating costs of 5.75/boe 18% improvement* Cash costs of 9.45/boe* 14% improvement Total payout ratio of 88% 39% improvement* Inactive and abandoned…
  4. June 2016 Investor Presentation – Bonavista Energy Corp – slide 4
    IDENTITY CORE OPERATING AREAS Focused: Deep Basin Q1 2016 19,809 boe/d production 90% natural gas 4.03/boe operating costs Key plays: Wilrich, Bluesky, Falher, Notikewin West Central Q1 2016 46,659 boe/d production 59%…
  5. June 2016 Investor Presentation – Bonavista Energy Corp – slide 5
    2016 PRIORITIES 1. Improve financial flexibility 2. Maintain sustainability 3. Protect funds from operations 4. Enhance efficiencies 9
  6. June 2016 Investor Presentation – Bonavista Energy Corp – slide 6
    2016 PRIORITIES IMPROVING FINANCIAL FLEXIBILITY Guidance: 2016 Budget Capital expenditures ( millions): E&D 135 A&D 5 - 10 Total 140 - 145 Production (boe/d) ** 67,500 Funds from operations ( millions) * 240 250 Dividends (…
  7. June 2016 Investor Presentation – Bonavista Energy Corp – slide 7
    2016 PRIORITIES IMPROVING FINANCIAL FLEXIBILITY Includes 2,000 boe/d of annualized shut in production 69,000 245 * 3.4 67,500 * 2016 Funds from Operations ( millions) 3.0 * 2016 Production (boe/d) Debt to EBITDA at…
  8. June 2016 Investor Presentation – Bonavista Energy Corp – slide 8
    2016 STRATEGIES - PROTECTED Natural gas hedged at CDN 3.20/gj AECO for 2016: 300 4.00 Hedged Volumes (thousands gjs/d) 250 3.50 200 3.00 CDN/gj 150 2.50 100 2.00 50 1.50 90% 95% 75% 72% 0 1.00 Q1-16…
  9. June 2016 Investor Presentation – Bonavista Energy Corp – slide 9
    2016 PRIORITIES ENHANCED EFFICIENCIES 2016E operating costs: 18.00 16.00 14.00 12.00 10.00 (/boe) 8.00 6.00 4.00 2.00 0.00 BNP 13 * Source: Peters & Co., May 2016 Intermediate coverage universe
  10. June 2016 Investor Presentation – Bonavista Energy Corp – slide 10
    2016 PRIORITIES ENHANCED EFFICIENCIES Top tier production addition costs: Production replacement costs by producer (2015/2014) BNP 14 Source: BMO Capital Markets, Canadian oil and gas exploration and production group, April…
  11. June 2016 Investor Presentation – Bonavista Energy Corp – slide 11
    ASSET QUALITY KEY PLAYS Many years of high quality development: Locations (gross) in our key play inventory*: 1,146 Locations Glauconite Other Key Plays WEST CENTRAL 385 locations 327 locations Hoadley Glauconite 270 Strachan…
  12. June 2016 Investor Presentation – Bonavista Energy Corp – slide 12
    CAPITAL ALLOCATION Base E&D spending of 135MM: Wells Expenditures % of Value Gross Net ( millions) Expenditures Spirit River: 16 15.9 65 54 Wilrich 10 10.0 52 43 Falher/Notikewin 6 5.9 13 11 Glauconite: 19 16.2 54 43 Hoadley 17…
  13. June 2016 Investor Presentation – Bonavista Energy Corp – slide 13
    SPIRIT RIVER Growing our presence in the Wilrich, Falher and Notikewin trends: Production 2016E Value Capital of 122 million 100% 73,418 77,211 79,287 67,500 90% boe/d boe/d boe/d boe/d 80% Production Weighting (%) 70%…
  14. June 2016 Investor Presentation – Bonavista Energy Corp – slide 14
    ANSELL WILRICH Continually more efficient: Average Production per well Average D&C Capital per well 1,400 6,000 -16% 1,200 5,000 1,000 4,000 800 Q1 2016 000s 3,000 boe/d 600 Q1 2015 2,000 400 200 +40%…
  15. June 2016 Investor Presentation – Bonavista Energy Corp – slide 15
    ANSELL WILRICH Improving efficiencies through experience and technology: 5,000 Completion 11% 4,000 down /horizontal meter 3,000 19% 2,000 Drilling down 1,000 17,400 10,700 boe/d boe/d 0 2015 Q1…
  16. June 2016 Investor Presentation – Bonavista Energy Corp – slide 16
    ANSELL WILRICH Controlling our infrastructure: 4.25 4.05 4.00 3.75 Operating Costs (/boe) 32% 3.50 3.25 3.00 60 mmcf/d compression and processing facility commissioned in Q3 2015 2.75 2.75 Expandable to…
  17. June 2016 Investor Presentation – Bonavista Energy Corp – slide 17
    MORNINGSIDE FALHER Improving efficiencies through capital cost reductions: 2,000 25% Complete down /horizontal meter 1,000 27% Drilling down 8,500 6,000 boe/d boe/d 0 2015 Q1 2016 Q1 * Costs per meter…
  18. June 2016 Investor Presentation – Bonavista Energy Corp – slide 18
    MORNINGSIDE FALHER Sustainable development through 2016: Production Value capital expenditures Production growth of 4% while spending 70% of funds from 4,000 operations* 3,500 3,000 Production (boe/d) 2,500 2016E…
  19. June 2016 Investor Presentation – Bonavista Energy Corp – slide 19
    GLAUCONITE Solid production base established: Production 2016E Value Capital of 122 million 100% 73,418 77,211 79,287 67,500 90% boe/d boe/d boe/d boe/d 80% Production Weighting (%) 70% 60% 50% 43% 40% 35% 31% 30%…
  20. June 2016 Investor Presentation – Bonavista Energy Corp – slide 20
    HOADLEY GLAUCONITE Continually more efficient: 3,000 26% Completion down /horizontal meter 2,000 25% Drilling 1,000 down 14,300 9,000 boe/d boe/d 0 2015 Q1 2016 Q1 * Costs per meter include actual…
  21. June 2016 Investor Presentation – Bonavista Energy Corp – slide 21
    HOADLEY GLAUCONITE Continually more efficient: Average Production per well Average D&C Capital per well 3,000 3,000 -25% 2,500 2,500 Raw Gas (mcf/d) 2,000 Q1 2016 2,000 000s 1,500 Q1 2015 1,500 1,000 1,000 500…
  22. June 2016 Investor Presentation – Bonavista Energy Corp – slide 22
    GLAUCONITE Reliable and predictable production: Production Value capital expenditures Maintaining production by spending only 39% of net 30,000 operating income* 25,000 Production (boe/d) 20,000 2016E 15,000 10,000…
  23. June 2016 Investor Presentation – Bonavista Energy Corp – slide 23
    KEY PLAY RETURNS Sensitivities: 80% All key plays compete 2017 strip price at June 7, 2016 70% equally for capital in current price environment 60% Internal Rate of Return 50% 40% 30% 20% Morningside Falher -…
  24. June 2016 Investor Presentation – Bonavista Energy Corp – slide 24
    SUMMARY 2016 Priorities: Improve financial flexibility Debt repayment of approximately 234 million Maintain sustainability Total payout ratio of 64% with minimal production decline Protect funds from operations Hedged 82% of…
  25. June 2016 Investor Presentation – Bonavista Energy Corp – slide 25
    IDENTITY SOCIALLY RESPONSIBLE Developing our assets responsibly: In the past four years, we have decreased our total flared and vented natural gas volumes by 44% Converting our corporate vehicles to propane, reducing our…
  26. June 2016 Investor Presentation – Bonavista Energy Corp – slide 26
    2016 STRATEGIES FINANCIAL FLEXIBILITY Total & senior debt*: Senior Notes (CDN) 20 Unutilized Bank Capacity 396 Bank credit facility - 600 million 11 banks in credit facility Unsecured, financial covenants Matures September 10,…
  27. June 2016 Investor Presentation – Bonavista Energy Corp – slide 27
    2016 STRATEGIES FINANCIAL FLEXIBILITY Senior debt maturities: 300 Senior notes average interest rate 4.1% Bank debt interest rate 3.3% Remaining term approximately 5.4 years at 3.9% 250 200 ( millions) 150 100 50…
  28. June 2016 Investor Presentation – Bonavista Energy Corp – slide 28
    2016 STRATEGIES FINANCIAL FLEXIBILITY Total and senior debt / EBITDA: Year ended December 31, 2016E ( millions) Revenues, net of royalties 387 * Realized gains on financial instrument contracts 132 519 Expenses: Operating…
  29. June 2016 Investor Presentation – Bonavista Energy Corp – slide 29
    2016 STRATEGIES - PROTECTED Oil hedged at CDN 77 WTI for 2016: 4 80.00 Hedged Volumes (mbbls/d) 3 60.00 CDN/bbl 2 40.00 1 20.00 90% 94% 62% 51% 0 0.00 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Swap…
  30. June 2016 Investor Presentation – Bonavista Energy Corp – slide 30
    2016 STRATEGIES - PROTECTED Propane hedged at 42% of WTI for 2016: 3,000 60% 2,500 50% Hedged Volumes (bbls/d) 2,000 40% % of WTI 1,500 30% 1,000 20% 500 10% 20% 49% 34% 36% 0 0% Q1-16 Q2-16 Q3-16…
  31. June 2016 Investor Presentation – Bonavista Energy Corp – slide 31
    2016 FIRST QUARTER PERFORMANCE Three months ended March 31, Financial: 2016 2015 % change ( millions except per share amounts) Production revenues 105 164 (36)% Funds from operations 59 97 (39)% - per share 0.27 0.45 (40)%…
  32. June 2016 Investor Presentation – Bonavista Energy Corp – slide 32
    2015 RESERVES F&D costs of 7.26/boe: Natural Before- Natural 10%NPV Total 2.4 billion Oil Gas Total Tax Gas Liquids 10%NPV Proved (Mbbls) (MMcf) (Mbbls) (Mboe) (Millions) Probable Developed 35% Producing Category:…
  33. June 2016 Investor Presentation – Bonavista Energy Corp – slide 33
    COMMODITY AND CURRENCY VOLATILITY 2016 Commodity composition By Volume By Value 2% 9% 6% 7% Ethane 13% Propane 4% Butane 5% Pentane 6% Oil 17% 61% 69% 39

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