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July 2016 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jul 7, 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. July 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 July 2016
  2. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 365.7 Fully diluted 369.7 Market capitalization (B) 3.6 Annual dividend (/share) 0.28 2016 average production (boe/d) 45,300 % oil + NGL 78% 2016 cash netback (/boe)*…
  3. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Success = motivated people + quality assets + discipline Total Annual Shareholder Return Focus Return on capital employed TSR 10% / annum Founding Principles Employees are shareholders Light oil, high netback focus Per share…
  4. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Fully Funded Growth + Dividend Model No DRIP 120% 102% 101% 100% 93% 79% 80% Total Payout Ratio 66% 69% 66% 49% 60% 47% 44% 40% 20% 44% 33% 35% 32% 22% 0% 2013 2014 2015 2016e 2017e Cash Dividends…
  5. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Financial Prudence and Risk Management Objective: Mitigate price volatility and protect economic returns Predictability for WCP funds flow Capital reinvestment and Dividend payments Oil Hedges Gas Hedges C72.11 C60.14 C59.73…
  6. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 6
    2016 Guidance Setting up for Strong 2017 2016 Operational Average production (boe/d) 45,300 Development capital (MM) 175 Wells drilled (gross) 93 Financial Cash netback (/boe) 22.20 Funds flow (MM) 368 per share 1.06 Total dividend…
  7. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Sustainable Asset Base: Funds Flow Capital + Dividend 2016 Free Cash Flow by Area 100 90 80 114 70 52 60 4 160 50 92 40 19 30 61 57 20 46 45 40 10 26 0 Greater Pembina WC SK NW AB/BC SW SK Viking Dunvegan/Boundary…
  8. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 8
    2016 Development Capital 2016 Capex by Area (%) 2016 Well Count (gross) Greater Pembina 60 WC SK 26% 50 23% 40 33% 30 52 15% 3% 20 10 17 12 12 0 SW SK WC SK Greater Pembina SW SK NW AB/BC NW AB/BC Other 2015…
  9. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 9
    2017 Preliminary Outlook 2016 2017 Outlook % Change Average production (boe/d) 45,300 53,900 19% per million shares 129 145 12% Funds flow (MM) 368 470 28% per share 1.06 1.26 19% Development capital (MM) 175 205 17% Total…
  10. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 10
    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…
  11. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Core Areas of Operations Light Oil Drilling Inventory 3,507 67% Low Risk Type A 33% Low Risk Type B BRITISH COLUMBIA Drilling 2015/16 Inventory wells ALBERTA SASKATCHEWAN NW AB/BC 548 11 / 12 Boundary NW AB/BC Lake Valhalla…
  12. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Operational Excellence Whitecap - Capital Efficiency Improvements 20,000 19,000 18,000 17,000 16,000 15,000 DCE&T Capital per Boe/d IP(30) 14,000 13,000 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 East…
  13. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 13
    SW Saskatchewan Acquisition Rationale Purchase price - 595MM Overview Adds sustainable new oil growth 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…
  14. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 14
    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:…
  15. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 15
    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…
  16. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 16
    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…
  17. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 17
    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…
  18. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 18
    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…
  19. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Deep Basin Dunvegan and Cardium Oil Strong play characteristics Wapiti Cardium Type Well Economics Dunvegan Stnd ERH (2.0) 39 to 42 API oil Large OOIP of 6 to 15.5 MMboe/section Drill, Complete, Equip, Tie-in (MM) 2.83 2.92 4.32 No…
  20. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 20
    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…
  21. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 21
    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…
  22. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 22
    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)…
  23. July 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. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 24
    Research Coverage AltaCorp Capital GMP Securities Barclays Capital Canada Haywood Securities BMO Capital Markets Macquarie Capital Markets Canada CIBC World Markets National Bank Financial Clarus Securities Peters & Co. Cormark…
  25. July 2016 Corporate Presentation – Whitecap Resources Inc. – slide 25
    TSX:WCP www.wcap.ca July 7, 2016 25
  26. July 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. July 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. July 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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