Skip to main content July 2016 Investor Presentation – Bonavista Energy Corp | Shale Experts
Loading...
Pm

July 2016 Investor Presentation – Bonavista Energy Corp

Bonavista Energy Corp · Jul 20, 2016 · 40 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 Investor Presentation – Bonavista Energy Corp – slide 1
    INVESTOR PRESENTATION JULY 2016 1
  2. July 2016 Investor Presentation – Bonavista Energy Corp – slide 2
    CORPORATE IDENTITY 4
  3. July 2016 Investor Presentation – Bonavista Energy Corp – slide 3
    IDENTITY This is Bonavista Our leadership team is experienced: We are aligned with our average tenure of 13 years shareholders: 8% insider ownership We always strive to be We have a focused more efficient: asset base: 18%…
  4. July 2016 Investor Presentation – Bonavista Energy Corp – slide 4
    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…
  5. July 2016 Investor Presentation – Bonavista Energy Corp – slide 5
    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%…
  6. July 2016 Investor Presentation – Bonavista Energy Corp – slide 6
    2016 STRATEGY 8
  7. July 2016 Investor Presentation – Bonavista Energy Corp – slide 7
    2016 PRIORITIES 1. Improve financial flexibility 2. Demonstrate sustainability 3. Protect funds from operations 4. Enhance efficiencies 9
  8. July 2016 Investor Presentation – Bonavista Energy Corp – slide 8
    2016 PRIORITIES IMPROVING FINANCIAL FLEXIBILITY Guidance: 2016 Budget Capital expenditures ( millions): Exploration and development 135 Acquisitions and dispositions 5 - 10 Total 140 - 145 Production (boe/d) ** 67,500 Funds…
  9. July 2016 Investor Presentation – Bonavista Energy Corp – slide 9
    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 * Debt to EBITDA at YE2016 2016 Production…
  10. July 2016 Investor Presentation – Bonavista Energy Corp – slide 10
    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…
  11. July 2016 Investor Presentation – Bonavista Energy Corp – slide 11
    2016 STRATEGIES ENHANCED EFFICIENCIES Competitive cost structure F&D costs: 24.00 Finding and Development Costs (/boe)* 22.00 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 2012 2013 2014 2015 Bonavista Peer…
  12. July 2016 Investor Presentation – Bonavista Energy Corp – slide 12
    2016 STRATEGIES ENHANCED EFFICIENCIES Pace of improvement operating costs: 10% 5% 0% Operating Costs * (% change) 9% -5% -10% -15% 35% -20% -25% -30% 2012: Bonavista 9.07/boe -35% Peer Group Average…
  13. July 2016 Investor Presentation – Bonavista Energy Corp – slide 13
    2016 PRIORITIES ENHANCED EFFICIENCIES Pace of improvement cost of adding production: 10% Production Addition Costs* (% change) 0% -10% -20% 54% 33% -30% -40% -50% 2012: -60% Bonavista 32,500/boed Peer Group…
  14. July 2016 Investor Presentation – Bonavista Energy Corp – slide 14
    ASSET QUALITY 16
  15. July 2016 Investor Presentation – Bonavista Energy Corp – slide 15
    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…
  16. July 2016 Investor Presentation – Bonavista Energy Corp – slide 16
    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…
  17. July 2016 Investor Presentation – Bonavista Energy Corp – slide 17
    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%…
  18. July 2016 Investor Presentation – Bonavista Energy Corp – slide 18
    ANSELL WILRICH Continually more efficient: Average production per well Average drilling and completion costs per well Down 1,400 6,000 1,200 5,000 16% 1,000 4,000 800 Q1 2016 000s 3,000 boe/d 600 Q1 2015 2,000…
  19. July 2016 Investor Presentation – Bonavista Energy Corp – slide 19
    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…
  20. July 2016 Investor Presentation – Bonavista Energy Corp – slide 20
    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…
  21. July 2016 Investor Presentation – Bonavista Energy Corp – slide 21
    MORNINGSIDE FALHER Continually more efficient: Average production per well Average drilling and completion costs per well Down 4,000 3,000 3,500 2,500 25% 3,000 Raw Gas (mcf/d) 2,000 2,500 Q1 2016 000s 2,000…
  22. July 2016 Investor Presentation – Bonavista Energy Corp – slide 22
    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…
  23. July 2016 Investor Presentation – Bonavista Energy Corp – slide 23
    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…
  24. July 2016 Investor Presentation – Bonavista Energy Corp – slide 24
    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%…
  25. July 2016 Investor Presentation – Bonavista Energy Corp – slide 25
    HOADLEY GLAUCONITE Continually more efficient: Average production per well Average drilling and completion costs per well 3,000 3,000 Down 2,500 2,500 16% Raw Gas (mcf/d) 2,000 Q1 2016 2,000 000s 1,500 Q1 2015 1,500…
  26. July 2016 Investor Presentation – Bonavista Energy Corp – slide 26
    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 28 * Costs per meter include actual…
  27. July 2016 Investor Presentation – Bonavista Energy Corp – slide 27
    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…
  28. July 2016 Investor Presentation – Bonavista Energy Corp – slide 28
    KEY PLAY RETURNS Sensitivities: 2017 strip price at June 7, 2016 80% All key plays compete 70% equally for capital in current price environment 60% Internal Rate of Return 50% 40% 30% 20% Morningside Falher - 1…
  29. July 2016 Investor Presentation – Bonavista Energy Corp – slide 29
    SUMMARY 2016 Priorities: Improve financial flexibility Debt repayment of approximately 234 million Demonstrate sustainability Total payout ratio of 64% with minimal production decline Protect funds from operations Hedged 82%…
  30. July 2016 Investor Presentation – Bonavista Energy Corp – slide 30
    APPENDIX 32
  31. July 2016 Investor Presentation – Bonavista Energy Corp – slide 31
    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…
  32. July 2016 Investor Presentation – Bonavista Energy Corp – slide 32
    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,…
  33. July 2016 Investor Presentation – Bonavista Energy Corp – slide 33
    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…
  34. July 2016 Investor Presentation – Bonavista Energy Corp – slide 34
    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…
  35. July 2016 Investor Presentation – Bonavista Energy Corp – slide 35
    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…
  36. July 2016 Investor Presentation – Bonavista Energy Corp – slide 36
    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…
  37. July 2016 Investor Presentation – Bonavista Energy Corp – slide 37
    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)%…
  38. July 2016 Investor Presentation – Bonavista Energy Corp – slide 38
    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:…
  39. July 2016 Investor Presentation – Bonavista Energy Corp – slide 39
    COMMODITY AND CURRENCY VOLATILITY 2016 Commodity composition By Volume By Value 2% 9% 6% 7% Natural Gas 13% 4% Ethane 5% Propane Butane 6% 17% Pentane 61% 69% Oil 41
  40. July 2016 Investor Presentation – Bonavista Energy Corp – slide 40
    1500, 525 8th Ave. SW Calgary, Alberta T2P 1G1 Tel: (403) 213-4300 Fax: (403) 262-5184 investor.relationsbonavistaenergy.com 42

From the store

Browse maps, data & reports in the Shale Experts store