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August 2016 Corporate Presentation – Crescent Point Energy Corp.

Crescent Point Energy Corp. · Aug 16, 2016 · 32 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. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 1
    Crescent Point Energy Corporate Presentation August 2016 1
  2. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 2
    HIGH-QUALITY, LOW-COST PRODUCER: CPG (TSX AND NYSE) Market Capitalization 10.6 billion (511.7 million shares fully diluted)(1) Net Debt* 4.0 billion (incl. hedged US denominated debt) Enterprise Value 14.6 billion 2016 Average…
  3. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 3
    THE CRESCENT POINT ADVANTAGE Proven Management Team Proven track record of reserves, production and cash flow growth Three part business plan in place since companys inception in 2001 8% production per share CAGR since 2010 5-year…
  4. August 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 annual average production levels at 165,000 boe/d for 2016 and 2017 Protect and further strengthen the balance sheet…
  5. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 5
    Q2 2016 HIGHLIGHTS Production of 167,218 boe/d (10% increase over Q2 2015) Generated 280 million of funds flow in excess of Q2 development capital expenditures and dividends Funds flow of 404 million Total payout ratio of 31%…
  6. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 6
    IMPROVING CAPITAL AND OPERATING COSTS Viewfield Bakken Flat Lake 12.0 440 18 Capital cost per Metre Capital cost per Metre 500 Drilling Days Drilling Days 9.0 360 14 400 6.0 280 10 300 200 3.0 200 6 2011…
  7. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 7
    COMMODITY HEDGING STRATEGY Current Oil Hedges 2016 H2 Average: 2017 H1 Average: 2017 H2 Average: 45% 29% 10% 60,000 80.00 50,000 40,000 70.00 CAD bbl/d 30,000 20,000 60.00 10,000 0 50.00 Q3 16 Q4 16 Q1 17 Q2…
  8. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 8
    FOCUSED GROWTH Large Original Oil in Place with significant running room Only 3.0% recovered to date with significant growth Viewfield Bakken potential Shaunavon Flat Lake / Midale 14 years of drilling inventory Viking…
  9. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 9
    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…
  10. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 10
    2016 CAPITAL PROGRAM SUPPORTED BY QUICK PAYOUTS Type Well Payouts by Play (Excluding Upside from Waterflood and New Technology) 36 24 Months 12 0 Viewfield Bakken Flat Lake Flat Lake Flat Lake SE SK Shaunavon Swan…
  11. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 11
    VIEWFIELD BAKKEN AND SHAUNAVON RESOURCE PLAYS VALUE DRIVERS Waterflood Closeable Sliding Sleeve Technology Source: NCS Multistage Infill drilling and optimized well density patterns allow for greater recovery rates and…
  12. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 12
    VIEWFIELD BAKKEN WATERFLOOD: SIGNIFICANTLY INCREASING VALUE 160 Example of Per Section Viewfield Waterflood Offset Well EURs 3x greater versus Primary(6)(7) Bakken Recoveries and Economics 140 Estimated Cumulative 120 OOIP…
  13. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 13
    EMERGING-GROWTH RESOURCE PLAYS VALUE DRIVERS Mahogany Garden Gulch Douglas Creek Black Shale Ratcliffe Conventional Midale Castle Peak Bakken Bakken Uteland Butte Torquay/Three Forks Torquay/Three Forks Wasatch Flat Lake Flat…
  14. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 14
    FLAT LAKE Q2 2016 production of 18,300 boe/d (up from 1,500 boe/d in 2012) Viewfield Bakken 1,300 net drilling locations (up from 385 in 2012) 825 unconventional and 160 conventional Recently acquired an additional 300 net…
  15. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 15
    UINTA BASIN 5.2 billion barrels of Original Oil-In-Place (recovery to date 0.6%) Ouray Valley Continuing to increase geological knowledge of the basin Gusher (seismic, core samples, well logs, etc.) Horseshoe Blacktail…
  16. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 16
    GENERATING EXCESS FUNDS FLOW 2016 US 45 WTI 2017 US 50 WTI Total Payout Ratio: 78% Total Payout Ratio: 82% Excess Funds Flow 300M* Excess Funds 200M Flow Cash Cash Dividends Dividends Funds Flow Funds Flow Capital Capital…
  17. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 17
    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)(5) Cost-focused producer with strong…
  18. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 18
    APPENDIX 19
  19. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 19
    BALANCE SHEET STRENGTH Debt Composition (CAD) as of June 30, 2016 Net Debt to Funds Flow from Operations 4.0x 3.0x 1.4B 1.7B Unutilized Senior Credit 2.0x Guaranteed Capacity Notes* 1.0x 2.2B Drawn on Bank 0.0x Credit…
  20. August 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. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 21
    ECONOMICS BY PLAY Type Well Cost per NPV Rate of Return Payout Area (mboe EUR) well (M) 10% (M) (%) (months) Viewfield 75 - 125 1.3 1.4 to 3.3 91 to 317 7 to 14 Shaunavon 84 - 150 1.4 1.0 to 2.2 40 to 101 13 to 28 Flat Lake…
  22. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 22
    VIEWFIELD BAKKEN 2016 capital allocation: 245 million (25% of total budget) 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…
  23. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 23
    SHAUNAVON 2016 capital allocation: 185 million (20% of total budget) 1,850 net drilling locations 5.5 billion barrels of Original Oil-In-Place with recovery to date of 1.2% Expanding the resource play through increased drilling…
  24. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 24
    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…
  25. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 25
    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…
  26. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 26
    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…
  27. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 27
    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)…
  28. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 28
    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…
  29. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 29
    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…
  30. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 30
    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…
  31. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 31
    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) in comparison to peers 15% 10% 5% 0% 2015 CPG 2015 PEER AVG Crescent Point Energy G&A/boe…
  32. August 2016 Corporate Presentation – Crescent Point Energy Corp. – slide 32
    COMPANY INFORMATION BANKER Bank of Nova Scotia AUDITOR PricewaterhouseCoopers LLP LEGAL COUNSEL Norton Rose Fulbright Canada LLP GLJ Petroleum Consultants Ltd EVALUATION ENGINEERS Sproule Associates Ltd REGISTRAR & TRANSFER…

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