Corporate Snapshot (all figures throughout assume closing of the southeast Saskatchewan acquisition in early September) Market Summary Ticker Symbol TSX : TOG Average Daily Volume1 1.9mm shares Basic Shares Outstanding 179mm…
Proven Strategy Acquire / Exploit / Explore Focus Per share growth through Competitive advantage organic development and Capital efficiencies strategic acquisitions Cash costs Integrated Operational Approach Expertise…
Strategic Priorities Managing in a Lower Price Environment Balance sheet strength Dividend Maintain asset quality Organic Growth Operational and service cost efficiencies Asset Sustainability Maintain and expand growth…
Balanced Light Oil Asset Base Low decline, high netback, light oil assets Southeast 400 net undrilled locations Saskatchewan: (stable production and 94% liquids free cash flow) Significant management experience in area Alberta…
Southeast Saskatchewan Cash Flow Generation Plus Upside Potential 6
SE Saskatchewan Conventional Cash Flow Engine SE Saskatchewan Large Oil-in-Place:1 Conventional Pools 5 100+ mmbbls Depth: 1000 2000m Oil Quality: 30 40 API Well Spacing: 75 150m inter-well Undrilled Locations: 400 net…
SE Saskatchewan Conventional Cash Flow Engine Historical Asset Results vs 50 mbbl Curve 120 Economic Parameters 2008 2009 DCE&T (mm) 0.9 2010 100 2011 IP (365) (bopd) 46 2012 (boepd) 51 80 2013 Production Rate (BOPD)…
Strategic Acquisitions Enhancing business model by taking advantage of relative strength: High quality assets with strategic fit Added high quality inventory Increased corporate netback Improved corporate decline rate…
SE Saskatchewan Torquay/Three Forks Light Oil Resource Play Economic Parameters 6 miles 1 Mile Well DCE&T (mm) 3.2 IP (365) (bopd) 98 Reserves (mbbls) 175 Capital Efficiency (/boepd) 32,700 Reserve Cost (/boe) 18.30 NPV…
Cardium Development 11
Cardium Trend Significant Undrilled Development Inventory West Pembina Cardium Trend Large Oil-in-Place:1 5 mmbbls / section Land: 95 net light oil sections Depth: 1600 2000m Oil Quality: 40 API sweet Well Spacing: 4 wells /…
Cardium Results Development Drilling Rate - Time Economic Parameters 300 Cardium 185 mbbl Curve DCE&T (mm) 2.9 Average IP (365) (bopd) 93 Production Rate, 30 Day Avg (BOPD) (boepd) 115 200 Reserves (mbbls) 182 (mboe) 226…
Financial Overview 14
2016 Capital Program Budget Philosophy Capital Spending Measured approach given market volatility 2016 capital budget conservatively set at 90mm and weighted to the second half of the year (25mm in 1st half; 65mm in 2nd half)…
Lower Price Environment Driving Costs Down Improving Decline Profile Improving Cost Structure Capital Allocation Lower growth results in lower Operational efficiencies and service Capital allocation to most efficient decline profile…
Sustainability Analysis Sustainability Highlights Sustainability Production Run Rate Production boepd 19,400 Run rate production of 19,400 boe/d ( 88% oil & NGLs) Decline Rate % 23.0% Annual Production Decline boepd 4,462 2016…
Sustainability Analysis Commodity Sensitivity Run Rate = 19,400 boepd WTI (USD) /bbl 40.00 45.00 50.00 55.00 60.00 FX US/C 0.72 0.74 0.76 0.78 0.80 WTI (CAD) /bbl 55.56 60.81 65.79 70.51 75.00 Edm Lt vs C WTI Differential /bbl…
Balance Sheet Strength Historical Bank Debt Strong Financial Position 600 70% Bank Facility 400mm 60% 500 50% Drawn (Q2 Exit) 241mm 400 Percent Drawn 40% mm Net Debt (Q2 Exit) 299mm 300 30% 200 20% 400mm…
Dividend + Disciplined Growth Checklist Sustainability of Business Model Driven By: Decline Rate 23% Operating Netback (60 Edm Lt) 25 Capital Efficiency - All-in IP 365 22,000 per boepd (current) 299mm net debt Strong…
Summary 21
Investment Highlights Well Positioned for Controlled Growth Low Decline, High Netback Production Base Focused light oil asset base Sustainable Yield All-in payout ratio targeted below 100% Opportunity for CPPIB to support…
Corporate Information Management Independent Reserve Engineers Analyst Coverage BMO Capital Markets Brett Herman Sproule Associates Limited Ray Kwan President & Chief Executive Officer Canaccord Genuity Jason Zabinsky Banks Anthony…
Appendix 24
2015 - Highlights Year in Review Organic growth complemented by two strategic acquisitions doubled southeast Saskatchewan position Improved decline profile Delineation drilling expanding growth platform Increased drilling…
HEDGING PROGRAM Current Hedge Summary Volume (Bbl/d) Type (C/Bbl) Index Low High June 1, 2016 Dec 31, 2016 250 Collar 55.00 65.10 CWTI June 1, 2016 Dec 31, 2016 250 Collar 55.00 71.20 CWTI July 1, 2016 Dec 31, 2016 250 Collar…
Significant Cornerstone Investment from CPPIB CPPIBs Relationship Investments group provides long-term strategic capital to select companies CPPIB believes are positioned to be leaders in their respective industries Ownership of…
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