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September 2016 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Sep 1, 2016 · 27 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. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 1
    STRONG GROWTH WITHIN CASH FLOW CAPITAL = EFFICIENCY FOCUS STRONG+ CASH NETBACKS LOW DECLINE ASSETS + CONTNUING PROFITABLE GROWTH September 2016
  2. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 367.6 Fully diluted (1.1% dilutives) 371.7 Market capitalization (B) 3.7 Annual dividend (/share) 0.28 Production (boe/d) 2016 Average (78% oil + NGLs) 45,300 Current (80%…
  3. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Sustainable Growth With Robust Economic Returns Total Annual Shareholder Return Focus Profitable organic growth (5 8% per share/year) Return on capital employed TSR 10%/year Founding Principles Employees are shareholders Light oil,…
  4. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 4
    1.7 Billion Value Created (September 2009 December 2015) Net Total Total Purchase Capital Total Total Present Cash Flow Rate of Price Spent Cost Cash Flow Value plus NPV Return Area (MM)(1) (MM)(2) (MM) (MM) (MM)(3) (MM) (%) NW…
  5. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Increased 2H 2016 Capital Program Setting up for Strong 2017 1H16 2H16 2016 Operational Average production (boe/d) 41,706 48,900 45,300 Development capital (MM) 61 114 175 Wells drilled (gross) 26 67 93 Financial Cash netback (/boe)…
  6. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Sustainable Asset Base: Funds Flow Capital + Dividend 2016 Free Cash Flow by Area 100 90 80 114 70 49 60 153 3 50 89 40 30 60 11 57 57 46 46 20 40 40 37 26 26 10 0 Greater Pembina WC SK NW AB/BC SW SK Operating…
  7. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 7
    2016 Development Capital 2016 Capex by Area (%) 2016 Well Count (gross) Greater Pembina 60 52 WC SK 26% 50 23% 40 33% 15% 30 3% 17 20 38 12 12 10 9 12 9 SW SK 0 NW AB/BC WC SK Greater Pembina SW SK NW AB/BC Total…
  8. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Internally Funded Growth + Dividend Model No DRIP 120% 102% 101% 100% 93% 82% 80% Total Payout Ratio 66% 69% 66% 49% 60% 49% 44% 40% 20% 44% 33% 35% 33% 22% 0% 2013 2014 2015 2016e 2017e Cash Dividends…
  9. September 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 131 145 11% Funds flow (MM) 355 470 32% per share 1.04 1.26 21% Development capital (MM) 175 205 17% Total…
  10. September 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. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Financial Prudence and Risk Management Objective: Mitigate price volatility and protect economic returns on capital deployed Predictability for WCP funds flow Capital reinvestment and Dividend payments Oil Hedges Gas Hedges…
  12. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Core Areas of Operations Light Oil Drilling Inventory 3,040 BRITISH COLUMBIA Drilling 2015/16 Inventory wells ALBERTA SASKATCHEWAN NW AB/BC 523 11 / 12 Boundary NW AB/BC Lake Valhalla North West Central AB 717 21 / 17…
  13. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 13
    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…
  14. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 14
    SW Saskatchewan Acquisition Rationale Purchase price - 595MM Overview Adds sustainable new oil growth region with 11,600 boe/d (98% oil) Increases WCP production impacted by waterflood / EOR from 54 - 63% Budgeted 8% base decline…
  15. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Stable Production Base, Multiyear Growth Potential KEY CHARACTERISTICS 78% op 67% WI (22% non-op) 92% under enhanced oil recovery (EOR) 2.3% Decline 61% unit oil production, 39% non-unit Last 5 ASP polymer net capital: 333.5MM…
  16. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Saskatchewan Viking Oil top decile resource play Top tier inventory for sustainable growth SASKATCHEWAN Kerrobert WCP Lands Gas 10 years high quality inventory, 36 API light oil Kerrobert Conventional Oil Halo Oil Long-term growth,…
  17. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Cardium Resource Play repeatable low risk growth Industry leading capital efficiencies (2011 to current) Edmonton Continuing capital efficiency improvement: West Pembina East Pembina ERH drilling Advancing frac designs and…
  18. September 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) 2.15 2.45 Production, IP30 (boe/d) 317 476 Production, IP365 (boe/d) 160 239 P+PA Reserves…
  19. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Deep Basin Light Oil Dunvegan and Cardium Oil Strong play characteristics, large growth potential Wapiti Cardium 39 to 42 API oil Type Well Economics Dunvegan Stnd ERH (2.0) Large OOIP of 6 to 15.5 MMboe/section Drill, Complete,…
  20. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 20
    Boundary Lake large low decline resource with growth potential Boundary Lake WI Production Long-term, low decline asset Operated, 35 API light oil, 91% oil + NGLs Avg 90% WI in 3 operated units 5% decline Legacy oil pool under a…
  21. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Elnora Nisku Oil predictable production, significant cash flow 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…
  22. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 22
    The Whitecap Growth Plan Long-Term Value Growth Orientation Executing on rolling 5 year business plan Return on capital discipline Provide superior shareholder returns Organic Per Share Growth Within Funds Flow Capital +…
  23. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 23
    Research Coverage AltaCorp Capital FirstEnergy Capital Barclays Capital Canada GMP Securities BMO Capital Markets Haywood Securities Canaccord Genuity National Bank Financial CIBC World Markets Peters & Co. Clarus Securities…
  24. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 24
    TSX:WCP www.wcap.ca September 1, 2016 24
  25. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 25
    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…
  26. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 26
    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…
  27. September 2016 Corporate Presentation – Whitecap Resources Inc. – slide 27
    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)…

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