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August 2016 Corporate Presentation – Bellatrix Exploration Ltd.

Bellatrix Exploration Ltd. · Aug 26, 2016 · 36 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 – Bellatrix Exploration Ltd. – slide 1
    TSX: BXE NYSE: BXE Full Cycle Profitable Growth CORPORATE PRESENTATION AUGUST 2016
  2. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 2
    Corporate Profile MARKET SUMMARY Ticker Symbol TSX / NYSE: BXE Average Daily Volume1 Canada: 2.7 million / U.S.: 0.8 million Shares Outstanding 2 237.5 million basic / 249.0 million diluted Market Capitalization3 275 million Bank…
  3. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 3
    Bellatrix Differentiated Strategic Value TOP TIER ACREAGE POSITION AND RESULTS IN THE SPIRIT RIVER One of North Americas lowest supply cost natural gas plays Leading well results deliver superior economic returns and industry leading…
  4. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 4
    2016 Second Half Capital Plan SECOND HALF 2016 GUIDANCE BALANCES FINANCIAL FLEXIBILITY & MAXIMIZED RETURNS H2 2016 BUDGET UP TO 40MM CAPITAL ALLOCATION MAXIMIZE RETURNS Capital by Area 3.00 H2 2016 cash flow capital budget of up to…
  5. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 5
    Commodity Price Risk Management NATURAL GAS HEDGES OIL HEDGES 70% 2.91 70% 3.37 3.37 3.37 3.37 % of oil & condi volumes hedged 60% 3.02 60% % of total forecast gas volumes 50% 50% 40% 40% 30% 30% 20% 20% 10% 10%…
  6. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 6
    Balance Sheet & Financial Flexibility Effective capital resource management, balancing liquidity and flexibility BANK DEBT 122 MILLION CREDIT FACILITY CONTAINS LIMITED NEAR TERM DEBT AS AT AUG 9, 20161 ONE FINANCIAL COVENANT2…
  7. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 7
    Material Leverage to Improving Commodity Prices Annualized Funds Flow Annualized Funds Flow Sensitivity Analysis From Operations From Operations Based on Q2/16 Financial Results ( millions) ( per share) Change of 0.10/Mcf 6.4 0.03…
  8. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 8
    Concentrated Land Base GREATER FERRIER / WEST CENTRAL ALBERTA STRACHAN WILLESDEN GREEN Production1 (% of total): 6% Production1 (% of total): 80% Land2 (net acres): 42,110 Land2 (net acres): 111,866 P+P net locations: 27 P+P net…
  9. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 9
    Spirit River is the Growth Engine SPIRIT RIVER PRODUCTION GROWTH 22,000 2010 20,000 Spirit 18,000 Average monthly production (boe/d) River 16,000 Other 14,000 12,000 10,000 June 2016 8,000 6,000 Other Spirit 4,000…
  10. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 10
    Spirit River Productivity Results Consistently Rank Best in Class 2015 HIGHEST DELIVERABILITY WELLS IN ALBERTA 20.0 18.0 16.0 First month calendar day rate (Mmcfe/d) 14.0 12.0 10.0 8.0 6.0 4.0 Spirit River Spirit…
  11. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 11
    North American Supply Cost Comparison 4.00 3.50 3.00 Henry Hub (US/MMbtu) 2.50 2.00 1.50 1.00 0.50 0.00 Economics assume 15% Before tax IRR, assumes US0.83 = CDN1.00, US0.75/MMbtu AECO basis, and a 20:1…
  12. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 12
    Bellatrix Spirit River Competitiveness BXE SPIRIT RIVER COMPETITIVE WITH TOP TIER MARCELLUS OPERATOR F&D COSTS AND EFFICIENCIES BXE Marcellus Type Curves1 Blended SW PA Spirit River SW PA SW PA SW PA 50% Wet Type Curve Super rich…
  13. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 13
    Spirit River Geology Summary SPIRIT RIVER STACKED SANDS Broad, thick, extensive sand rich valleys in Notikewin, Falher and Wilrich members Tight sandstone: long life reserves with long term hyperbolic decline profile Average…
  14. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 14
    Spirit River Liquids Rich Gas FERRIER CORE SPIRIT RIVER PLAY BXE Land Sections 262 Gross1 153 Net1 BXE Net Drilling Inventory2 62 proved 28 probable 294 unbooked 384 total Formation depth 2,400 meters Currently drilling 1 mile…
  15. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 15
    Strategic Land Position GREATER FERRIER/BRAZEAU/WILLESDEN GREEN AREAS OF WEST CENTRAL ALBERTA Pembina Brazeau Ferrier Willesden Green Bellatrix 16 Source: Accumap, company presentations and various public sources
  16. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 16
    Spirit River All-In Profitability Full Cycle F&D costs C2.50/GJ C3.00/GJ Drill 1.7MM Complete 1.6MM Full cycle F&D costs /Mcfe (0.85) (0.85) Equip & tie in 0.7MM Half cycle costs 4.0MM Land/seismic/facilities 1.1MM Full cycle…
  17. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 17
    Spirit River Well Costs & Capital Efficiencies FOCUSED CAPITAL COST REDUCTIONS 6.0 Long reach Long reach 5.0 4.0 Costs (millions) Equip & Tie-in 3.0 Complete 2.0 Drill 1.0 0.0 2015 - 24 wells 2016 - 10 wells…
  18. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 18
    Efficiency Gains AVERAGE SPIRIT RIVER DRILLING CURVES SPUD TO RIG RELEASE BY YEAR 0 20 Days (Spud to Rig Release) 2014 Spirit River Average 500 2015 Spirit River Average 15 1,000 2016 Spirit River Average 10 2016 Spirit…
  19. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 19
    Spirit River Development Comparison COMPARATIVE 2015 & H1/2016 SPIRIT RIVER COST & EFFICIENCY METRICS Frac stages Number of completion days Avg proppant placed per stage (t) 20 30 70 25 60 Proppant per stage (tonnes) 15…
  20. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 20
    Greater Ferrier Area Infrastructure Overview GREATER FERRIER EXISTING GREATER FERRIER AREA STRATEGIC INFRASTRUCTURE INFRASTRUCTURE ACCESS: Infrastructure gives Bellatrix control of production and growth Working interest or…
  21. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 21
    Significant Investment in Strategic Infrastructure OVER 330 MILLION INVESTED SINCE 2013 IN STRATEGIC INFRASTRUCTURE ASSETS Monetized approximately 187.5 million in facilities and plant working interest in 2016 representing…
  22. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 22
    BXE Alder Flats Superior Operational Performance in Core West Central AB Area SUPERIOR & CONSISTENT PLANT PERFORMANCE FUEL/DISPOSITION EFFICIENCY 120% Highest utilization Bellatrix Alder Flats Most efficient 100% 3rd Party Plant…
  23. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 23
    Growing Firm Capacity Within Core Areas TOTAL BELLATRIX GROSS PROCESSING CAPACITY GREATER FERRIER 600 BXE Phase 2 deep cut incremental Total 120 MMcf/d processing Total Gross Raw Gas Processing Capacity (MMcf/d) BXE Phase 1…
  24. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 24
    Focus on Continued Cost Reductions OPERATING COSTS NET G&A COSTS 13 3.50 12 3.00 11 Net G&A expense (/boe) 2.50 Operating cost (/boe) 10 2.00 9 1.50 8 1.00 7 6 0.50 5 0.00 2010 2011 2012 2013 2014 2015 H1/16…
  25. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 25
    Track Record of Production and Reserves Growth HISTORICAL PRODUCTION HISTORICAL RESERVES Natural Gas Oil and Liquids Production per share (right side) Natural Gas Oil and Liquids Reserves per share (right side) 45,000 90 260 1.4…
  26. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 26
    Compelling Investment Opportunity Experienced Unfettered growth Leadership management potential with firm Excellent Organic with a history of creating value processing capacity Growth Potential Large inventory World Class of…
  27. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 27
    Supplemental Information
  28. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 28
    Peer Group Comparison OPERATING & TRANSPORTATION COSTS/ BOE1 16 14 12 Costs (/boe) 10 8 6 4 2 0 BXE NET G&A & STOCK BASED COMPENSATION EXPENSE/ BOE1 5 4 Expense (/boe) 3 2 1 0 BXE BELLATRIX IS A…
  29. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 29
    Joint Ventures JOINT VENTURES Bellatrixs differentiated JV strategy Grafton JV (GJV) CNOR JV - 500 MM provides significant benefits 305 MM (Grafton managed co.) Accelerates development potential of our multi-billion dollar Effective…
  30. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 30
    Additional Long Term Opportunities
  31. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 31
    Cardium Light Oil Resource Play Greater Pembina BXE Cardium Sections 379 Gross 271 Net BXE Net Drilling Inventory1 141 proved 42 probable 231 unbooked Ferrier 414 total Willesden Green Average Lease Operate Expense 9.00/boe…
  32. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 32
    Balanced Cardium Inventory Provides Long Term Optionality on Oil Prices Cardium Gas Cardium High GOR Cardium Oil 96 net drilling locations 140 net drilling locations 178 net drilling locations 76% gas / 24% oil & liquids 64% gas /…
  33. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 33
    Cardium Proven Innovative Development Leading Cardium driller in 2013/2014 APPLYING CUTTING EDGE EXPLOITATION TECHNIQUES Horizontal well placement and applying cutting edge exploitation techniques results in top-tier well results…
  34. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 34
    Lower Mannville: Liquids-rich Gas Play Drill locations identified across three GR Porosity play types 31 horizontal Ellerslie wells drilled by Angle/BXE at Harmattan to date Net Drilling Inventory: 16 proved 18 probable 89 unbooked…
  35. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 35
    Second White Specks: Tight Oil Resource Laterally continuous fairway: 6,000 sq miles Thick: 75-225m Over-pressured: 9-14KPA/m Thermally mature for oil: Tmax 435-455C High Organic Content (TOC): 1.5-4wt% Existing vertical production 15…
  36. August 2016 Corporate Presentation – Bellatrix Exploration Ltd. – slide 36
    Corporate Information BOARD OF DIRECTORS OFFICERS BANKERS W.C. (Mickey) Dunn Raymond G. Smith, P.Eng. National Bank of Canada Chairman President & CEO Alberta Treasury Branches HSBC Bank Canada Doug N. Baker, FCA Edward J. Brown, C.A.…

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