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September 2016 Corporate Presentation – Teine Energy

Teine Energy · Sep 20, 2016 · 29 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 – Teine Energy – slide 1
    Teine Energy is a private company focused on acquiring and developing, repeatable, long reserve life index, high netback oil assets. Today, our portfolio is focused in Saskatchewan, Western Canada, where we continue to aggressively grow…
  2. September 2016 Corporate Presentation – Teine Energy – slide 2
    Our Strategy Focused Invest in low risk, geographically concentrated conventional oil assets Sustainable organic production and reserves per-share growth Growth Disciplined acquisition of complementary assets Optimize Prudent use…
  3. September 2016 Corporate Presentation – Teine Energy – slide 3
    Our Stakeholders Disciplined capital allocation driving per share growth and total shareholder returns Shareholders Maximize value through the entire business cycle long-term thinking Critical to executing our strategy People are…
  4. September 2016 Corporate Presentation – Teine Energy – slide 4
    Corporate Snapshot Capital Structure Mgt./Empl./Directors 8%, Founders 5%, Shareholders (fully diluted)(1) CPPIB 87% Term Debt 6.875% Senior Unsecured Notes (due September 2022) US350MM / C386 MM(2) Bridge Loan Unsecured C275 MM…
  5. September 2016 Corporate Presentation – Teine Energy – slide 5
    Proven Track Record Annual Avg. Production (boe/d) 2P Reserves (MMBOE)(1) 30,000 120 114 Debt-Adjusted 27,000 Debt-Adjusted Reserves per Share: Production per Share: 10% compound 25,000 100 30% compound growth rate 93 growth…
  6. September 2016 Corporate Presentation – Teine Energy – slide 6
    2016 Outlook Targeting Investment = FFO H1 2016A H2 2016E 2016E Preserving the balance sheet and conserving inventory WTI Price (US/bbl) 39.50 45.00 42.50 Flexible drilling program Total Wells () 70 130 200 Avg. Production (boe/d)…
  7. September 2016 Corporate Presentation – Teine Energy – slide 7
    2016 Cash Netback and Hedging Summary 30 Hedged Unhedged 25 20 C FFO / BOE(1) 15 10 5 0 25 30 35 40 45 50 55 60 H2 2016 US WTI Hedge Volumes (bbl/d) and Average Price 7,000 7,000 7,000 7,000 (C WTI) 5,000…
  8. September 2016 Corporate Presentation – Teine Energy – slide 8
    Penn West Asset Acquisition Synergistic Acquisition Summary DENZIL Purchase Price(1) C975 MM Closing Date June 24, 2016 15,500 boe/d (91% H1 2016E Production(2) liquids) Proven plus Probable COUR 53.2 MMBOE T KERROBERT…
  9. September 2016 Corporate Presentation – Teine Energy – slide 9
    Operating Areas Saskatchewan Focused Viking Light Oil Large OOIP 3 billion bbls net(1) Low recovery to date 2% Viking Light 20,500 BOE/D High netback growth engine Industry leading oil well economics Drives Teines top tier…
  10. September 2016 Corporate Presentation – Teine Energy – slide 10
    Viking Light Oil Leading Low Cost Oil Play US WTI Half-Cycle Oil Breakeven(1) Viking Hz. Dodsland 36.11 Cardium Pembina West ERH 36.25 Eagle Ford Oil East (Top Q) 38.78 Bone Spring (Top Q) 39.34 Spraberry Hz (Top Q) 39.75 MONTNEY…
  11. September 2016 Corporate Presentation – Teine Energy – slide 11
    Viking Light Oil Teine Assets Dominant land position 900k gross / 825k net acres Largest Viking light oil producer KERROBERT PLENTY at 20,500 boe/d (1/3 of total play production) Play expertise Teine has drilled COLEVILLE HEAVY…
  12. September 2016 Corporate Presentation – Teine Energy – slide 12
    Viking Light Oil Leading Cost Structure (Q2 2016, excl. Acqn) Opex + Transport (C/boe)(1) Field Netback (C/boe)(1),(2) 20 40 31.69 31.46 16 15.04 32 14.66 13.05 23.60 12 24 22.24 10.63 21.64 10.37 19.69 8.69 8…
  13. September 2016 Corporate Presentation – Teine Energy – slide 13
    Viking Light Oil Consistent Execution 120 Teine Full Section Length Teine has drilled 1,000 Hz wells to date IP30 production: 120 bbl/d Standard Length Wells 100 3 year average 12 Month IP of 33 bbl/d Tier 5.5 80 Assuming 675k…
  14. September 2016 Corporate Presentation – Teine Energy – slide 14
    Viking Light Oil Focus On Capital Efficiency Standard Length Wells Section Full Section (1/2 Section) Length Well Length Well 1,000 970 35,000 945 70 85 815 105 30,000 790 800 160 75 755 70 75 675 25,000 125 650 105…
  15. September 2016 Corporate Presentation – Teine Energy – slide 15
    Viking Light Oil Successful Down-space Pilot 200 LEGEND 2015/2016 Dodsland Pilot Program Red Line Sproule Tier 5 180 Green Line avg. production 17 wells on production 160 Average Tier 5 well results 140 120 Minimal evidence of…
  16. September 2016 Corporate Presentation – Teine Energy – slide 16
    Viking Light Oil 15 Year Economic Inventory 5,000 repeatable, low-risk Hz Viking oil locations 80% of land base has been de-risked Teine Inventory Map Teine Inventory Tier 5 or greater 5,000 4,000 Ave Tier: 5.1 45% 3,000…
  17. September 2016 Corporate Presentation – Teine Energy – slide 17
    Bakken Heavy Oil Low Decline Base Low decline (10%) conventional Bakken pools 98% under water flood Coleville Main ASP Pilot Active polymer pilot (1/4 section) at Coleville exhibiting positive response Potential to expand polymer…
  18. September 2016 Corporate Presentation – Teine Energy – slide 18
    Bakken Heavy Oil Torque to Oil Price Recovery Stay-Flat Cash Flow at Various WTI Illustrative analysis of forward 80 year cash flow generation in a Stay-flat production assumes 10 MM annual capex stay-flat production scenario at…
  19. September 2016 Corporate Presentation – Teine Energy – slide 19
    Teines Infrastructure Advantage Owned, controlled and operated strategic infrastructure drives low cost operations Sales oil is pipeline connected IPL Pipeline Aggregate oil treating capacity of 55,000 bbl/d 250,000 bbls total…
  20. September 2016 Corporate Presentation – Teine Energy – slide 20
    Significant Resource Potential (MMBOE) Teine Acquired Penn West Assets Teine Pro Forma 386 MMBOE Unbooked Potential Resource Includes: - 20 acre Spacing Infill Inventory (50% risking) - Coleville Polymer Flood - Dodsland Water…
  21. September 2016 Corporate Presentation – Teine Energy – slide 21
    Teine Competitive Advantage Teine seeks to continuously increase profitability through efficiencies in cost structure, increasing well productivity, and improved reservoir recovery Strategic Financial Low Cost Partner Saskatchewan Own…
  22. September 2016 Corporate Presentation – Teine Energy – slide 22
    Corporate Information Board of Directors Bankers Avik Dey Chair Dennis Chorney Vice-Chair National Bank of Canada, Syndicate head Jim Howe Adam Vigna Wilmington Trust, Bond Administrator David Chambers Nicholas Zelenczuk Jason…
  23. September 2016 Corporate Presentation – Teine Energy – slide 23
    Management Team Jason (Jay) Denney, P.Eng President & CEO 20+ years, previously COO of Teine (management roles with Encana, operational roles with Murphy Oil) Ken Hillier, CA SVP & CFO 30+ years (CFO Angle Energy, CFO C&C Energia,…
  24. September 2016 Corporate Presentation – Teine Energy – slide 24
    Q2 Debt & Hedging Summary Senior Bank Facility Facility Covenants Other Debt C250 MM secured Covenant 1: < 3.0x US350 MM unsecured banking facility senior debt / 4 quarter note 30% drawn at Q2 trailing EBITDA Principal and interest…
  25. September 2016 Corporate Presentation – Teine Energy – slide 25
    Corporate History & Capitalization June 2010 November 2011 November 2011 December 2012 January 2013 May 2013 September 2014 June 2016 C75 MM C204 MM Acquisition of C155 MM equity C43 MM Closed new Closed new C700 MM equity…
  26. September 2016 Corporate Presentation – Teine Energy – slide 26
    Significant E&P High Yield Outperformance JPM HY Index JPM HY E&P Index Teine Energy 6.875% due 2022 22.0% 20.0% 18.0% 16.0% 14.0% 12.0% 10.0% 9.37% 8.0% 7.24% 6.97% 6.0% Aug-15 Sep-15 Oct-15 Nov-15 Dec-15…
  27. September 2016 Corporate Presentation – Teine Energy – slide 27
    2015 Pro Forma Reserve Composition Summary Commodity Composition Reserves Btax Light Oil Heavy Oil NGLs Gas Total FDC NPV10% 114 mmboe 2P 85 mmboe Proved mmbbls mmbbls mmbbls bcf mmboe CMM CMM 11% 10% PDP 26 24 1 34 56 8 918 2% 2%…
  28. September 2016 Corporate Presentation – Teine Energy – slide 28
    Teine Viking Well Economics Type Curve IRR Sensitivities - Standard Length Wells (1)(2) WTI (US/bbl) 50.30 35.00 40.00 45.00 50.00 55.00 60.00 Aug 15 Strip Assumptions DCET Cost (C000s) 645 660 675 690 705 720 675 Fixed Operating…
  29. September 2016 Corporate Presentation – Teine Energy – slide 29
    Sproule Viking Type Curves 180 Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6 Tier 7 Tier 8 Tier 9 160 140 (Months) 120 Oil Production (bbl/d) 100 80 60 40 20 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41…

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