Peters & Co. Limited 2016 Energy Conference September 2016
Executive Summary Phase 1 fixed the balance sheet; Phase 2 already underway 2016 Has Been a Transformational Year Continued track record of asset sales and debt reduction Step change in operational performance Significant asset…
Penn West Transformation Plan Phase 1 Phase 2 Fix Balance Sheet High-Grade Assets COMPLETED IN Q2 COMPLETE BY YEAR-END Sold approximately 1.3 billion of assets Streamline Alberta operations to three since the beginning of 2016 at…
Continue to Transact on Assets Dispositions 2.1B 1.6B of debt reduction year to date 491M Q4 2015 Net Debt Q2 2016 Pro Forma Net Debt Dispositions evidence the quality of our asset base, our ongoing commitment to reduce our…
Operating Costs Second quarter operating costs of 12.70 per boe, net of carry, a result of improved operating efficiencies and cost savings, and deferrals of discretionary expenses 2016 marks a step change improvement in cost structure…
The New Penn West at a Glance Penn West Total Core Areas H1 2016 Production 24,500 boe/d Post Phase 2 Liquids 73% % Opex 7.00 /boe Netback 19.00 /boe Peace River Core Development Cardium 90 kms with Multi-Horizon…
2017 Operating Costs Estimates 2017 Operating Cost Estimates Competitive With Top Peers 2016 Results at Core Properties Already Meet 2017 Expectations 2017 Operating Cost Trend (/boe) High End of Prelim 2017 Estimates 14.00 Low…
Drilling and Completions Performance Cardium Drilling Performance 4,500 500 Penn West Drills Cheaper, Avg. Meters per Day and 4,300 400 Faster & Deeper Drilling Cost per Meter Avg. Total Depth 4,100 300 3,900…
Peer Comparison and Competitiveness Net Debt/FFO (x) 2P NAV/Net Debt (x) 15x Phase 1 is complete and largely fixes the debt problem Company leverage competitive with peers 2x Phase 1 Phase 2 Phase 1 Phase 2…
Cardium Area Strong Development Foundation T54 Cardium Area Details Production boe/d 18,500 Locations 1,500 Land net sections 700 Easyford T50 Pembina 1P Reserves MMboe 72 2P Reserves MMboe 99 PCU 11 J Lease PCU 9 Cardium…
Enhancing Value Through Waterflood T54 Integrated waterflood development is expected to maximize total value by decreasing declines and T50 increasing volumes recovered PCU 9 Incremental F&D of waterflood reserve additions 5/bbl T45…
Improves an Already Stable Production Base Illustrative 2017 Cardium Waterflood Program and Economics Waterflood Economics: Model WF Oil Rate Model Primary Oil Rate 30% IRR 5.00/boe F&D Integrated Waterflood development expected…
Alberta Viking Area Prospective Light Oil Fairway Alberta Viking Area Details T35 Production boe/d 1,000 Locations 500 Land net sections 174 Alberta Viking Alberta Viking Area Well Economics NPV (K) 1,949 T30 1,569 15 kms…
Peace River Area Stable Cash Generation Penn West land R20W5 R15 Peace River Area Details Production boe/d 5,000 15 kms T85 Oil Weighting % 98% 10 miles 1P Reserves MMboe 7 2P Reserves MMboe 37 Peace River Peace River Area…
Long-Term Plan Metrics Exit Production (boe/d) Sustainability Total Expenditures and FFO (MM)…
Why Invest in Penn West Competitive Debt Metrics Leading Cost Structure Net Debt reduced by 70% since YE 20% Y/Y per unit operating cost 2015; primarily through asset savings dispositions Top quartile operating costs in core…
Updated 2016 Capital Budget & Guidance Capitalizing on improved financial flexibility by increasing capital budget by 40 million Budget Increase by Area Expected to add 3,000 boe/d of exit production Demonstrating ability to grow…
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