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Q3 2016 Results – Delphi Energy Corp.

Delphi Energy Corp. · Nov 11, 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. Q3 2016 Results – Delphi Energy Corp. – slide 1
    CORPORATE STRATEGY PRESENTATION NOVEMBER 2016
  2. Q3 2016 Results – Delphi Energy Corp. – slide 2
    CORPORATE SNAPSHOT CORPORATE INFORMATION KEY OPERATIONAL FIGURES Ticker Symbol TSX:DEE Q3 2016 Production boe/d 8,239 (64% gas) Basic Shares Outstanding (mm) 155.5 Dec. 31, 2015 Reserves (P+P) (mmboe) 45.5 (67% gas) Market…
  3. Q3 2016 Results – Delphi Energy Corp. – slide 3
    KEY VALUE HIGHLIGHTS Pure Play Montney E&P Company with WORLD CLASS ASSETS AND A TRACK RECORD OF SUCCESS WORLD CLASS Substantial drilling inventory on 138 sections of land; 8 sections currently fully developed MONTNEY GROWTH Bigstone…
  4. Q3 2016 Results – Delphi Energy Corp. – slide 4
    BIGSTONE MONTNEY OVERVIEW Scalable and Repeatable Southeast corner of the unconventional Montney trend Developed with extended reach horizontal wells and slickwater-fracing Material capital cost advantage Continuous hydrocarbon…
  5. Q3 2016 Results – Delphi Energy Corp. – slide 5
    PARTNER TRANSACTION - LETTER OF INTENT 40 Million Joint Drilling Program Deal Status: Delphi will contribute 15% of the drilling and completion costs (6 million) LOI executed November 4, 2017 while retaining a 65% working interest…
  6. Q3 2016 Results – Delphi Energy Corp. – slide 6
    BIGSTONE SOUTHERN END OF PROLIFIC LIQUIDS RICH MONTNEY TREND Producing Wells by Operator Elmworth 100 Top 10 in of Montney 80 Wells Drilled Wapiti 60 Karr 40 Kakwa 20 Simonette 0 Company Company Other Company Company…
  7. Q3 2016 Results – Delphi Energy Corp. – slide 7
    DOMINANT LAND POSITION IN BIGSTONE MONTNEY Largest Land Position at Bigstone Delphi continues to identify and pursue additional land Current Montney land position grown consolidation opportunities from 4.0 to 138 gross (117 net)…
  8. Q3 2016 Results – Delphi Energy Corp. – slide 8
    MARKET ACCESS ADVANTAGE Exceptional Gas Marketing Ability to grow to 22,000 boe/d over the next 3 years utilizing current major infrastructure Secured firm service agreement to access larger Chicago gas market for better pricing…
  9. Q3 2016 Results – Delphi Energy Corp. – slide 9
    DELPHI / ALLIANCE FIRM TRANSPORTATION SERVICE 80.0 Delphi Transportation Capacity on Alliance / TCPL (mmcf/d) 70.0 60.0 Q3 2016 Average Natural Gas Production 50.0 Staged firm service capacity on Alliance to deliver natural gas…
  10. Q3 2016 Results – Delphi Energy Corp. – slide 10
    CONSISTENT AND PROVEN RISK MANAGEMENT PROGRAM Natural Gas Q4/16 Q1/17 Q2 - Q4/17 2018 2019 Consistent Hedge Performance % Hedged 75% 73% 59% 30% 21% Majority of near term production is Hedge Price (Cdn /mmbtu) 4.54 4.28 4.21 3.77…
  11. Q3 2016 Results – Delphi Energy Corp. – slide 11
    STRATEGIC INFRASTRUCTURE AT BIGSTONE DEE 7-11 Significant Infrastructure In Place DEE Negus 11-03 55 mmcf/d Gas Plant Montney Facility 100% owned 55 mmcf/d sour dehy and compression facilities Future DEE Amine TLM BWGP Legacy…
  12. Q3 2016 Results – Delphi Energy Corp. – slide 12
    28 BIGSTONE MONTNEY WELLS DRILLED Progressive improvements in Drilling Results Drilled 5 horizontal wells in 2012; Average IP30: +1,200 boe/d (19% liquids) Conventional gelled oil frac designs Began extended reach laterals of 2,200…
  13. Q3 2016 Results – Delphi Energy Corp. – slide 13
    MONTNEY GROWTH AT BIGSTONE Bigstone Montney Liquids-Rich Gas Play Montney Production (boe/d) 10,000 Southeast corner of Alberta liquids-rich Montney Growth is accelerating into 2017 trend, 100 300 bbl/mmcf Condensate & NGL 8,000 28…
  14. Q3 2016 Results – Delphi Energy Corp. – slide 14
    CONSISTENT ECONOMIC RESERVE GROWTH Montney Development (2012 to Q3 2016) Montney Proved Producing Reserves (mboe) 11,626 28 wells drilled life-to-date (LTD) Economic Montney reserve 9,781 Produced 7.2 million boes in 4.5 years…
  15. Q3 2016 Results – Delphi Energy Corp. – slide 15
    HIGHER CONDENSATE YIELDS BOOSTING ECONOMICS Continuing Frac Innovation DEE 13-21 DEE 16-30 Refrac 2015 Drill IP30 Larger fracs IP30 CGR 252 bbl/mmcf CGR 101 bbl/mmcf Higher pump rates ATH 2015 Wells Higher sand concentrations…
  16. Q3 2016 Results – Delphi Energy Corp. – slide 16
    DELIVERING EXCEPTIONAL MARGIN GROWTH 2016 Focus on Margin Growth Paid Off Increasing condensate yields and lowering cash costs Operating Costs vs. Gas Weight 2016/2015 Q2 Operating Costs vs. Production Mix Relative Change…
  17. Q3 2016 Results – Delphi Energy Corp. – slide 17
    OUTSTANDING WELL PERFORMANCE At day 158 13-21 gas rate flat at 3mmcf/d Condensate yield at 115 bbl/mmcf sales IP90 (mcf/d) 473 Wells of 724 Wells Drilled Top Decile for 3-Month 16 48 20 Production Rates 5,000 88 33 30 4,000 57…
  18. Q3 2016 Results – Delphi Energy Corp. – slide 18
    DELPHI WELL COST IMPROVEMENTS Montney Capital Efficiencies Delphi Delphi Well Well Costs Costs 12,000 Well costs 35% 600 Drilling & Completions: Average Completion Cost/Stage (000) 10,000 500 Average drilling & completion…
  19. Q3 2016 Results – Delphi Energy Corp. – slide 19
    MONTNEY ECONOMIC MODEL Bigstone Montney Toe Up Two Section Horizontal DEE Type Well Hypothetical Type Wells 30+ stage Slickwater Completion Economics/Metrics - August 31, 2016 Strip Pricing(1) Type Well Rich Type Well Payout yrs…
  20. Q3 2016 Results – Delphi Energy Corp. – slide 20
    PRELIMINARY 2017 DRILLING PLANS WEST EAST Accelerating Drilling West Up to 8 wells drilled this winter Approx. 5 to 6 wells funded under a joint program Remaining wells will be funded within cash flow Filling infrastructure…
  21. Q3 2016 Results – Delphi Energy Corp. – slide 21
    2017 AND BEYOND MAINTAINING KEY VALUES World Class Montney Asset Continued new well innovation; Significant infrastructure and processing capacity in place Letter of Intent in place with an existing industry partner to significantly…
  22. Q3 2016 Results – Delphi Energy Corp. – slide 22
    APPENDIX
  23. Q3 2016 Results – Delphi Energy Corp. – slide 23
    INDIVIDUAL MONTNEY WELL DATA Very strong long term performance Even with payouts stretched to 1.9 years from 1.0 years previously: 250 - 350 boe/d Slow-back experiment Significant free cash flow November 2016 24
  24. Q3 2016 Results – Delphi Energy Corp. – slide 24
    COMMODITY PRICES: MANAGING VOLATILITY NYMEX NatGas vs. Crude Historical Settlement Pricing NYMEX Contract PricingVolatility creates hedging opportunities CDN/US FX GAS US/MMBTU CRUDE US/BBL Commodity price volatility…
  25. Q3 2016 Results – Delphi Energy Corp. – slide 25
    HEDGES PROTECTING CASH FLOW Natural Gas (Cdn) Jul Dec 2016 Jan Mar 2017 Apr Dec 2017 Volume (mmcf/d) 2.4 2.4 2.4 % Hedged (1) 7% 7% 7% Hedge Price (Cdn /mcf) (2) 3.89 3.96 3.96 Strip Price (Cdn /mcf) 2.51 2.52 2.46 Natural Gas…
  26. Q3 2016 Results – Delphi Energy Corp. – slide 26
    LIQUIDS-RICH MONTNEY STUDY ELMWORTH TO BIGSTONE Large Data Set Elmworth 473 Montney wells with IP90 of 724 wells drilled to YE2015 Wapiti Company 6 Delphi Company 7 Bigstone Delphi Company 3 Kakwa Company 4 Company…
  27. Q3 2016 Results – Delphi Energy Corp. – slide 27
    LIQUIDS-RICH MONTNEY STUDY ELMWORTH TO BIGSTONE Producing* Wells by Rig Release Date Total Wells (with IP90): 473 200 180 160 140 120 100 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 Producing Wells by…
  28. Q3 2016 Results – Delphi Energy Corp. – slide 28
    LIQUIDS-RICH MONTNEY STUDY PRODUCTION BY OPERATOR (GAS IPS ONLY) IP90 (mcfd raw) IP180 (mcfd raw) 473 wells 418 wells 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 16 48 22 88 33 30 57 94 59 26 473 15 76 21 41 56…
  29. Q3 2016 Results – Delphi Energy Corp. – slide 29
    LIQUIDS-RICH MONTNEY STUDY EVOLUTION OF DEPTH & HORIZONTAL LENGTH Average Measured Depth (m) Average Horizontal Length (m) 6,000 3,000 Delphi Avg 5,500 2,500 Delphi Avg 5,000 61 177 101 2,000 61 4,500 42 61 177 20 101 4,000…
  30. Q3 2016 Results – Delphi Energy Corp. – slide 30
    LIQUIDS-RICH MONTNEY STUDY EVOLUTION OF FRAC DENSITY Average Number of Stages per Well Average Frac Spacing (m) 200 30 Delphi Avg (29 stages) 180 6 25 160 59 176 140 2 39 20 120 100 16 Delphi Avg (97m) 60 100 51 15 40 85…
  31. Q3 2016 Results – Delphi Energy Corp. – slide 31
    LIQUIDS-RICH MONTNEY STUDY EVOLUTION OF FRAC DENSITY Number of Wells IP90 (mcfd raw) 200 465 wells 180 5,000 160 140 4,000 28 79 120 149 90 21 3,000 80 100 80 18 2,000 60 40 1,000 20 0 0 0 - 10 11 - 15 16 - 20 21 - 25 26…
  32. Q3 2016 Results – Delphi Energy Corp. – slide 32
    LIQUIDS-RICH MONTNEY STUDY EVOLUTION OF PROPPANT PLACED Proppant Placed 1.40 6,000 1.20 5,000 1.00 Delphi Avg (0.76 t/m) 4,000 0.80 3,000 0.60 2,000 0.40 1,000 0.20 2 8 19 42 61 100 175 59 0.00 0 2008 2009 2010 2011…
  33. Q3 2016 Results – Delphi Energy Corp. – slide 33
    LIQUIDS-RICH MONTNEY STUDY EVOLUTION OF FLUID PUMPED Fluid Pumped 5.00 20,000 Delphi Avg (3.65 m3/m) 18,000 4.00 16,000 14,000 3.00 12,000 10,000 2.00 8,000 6,000 1.00 4,000 2 8 19 42 61 100 175 59 2,000 0.00 0 2008…
  34. Q3 2016 Results – Delphi Energy Corp. – slide 34
    LIQUIDS-RICH MONTNEY STUDY FRAC TYPES Frac by Fluid Type Frac by Fluid Type 250 (mcfd raw) 228 5,000 4,500 200 176 4,000 3,500 150 3,000 2,500 107 2,000 100 1,500 1,000 45 500 50 0 IP-90 IP-180 IP-1YR IP-2YR IP-3YR 0…
  35. Q3 2016 Results – Delphi Energy Corp. – slide 35
    LIQUIDS-RICH MONTNEY STUDY DRILLING EFFICIENCY Average Drilling Days 60 Over a 6 year period, industry improved 50 overall drilling penetration rates by 40 almost 50%. The faster a well can be 30 drilled, the less it costs. 20…
  36. Q3 2016 Results – Delphi Energy Corp. – slide 36
    300, 500 4th Avenue SW Calgary, Alberta T2P 2V6 P (403) 265-6171 F (403) 265-6207 infodelphienergy.ca www.delphienergy.ca

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