Q3 Financial and Operating Highlights Strong Q3 production due to continued high base reliability Delivering on Operating costs lower than expectations due to a continued focus Production and Costs on cost controls and weather…
Q3 2016 Operated Development Activity 1 rig program in Q3 2016, drilled 2 wells in J-Lease, and 1 well in Willesden Green subsequent to Sep 30th Focused on waterflood optimization and reservoir support by Cardium converting…
Operating Costs Third quarter operating costs of 13.40 per boe, net of our joint venture carry in the Peace River area Result of continued cost efficiencies and weather delaying some discretionary expenses until the fourth quarter…
New Penn West at a Glance Penn West Total Core Areas Q3YTD 2016 Production 23,795 boe/d Core Areas Liquids 72% % Opex 8.00 /boe Netback 21.00 /boe Peace River Core Development Cardium 90 kms with Multi-Horizon Production…
Updated 2016 Capital Budget & Guidance H2 2016 Budget Increase by Area Capitalizing on improved financial flexibility by increasing capital budget by 40 million Expected to add 3,000 boe/d of exit production Demonstrating ability…
2017 Preliminary Look Anticipate spending up to 150 million in total expenditures next year targeting development in core areas Capital program will be fully funded by funds from operations; flexibility to adjust spending based on…
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…
Senior Note Maturity Profile Subsequent to September 30th, C437M of Senior Notes were paid down at par Lowered average interest paid on debt Reduced noteholders from 36 down to 2 Simplifies capital structure Q3 2016 Proforma…
Meaningful Debt Reduction 2.1B 1.6B of debt reduction year to date 484M Q4 2015 Net Debt Q3 2016 Net Debt Closed several asset dispositions in Q3 2016 for total proceeds of 75MM and 2,120 33 associated production of 6,000…
Senior Debt Compliance Fully compliant with all our financial covenants at September 30, including the Senior Debt to EBITDA covenant of 1.95 times, relative to a 4.50 times limit Expect to remain in compliance with all financial…
Hedge Positions as at November 2, 2016 Hedging program continues to help reduce the volatility of our funds flow from operations, thereby improving our ability to align capital programs going forward Oil Volumes Hedged (bbl/d) Gas…
Asset Overview
Inventory Life Cycle Changes PWT currently has an attractive asset pipeline Cardium potential remains in early stages as we move into waterflood and EOR activity Alberta Viking still in early stages with potential to become another…
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…
Multi-Horizon Potential in Cardium Area FORMATION Cardium BELLY RIVER Prospective Zone COLORADO SHALE High netback oil-weighted production base Current Core Long and successful history as top CARDIUM Development operator in the…
Alberta Viking Area Prospective Light Oil Fairway Alberta Viking Area Details Production boe/d 1,000 Locations 500 Land net sections 174 Alberta Viking Area Well Economics NPV (K) 1,949 1,569 1,193 797 Alberta…
Peace River Area Stable Cash Generation Peace River Area Details Production boe/d 5,000 Oil Weighting % 98% 1P Reserves MMboe 7 2P Reserves MMboe 37 Peace River Area Value Proposition JV Partner - 104MM at Sep 30, 2016 -…
Appendix
Endnotes All slides should be read in conjunction with Definitions and Industry Terms and Forward-Looking Advisory Slide 5 Operating Costs are shown net of joint venture carry in the Peace River area. Slide 6 Production, Liquids %,…
Definitions and Industry Terms 1P means proved reserves as per Oil and Gas Disclosures Advisory. 2P means proved plus probable reserves as per Oil and Gas Disclosures Advisory. ARO means asset retirement obligation. A&D means oil and…
Non-GAAP Measures Advisory Non-GAAP Measures Advisory In this presentation, we refer to certain financial measures that are not determined in accordance with IFRS. These measures as presented do not have any standardized meaning…
Oil and Gas Disclosures Advisory Reserves Disclosures and Definitions Any reference to reserves in this presentation are based on the report (Sproule Report) prepared by Sproule Associates Limited dated February 3, 2016 where they…
Forward-Looking Information Advisory (contd) Although Penn West believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking…
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