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GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp

Bonavista Energy Corp · Nov 15, 2016 · 57 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. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 1
    GMP FIRSTENERGY 2016 Energy Growth Conference November 15, 2016 All together better.
  2. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 2
    Identity This is Bonavista: Our leadership team is We are ALIGNED with our EXPERIENCED: shareholders: average tenure with 8% insider ownership, 4x Bonavista of 13 years our peer group average We have a FOCUSED asset base:…
  3. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 3
    Identity Focused on two core areas: Deep Basin 23,500 boe/d production Edmonton (Q4/2016E) 90% natural gas Deep Basin 560 gross locations in key play inventory West Central 45,800 boe/d production (Q4/2016E) 60% natural…
  4. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 4
    2016 - Achieving our Goals Priorities: Improve financial flexibility 2016E net debt reduction of 430 million Demonstrate sustainability January 2016 to January 2017 production maintained with ZERO capital spent Enhance…
  5. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 5
    2016 Achieving our Goals Improved financial flexibility - 33% net debt reduction in 2016: 2016 opening net debt 430 million 1,311 Net Debt ( millions) 105 mm of excess funds from operations* 167 mm of net asset dispositions…
  6. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 6
    2016 Achieving our Goals Sustained production with zero capital spent: 80,000 January YoY production within 1% 75,000 70,000 +5% Production (boe/d) 65,000 0 capital 60,000 55,000 50,000 Jan-16 Feb-16 Mar-16…
  7. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 7
    2016 Achieving our Goals Enhanced well performance - drilling better wells: 700 42% 600 improvement over Average Well Production (boe/d) 500 2015 400 300 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12 Month 2015 Q3…
  8. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 8
    2016 Achieving our Goals Well cost reductions contribute to efficiency gains IP12 half cycle improves 38% in 2016: 4,500 2014 4,000 15,600/boed Average Cost Per Well (000s) 3,500 3,000 2,500 2015 2,000…
  9. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 9
    2016 Achieving our Goals Improving our cost of operations with a focus on our margins: 38% reduction in op costs Margin maintained despite 37% erosion in realized prices 14.00 80% 40 12.00 70% 35 60% 30 10.00 Operating…
  10. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 10
    Visibility to Value Creation Three Year Development Plan All together better.
  11. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 11
    Visibility to Value Creation Strategy: the challenge Strengthen the balance sheet Advance the economic quality of our portfolio through focus and innovation Design a sustainable investment platform that will result in…
  12. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 12
    Visibility to Value Creation Strategy: the vision Production CAGR of 10% from 2016 through to 2019 2019 Net Debt/FFO of 2.0 times * 90%-95% payout ratio 24% of key play inventory drilled in 3 years 14 * Assumes strip pricing as…
  13. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 13
    Visibility to Value Creation Three year outlook: 2017F 2018F 2019F E&D Expenditures ( millions): Value 230-245 245-270 295-320 Support 50-55 45-50 50-55 Total 280-300 290-320 345-375 Production: Natural Gas (% of total) 71% 72%…
  14. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 14
    Visibility to Value Creation Three year outlook: 2017F 2018F 2019F Funds from operations (FFO): millions 300-350 325-375 385-435 debt adjusted per share 1.44 1.49 1.72 11% CAGR*** Payout ratio (%) * 90-95 90-95 90-95 Net debt to…
  15. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 15
    Visibility to Value Creation Production growth within funds from operations: 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Dec Dec Dec Mar Jun Mar Jun…
  16. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 16
    Visibility to Value Creation 2017 capital allocation: Wells Expenditures* Inventory Net ( millions) Net West Central 32-37 105-110 465 Hoadley Glauconite 19-21 240 Strachan Glauconite 3-4 56 55% of Falher/Notikewin 10-12 169…
  17. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 17
    Asset Portfolio - West Central All together better.
  18. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 18
    West Central Glauconite and Falher remain our priority: Glauconite Reliable and predictable development with over 320 wells drilled Ample infrastructure capacity to continue development at low cost Years of drilling inventory to…
  19. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 19
    West Central Hoadley Glauconite Continuous improvement; even after 320+ wells: Year over year performance Production addition efficiency (IP12, /boepd) * 2,500 2,000 Raw Gas (mcf/d) 1,500 14,300 13,300…
  20. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 20
    West Central Hoadley Glauconite Maintaining production and providing capital for growth assets: Capital Forecast ( millions) Production Forecast (boe/d) 90 45 30,000 80 40 25,000 70 35 60 30 20,000 of wells drilled 28.8…
  21. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 21
    West Central Strachan Glauconite Economics becoming more competitive: Year over year performance Production addition efficiency (IP12, /boepd) * 6,000 5,000 4,000 Raw Gas (mcf/d) 14,000 16,300 8,400 3,000…
  22. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 22
    West Central Strachan Glauconite Drilling performance significantly improved: Days vs Depth Drilling cost per lateral meter (/m) 0 3,000 2014 1,000 2015 2,500 2016 2,000 2,000 per meter 3,000 Depth 1,500 4,000…
  23. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 23
    West Central Strachan Glauconite Improved economics will accelerate development of the resource: E&D Capital Forecast ( millions) Production Forecast (boe/d) 50 25 9,000 45 8,000 40 20 7,000 35 6,000 of wells drilled 30…
  24. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 24
    West Central Morningside Falher Prolific production potential at low cost: Year over year performance Production addition efficiency (IP12, /boepd) * 6,000 5,000 4,000 Raw Gas (mcf/d) 8,400 6,400 6,700 3,000…
  25. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 25
    West Central Morningside Falher Superior economics promote maximum capital allocation: E&D Capital Forecast ( millions) Production Forecast (boe/d) 60 25 16,000 21.8 14,000 50 20 12,000 40 16.8 of wells drilled 10,000…
  26. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 26
    West Central Reliable source of net operating income providing flexibility for growth: Production growth (boe/d) Net operating income ( millions) Wells drilled () 60,000 250 70 50,000 60 200 50 40,000 150 40 30,000 30…
  27. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 27
    Asset Portfolio - Deep Basin All together better.
  28. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 28
    Deep Basin Multi-zone opportunities: R22 R18 R14 R10W5 Pine Creek Bluesky T57 Core area loaded with multi-zone potential Marlboro T55 Over 260,000 net acres Wilrich Falher/Notikewin Increased our inventory by 49% to 550 T53…
  29. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 29
    Deep Basin Ansell Wilrich Extended reach horizontals enhancing efficiencies: Year over year performance Production addition efficiency (IP12, /boepd) * 5,000 4,500 4,000 3,500 Raw Gas (mcf/d) 3,000 10,200 15,700…
  30. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 30
    Deep Basin Ansell Wilrich Significant improvements in drilling performance: Days vs Depth Drilling cost per lateral meter (/m) 0 3,000 2014 2015 1,000 2,500 2016 2,000 2,000 Depth 1,500 3,000 1,000 4,000 500…
  31. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 31
    Deep Basin - Ansell Wilrich Cost effective facility expansion: 2017 Expansion to 100 mmcf/d Capital cost of 10 million One new inlet compressor Two new sales compressors New sales compressors Connect surplus refrigeration…
  32. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 32
    Deep Basin Ansell Notikewin Prolific channel system accessible with existing Wilrich infrastructure R19 R17 R15W5 100/09-35-050-18W5/0 Notikewin is part of an extensive fluvial system Numerous wells drilled offsetting T51 Ansell…
  33. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 33
    Deep Basin Ansell Falher Additional prolific channel system accessible with existing Wilrich infrastructure 100/09-35-050-18W5/0 T52 Ansell Falher is part of an extensive valley system T51 First well to be drilled in Q4 2016…
  34. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 34
    Deep Basin Ansell Building a solid base with Spirit River development: E&D Capital Forecast ( millions) Production Forecast (boe/d) 120 30 25,000 100 25 20,000 80 20 of wells drilled 19.0 15,000 millions 17.2 60…
  35. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 35
    Deep Basin Committed to profitable growth: Production growth (boe/d) Net operating income ( millions) Wells drilled () 40,000 300 40 35,000 35 250 30,000 30 200 25,000 25 20,000 150 20 15,000 15 100 10,000 10 5,000 50 5…
  36. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 36
    Summary All together better.
  37. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 37
    Summary: Key Play Returns IRR sensitivities to commodity price: LOW BASE HIGH 2.25/GJ AECO 2.75/GJ AECO 3.25/GJ AECO 40/bbl USD WTI 50/bbl USD WTI 60/bbl USD WTI Morningside Falher 30.9% 60.2% 98.4% Glauconite 18.1% 35.7%…
  38. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 38
    Growth Impact Outcome of our three year plan: 9% 2.0x Production per 2019 Net 9,000-10,000 boe/d Debt and Debt/Funds Dividend Adjusted From Half cycle IP12 Share Operations production efficiencies CAGR 11% CAGR Debt…
  39. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 39
    Appendix All together better.
  40. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 40
    Adapting and Evolving Concentrating our portfolio through focused E&D capital programs: E&D Capital ( millions) Production (boe/d) 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10%…
  41. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 41
    Adapting and Evolving Concentrating our portfolio through acquisitions and divestitures: A&D transaction value ( millions) A&D Production (boe/d) 300 12 664 mm total 21,900 boe/d Acquired core assets at 30,300 200 8 100 4…
  42. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 42
    Adapting and Evolving Improving our costs to develop and produce our assets: Finding & Development Costs (/boe) * Production Addition Efficiency (/boepd) 15.00 34,000 56% 32,000 59% 30,000 12.50 28,000 26,000 24,000 10.00…
  43. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 43
    2016 Priorities Financial Flexibility Current debt (total and senior) position*: Interest Rate:Senior Notes 4.1% Bank Debt 3.2% Average Term: 5.0 years Senior Notes (CDN) 20 Hedging: 74% USD notes hedged at 0.76 CDN/USD 200…
  44. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 44
    Visibility to Value Creation Protecting future funds flow: Natural Gas* Oil** Propane 5,000 4,000 30.00 250 5.00 74.00 55% 72.00 200 4.00 4,000 70.00 Hedged volumes (thousand gj/d) Hedged volumes (bbls/d) 3,000 25.00…
  45. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 45
    Visibility to Value Creation Sensitivities to 2017 funds from operations: 325 mm - 0.25 + 0.25 AECO Natural Gas -0.25/gj +0.25/gj - 5.00 + 5.00 WTI Oil -5.00/bbl +5.00/bbl -20 -15 -10 -5 0 5 10 15 20 Change to funds from…
  46. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 46
    Visibility to Value Creation Portfolio consists of 951 net key play locations: Ellerslie 0 202 150 0 296 Wilrich Bluesky Glauconite Glauconite 63 296 Notikewin 73 Falher Wilrich 168 202 0 73 0 168 Notikewin…
  47. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 47
    West Central Asset Exchange Closed Q416 Contiguous to existing acreage: R10 R9 R8 R7 R6 R5 R4 R3 R2 T42 T41 Adjacent to current infrastructure and operations T40 Added 55 Glauconite locations T39 Expect to double…
  48. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 48
    West Central Asset Exchange Closed Q416 Top tier inventory acquired within greater Hoadley trend: Three year production growth 7,000 Prospect Gross Net inventory 6,000 1.0 mile 36 28.9 5,000 1.5 mile 6 4.5 Production…
  49. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 49
    Deep Basin Asset Exchange Completed Q416 Expanding our asset base: R21 R19 R17 R15 R13 T61 T59 T57 Increased production by 28% T55 Added 127 net drilling locations Increased our proved plus probable T53 reserves by…
  50. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 50
    Deep Basin Asset Exchange Completed Q416 Optimizing our infrastructure: R21 R19 R17 R15 R13 T61 Semcams K3 Facility T59 Consolidating pipeline Bonavista currently owns 225 mmcf/d Pine Creek Facility T57 of processing capacity…
  51. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 51
    Deep Basin Asset Exchange Completed Q416 Three year production growth: Three year production growth Prospect Gross Net 10,000 inventory 9,000 Wilrich (1-mile) 13 12.0 8,000 Wilrich (1.5-mile) 6 3.0 7,000 Wilrich (2-mile) 7 5.5…
  52. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 52
    West Central Hoadley Glauconite 700 1-mile 2-mile Lateral length (miles) 1.0 2.0 600 Capital ( millions) * 2.4 3.9 EUR (mboe) 530 797 500 F&D (/boe) 4.43 4.83 Production (boe/d) 400 IP12 (boe/d) 257 478 /boed 9,200 8,100…
  53. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 53
    West Central Strachan Glauconite 900 1.5-mile 2-mile Lateral length (miles) 1.5 2.0 800 Capital ( millions) * 4.7 5.3 700 EUR (mboe) 720 929 600 F&D (/boe) 6.57 5.74 Production (boe/d) 500 IP12 (boe/d) 409 529 /boed…
  54. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 54
    West Central Morningside Falher Prairie 900 Crown Sky 2-mile 800 Lateral length (miles) 1.0 1.0 2.0 Capital ( millions) * 2.0 2.0 3.4 700 EUR (mboe) 424 450 717 600 Production (boe/d) F&D (/boe) 4.76 4.48 4.70 500 IP12…
  55. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 55
    Deep Basin Wilrich 1,200 Ansell Marlboro Lateral length (miles) 1.5 1.0 1,000 Capital ( millions) * 4.7 3.7 EUR (mboe) 936 538 800 F&D (/boe) 4.97 6.88 Production (boe/d) IP12 (boe/d) 475 417 600 /boed 9,800 8,900 Netback…
  56. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 56
    Deep Basin - Bluesky 700 North Trend Lateral length (miles) 1.0 600 Capital ( millions) * 3.6 EUR (mboe) 538 500 F&D (/boe) 6.60 Production (boe/d) 400 IP12 (boe/d) 347 /boed 10,200 300 Netback (12-mos, /boe) 18.64…
  57. GMP FIRSTENERGY 2016 Energy Growth Conference – Bonavista Energy Corp – slide 57
    All together better.

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