Skip to main content Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. | Shale Experts
Loading...
Pm

Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd.

Tamarack Valley Energy Ltd. · Nov 7, 2016 · 30 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. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 1
    Transformational Acquisition Increases Growth Profile November 7, 2016 TVE : TSX www.tamarackvalley.ca 1
  2. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 2
    Transformational Acquisition Increases Growth Profile Transformational business combination Maintained acquisition discipline - paid for quality asset while keeping conservative balance sheet Significant long term financial and…
  3. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 3
    Acquisition Criteria Historical Acquisition Criteria Spur Resources Acquisition Criteria 1. cycle ROR on drilling upside must Drilling inventory, (like Wilson Creek) has a compete for capex with current ROR that is in the top 10th…
  4. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 4
    Spur Acquisition Purchased a high quality asset at favorable metrics 65,200/boepd (52% light oil & NGLs) 6.3x cash flow at strip pricing Proved reserves at 27.16/boe P+P reserves at 15.37/boe Cash flow per share 16% accretive in…
  5. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 5
    Tamarack Pro-forma Profile TVE : TSX Operational 2013 2014 2015 2016 est. 2017 guidance Production (boe/d) 3,276 5,717 8,448 9,700 10,000 19,000 20,000 Exit Q4 avg. production (boe/d) 4,718 7,681 9,968 10,800 11,000 20,000 21,000 %…
  6. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 6
    Significant Viking and Cardium Light Oil Position Q3 2016 Production BOE/D % Liquids ALBERTA Cardium 7,292 54% Redwater Viking 958 93% SASKATCHEWAN Penny 1,022 71% Other 1,518 28% Total TVE 10,790 55% Redwater Spur Viking* 4,850…
  7. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 7
    Tamaracks Experience An Ideal Fit In the Viking Managing Large Drilling Programs Combined 30 years in the Provost area Success in the Viking demonstrates targeting the Viking with Apache, TVEs ability to excel with this Bonavista,…
  8. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 8
    Viking Fairway 9
  9. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 9
    Highlights with Infrastructure 451 net sections of consolidated Viking Strategic owned and operated infrastructure Production estimated at close of 6,250 boe/d (52% liquids) Low operating costs < 11/boe 720 (695 net) locations…
  10. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 10
    New Spur Assets Half Cycle ROR Competes for Capital Half Cycle Economics Spur Viking Assets Tamarack Existing Assets Alder Flats East West Consort North Hoosier Cardium excl. Penny Veteran Milton / Esther higher GOR Consort Sweet…
  11. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 11
    TVE & Spur Quick Payback Drilling Inventory…
  12. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 12
    Oil Rate Over Time Consistent Oil Performance 2015-2016 Oil Production 70 Spur 2015 60 Spur 2016 BBLS/DAY 50 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 Months 2015-2016 Cum. Oil Production 14000 12000 10000 BBLS…
  13. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 13
    Spur Historical Type Curves in 2017 Key Drilling Areas 140 EAST CONSORT (50 MBOE, 68% Liquids) 120 NORTH HOOSIER - UPPER (40 MBOE, 86% Liquids) VETERAN (62 MBOE, 89% Liquids) WELL INVENTORY 100 103, Other Barrels of Oil Per…
  14. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 14
    2017 Drilling Program on New Assets Length IP30 IP30 Liquid Reserves Liquid Area Wells (m) (boe/d) Weighting (%) Weighting (%) Veteran 48 925 73 89 89 West Consort 13 925 87 78 71 East Consort 27 925 69 78 70 Milton/North Hoosier…
  15. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 15
    Capital Cost Reductions Mile Hz 750,000 12,000 700,000 37,500 Reduction options to evaluate 28,000 650,000 6,800 45,000 725,000 600,000 647,500 550,000 595,700 500,000 16
  16. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 16
    Wilson Creek / Alder Flats TVE Sun Creek GP Keyera Minnehik Buck Lake Current: TVE 9-24 Q3/16 prodn 7,068 boe/d Compressor (51% liquids) (including Alder Flats Mannville & Pekisko gas prodn) TVE Wilson Creek Battery 310 (229…
  17. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 17
    Acquired Redwater Asset Performance Redwater (2017 strip as of July 19/16) Field Production Compared to Capital (000s) 750 Acquisition Forecast 1600 Rate IP30 (boe/d) 80% liquids 91 Field Actual Production 1400 Predicted…
  18. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 18
    Building Per Share Growth While De-levering Achieving Debt Adjusted Production Per Share Growth Well Inventory…
  19. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 19
    2017 Growth Potential Maintaining 1.0 times D/CF Pre-acquisition At 55 WTI: CFPS growth over 50% 24,000 Pro forma acquisition on 200-220 million CAPEX exiting over 24,000 boe/d Assumes: 22,000 - 2.75/GJ AECO - 0.75 Cdn dollar…
  20. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 20
    Current Hedges as at October 30, 2016 Term Hedge Type Volume Cdn Pricing January 1, 2016 to March 31, 2016 WTI fixed price 2,000 bbls/d Cdn 76.58/bbl April 1, 2016 to June 30, 2016 WTI fixed price 2,400 bbls/d Cdn 76.21/bbl 2016…
  21. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 21
    Key 6 Month Objectives and Look-back What we did in Objectives for What we said we would do Q1 2016 / Q2 2016 Q3 2016 / Q4 2016 Assuming 57 million capex case: spend approx. H2/16 prodn average 9,800 10,500 on capital of Executed…
  22. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 22
    Summary Prudent Management through Commodity Downturn Stopped spending at the right time, cut opex, capex and G&A to improve sustainability Paid down debt in 2015 and 2016 yet delivered modest per share growth using high quality…
  23. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 23
    Appendix 24
  24. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 24
    The Tamarack Team Management Board of Directors Brian Schmidt, President & CEO Floyd Price, Chairman Current: CAPP Chair, IOGC Advisor, Director Aspenleaf Energy Current Directorships: Cimarex Energy, Source Energy Former: Spearpoint…
  25. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 25
    Tamarack Perspective and Culture 1. Build a sustainable, predictable and reliable growth company Full cycle rate of return driven Development inventory with payout 1 to 1.5 years maximum (top quartile in the industry) Clear line of…
  26. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 26
    How to Win in a Downturn Position for High cost, low recovery Commodity commodity Reality sets in Execute M&A and recovery Poorest economics Position balance sheet build inventory Accelerate growth Q4/14 Q1/15 Pumping costs Q2/16…
  27. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 27
    Tamarack Wells in the Top 10th Percentile Top 10th Percentile Top 25th Percentile Note: The above IRR calculations assume CIBCs base commodity price forecast of US45.00/Bbl WTI & C2.78/Mcf AECO in 2016, and US65.00Bbl WTI &…
  28. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 28
    Attributes of 2016 Acquisitions (85 mm for 3 assets) Purchased at favorable metrics 44,750/boepd (75% light oil and NGLs) 4.8x cash flow at strip pricing Proved reserves at 10.36/boe Cash flow per share 5% accretive in 2016 and 14%…
  29. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 29
    2015 Acquisition & Performance Look-back Completed 3 tuck-in acquisitions for 54.0 mm Added 1,450 boe/d at 37,000/boepd (45% light oil and NGLs) 4.4x cash flow at strip pricing Added 5.75 mmboe at 9.37/boe proved and 6.44 mmboe…
  30. Transformational Acquisition Increases Growth Profile Presentation – Tamarack Valley Energy Ltd. – slide 30
    Half Cycle ROR Resulting into Corporate Full Cycle Wilson Creek Oil Cardium Q2 2016 Internal Estimate Full-Cycle Corporate ROR Capital (000s) 2,585 90 Rate IP30 (boe/d) (78% liquids) 393 85% Reserves (mboe) (78% liquids) 184 80…

From the store

Browse maps, data & reports in the Shale Experts store