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December 2016 Presentation – Baytex Energy Corp.

Baytex Energy Corp. · Dec 5, 2016 · 31 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. December 2016 Presentation – Baytex Energy Corp. – slide 1
    December Presentation
  2. December 2016 Presentation – Baytex Energy Corp. – slide 2
    Baytex Key Attributes Strategy to Sustain and Position Baytex for Growth 67% undrawn on revolving DC&E costs 40% in the credit facility Eagle Ford Net debt reduced 11% to Operating expenses per 1.8 billion in 2016 boe 30% No…
  3. December 2016 Presentation – Baytex Energy Corp. – slide 3
    Corporate Profile Market Summary Ticker Symbol TSX / NYSE: BTE Average Daily Volume (1) CAN: 10,000,000 / US: 3,300,000 Shares Outstanding 233.4 million Market Capitalization / Enterprise Value 1.6 billion / 3.4 billion Net Debt…
  4. December 2016 Presentation – Baytex Energy Corp. – slide 4
    Capital Deployment Opportunities Texas 34% Eagle Ford Texas 34% Peace River Heavy Oil First call on capital Announced Light Oil 65 million 51% acquisition 22% that adds Represents 70% of 3,000 boe/d of production 2017…
  5. December 2016 Presentation – Baytex Energy Corp. – slide 5
    YTD 2016 Highlights Generated production of 70,978 boe/d (78% oil and NGL) Curtailed capital spending, focusing all development activity in the Eagle Ford, our highest rate of return and highest netback asset Reinitiated production…
  6. December 2016 Presentation – Baytex Energy Corp. – slide 6
    2017 Operating Budget 2017 Budget Capital Efficiency (/boe/d) of 2017 Program Exploration and development capital 300-350 million 15,000 Production 66,000 70,000 boe/d 14,000 Expenses 13,000 Royalty rate 23% 12,000 Operating 11.00…
  7. December 2016 Presentation – Baytex Energy Corp. – slide 7
    2017 Sustaining Capital Strong Capital Efficiencies Drive Low Sustaining Capital Requirements Total Sustaining Capital (1) 300 million Conventional Lloydminster 34,000 boe/d (2) Sustaining Capital Generates Free 100 million…
  8. December 2016 Presentation – Baytex Energy Corp. – slide 8
    2017 Free Cash Flow Scenarios Significant Free Cash Flow Potential 250 Flexibility to invest in organic growth and/or debt 150 repayment Millions 50 -50 -150 -250 45 50 55 60 65 WTI (US/bbl) Notes: (1) Free Cash…
  9. December 2016 Presentation – Baytex Energy Corp. – slide 9
    Crude Oil Hedge Portfolio Q4/2016 2017 2018 WTI Fixed Hedges Volumes (bbl/d) 5,000 2,000 2,000 Fixed Price (US/bbl) 63.79 54.35 54.40 WTI 3-Way Option Volumes (bbl/d) 10,000 14,500 --- Average Ceiling/Floor/Sold Floor 60/50/40…
  10. December 2016 Presentation – Baytex Energy Corp. – slide 10
    Balance Sheet / Debt Composition Significant Liquidity, No Near-Term Maturities and Financial Covenant Flexibility 0.79x Senior Secured Debt (2) to Bank EBITDA (3) (maximum 5.0x through March 2018) 3.62x Interest Coverage (4)…
  11. December 2016 Presentation – Baytex Energy Corp. – slide 11
    Reduced Cost Structure We continue to emphasize cost reductions across all facets of our organization Cost reduction focus in Canada Increased use of lower cost internal trucking Reduced staffing levels and cost saving initiatives…
  12. December 2016 Presentation – Baytex Energy Corp. – slide 12
    Strong Rates of Return Across Portfolio 175% 150% 125% Break-Even WTI (4) Rate of Return 100% 75% Eagle Ford - US5.0M/well 50% Peace River - C2.5M/well 25% Lloydminster - C700K/well 0% 45 50 55 60 65 70 WTI…
  13. December 2016 Presentation – Baytex Energy Corp. – slide 13
    Individual Well Economics Sensitivity to WTI IRR (3) NPV (C000s) 10% discount rate Eagle Ford Peace River Lloydminster Eagle Ford Peace River Lloydminster US45 58% 25% 35% US45 5,943 716 262 US50 76% 50% 67% US50 7,502 1,611 581…
  14. December 2016 Presentation – Baytex Energy Corp. – slide 14
    The Eagle Ford
  15. December 2016 Presentation – Baytex Energy Corp. – slide 15
    Eagle Ford Development Concentrated Land Positon in Core of the Eagle Ford Advancements Since Late 2014 Significant advancements have been made to delineate the multi- zone potential of our Sugarkane acreage DC&E costs reduced…
  16. December 2016 Presentation – Baytex Energy Corp. – slide 16
    Eagle Ford New Well Highlights Chapman Rogers - Q4 2015 5 well pad Barboza - Q2 2016 Avg 30 day IPs 1,164 boepd 6 well pad Avg 30 day IPs 2016 YTD Development 1,422 boepd Commenced production from 84 (24.7 net) wells 44% Lower…
  17. December 2016 Presentation – Baytex Energy Corp. – slide 17
    Eagle Ford Performance Improved Performance and Efficiency Improvements in drilling and completion design have increased 30-day IP rates by approximately 105% since Q4/2011 with 180-day cumulative recovery increasing 74% over the…
  18. December 2016 Presentation – Baytex Energy Corp. – slide 18
    Completion Improvements Increased Lateral Length, Frac Stages and Proppant Lateral Length and Total Depth Per Well Frac Stages and Proppant Per Well 21
  19. December 2016 Presentation – Baytex Energy Corp. – slide 19
    Strong Netback Contribution The Eagle Ford Significantly Enhances Our Operating Netback Our light oil and condensate production in the Eagle Ford is priced primarily off a Eagle Ford Operating Netback Sensitivity to WTI Prices…
  20. December 2016 Presentation – Baytex Energy Corp. – slide 20
    Heavy Oil Overview 23
  21. December 2016 Presentation – Baytex Energy Corp. – slide 21
    Peace River Heavy Oil Strategic Acquisition Will More than Double Land Base and Increases Inventory by 75% Peace River Operating Netback Sensitivity to WTI Prices Harmon Valley 150 Seal 125 100 Millions 75 50 25 Reno…
  22. December 2016 Presentation – Baytex Energy Corp. – slide 22
    Peace River Acquisition Highlights Acquisition Highlights (1) Purchase Price 65 million Consistent with our strategy to enhance asset base Anticipated Closing December 2016 Increases our drilling inventory for future growth Land…
  23. December 2016 Presentation – Baytex Energy Corp. – slide 23
    Multi-Lateral Horizontal Wells Reservoir Characteristics (1) Formation Bluesky Depth 600 metres Completion Open Hole Oil Quality 11 API Average Porosity 28% Permeability 1 - 5 darcies Oil Saturation 70% Recovery Factor 5 -…
  24. December 2016 Presentation – Baytex Energy Corp. – slide 24
    Lloydminster Lloydminster Heavy Oil Heavy Oil Significant Land Position and Drilling Inventory Lloydminster Operating Netback Sensitivity to WTI Prices 100 75 Millions 50 25 0 45 50 55 60 65 WTI (US/bbl) Notes:…
  25. December 2016 Presentation – Baytex Energy Corp. – slide 25
    Lloydminster Development 2017 will see an Increase in Multi-Lateral Drilling Reservoir Characteristics (1) Formation Mannville Group Depth 350 800 metres Completion Horizontal Slotted Liner / Vertical Stacked Pays Oil…
  26. December 2016 Presentation – Baytex Energy Corp. – slide 26
    Summary High Quality Assets with Strong Capital Efficiencies 2017 development program reflects capital efficiencies on an annual basis of 11,500 per boe/d (13,500 per boe/d including facilities) 50% RORs across our three core…
  27. December 2016 Presentation – Baytex Energy Corp. – slide 27
    Supplementary Information 30
  28. December 2016 Presentation – Baytex Energy Corp. – slide 28
    Funds from Operations Sensitivities Estimated Effect on Annual Funds from Operations ( Millions) Sensitivities Excluding Hedges Including Hedges Change of US1.00/bbl WTI crude oil 18.0 18.0 Change of US1.00/bbl WCS heavy oil…
  29. December 2016 Presentation – Baytex Energy Corp. – slide 29
    Natural Gas Hedge Portfolio Q4/2016 2017 2018 AECO Fixed Hedges Volumes (GJ/day) 32,500 22,500 5,000 Price (C/GJ) 2.39 2.85 2.67 NYMEX Fixed Hedges Volumes (mmbtu/d) 15,000 22,500 7,500 Price (US/mmbtu) 2.98 2.98 3.00 Total…
  30. December 2016 Presentation – Baytex Energy Corp. – slide 30
    Capital Program Efficiency 3-Year 2013 2014 2015 Total / Average 2013-15 Capital Expenditures (millions) Exploration and development 550.9 766.1 521.0 1,838.0 Acquisitions (net of dispositions) (39.1) 2,545.1 1.6 2,507.7 Total 511.8…
  31. December 2016 Presentation – Baytex Energy Corp. – slide 31
    Contact Information James L. Bowzer Chief Executive Officer (587) 952-3000 Suite 2800, Centennial Place Edward D. LaFehr 520 3rd Avenue S.W. President Calgary, Alberta T2P 0R3 (587) 952-3000 T: (587) 952-3000 1-800-524-5521…

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