Skip to main content January 2017 Investor Update – Painted Pony Energy Ltd. Investor Presentation | Shale Experts
Loading...
Pm

January 2017 Investor Update – Painted Pony Energy Ltd.

Painted Pony Energy Ltd. · Jan 9, 2017 · 34 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. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 1
    PAINTED PONY Investor January TSX: PPY Presentation 4, 2017 PETROLEUM LTD.
  2. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 2
    Why do we do what we do PPY embraces new ideas and technologies. It is in our DNA, it is part Innovation of who we are Win / Win Approaching all dealings with partners, shareholders, suppliers, and Relationships stakeholders…
  3. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 3
    Corporate Profile TSX Ticker Symbol PPY Daily Production (1) 240 MMcfe/day Daily Trading Volume (30 day trading average) 1.5 million shares per day (40,000 boe/d) Shares Outstanding (2) 100 million Debt (3) 208.7…
  4. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 4
    Significant Growth Montney Growth Current production of approximately 240 MMcfe/d (40,000 boe/d) representing a 156% increase over fourth quarter 2015 average daily production of 93.6 MMcfe/d (15,604 boe/d) Fully funded with funds…
  5. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 5
    The Montney Trend Location, Location, Location PPYs Montney Sweet Spot is: a dolomitic siltstone with higher quality reservoir than a shale 4x thicker than the Marcellus at greater than 300m (984 ft) 300 meters (approximately…
  6. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 6
    Production Growth Impressive and Consistent 4,221 6,589 8,693 13,192 23,000 48,000 Annual 15,604 boe/d boe/d boe/d Average boe/d boe/d boe/d boe/d boe/d AnnualAverage Daily Production (MMcfe/d) Annual Average MMcfeper Dayper…
  7. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 7
    Proposed 5-Year Development Model Infrastructure Build Drives Production Growth PPY Owned Facility PPY Owned Facility 50 MMcf/d Expansion 120,000 80 MMcf/d 690 MMcfe/d Expansion AltaGas Townsend Facility (115,000 boe/d) (Phase 3)…
  8. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 8
    Growth Plan Increasing Cash Flow from Production Growth 690 MMcfe/d Capital Development Program (November 2016) (115,000 boe/d) 600 700 Annual Average Daily Forecast Production Free Cash Flow 600 MMcfe/d 650 Annual Average…
  9. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 9
    Commodity Price Sensitivity Balance Sheet Strength Maintained 3.25 Natural Gas NYMEX (USD) 2.25 Natural Gas NYMEX (USD) November 1, 2016 Strip Pricing YE Net Debt : Q4 Annualized Cash Flow (WTI and FX at November 1, 2016…
  10. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 10
    Increasing Cash Flow per Mcfe Driving Cash Costs Lower; Increasing Liquid Yields G & A Costs per Mcfe Operating Costs per Mcfe Liquids Production Operating Cost ( / Mcfe) 48% G&A Cost ( / Mcfe) 0.40 1.00 6,000 66% Liq…
  11. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 11
    Best in Class Operating Cost Reductions Continuing to Drive Cash Costs Lower 35 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16E Q1/17E Q2/17E Q3/17E Q4/17E 30 Operating Costs (/BOE) 25 20 15 10 5 0 PPY PMT PXX CR SGY…
  12. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 12
    Strong Cash Flow per Mcfe Positive Earnings Forecasted for 2017 Low Full-Cycle Costs Forecasted 3.50 to Generate Top Line Revenue 3.19/Mcfe Positive 1.50 Earnings in 2017 3.00 at Nov 1, 2016 0.55/Mcfe Strip Pricing Cash…
  13. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 13
    Prudent Risk Management Financial Hedges 500 AECO Fixed Price Hedges (/Mcf) Station 2 Fixed Price Hedges (/Mcf) 450 Expected Average Natural Gas Production (MMcf/d) AECO Call Option (/Mcf) Financial hedges, Unhedged 400…
  14. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 14
    Pricing Market Diversification 35% Sold on Natural Gas Production Volumes (MMcf/d) Spot Pricing in Station 2 Spot 65% Sold on Several Markets 28 Fixed Price AECO Spot MMcf/d Index Contracts 31 (13%) (weighted average Sumas…
  15. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 15
    Sales Egress Optionality Firm Transportation Supports Increasing Production Volumes Selling 45 MMcf/d onto AECO as at Oct 1, 2016 Selling 18 MMcf/d at Sumas sales hub (US/Canada border) starting November 1, 2016 296 MMcf/d of firm…
  16. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 16
    Land Position Premium Assets in the Optimum Location Large contiguous land base with year-round access LANDS PAINTED PONY PETROLEUM 199 net sections (127,354 net acres) PETRONAS 2nd Largest position in northern Montney west of…
  17. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 17
    Facilities Key Infrastructure AltaGas Townsend Facility Major shallow-cut facility PPY Operated Alaska Highway West Blair (25 MMcf/d) Blair PPY has secured firm capacity for PPY entire plant Operated Daiber (50 MMcf/d) Phase…
  18. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 18
    2015 Reserves Deep, Long-Term, Underlying Value At December 31, 2015(1): 2015 2P 2P Reserves 4.6 Tcfe 7.5 times Recycle Ratio (F&D) Increase in 2P Reserves from December 31, 2014(1) 57% 1.5 2015 1P times Recycle Ratio (F&D) 1P…
  19. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 19
    Canadian Natural Gas 2P Reserves As at Dec 31, 2015 49% Reduction 2015 Cost of Supply in FDC/Mcfe 33% Increase in 2P Undeveloped Reserves per well (13-15) 7.5x Recycle Ratio (1.23 Netback / 0.16 F&D) 10 1.48 2013 FDC/Mcfe (1)…
  20. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 20
    Reserves Growth Impressive and Consistent 136.9 191.1 290.3 488.4 768.0 MMboe Reserves MMboe MMboe MMboe MMboe 5 60 4.6 Assuming Enterprise Value 50 4 10.59/sh 46.1 (9.00/sh equity + 2.09/sh debt) Reservesper Share…
  21. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 21
    Reserves Growth / Cost Reduction Bigger and Cheaper PPYs reserves per share continues to increase while cost of supply per Mcfe Reserve continues to decline Finding & Growth Development Proved Plus Probable 5.0 50 Costs Proved…
  22. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 22
    Well Performance Top Performing Wells Among Montney Producers PPY well rates double the rates 275 of average for 7 140 industry Painted Pony (6.2 MMcf/d) 6 120 2013-2014 Average Pea k Month Rate (MMcf/d) 5 100 Well…
  23. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 23
    Technology Parallel-Pair Completion Using Open Hole Ball-Drop Plug and Perf Completion Open Hole Ball-Drop Single Well Ball-Drop Packer Production Increase at No Cost Increase Open Hole 300-350 m Ball-Drop Inter-well…
  24. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 24
    Dramatic Increase in Capital Efficiencies Blair-Daiber High-Rate, Liquids-Enhanced A 72% increase in 6-month cumulative Plan to drill 25 production has significantly increased net wells and capital efficiencies. complete 20 net…
  25. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 25
    2016 Development Plan & Economics Townsend Liquids-Rich Sweet Spot A 100% increase in 6-month cumulative production (1.0 Bcfe vs. 0.5 Bcfe; 9.5 Bcfe Management Type C Plan to drill 11 vs. Plug & Perf Type Well) coupled with a…
  26. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 26
    Development Economics Price Sensitivity (Half Cycle) 300% Stronger Liquids Pricing Boost Townsend Returns from 60 bbls/MMcf 250% Liquids-Rich (9.5 Bcfe Single Well Ball-Drop Type Well) Townsend Wells 200% Blair-Daiber IRR…
  27. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 27
    Capital Expenditures 2017 Remaining 2016 Capital Spending Forecast Period Capital Drilling Completions Q4 59 million (e) 9 net wells(e) 8 net completions(e) 2016 213 million (e) 36 net wells (e) 38 net completions (e) 2017…
  28. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 28
    Pony Points Checking Off All of the Boxes Financing In Place Top Well Performance Low Well Costs Well Hedged Rapid Growth Lowest Royalty Framework Processing Capacity to Support Growth Firm Transportation Massive Reserve Base…
  29. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 29
    PAINTED PONY Plc PETROLEUM LTD. Appendices and Disclosures
  30. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 30
    AltaGas Strategic Alliance Deal with People You Trust in a Win / Win Alliance Liquids-Rich Natural Gas Processing Provides for the development of essential liquids-rich gas processing facilities Existing AltaGas PNG…
  31. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 31
    Reserves Growth Per Share Growth Comparison 9 80% 69% 2015 BOE per 1,000 Shares 2014 BOE per 1,000 Shares 8 2P Reserves per Share Growth (2015 over 2014) 60% 7.7 7 2P Reserves per Share Growth 40% 6 22% BOE per1,000…
  32. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 32
    Proposed West Coast LNG Projects Proposed LNG Projects Capacity Exxon Imperial 4.0 Bcf/d WCC LNG Shell Petrochina, Mitsubishi, KOGAS 3.2 Bcf/d LNG Canada Nexen / CNOOC Inpex, JGC 3.1 Bcf/d Aurora Liquefied Natural Gas Ltd.…
  33. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 33
    Equity Research Sell-Side Analyst Coverage Institution Analyst AltaCorp Capital Patrick ORourke BMO Capital Markets Joe Levesque Canaccord Genuity Corp. Anthony Petrucci CIBC World Markets David Popowich Cormark Securities Inc.…
  34. January 2017 Investor Update – Painted Pony Energy Ltd. – slide 34
    Corporate Overview Auditor KPMG LLP Evaluation Engineers GLJ Petroleum Consultants Ltd. Banks The Toronto-Dominion Bank The Bank of Nova Scotia Alberta Treasury Branches Canadian Imperial Bank of Commerce HSBC Bank Canada Wells…

From the store

Browse maps, data & reports in the Shale Experts store