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January 2017 Investor Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jan 20, 2017 · 26 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 Presentation – Whitecap Resources Inc. – slide 1
    STRONG GROWTH WITHIN CASH FLOW CAPITAL = EFFICIENCY FOCUS STRONG+ CASH NETBACKS LOW DECLINE ASSETS + CONTINUING PROFITABLE GROWTH January 2017
  2. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 368.3 Fully diluted (1.1% dilutives) 372.3 Market capitalization (Bn) 4.5 Enterprise value (Bn) 5.3 Net debt-to-FFO* 1.8x Annual dividend (/share) 0.28 2017 production…
  3. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 3
    Operational Focus Drives Economic Returns Pillars of Sustainability Shareholder Returns Low Decline Rate Profitable Long-Term Organic Growth 5-8% per share / year High Cash Netback Return on Capital Employed Focus Strong Capital…
  4. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 4
    Production per Share Growth 100,000 Capital Spending (MM) 200 2016 175 178 90,000 2017 300 180 166 2018 420 80,000 153 160 2019 470 143 139 70,000 133 140 Production/MM Shares (boe/d) 130 122 Production (boe/d)…
  5. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 5
    Funds Flow per Share Growth 1,000 3 US WTI 79 95 94 98 93 49 43 55 60 65 2.26 800 2.08 1.84 1.76 Funds Flow per Share (/share) 1.68 1.69 1.45 Funds Flow (MM) 1.34 600 1.10 1 400 0.48 821 654 541 487 486 200…
  6. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 6
    Predictable and Stable Production Base Base and new well production is predictable and repeatable High level of certainty of achieving forecasted volumes Areally consistent reservoirs Large resource in place, limited recovery to…
  7. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 7
    2P Reserves per Share Growth 2015 F&D Costs 300,000 TP TPP 1,100 Incl. FDC 8.86 6.97 915 1,000 TPP Recycle Ratio = 5.2x 250,000 848 900 746 800 200,000 643 700 (Mboe / MM Shares fd) 600 (Mboe) 150,000 496 278,854…
  8. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 8
    Internally Funded Growth + Dividend Model No DRIP 120% 102% 101% 100% 93% 77% 75% 80% Total Payout Ratio 69% 66% 49% 60% 46% 56% 40% 20% 44% 33% 35% 31% 19% 0% 2013 2014 2015 2016e 2017e Cash Dividends…
  9. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 9
    Efficiency and Cost Focus Capital Efficiency Operational Efficiency 20.00 12.00 2011 10% Reduction 2012 18.00 61% Reduction 2013 10.00 16.00 2014 2015 14.00 2016e* 8.00 12.00 /boe /boe 10.00 6.00 8.00 4.00…
  10. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 10
    Financial Prudence and Risk Management Mitigate price volatility and protect economic returns on capital deployed Predictability for WCP funds flow Capital reinvestment and Dividend payments Oil Hedges Gas Hedges C64.66 C63.37…
  11. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 11
    Exceptional Growth in 2017 2016 2017 Outlook % Change Average production (boe/d) 45,838 57,000 24% per million shares 133 153 15% Funds flow (MM) 379 541 43% per share 1.10 1.45 32% Development capital (MM) 175 300 71% Total…
  12. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 12
    2017 Development Capital Capital by Type Capital by Area 4% 2% 5% 8% Production 22% Cardium 13% Viking Waterflood 21% SW Sask Facilities Deep Basin 78% 32% Boundary Lake HS&E 14% Elnora 2016 2017 Development…
  13. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 13
    Sustainable Asset Base: Capital + Dividend < Funds Flow Organic Growth Within Funds Flow 200 185 180 170 160 140 76 119 113 120 (MM) 100 74 80 71 60 10 50 60 94 40 27 66 64 54 20 42 23 0 6 Cardium Viking SW…
  14. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 14
    2017 Sensitivities Oil (USWTI) 45.00 50.00 55.00 60.00 65.00 FX (C/US) 0.72 0.74 0.76 0.78 0.80 Oil (Cdn/WTI) 62.50 67.57 72.37 76.92 81.25 AECO (C/GJ) 3.00 3.00 3.00 3.00 3.00 Funds flow netback (/boe) 21.55 23.76 25.98 28.01…
  15. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 15
    Free Funds Flow Priorities 1. Debt management target debt to cash flow of < 1.5x 2. Development capital increase spending on organic growth projects 3. Complementary tuck-in acquisitions within core operating areas using…
  16. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 16
    Core Areas of Operations Light Oil Drilling Inventory 3,040 BRITISH COLUMBIA ALBERTA SASKATCHEWAN Current Drilling Wells Boundary Prodn Inventory 2016 2017 Lake Cardium 13,000 716 17 28 Deep Viking 8,800 1,126 52 113 Basin…
  17. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 17
    Cardium Resource Play repeatable low risk growth Industry leading capital efficiencies Edmonton Continuing capital efficiency improvement: West Pembina East Pembina ERH drilling Advancing frac designs and efficiencies Optimizing…
  18. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 18
    Exceptional Type Curve Economics West Pembina Cardium West Pembina Cardium Type Well Economics Standard 1.0 ERH 1.5 Drill, Complete, Equip, Tie-in (MM) 2.15 2.45 Production, IP30 (boe/d) 317 476 Production, IP365 (boe/d) 159 239…
  19. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 19
    Saskatchewan Viking Oil top decile resource play Top tier inventory for sustainable growth SASKATCHEWAN Kerrobert WCP Lands Gas 10 years high quality inventory, 36 API light oil Kerrobert Conventional Oil Halo Oil Long-term growth,…
  20. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 20
    Southwest Saskatchewan stable production, multi-zone Overview Sustainable oil growth region with 12,000 boe/d (98% oil) Stable production base historical decline 2.3% per year Increases WCP production impacted by waterflood / EOR…
  21. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 21
    Strong Repeatable Economics Key Characteristics Conventional Unconventional Multi-zone potential for growth (6 zones) Type Well Economics Plays Plays 92% production under enhanced oil recovery (EOR) ASP is 22% of current production,…
  22. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 22
    Deep Basin Light Oil Dunvegan and Cardium Oil Strong play characteristics, large growth potential Karr Dunvegan Wapiti Cardium 39 to 42 API oil Type Well Economics Standard 1.0 Standard 1.0 ERH 2.0 Large OOIP of 6 to 15.5…
  23. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 23
    Boundary Lake large low decline resource with growth potential Boundary Lake WI Production Long-term, low decline asset Operated, 35 API light oil, 91% oil + NGLs Avg 90% WI in 3 operated units 5% decline Legacy oil pool under a…
  24. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 24
    The Whitecap Growth Plan Long-Term Value Growth Orientation Executing on rolling 3 year business plan Return on capital discipline Provide superior shareholder returns Organic Per Share Growth Within Funds Flow Capital +…
  25. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 25
    Research Coverage AltaCorp Capital Haywood Securities Barclays Capital Canada Macquarie Securities Group BMO Capital Markets National Bank Financial Canaccord Genuity Peters & Co. CIBC World Markets Raymond James Clarus Securities…
  26. January 2017 Investor Presentation – Whitecap Resources Inc. – slide 26
    TSX:WCP www.wcap.ca January 5, 2017 26

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