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February 2017 Investor Presentation – Peyto Exploration & Development Corp

Peyto Exploration & Development Corp · Feb 15, 2017 · 48 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. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 1
  2. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 2
    Peyto Profile PEYTO Exploration & Development Corp. N TSX Listing: PEY N Shares Outstanding: 164.8 million, 3% insiders (as of Jan 6/17) N Monthly Dividend: 0.11/share N Current Production: 0.6 BCFe/d (105,000 boe/d) N YE 2016…
  3. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 3
    The Peyto Strategy What We Believe PEYTO Exploration & Development Corp. We believe that: N Natures gas is the fuel for the future. N Our focus should be on maximizing the return on invested capital your capital. N By selectively…
  4. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 4
    The Peyto Strategy How We Do It PEYTO Exploration & Development Corp. Invest in our own ideas Build it ourselves Operate it ourselves Focus on maximum return Stay concentrated, lean & efficient 5 2/15/2017
  5. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 5
    The Peyto Strategy Results in a Low Cost Advantage PEYTO Exploration & Development Corp. Operating Costs Transportation Costs 20 5 4 15 3 /boe /boe 10 2 1.16 5 6.88 1 - - Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 2014Q4 2014Q1…
  6. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 6
    The Peyto Strategy Counter Cyclical Growth Per Share PEYTO Exploration & Development Corp. liq prod/share Production per Unit or Share (boe/d per million) 700 gas prod/share 2017 YE Target 15 75 AECO Forecast (/GJ) 120,000…
  7. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 7
    The Peyto Strategy More Profit Per Dollar Of Capital PEYTO Exploration & Development Corp. 50% 43% 40% 40% 32% 32% 30% 21% 19% 20% 9% 10% 7% CTD Earnings/Capital 4% 2000-2015 0% -10% -6% PEY ARX CNQ VET ERF COG…
  8. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 8
    Compound Annual Total Return (%) 0 5 10 15 20 25 30 35 40 45 Peyto Exploration & Development Computer Modelling Group Stella-Jones Inc. Smart REIT First Quantum Minerals ALIMENTATION COUCHE TARD Parkland Fuel Corp.…
  9. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 9
    Peytos Profitable Business PEYTO Exploration & Development Corp. 10 2/15/2017
  10. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 10
    Peytos Profitable Business Build it for less than we sell it PEYTO Exploration & Development Corp. PEY 2014 PEY 2015 PEY 2016F Land/Acq/Disp Seismic PDP FD&A /mcfe (2.25) (1.64) (1.44) Drilling Compl. Wellsite Facilities…
  11. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 11
    Peytos Profitable Business Profitable Even Through The Lows PEYTO Exploration & Development Corp. AECO Monthly 10 Peyto Realized Gas Price (/mcfe) /GJ 36% Avg. Profit Cum To Date 8 6 Bonus 4 Cash Costs 1.38…
  12. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 12
    Peytos Profitable Business Competitive In The North American Marketplace PEYTO Exploration & Development Corp. 100% Montney 65% DB/35% Mont. 100% Deep Basin 100% Deep Basin VII 2015 TOU 2015 PEY 2015 PEY 2016 PDP FD&A /mcfe (3.56)…
  13. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 13
    Peytos Unique Assets PEYTO Exploration & Development Corp. 14 2/15/2017
  14. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 14
    Peytos Assets Geographically Focused Core Areas PEYTO Exploration & Development Corp. 450,000 net acres R10 R5W6 R27 R22 R17 R12 R7W5 9 operated gas plants Cutbank ---(835 mmcf/d net capacity) 1600+ km pipelines 1200+ producing…
  15. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 15
    Peytos Assets Deep Basin Permeability Segregation PEYTO Exploration & Development Corp. Ante Ck FOOTHILLS STRUCTURES Elmworth GAS AS ING INCRE BILITY EA PERM WATER Kaybob TRANSITION ZONE WATER Kakwa GAS Gas INCREAH…
  16. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 16
    Peytos Assets Multi Zone Stacked Sandstone Reservoirs PEYTO Exploration & Development Corp. Detailed Petrophysical work on the Spirit River sands revealed 30% more reserves per section Up to per section* 17…
  17. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 17
    Peytos Assets The Most Profitable Part Of The Basin PEYTO Exploration & Development Corp. 18 2/15/2017
  18. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 18
    Peytos Assets Deep Basin Lands Go A Long Way PEYTO Exploration & Development Corp. 800 Peyto Lands 700 600 Net Sections 500 400 Net Peyto Sections 300 200 100 - Net Sections of Cardium, Dunvegan, Notikewin,…
  19. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 19
    Peytos Assets Adding To Our Drilling Islands PEYTO Exploration & Development Corp. Greater Sundance Area Added 40 Net Sections Net Sections of Land Weve added 48 net sections with Added in 2016* over 72 locations…
  20. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 20
    Peytos Assets Large Hz MSF Inventory PEYTO Exploration & Development Corp. Done1 To Do Total Total Total Total Hz(Vt) Hz Locations Vertical Hz Locations Unbooked Wells Wells Booked* (3) 1 11 (6) 434 72 176(14) 409 5 1 5…
  21. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 21
    Peytos Assets Reserve Growth Validates Future Locations PEYTO Exploration & Development Corp. 4,500 3.00 4,000 2.50 3,500 3,000 2.00 2,500 MMCFe 1.50 2,000 1,500 1.00 1,000 0.50 500 0 0.00 2010 2011 2012…
  22. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 22
    Peytos Assets Constantly Growing Inventory PEYTO Exploration & Development Corp. PEYTO INVENTORY PEYTO LOCATION GENERATION RATE INVENTORY Ratio of Locations Added/Total Wells Drilled Cumulative Wells Drilled Booked Locations…
  23. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 23
    Peytos Assets Greater Sundance Area PEYTO Exploration & Development Corp. Peyto Oldman & Oldman North Peyto Wildhay Sweet Gas Sweet Gas Plant Plants 90 mmcf/d 250 mmcf/d Peyto Nosehill Sweet Gas Plant 125 mmcf/d Peyto…
  24. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 24
    Peytos Assets Brazeau River Area PEYTO Exploration & Development Corp. Keyera Brazeau CP OChiese Sour Gas Plant (1968) Sour Gas Plant (1997) 200 mmcf/d 85 mmcf/d Peyto Brazeau Sweet Gas Plant (2013) 120 mmcf/d Keyera…
  25. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 25
    Peytos Assets Facility Ownership And Control PEYTO Exploration & Development Corp. Cutbank Kakwa Oldman & Oldman North Nosehill Wildhay Galloway Swanson Peyto Gas Plants YE 2014 YE 2015 YE 2016 YE 2017 WI 1 Oldman…
  26. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 26
    Peytos Assets Drilling Performance Improvement PEYTO Exploration & Development Corp. Peyto Sundance Hztl Wilrich Drills (167 Total Wells) 35 26 29 25 19 16 17 2010 2011 2012 2013 2014 2015 2016 Decrease in Drilling…
  27. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 27
    Peytos Assets Drilling Cost Performance PEYTO Exploration & Development Corp. Hz Spirit River 5,000 40 4,500 34.5 4,268 4,299 4,310 4,152 4,155 4,222 35 Drill & Case Cost / Depth 4,066 3,999 4,000 29.3 30 3,500 23.6…
  28. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 28
    Peytos Assets Completion Cost Performance PEYTO Exploration & Development Corp. Monthly Average Completion Costs 2,000,000 300,000 1,800,000 250,000 1,600,000 -35% 1,400,000 200,000 Cost Per Stage 1,200,000 Total…
  29. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 29
    Peytos Assets Predictable and Repeatable PEYTO Exploration & Development Corp. 30 2/15/2017
  30. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 30
    Peytos Incredible Returns PEYTO Exploration & Development Corp. 31 2/15/2017
  31. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 31
    Peytos Returns Focus On Returns Drives Capital Discipline PEYTO Exploration & Development Corp. 2016 - 10,800/boe/d 120,000 2015 - 11,600/boe/d 2014 - 16,800/boe/d 900 2013 - 15,100/boe/d 2017 Forecast Exit 120-125,000 boe/d…
  32. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 32
    Peytos Returns High Returns On Your Capital And Equity PEYTO Exploration & Development Corp. 60% 12 50% 10 40% 8 30% 6 17 yr Avg ROE to 2015 20% 4 10% 2 0% 0 Return On Capital Employed (%) Return On Equity (%)…
  33. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 33
    Peytos Future PEYTO Exploration & Development Corp. 34 2/15/2017
  34. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 34
    2017 Outlook Back On Track to 120,000 PEYTO Exploration & Development Corp. 120,000+ boe/d forecast exit 105,000 boe/d exit 102,200 boe/d exit 120,000 120,000 85,700 boe/d exit 100,000 100,000 53,000 75,200 boe/d exit…
  35. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 35
    Peytos Future 15th19982013 Build it for less than we sell it PEY 2016F 93% Gas 2.00/GJ AECO PEY 2017 Goals 7% NGLs 40/bbl (75% oil) 91% Gas 2.75/GJ 2.60/mcfe 9% NGLs 50/bbl Revenue /mcfe 3.20 0.60/mcfe hedging gain 3.20/mcfe…
  36. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 36
    2017 Outlook Over 20% Larger Capex Program PEYTO Exploration & Development Corp. Drill 145-160Hz Wells (Liquids Rich Natural Gas) vs 129 in 2016 Expand & Extract Increase Processing Capacity & NGL Yield 120 mmcf/d With Brazeau…
  37. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 37
    Peytos Future Where To From Here PEYTO Exploration & Development Corp. 150,000 120,000+ boe/d exit 10,800/boe/d 11,600/boe/d 11,000 /boe/d 100,000 16,800/boe/d 11,000 /boe/d BOED 11,00 15,100/boe/d /boe/d…
  38. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 38
    Peytos Future Working Around The Takeaway Constraints PEYTO Exploration & Development Corp. The capacity has been oversold by 60% 39 2/15/2017
  39. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 39
    Peytos Future Working Around The Takeaway Constraints PEYTO Exploration & Development Corp. Maximum Contract Pressure 40 2/15/2017
  40. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 40
    Appendix PEYTO Exploration & Development Corp. N Quarterly Track Record N Tax Pools N Payout N Hedging Strategy N Gas Marketing N FAQ 41 2/15/2017
  41. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 41
    Quarterly Track Record PEYTO Exploration & Development Corp. 2016 2015 2014 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Operations Production Oil & NGLs (bbl/d) 7,247 6,621 7,008 6,643 6,943 5,352 6,843 7,456 7,632 8,077 7,502…
  42. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 42
    Organic Business Model Peytos Tax Pools PEYTO Exploration & Development Corp. 1,800 1,600 1,400 1,200 Federal Tax Pools Millions 1,000 800 Q3/16 600 400 200 - 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009…
  43. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 43
    Peytos Payout Dividend Sustainability PEYTO Exploration & Development Corp. Peyto Dividend Sustainability 2,500 2,000 1,500 Peyto Cum. Earnings Q3/16 1,000 500 0 Q1 2000 Q4 2000 Q3 2001 Q2 2002 Q1 2003 Q4 2003…
  44. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 44
    Successful Hedging Strategy Peyto Realized Price History PEYTO Exploration & Development Corp. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto Peyto…
  45. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 45
    Gas Marketing Future Sales (1 of 4) PEYTO Exploration & Development Corp. Hedges by year (averaged) Year Vol. GJ/d Price/GJ Vol. mcf/d Price/mcf 2016 460,656 2.77 400,915 3.18 2017 490,795 2.60 427,145 2.98 2018 208,575 2.55…
  46. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 46
    Gas Marketing Future Sales (2 of 4) PEYTO Exploration & Development Corp. 47 2/15/2017 Assuming an Average Heating Value of 1.15 GJ/mcf for Peytos gas
  47. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 47
    Gas Marketing Future Sales (3 of 4) PEYTO Exploration & Development Corp. 48 2/15/2017 Assuming an Average Heating Value of 1.15 GJ/mcf for Peytos gas
  48. February 2017 Investor Presentation – Peyto Exploration & Development Corp – slide 48
    Gas Marketing Future Sales (4 of 4) PEYTO Exploration & Development Corp. Aug-16 Aug-17 Aug-18 May-16 Nov-16 May-17 Nov-17 May-18 Nov-18 Feb-16 Jun-16 Sep-16 Dec-16 Feb-17…

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