Celebrating 10 Years of Growth TSX: PONY Investor August 14, 2017 Update
Corporate Profile TSX Ticker Symbol PONY Daily Production (1) 243 MMcfe/day Daily Trading Volume (6 month average) 1.2 million shares per day (40,574 boe/d) Shares 161 million Net Debt(2) 284 million Outstanding…
Significant Growth Montney Pure Play Asset 100% British Columbia (BC) focused Montney 300m thick pay zone with reserves booked in three layers 314 net sections (201,009 net acres) of Montney lands 126 gross operated wells drilled…
Montney Sweet Spot Location, Location, Location PONYs Montney Sweet Spot is: a dolomitic siltstone with higher reservoir quality than a shale 4x thicker than the Marcellus at greater than 300 300m meters (approximately 1,000 ft.)…
Gas Processing Complex Processing Flexibility Jedney (13 MMcf/d) Total Processing Capacity October 2017 577 MMcf/d Owned 153 MMcf/d West Blair Third-party 424 MMcf/d (25 MMcf/d) AltaGas Blair Beg Liquids Processing - 372 MMcf/d…
Production Growth Consistent Per Share Growth 6,589 8,693 13,192 15,604 23,204 48,000 84,800 Annual Average (boe/d ) boe/d boe/d boe/d boe/d boe/d boe/d boe/d 600 3.50 Annual Average MMcfe per Day per 1 Million Shares Annual…
2017 & 2018 Development Model Infrastructure Supports Growth AltaGas 100,000 Townsend Facility (Phase 2) AltaGas Townsend 90,000 99 MMcf/d Facility (Phase 1B) 48 MMcf/d 80,000 Commitment Production Volumes (boe/d) 70,000…
Growth-Oriented Spending Moving Towards Cash Flow Budget Capital Development Program Annual Average Daily Production (Actual) 400 600 Annual Average Daily Production (Forecast) Cash Flow (Net of Interest Expense, G&A, and Capital…
Cash Flow Growth Strong Per Share Metrics 0.55 Significant Year-over-Year 1.38 2018f Growth in Cash Flow per Share 0.50 0.45 0.84 2017f 0.40 Realized Cash Flow per Share Forecast 0.35 0.56 0.30 2016 0.25 0.20…
Solid Margins Drive Earnings Cost Efficiencies Drive Higher Cash Flow/Mcfe in 2018 Cash Costs Non-Cash Costs Cash Costs Non-Cash Costs 3.50 3.50 Top Line Revenue Pre-Tax 2.78 /Mcfe 1.25 Earnings Top Line Revenue 1.50 Pre-Tax…
Financial Strength Term Debt and Credit Facility Provide Ample Flexibility Improved Liquidity 400 Million Syndicated Credit Facility Syndicated Credit Secured, Reserve Based Lending Facility At closing, Matures April 2019 45 mm…
The Sweet Spot Top Decile Well Performance PONY has best well in North Montney with 2,500,000 6-month cumulative production of 2.0 Bcf 36 of top 100 wells are PONY; and 38% 6-Month Cumulative of the 93 PONY 2,000,000 Based on…
Recent Well Drilling in the Sweet Spot Cumulative production of approximately Estimated 15 bbls/MMcf of liquids flowing 2.5 Bcf in first 8 months through Townsend Facility 500 15,000 Casing Pressure (kPa) Daily Volumes…
Historical Costs Drilling & Completion Efficiency on 113 Operated Wells As capital well costs fell, production type curves dramatically improved Management Type Curve Continued type curve Perf & Plug Systems 22 wells increased 50%…
2017 Economics By Area August 1, 2017 Strip Pricing Townsend Blair Daiber 16 Management Type Curves 16 Management Type Curves 16 Management Type Curves 14 14 14 Op Day Gas Rate (mmcef/d) Op Day Gas Rate (mmcf/d) 12 45 bbls/MMcf…
Pro Forma Reserves PONY Reserves (Pro Forma) Dec 31, 2016 2016 Proved F&D costs of 0.56/Mcfe generated a Proven Recycle Ratio of 2.6x PDP 6.9 Tcfe 2P Reserves 0.6 Tcfe or 9% 1.125 Bboe PUD + Probable PDNP Reserves Includes…
Reserve Additions At Excellent FD&A Costs Industry Leading Finding, Development & Acquisition Costs 3.00 Industry 2.77 2.76 leading 1P + 2P FD&A 2.50 costs FD&A Costs (incl change in FDC) per Mcfe 2.26 2016 PDP Recycle…
Canadian Natural Gas 2P Reserves As at Dec 31, 2016 Proved Natural Gas Reserves Probable Natural Gas Reserves 10.0 PONYs 2P Natural Gas Canadian Natural Gas 2P Reserves (Tcf) reserves of 6.4 Tcf 8.0 (3.2 Tcf Proved + 3.2…
Increasing Cash Flow per Mcfe Driving Costs Lower / Increasing Liquids Yields G&A Costs per Mcfe Operating Costs per Mcfe* Liquids Production Operating Cost ( / Mcfe) 0.35 72% 1.00 45% 6,000 G&A Cost ( / Mcfe) Liquids…
Fixed Price Hedges Prudent Risk Management 550 AECO Fixed Price Hedges (/Mcf) Station 2 Fixed Price Hedges (/Mcf) Expected Average Natural Gas Production (MMcf/d) 500 AECO Call Option (/Mcf) 450 Unhedged Financial hedges,…
2017 Pricing Managing Volatility 91% of 2017 Production Volumes PONY is Priced Outside NOT tied to Station 2 Spot Station 2 93% of 2017 Pricing Production Revenue Sourced Outside Station 2 Spot Fixed Price Contracts 69%…
Firm Transportation Long-Term Strategy PONY LANDS PPY LANDS T-North to Station 2 / Sunset Creek COMPRESSOR STATION PROCESSING FACILITY 305 MMcf/d Current PROPOSED METER STATION ROYALTY LINE 180 MMcf/d Incremental Dec 2017 JEDNEY…
Forecasted Capital Expenditures 2017 2017 Pro-Forma Capital Spending Forecast Period Capital Drilling Completions Q1 96 million 18 wells 11 completions Q2 58 million 11 wells 10 completions Q3 96 million (e) 21 wells (e) 21…
Pony Points Checking Off All of the Boxes Financing In-Place + Liquidity Top Well Performance Low Well Costs Firm Transportation Massive Reserves Base 24
UGR Blair Creek Acquisition Overview Transaction Summary: On March 15th, 2017 PONY announced the acquisition of UGR for 277 million (41 million PONY shares and assumption of 47 million of net debt(1)) UGR is a pure play NEBC Montney…
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…
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