SIGNIFICANT ASSET SALES STRENGTHENING THE FOUNDATION CORPORATE PRESENTATION June CORPORATE PRESENTATION 1
CORPORATE PROFILE Corporate Summary Q1 2017 Avg. Daily Production 52,957 boe/d Intermediate Production Mix 62% liquids/38% gas Canadian oil and Undeveloped Land (net) 416,000 acres natural gas producer with 28 Reserves (2P YE 2016)…
MEANINGFUL DEBT REDUCTION CONTINUES ASSET SALES GENERATED ABILITY TO SIGNIFICANTLY REDUCE TOTAL DEBT FROM YEAR END 2016 LONG-TERM DEBT (MILLIONS) Asset dispositions have provided 1,800 1,687 opportunity to materially reduce total…
BALANCE SHEET MANAGEMENT FOLLOWING MARCH PAYMENTS, REMAINING DEBT MATURITY SCHEDULE IS MANAGEABLE LONG-TERM DEBT MATURITIES (CDN MILLION) 700 Debt paid 2017/2018 Debt to be paid 600 455 million of disposition Remaining debt…
2017 CAPITAL BUDGET PRIORITIES 2017 CAPITAL BUDGET OF 125 MILLION Optimization of Lindbergh Progress with engineering Continue to focus on Phase One production MAINTENANCE and design work on safety, asset integrity and…
2017 GUIDANCE Corporate Guidance* Average daily production (boe per day) 43,500 to 45,500 Total capital expenditures ( million) 125 Funds flow from operations ( million) 160 Royalties (% of sales) 9.0 Operating costs ( per…
PENGROWTHS RESOURCE BASE INCREASING FOCUS ON OIL AND LIQUIDS DEVELOPMENT AB SK Fort McMurray Lindbergh Thermal Oil Montney Gas Edmonton Greater BC Olds/ Saskatoon Garrington Calgary Large accumulations Long life…
LONG-TERM DEVELOPMENT TWO KEY ASSETS EXPECTED TO PROVIDE OVER 9 BILLION OF DEVELOPMENT OPPORTUNITIES Thermal Oil Montney Gas Lindbergh/Selina SAGD Groundbirch Approximately 7.5 billion of Approximately 1.5 billion of future…
LINDBERGH THERMAL OIL TOP TIER SAGD OPERATION Exceptional Operated SAGD Project Best in Class Economics Large Resource with Low Risk Growth Lindbergh is one of the most economic, ultra long-life SAGD projects with sizable,…
LINDBERGH A DEMONSTRATED HIGH QUALITY PROJECT WITH TOP QUARTILE PERFORMANCE 1400 Firebag Christina Lake (CVE) 1200 1000 Average well productivity (bbl/d) 800 Jackfish Surmont Foster Creek Leismer Lindbergh 600…
PEANUT BUTTER VS. HOCKEY PUCKS LINDBERGH: THE PERFECT COMBINATION OF RESERVOIR FLUID AND ROCK Athabasca Cold Lake/Lindbergh VS. CORPORATE PRESENTATION 11
LINDBERGH THERMAL PROJECT STRONG PERFORMANCE FROM FIRST COMMERCIAL PHASE 18,000 14.00 Production (bbl/d) SOR 16,000 12.00 14,000 Commenced Steam-Oil Ratio (SOR) Bitumen Production (bbl/d) steaming 10.00 12,000 operations…
COLD LAKE/LINDBERGH REGIONAL ADVANTAGES COLD LAKE REGION = SUPERIOR ECONOMICS Projects in the Cold Lake region such as Lindbergh benefit from a number of significant regional economic advantage based on their bitumen quality and closer…
PEER BENCHMARKING Q1 2017 OPERATING NETBACK ( PER BBL) 40.00 35.00 30.00 25.00 20.00 15.00 22.60 21.23 21.16 10.00 18.27 17.94 14.35 5.00 5.89 0.00 Pengrowth Pengrowth MEG Christina Cenovus Christina Suncor Firebag &…
PENGROWTHS THERMAL PROJECTS STRONG PIPELINE OF THERMAL PROJECTS TO SUPPORT GROWTH Project (Phase) Status Muriel Lake Selina Q1, 2017 average production of Lindbergh Phase One 14,900 bbl per day (100 % working interest) 2017…
LINDBERGH GROWTH PROFILE Current Operations (Phase 1 incl. throughput initiative & Pilot) Full Field Lindbergh (Current Operations + Phase 2 expansion) Fully Developed (Full field Lindbergh + Muriel Lake expansion)…
LINDBERGH COMPETES WITH LOW COST PRODUCTION 2016 GLOBAL LIQUIDS COST CURVE Shallow water Ultra-deepwater non-OPEC Europe 120 Lindbergh NPV10 breakeven price L48 Niobrara is approximately US 46/bbl L48 other tight oil Canadian oil…
LINDBERGH PHASE TWO CAPITAL COST ESTIMATES LINDBERGH PHASE 2 ESTIMATED CAPITAL COSTS ARE DOWN 30 PERCENT 900 30 percent reduction in expected costs since 2015 800 ( million) 700 600 500 May-15 Oct-15 Nov-15 Feb-16…
PENGROWTH MONTNEY OVERVIEW MULTI-ZONE PLAY WITH LONG-TERM GROWTH POTENTIAL 21 gross sections (90 Deep inventory of operated, 28 million cubic feet per day percent working interest) low risk drilling opportunities operated…
MONTNEY DEVELOPMENT POTENTIAL MULTI-ZONE DEVELOPMENT OPPORTUNITIES GROUNDBIRCH Multi-zone development potential Productivity and EUR are expected to be greatly enhanced by recent fracing U1 Upper advances U1 Lower 2014 wells…
MONTNEY PLAY ECONOMICS PROVIDE STRONG RETURNS THAT COMPETE WITH OIL PLAYS Groundbirch Estimate of Discovered PIIP 3.7 Tcf Gross/Net Unrisked Inventory 399/360 Per Well Unrisked Metrics Case 1 Case 2 Case 3 DCET ( million/well) 5.5…
OLDS/GARRINGTION DOMINANT POSITION WITH OPPORTUNITIES FOR GROWTH Light oil (35o to 50o oil) and Control of key processing ( Technology continues to liquids-rich natural gas with INFRASTRUCTURE 112 MMcf/d) facilities with an unlock…
OLDS/GARRINGTION LIGHT OIL AND LIQUIDS-RICH GAS IN STACKED RESERVOIRS Horizontal potential Technology continues to unlock new in all layers resource plays Stacked reservoirs (Cardium, Viking, Glauconite, Ellerslie, and Elkton)…
SUMMARY EXECUTING ON WHAT IS IN OUR CONTROL Demonstrated debt reduction provides increased visibility to long-term growth and value creation potential Targeting additional asset sales as means to further delever balance sheet…
APPENDIX CORPORATE PRESENTATION 25
LINDBERGH PHASE ONE OPTIMIZATION Approximately 60 million allocated in 2017 capital budget towards the optimization of Phase One production The optimization program includes the first new drilling since commercial production…
OIL SANDS INDUSTRY CAPITAL SPENDING MATERIAL DECLINE IN CAPITAL SPENDING IN RECENT YEARS Oil Sands Conventional O&G 100.0 Decline in crude oil prices resulted in significant decline in oil sands capital 80.0 spending since 2014…
2016 RESERVES SUMMARY DELIVERING STRONG GROWTH IN RESERVES Company Interest Reserves Total Proved (1P) reserves increased 13 percent to 285.8 Proved Developed million boe Total Probable Producing Proved plus Probable reserves 53%…
2016 RESERVES SUMMARY POST DISPOSITIONS ASSET SALES HAVE REDUCED 2P RESERVES BY ONLY 11 PERCENT Pre-asset sales Total Probable Proved Developed Producing 53% 608.5 19% million boe 1% Proved Developed Non- producing 27%…
NET ASSET VALUE SIGNIFICANT YEAR OVER YEAR INCREASE IN NET ASSET VALUE ( millions except percentages and share numbers) December 31, 2015 December 31, 2016 Value of total Proved plus Probable Reserves 3,268 4,535 Undeveloped Land…
2016 RESERVE REPLACEMENT COSTS FINDING, DEVELOPMENT AND ACQUISITION COSTS IMPROVING Three-year Weighted 2016 2015 Average Proved Proved Proved Proved Proved Proved plus plus plus Probable Probable Probable Excluding Future…
2016 RESERVES CONTINUITY CONTINUED RESERVES GROWTH DESPITE SIGNIFICANT ASSET DISPOSITIONS AND REDUCED CAPITAL SPENDING Proved Proved plus probable (Mboe) (Mboe) December 31, 2015 252,060 569,126 Extensions and improved recovery…
TAX POOLS NO CASH INCOME TAX EXPECTED TO BE PAYABLE UNTIL AT LEAST 2022 Tax Pools as at December 31, 2016 Category (million) Canadian Oil and Gas Property 407 Expense Canadian Development Expense 452 Undepreciated Capital…
ADVISORIES Additional Information Supplemental Non-IFRS Measures Readers should refer to Pengrowths most recent Annual Information Form under the heading Business Risks in the most recent year-end Managements Discussion and Analysis and…
ADVISORIES Contingent Resource Assessments: Contingent resources are those quantities of petroleum estimated to be potentially recoverable from known accumulations using established technology or technology under development, but which…
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