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September 2017 Corporate Presentation – Bonavista Energy Corp

Bonavista Energy Corp · Sep 14, 2017 · 40 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. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 1
    All together better.
  2. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 2
    Identity This is Bonavista: Our leadership team is We are ALIGNED with our EXPERIENCED: shareholders: average tenure with 9% insider ownership, 3x our Bonavista of 13 years peer group average We are EFFICIENT: We have a…
  3. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 3
    2017 - Visibility to Value Creation 2017 priorities: Sustainable growth in production and funds from operations Enhance asset quality through concentration and innovation Improve financial flexibility with continued debt…
  4. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 4
    All together better.
  5. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 5
    2017 Sustainable Growth Self-funded growth: Providing Excess Net Vehicle for Growth Operating Income Deep Basin requires 55% of net operating income 30 Edmonton to maintain production 25 Production (mboe/d) 40% West 20…
  6. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 6
    2017 Sustainable Growth Guidance: % 2017E 2016 change Capital Expenditures ( millions): Value Capital (1) 235 125 88% Total Exploration and Development 290 154 88% Divestitures, net of Acquisitions (10) (168) Total Capital…
  7. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 7
    2017 Sustainable Growth Majority of growth in value capital allocated to the Spirit River: 235 million * 125 million * Spirit River Glauconite Other 50% 71% 2017E 2016 9 * Value capital defined as drilling, completion and…
  8. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 8
    2017 Sustainable Growth 2017 capital allocation relative to depth of inventory: Remaining 2017E Wells H1 Wells H2E Wells Prospect Development (net) (net) (net) Inventory Years Spirit River 35 17 18 430 12 Glauconite 15 12 3…
  9. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 9
    2017 Sustainable Growth Growing within our means: 75,000 72,000 90-100% Production (boe/d) 69,000 payout ratio 66,000 for 2017E 63,000 6% 1% 11% 60,000 2016 2017E 2016 H1 2017 H1 2016 H2 2017E H2 11 All…
  10. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 10
    2017 Sustainable Growth NGL a growing component of revenue stream: 34% Natural Gas Oil Natural Gas Liquids 30% 556 million * 445 million 2017E 2016 12 * 2017E annual NGL revenues (excluding hedging) compared to 2016.…
  11. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 11
    2017 Sustainable Growth 41% increase in NGL revenues: 2017 forecast C3 2016 realized C3 price = 29% price = 67% Conway benchmark Conway benchmark 10% 12% 6% 21% 49% 189 million * 134 million 2017E 59% 23% 2016…
  12. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 12
    All together better.
  13. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 13
    Spirit River - Ansell Wilrich Innovation enhancing value: Average well performance 900 R20 R18 R16 800 Cumulative Production (mmcf) T53 700 52% 600 500 400 T51 300 200 100 0 11 51 101 151 201 T49 Days on…
  14. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 14
    Spirit River - Ansell Wilrich Innovation enhancing value: Year over Year Improvements (1.5 mile wells) Well Characteristics (1.5 mile wells) 6,000 Ansell Wilrich 5,000 2017Q1 2016 % change Raw Gas (mcf/d) Drill & complete…
  15. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 15
    Spirit River - Ansell Wilrich Production improvement at a similar cost per meter: 9,000 IP90 of 5,700 mcf/d at 47% 1,950/m * 8,000 7,000 increase from average horizontal length of 2,220 m Raw Natural Gas (mcf/d) 6,000…
  16. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 16
    Spirit River - Ansell Wilrich Focused on operating margins: 100% 5.00 90% 4.50 4% 80% 4.00 70% 3.50 in operating margin /boe, /GJ 60% 3.00 50% 2.50 notwithstanding % 40% 2.00 30% 20% 1.50 1.00 35% in…
  17. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 17
    Spirit River Ansell Wilrich Completion innovations similar total tonnage spread across twice the stages: 15-36 10,000 13-36 9,000 90% increase 8,000 Raw Gas Production (mcf/d) 7,000 6,000 5,000 4,000 3,000 2,000…
  18. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 18
    Spirit River - Morningside Falher Piloting extended reach horizontal (ERH) wells in the Falher Channel at Morningside: R1W5 R28 R27 Average well performance 180,000 T44 160,000 17 in land over last 12 months to 140,000…
  19. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 19
    Spirit River - Morningside Falher Top tier economic performance: Year over Year Improvements Average Well Characteristics 6,000 Morningside Falher 5,000 2017 2016 % change ERH 1-Mile Drill & complete capital 4,000 2.6 2.0 30%…
  20. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 20
    Spirit River - Morningside Falher Top tier economic performance*: 100 45 1.4 90 40 1.2 80 35 70 1.0 30 60 25 0.8 Months 50 % 20 0.6 40 15 30 0.4 20 10 0.2 10 Payout 5 PI *** 0 0 0.0 IRR 1.75…
  21. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 21
    Glauconite Efficiency Improvements in Strachan Delineating and growing the opportunity: Year over Year Improvements Land Growth Over the Past Year R10 R9 R8 R7W5 4,500 4,000 3,500 Access to 60,000 90 over last 12 % T39…
  22. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 22
    All together better.
  23. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 23
    2017 Improve Financial Flexibility Net debt and net debt to funds from operations: 1,500 433 million 6.0 15 2.00 net debt reduction in 2016 14 1.90 Net debt to funds from operations Funds from operations (/boe) 13…
  24. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 24
    2017 Improve Financial Flexibility Hedging to protect future funds from operations: Natural Gas Oil* Propane 11% 9% 5% 27% 2017 43% 57% 76% 235 mmcf/d at 73% 4,748 bbls/d at 3,000 bbls/d at C3.31/mcf C67.33/bbls…
  25. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 25
    2017 Improve Financial Flexibility Hedging and diversifying to protect future funds from operations: 2018 Industry Natural Gas Hedging * 2018 Bonavista Natural Gas Diversification 50% 45% 14 mmcf/d to Station 2 40% 35%…
  26. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 26
    All together better.
  27. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 27
    On Course to Value Creation in 2017 Focused on what we can control: Sustainable growth: 6-9% production growth within funds from operations Enhance asset quality: 20-25% improvement in key play capital efficiencies Improve…
  28. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 28
    All together better.
  29. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 29
    2017 Second Quarter Performance Three months ended June 30, Financial: 2017 2016 % change ( millions except per share amounts) Production revenues 140.7 90.9 55% Funds from operations 76.6 59.5 29% - per share 0.30 0.27 11%…
  30. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 30
    2017 Second Quarter Performance Continued cost improvements in rising cost environment: 25% 30% Q217-Q416 change in 25% Q217-Q416 change in 20% operating costs / boe cash costs / boe 20% 15% 15% 10% 10% 5% 5% 0% 0%…
  31. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 31
    2017 Sustainable Growth Spirit River continues to attract incremental capital in H2 2017: 125 million * 110 million * 2017E H2 Spirit River Glauconite 2017 H1 Other 65% 77% 33 * Value capital defined as drilling,…
  32. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 32
    Creating Value with Recently Acquired Assets Growing our acquired assets: 9,500 Current production of 9,000 Turnaround 8,500 impact 9,150 boe/d Optimization projects have increased base production by Production (boe/d)…
  33. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 33
    2017 Improve Financial Flexibility Total & senior debt: Bank credit facility - 500 million* Senior Notes (CDN) 8 banks in credit facility 20 Unsecured, financial covenants Matures September 8, 2021 Currently undrawn Senior notes…
  34. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 34
    2017 Improve Financial Flexibility Production and funds from operations growth while deleveraging: 2017E sustainability and leverage 2017E production growth and valuation 200% 10.0 16.0x 100% 180% 8.0 14.0x 80% 160% 6.0 12.0x 60%…
  35. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 35
    Identity Concentration Strategy Focused on two core areas: Deep Total Core Non-Core Basin Net operating income ( millions) 337 99% 1% 2016 Edmonton Production (boe/d) 68,550 93% 7% E&D capital expense ( millions) 154 99%…
  36. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 36
    Identity Performance Improvements with Focus Concentration strategy has led to a higher quality portfolio: 10.00 16.00 35,000 PRODUCTION ADDITION EFFECIENCY 14.00 FINDING & DEVELOPMENT COSTS 30,000 9.00 12.00 25,000…
  37. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 37
    Identity Sustainable Growth Includes Reducing Footprint Socially responsible: REDUCING AIR CONTAMINANTS 700 2,000 5.0 7,800 1.8 1,800 4.1 4.5 7,600 1.6 TOP TIER PIPELINE RECORD 600 3.7 1,600 4.0 7,400 1.4 3.0 3.0 3.0…
  38. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 38
    2017 Sustainable Growth Supportive local natural gas fundamentals: ATCO Sheerness generating station ATCO Battle River generating station Oil sands demand grows to 4 bcf/d by 2020 Recently announced coal to natural gas…
  39. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 39
    2017 Sustainable Growth Supportive international natural gas fundamentals: The U.S. is becoming a net natural gas exporter through the development of LNG export terminals and pipeline shipments to Mexico 41 Source: EIA,…
  40. September 2017 Corporate Presentation – Bonavista Energy Corp – slide 40
    1500, 525-8th Avenue S.W. Calgary, Alberta T2P 1G1 bonavistaenergy.com Investor_relationsbonavistaenergy.com All together better.

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