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September 2017 Corporate Presentation – Crew Energy Inc.

Crew Energy Inc. · Sep 14, 2017 · 30 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 – Crew Energy Inc. – slide 1
    BUILDING OUR FUTURE IN THE MONTNEY Corporate Presentation September 2017
  2. September 2017 Corporate Presentation – Crew Energy Inc. – slide 2
    BUILDING OUR FUTURE IN THE MONTNEY Financial Strength & Discipline 280,000+ net acres in the Montney People 16+ billion BOE of TPIIP resource 5,780 identified drilling locations(1) Assets +40% forecast Montney production growth…
  3. September 2017 Corporate Presentation – Crew Energy Inc. – slide 3
    ABOUT CREW (TSX: CR) Liquids focused, NE BC Montney producer Growth-oriented Montney producer with large, contiguous land base in NE BC Simple business strategy: Replicate the successful free cash flow generation achieved at Septimus…
  4. September 2017 Corporate Presentation – Crew Energy Inc. – slide 4
    BUILD A SIGNIFICANT PROSPECTIVE LAND POSITION And do it for low cost Montney (2007) Montney (2010) Montney (2017) 503 net Montney sections acquired for 248 MM: 0.5 MM / section 59 net Montney sections sold for 168 MM: 2.9 MM /…
  5. September 2017 Corporate Presentation – Crew Energy Inc. – slide 5
    NE BC MONTNEY: HIGHLY COMPETITIVE AMONG NORTH AMERICAN PLAYS Montney Competitive Features: Not a shale: its a siltstone Exceptionally thick: up to 1,000 feet Permeability 20-80 times greater than comparable resource plays in North…
  6. September 2017 Corporate Presentation – Crew Energy Inc. – slide 6
    MASSIVE MONTNEY LAND POSITION IN THE SWEET SPOT Thick, over-pressured, shallow and liquids-rich = low cost + high netback Significant development potential on Crews land: Flatrock 13% of land has Upper Montney reserves assigned…
  7. September 2017 Corporate Presentation – Crew Energy Inc. – slide 7
    CREW MONTNEY STRATIGRAPHIC STACK 2 HZ Wells 4 HZ Wells 3 HZ Wells 59 HZ Wells 77 HZ Wells 10 HZ Wells West Portage Groundbirch Attachie West Septimus Septimus Tower Doig Upper Montney 6 1 AA 1 23 7 2 A 42 38 3 3 B 2 9 12…
  8. September 2017 Corporate Presentation – Crew Energy Inc. – slide 8
    SEPTIMUS X 5 MODEL Inventory of 5,780 identified drilling locations(1) supports processing capacity + growth Future Growth Supported by Operated Infrastructure 1x Septimus: 60 mmcf/d 104 identified locations & 6 wells per year to…
  9. September 2017 Corporate Presentation – Crew Energy Inc. – slide 9
    SEPTIMUS: FREE CASH FLOW GENERATION Replicating Septimus 5x provides significant free cash flow longer term 89 MM Free cash flow forecast 16 19(2) Long-range growth plan forecasts free cash flow equivalent to Septimus multiplied by…
  10. September 2017 Corporate Presentation – Crew Energy Inc. – slide 10
    WEST SEPTIMUS: CONDENSATE RICH Plant expansion to 120 mmcf/d plus high condensate rates accelerates free cash flow generation Higher liquids weighting contributes to a better return on 2x Initial Condensate Ratios vs. Septimus…
  11. September 2017 Corporate Presentation – Crew Energy Inc. – slide 11
    ULTRA CONDENSATE-RICH AREA New focus at Greater Septimus Significant long-term future development Ultra Condensate-Rich potential in the area. Condensate-rich with low C7-30: 83,000 bbls condensate in capital and operating costs…
  12. September 2017 Corporate Presentation – Crew Energy Inc. – slide 12
    COMPELLING RETURNS FROM MONTNEY ASSETS Across a variety of price & cost cycles Project Area Cost Increase Effect on IRR (BT) Project Area Price Increase Effect on IRR (BT) 100 4.8MM 160 90 147% IRR with 15% 50% IRR even with 140…
  13. September 2017 Corporate Presentation – Crew Energy Inc. – slide 13
    GROUNDBIRCH Delineation area with long-term upside Higher liquids content than Septimus at 40 bbls / Recent Landsale 2.1MM / Section mmcf, 60% condensate Crew 2-4 Pad Groundbirch Large pay thickness (500 ft. Upper Montney)…
  14. September 2017 Corporate Presentation – Crew Energy Inc. – slide 14
    ATTACHIE Pilot wells successful July 2017 Landsale 21 Sections 77MM 3.7 MM / section Over-pressured 1.5 - 1.8x with liquids-rich natural gas Large pay thickness (1,000 Upper + Lower Montney) Crew 10-22 10.5 mmcf/d Extreme…
  15. September 2017 Corporate Presentation – Crew Energy Inc. – slide 15
    STAGED TRANSPORTATION & INFRASTRUCTURE Firm service arrangements & staged processing support growth plans Transportation Processing TCPL/Nova: 60 mmcf/d firm increasing to 120 mmcf/d (Jun 19) Groundbirch: 120 mmcf/d (Proposed)…
  16. September 2017 Corporate Presentation – Crew Energy Inc. – slide 16
    MULTIPLE MARKET ACCESS POINTS Long-term transportation capacity & market planning facilitates growth Flatrock Three pipeline options running west, east and south provide access to North American markets Attachie West Septimus…
  17. September 2017 Corporate Presentation – Crew Energy Inc. – slide 17
    REALIZED IMPACT OF GAS MARKET DIVERSITY Ideally positioned with access to 3 major export pipelines 3.50 Commencement of Alliance Pipeline service and initiation of diversified contract portfolio 3.00 Natural Gas Prices (C/MCF)…
  18. September 2017 Corporate Presentation – Crew Energy Inc. – slide 18
    CONTROLLING COSTS & MAXIMIZING NETBACKS Montney assets continue to generate attractive netbacks Rolling One Year (to Q2 17) Top Quartile Rolling One Year Operating Netbacks (Pre-Hedging) for (to Q2 17) Operating Costs Among 25…
  19. September 2017 Corporate Presentation – Crew Energy Inc. – slide 19
    TRACK RECORD OF PROFITABILITY SUPPORTED BY LOW COSTS 2016 PDP FD&A Costs 2016 Cash Costs (US/boe) (US/boe, net of royalties) 60 30 Canadian Co's Canadian Co's US Co's US Co's 50 Median 25 Median 40 20 30 15 20 10…
  20. September 2017 Corporate Presentation – Crew Energy Inc. – slide 20
    TOP QUARTILE CAPITAL EFFICIENCIES DRIVE STRONG RECYCLE RATIOS 3-Year Proved Developed FD&A Costs 3-Year Proved Developed Recycle Ratio (US/boe, net of royalties) (US/boe, net of royalties, including hedging) 60 3.5x Canadian Co's…
  21. September 2017 Corporate Presentation – Crew Energy Inc. – slide 21
    VALUE / PROFITABILITY DISCONNECT 14.0x US Co's PXD Revenue - PDP FD&A Costs - Cash Costs = Canadian Co's CXO 12.0x Full Cycle Profitability EOG Increasing APA PE XEC valuation EGN AREX COG 10.0x CHK ARX KEL VET EV/DACF…
  22. September 2017 Corporate Presentation – Crew Energy Inc. – slide 22
    KEY MONTNEY BUILDING BLOCKS ARE IN PLACE Focus on condensate-rich development to drive improved cash flows Increasing Condensate Quicker well payouts with improving netbacks 16+ billion boe TPIIP, 5,780 identified locations(1) on…
  23. September 2017 Corporate Presentation – Crew Energy Inc. – slide 23
    Contact Info: 24 Dale O. Shwed, President & CEO John G. Leach, Senior Vice President & CFO Robert J. Morgan, Senior Vice President & COO Suite 800, 250 - 5th Street SW Calgary, Alberta T2P 0R4 Telephone: (403) 266-2088 Email:…
  24. September 2017 Corporate Presentation – Crew Energy Inc. – slide 24
    APPENDIX www.crewenergy.com 25
  25. September 2017 Corporate Presentation – Crew Energy Inc. – slide 25
    2017 CAPEX PROGRAM & FORECAST 2017 Cash Flow (CF) (mm) 110 Hedging Summary as of Aug 2, 2017 Capex (mm) 200 Volume Period Derivative Reference Price Year-end net debt (mm) 303 Natural Gas Debt to annualized Q4 CF 2.1x 35,000 GJ/Day 2017…
  26. September 2017 Corporate Presentation – Crew Energy Inc. – slide 26
    SUMMARY OF NEW TERM DEBT Issuer: Crew Energy Inc. (the Company) Issue: 300 million senior unsecured notes (the Notes) Coupon: 6.5% Issue Ratings: DBRS: B S&P: B Term: Seven years (7NC3) Ranking: Senior unsecured ranking pari passu…
  27. September 2017 Corporate Presentation – Crew Energy Inc. – slide 27
    LLOYDMINSTER HEAVY OIL Stable asset with torque to oil prices Lloydminster ALBERTA SASKATCHEWAN Currently in sales process BRIGHTSAND 73,326 net acres of land in the area; SWIMMING Lloydminster LOW LAKE average WI of 93%…
  28. September 2017 Corporate Presentation – Crew Energy Inc. – slide 28
    2016 RESERVES & RESOURCE HIGHLIGHTS Montney reserves & resource growth with improving capital efficiencies Total 2016 2016 2016 Reserves Change Change Reserves NPV10 (BT) (mmboe) (after production) (per share) Replacement (millions) 3…
  29. September 2017 Corporate Presentation – Crew Energy Inc. – slide 29
    NE BC MONTNEY RESOURCE EVALUATION Dec. 31, Dec. 31, Reserves and Risked and Unrisked Economic Contingent Chance of Best Estimate Best Estimate 2016 2015 Resource (1)(2)(3)(6)(7)(8) Development Unrisked Risked Conventional Natural Gas…
  30. September 2017 Corporate Presentation – Crew Energy Inc. – slide 30
    NE BC MONTNEY RESOURCE EVALUATION, CONTD Chance of Best Estimate Best Estimate Prospective Resources (1)(2)(3)(4)(5)(6)(7) Commerciality Unrisked Risked Conventional Natural Gas (Tcf) 66% 10,311 6,774 NGL (MMbbl) 66% 327 215 Light…

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