High Growth, Low Supply Cost Montney Developer September 2017 TSX: VII.TO
7G Corporate Overview 7G Capitalization & Key Corporate Statistics Ticker symbol - TSX VII Share Price(1) 17.99 Basic Market Cap(1) 6.4 billion Net Debt(2)(4) 1.7 billion Enterprise Value 8.1 billion Available…
Key Business Principles Differentiate in the service of all stakeholders STAKEHOLDER SERVICE Enhance social license by adhering to 7Gs Level 1 Policy Statement FINANCIAL Earn full cycle returns on capital employed…
Building The Premiere Montney Developer Project Based Montney Development 7G Historical Quarterly Production by Commodity (Boe/d) 200,000 180,000 Natural gas - Boe/d 160,000 NGLs - Bbl/d Extensive, scalable, condensate and 140,000…
Profitable Growth Historical Cash Return on Invested Capital (CROIC) 16% 15% 14% 14% 2013A-2015A 2015A 2016A 12% 12% 11% 10% CROIC (%) 10% 8% 7% 7% 6% 6% 6% 5% 5% 4% 4% 2% VII VII Top Canadian Top Canadian Top…
Significant Per Share Growth Production per Share(1)(2)(5) Funds Flow per Share(1)(3)(5) 2P Reserves per Share(4)(5) 600.0 3.00 502.5 6.0 500.0 2.50 2.30 BOE/d per MM Shares 5.0 4.2 Boe per Share 400.0 369.5 2.00…
Full Cycle Returns Improving Type Curves Through Time Assumes: US50/bbl WTI, US3.00/MMbtu NYMEX, 0.77 USD/CAD Production Capital Budget Budget Raw Gas Type Curve 9,000 2015 Type 2016 Type 2017 program Curve Curve (high…
The Asset - Inventory by Development Area Current Development Nest 2 800 locations(1) Nest 1/Nest 2 Boundary Results: 90 day cumulative…
Diversified Natural Gas Market Access Market Access AECO NGTL Firm 660 NGTL MMcf/d The Kakwa River Project is located in close proximity to North Americas largest source of condensate demand - the Canadian oil sands Eastern…
Innovative Infrastructure The 7G Infrastructure Advantage Super Pads: Decentralized processing plants separating field condensate, gas and water High pressure artificial gas lift at each well to assist lifting free liquids…
APPENDIX 13
Level 1 Policy We believe that companies have only the rights given to them by society. While people have a natural entitlement to basic rights, corporations are an instrument created by society to provide its needs and ought to have no…
Responsible Development Highlights Safety Environment Community Safety first Low GHGs GP Hospital 0.56 TRIF in 2016 0.0127 carbon intensity(1) 1.2 million raised Second year in a row of 7Gs annual golf reduced incident…
Upside Potential - Upper Montney Extension and Secondary Targets 7G ACREAGE HELD BY ZONE (December 31, 2016) Gross Zone Gross Acres Net Acres Net Sections Average WI Sections Cardium 167,360 121,120 262 189 72% 1WS 178,720 139,027…
7Gs Infrastructure Access Significant infrastructure investments to facilitate profitable full field development 17
Completion Optimization: Impact of Higher Intensity Completion and Frac Fluid Higher Intensity Completion Slickwater vs. Nitrified Foam 19
Reserves & Resources Year End 2P Reserves (MMBoe) 1P & 2P Finding Costs (/Boe) 1,800 18.00 Natural Gas 16.05 3 Yr Avg. 1,600 16.00 15.39 1,535 14.43 14.26 Dec. 31, 2016 Liquids 1,400 14.00 11.17 10.97 11.50 11.68 1,200 12.00…
Prudent Balance Sheet Management Conservative Financial Management 7G Net Debt to Quarterly Annualized Funds From Operations 3.5X 2.9X 3.0X 2.6X 2.5X 2.3X Q2 2017 Net Debt to annualized 2.0X 1.7X 1.7X 1.7X quarterly funds flow…
Current Hedge Position Hedge Position August 30, 2017 ROY 2017 2018 2019 2020 Q3 2017 Q4 2017 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 2020 Liquids Hedging WTI…
Selected Financial and Operational Information VII - Recent Quarterly Results OPERATING Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 YE 2016 YE 2015 Average daily production Condensate & oil (mbbls/d) 54.2 46.8 43.2 46.5 38.8 28.4…
Individual Well Economics Assumes: US50/bbl WTI, US3.00/MMbtu NYMEX, 0.77 USD/CAD SENSITIVITIES - SPENDING FOCUS IN 2017 2017 program 2015 Type 2016 Type 2017 program (delineation & future Curve Curve (high intensity)…
Individual Well Economics: IRR Sensitivities (half-cycle, pre-tax) Assumptions: - NGLs as % of WTI: C3 35%, C4 50%, C5 90%. Chicago gas discount 0.01 to NYMEX HH. Unit transportation costs: sales gas US0.92/Mcf. Recovered liquids:…
Drilling Cost & Efficiency Improvements Drilling Days vs. Depth Drilling Cost vs. Depth m m 1000 m 1000 m 2000 m 2000 m 3000 m 3000 m 4000 m 4000 m 2012 2012 5000 m 5000 m v 2013 2011 First 2016 - 2013 2011 First 6000 m…
Well Results within the Nest Nest 2 Gas C5+ Total C5 +Yield Wells Mcf/d bbls/d boe/d bbl/MMcf () IP30 4,498 935 1,684 208 195 IP90 4,343 825 1,548 190 174 IP180 3,986 654 1,318 164 158 IP270 3,547 555 1,146 157 138 IP365 3,368…
Inventory of Nest 1 & Nest 2 Montney Wells In Progress In Progress Well Well Wells down Wells down due due to to Nest Nest 1 1 Drilling Drilling Phase Phase Completion Phase Completion Phase Tie-in Phase Tie-in Phase…
Sweet Spot of the Montney Over Pressured High Productivity Brittle Rock High Recovery Factor Thickness Large Resources in Place Lower Temperature High Liquids Content 28 Sources: Canadian Discovery Ltd. & Graham Davies…
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