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October 2017 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Oct 12, 2017 · 29 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. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / OCTOBER 2017 PROFITABLE PER SHARE GROWTH WITHIN FUNDS FLOW
  2. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 369.8 Fully diluted (1.3% dilutives) 374.5 Market capitalization (Bn) 3.6 Enterprise value (Bn) 4.4 Net debt-to-funds flow* 1.7x Annual dividend (/share) 0.28 2017…
  3. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 3
    WCP Long-Term Strategy Total Shareholder Returns Profitable Long-Term Organic Growth TSR 10% / year Consistent and Stable Dividend Growth Pillars of Sustainability Operating Principles Low Production Decline Rates Price…
  4. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Production per Share Growth 80,000 225 72,000 200 64,000 175 153 56,000 Production/MM Shares (boe/d) 143 150 139 130 134 Production (boe/d) 48,000 122 125 40,000 87 100 32,000 57,000 61 75 24,000 45,841…
  5. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Funds Flow per Share Growth 750 US WTI 2.50 79 95 94 98 93 49 43 50 2.06 600 2.00 1.83 1.68 1.63 Funds Flow per Share (/share) Funds Flow (CAD MM) 450 1.50 1.32 1.28 1.13 300 1.00 482 481 493 385 150 0.41…
  6. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 6
    2P Reserves per Share Growth F&D Costs (incl. FDC) 955 400,000 1,000 Recycle 915 TP TPP Ratio 848 350,000 2016 2.42 2.34 11.3x 2015 8.86 6.97 5.2x 746 300,000 750 643 250,000 (Mboe / MM Shares fd) 496 (Mboe) 200,000…
  7. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Financial Strength Internally Funded Growth + Dividends - No DRIP Credit Capacity 1.3 Billion 100% 93% 90% 84% 80% Undrawn Bank debt 70% 57% Total Payout Ratio 60% 480 MM 420 MM 62% 50% 40% 400 MM 30% 20%…
  8. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Exceptional Growth in 2017 2016 2017 Outlook % Change Average production (boe/d) 45,841 57,000 24% per million shares 134 153 14% Funds flow (MM) 385 479 24% per share 1.13 1.28 13% Development capital (MM) 174 300 72% Wells…
  9. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 9
    2017 Development Capital Capital by Type Capital by Area 3% 4% 5% 8% 23% Cardium 13% Production growth Viking 20% Waterflood (decline mitigation) SW Sask Facilities Deep Basin HS&E Boundary Lake 78% 14% 32% Elnora 2016…
  10. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Sustainable Asset Base: Capital + Dividend < Funds Flow Organic Growth Within Funds Flow 180 158 160 148 140 120 53 110 88 Funds Flow (MM) 100 80 67 60 52 45 95 40 70 21 52 20 43 24 - Cardium Viking SW Sask…
  11. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 11
    2H/2017 WTI Sensitivities Oil (USWTI) 40.00 45.00 50.00 55.00 60.00 FX (C/US) 0.76 0.78 0.80 0.82 0.84 Oil (Cdn/WTI) 52.63 57.69 62.50 67.07 71.43 AECO (C/GJ) 2.10 2.10 2.10 2.10 2.10 Funds flow netback (/boe) 20.95 22.00 23.00…
  12. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Free Funds Flow Optionality 1. Focused debt management target net debt to funds flow of 1.2 to 1.5x 2. Enhance per share growth metrics tuck-in acquisitions in core operating areas advance organic drilling in core areas WCP share…
  13. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Financial Prudence and Risk Management Mitigate price volatility and protect economic returns on capital deployed Predictability for WCP funds flow Capital reinvestment and Dividend payments Oil Hedges Gas Hedges C62.23 C60.84…
  14. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Core Areas of Operations Light Oil Drilling Inventory 2,895 BRITISH COLUMBIA ALBERTA SASKATCHEWAN Boundary Drilling Wells Lake Inventory 2016 2017 Cardium 721 18 31 Deep Viking 980 57 108 Basin SW Sask 647 13 33 Deep Basin…
  15. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Predictable and Stable Base Production 61 Enhanced Oil Recovery (EOR) projects in WCP asset base Geographically diverse (NEBC to SW Sask) 58% or 33,000 boe/d currently under EOR Increasing to 66% over the next 3 years 2017 EOR avg…
  16. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 16
    EOR Impact on Reducing Decline Rates Long-Term Decline Rate Mitigation One Year EOR Spending - Impact on Decline Rate 3.0% 2.0% 1.0% 0.0% Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 1…
  17. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Funds Flow Impact on Reducing Decline Rates Long-Term Incremental Funds Flow 30 750 20 600 Cumulative Incremental Funds Flow MM Annual Incremental Funds Flow MM 10 450 0 300 Year 10 Year 11 Year 12 Year…
  18. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 18
    Cardium Resource Play repeatable low risk growth Industry leading capital efficiencies Continuing capital efficiency improvement: West Pembina East Pembina ERH drilling Advancing frac designs and efficiencies Optimizing recovery…
  19. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Exceptional Type Curve Economics West Pembina Cardium West Pembina Type Well Economics Standard 1.0 Cardium ERH 1.5 Drill, Complete, Equip, Tie-in (MM) 2.23 2.54 Production, IP30 (boe/d) 317 476 Production, IP365 (boe/d) 159 239…
  20. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 20
    Saskatchewan Viking Oil top decile resource play Top tier inventory for sustainable growth 10 years high quality inventory, 36 API light oil Long-term growth, increasing ERH drilling SASKATCHEWAN Viking Resource Type Well Economics…
  21. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Southwest Saskatchewan stable production, multi-zone Overview SASKATCHEWAN Stable production base historical decline 2.3% per year 92% production under enhanced oil recovery (EOR) ASP 22% of production, 18% of 2P reserves…
  22. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Strong Repeatable Economics Key Characteristics U. Shaun Hz Atlas Hz 1.0 Unconventional Unconventional Sustainable oil growth, currently 14,000 boe/d (98% oil) Type Well Economics Plays Plays Multi-zone potential for growth (6…
  23. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 23
    Deep Basin Light Oil Dunvegan and Cardium Oil Strong play characteristics, large growth potential Dunvegan Wapiti Cardium 39 to 42 API oil Type Well Economics Standard 1.0 Standard 1.0 ERH 1.5 Large OOIP of 6 to 15.5 MMboe/section…
  24. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 24
    Boundary Lake large low decline resource with growth potential Boundary Lake WI Production Long-term, low decline asset Operated, 35 API light oil, 91% oil + NGLs Avg 90% WI in 3 operated units 5% decline Legacy oil pool under a…
  25. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 25
    Economic Sensitivities to WTI US/bbl Profit to Investment Ratio Rate of Return 3.0 500% 450% 2.5 400% 2.0 350% 300% 1.5 250% 200% 1.0 150% 100% 0.5 50% 0.0 0% 35 40 45 50 55 60 65 35 40 45 50 55 60 65 Payout (yrs) NPV / Well…
  26. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 26
    The Whitecap Investment Opportunity Organic Per Share Growth Within Funds Flow Capital + Dividend < Funds Flow Sustainable dividend, NO DRIP Long-Term Value Growth Orientation Executing on rolling 3 year business plan Return on…
  27. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Research Coverage AltaCorp Capital Haywood Securities Barclays Capital Canada Laurentian Bank Securities BMO Capital Markets Macquarie Securities Group Canaccord Genuity National Bank Financial CIBC World Markets Peters & Co.…
  28. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 28
    TSX:WCP www.wcap.ca October 2, 2017 28
  29. October 2017 Corporate Presentation – Whitecap Resources Inc. – slide 29
    Footnotes Slides 2, 7, 8, 10: - 2017 commodity prices used actual prices for 6 months and remainder of the year at WTI US50.00/bbl, C/US0.80, MSW Differential (US-3.00) and AECO C2.10/GJ. Slide 7: - Net debt as of June 30, 2017.…

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