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November 2017 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Nov 8, 2017 · 28 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. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / NOVEMBER 2017 SUSTAINABLE PER SHARE GROWTH WITHIN FUNDS FLOW
  2. November 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* 1.6x 2018 annual dividend (/share) 0.294…
  3. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Sustainable Growth in 2018 2017 Outlook 2018 Budget % Change Average production (boe/d) 57,000 58,800 - 60,000 4% per million shares 153 159 4% Funds flow (MM) 491 543 11% per share 1.32 1.45 10% Development capital (MM) 330 - 335…
  4. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 4
    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…
  5. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Production per Share Growth 80,000 225 72,000 200 64,000 175 159 153 56,000 143 139 150 Production/MM Shares (boe/d) 130 134 48,000 122 125 Production (boe/d) 40,000 87 100 32,000 58,800 57,000 - 61 60,000 75…
  6. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Funds Flow per Share Growth 750 2.50 US WTI 79 95 94 98 93 49 43 50 53 2.06 600 2.00 1.83 1.68 1.63 Funds Flow per Share (/share) 450 1.50 1.45 Funds Flow (CAD MM) 1.32 1.32 1.13 300 1.00 543 482 481 491 385…
  7. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 7
    2P Reserves per Share Growth F&D Costs (incl. FDC) 400,000 955 1,000 Recycle 915 TP TPP Ratio 2016 2.42 2.34 11.3x 848 350,000 5.2x 2015 8.86 6.97 746 300,000 750 643 250,000 (Mboe / MM Shares fd) 496 200,000 500…
  8. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Financial Strength Internally Funded Growth + Dividends - No DRIP Credit Capacity 1.3 Billion 100% 93% 89% 90% 90% 80% Undrawn Bank debt 70% 57% Total Payout Ratio 60% 500 MM 400 MM 68% 70% 50% 40% 400 MM 30%…
  9. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 9
    2018 Development Capital Capital by Type Capital by Area 1% 4% 4% 6% 16% 3% 11% Production growth Cardium 20% Waterflood (decline mitigation) Viking Facilities SW Sask Recompletions/Workovers Deep Basin 32% HS&E/other…
  10. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Sustainable Asset Base: Capital + Dividend < Funds Flow Organic Growth Within Funds Flow 200 174 171 180 160 140 51 129 Funds Flow (MM) 120 114 46 100 77 80 60 119 52 40 84 77 28 61 20 24 - Cardium Viking SW…
  11. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 11
    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 C63.77 C62.43 C62.58…
  12. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 12
    2018 WTI Sensitivities Oil (USWTI) 45.00 48.00 53.00 58.00 63.00 FX (C/US) 0.72 0.75 0.78 0.81 0.84 Oil (Cdn/WTI) 62.50 64.00 67.95 71.60 75.00 AECO (C/GJ) 2.25 2.25 2.25 2.25 2.25 Funds flow netback (/boe) 22.50 23.40 25.00 26.70…
  13. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Free Funds Flow Flexibility 1. Focused debt management target long-term net debt to funds flow of 1.2 to 1.5x 2. Enhance per share growth metrics tuck-in acquisitions in core operating areas increase organic drilling in core…
  14. November 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 2017 2018 Cardium 721 30 24 Deep Viking 980 122 125 Basin SW Sask 647 34 63 Deep Basin…
  15. November 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) 59% or 33,600 boe/d currently under EOR Increasing to 66% over the next 3 years 2017 EOR avg…
  16. November 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% Decline Rate (%) 0.0% Year 10 Year 11 Year 12 Year 13 Year 14…
  17. November 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. November 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 with improved drill technology Advancing frac designs and…
  19. November 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. November 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 Viking Resource Type Well Economics…
  21. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Southwest Saskatchewan stable production, multi-zone SASKATCHEWAN Overview Stable production base historical decline 2.3% per year 92% production under enhanced oil recovery (EOR) ASP 22% of production, 18% of 2P reserves Southwest…
  22. November 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 13,500 boe/d (98% oil) Type Well Economics Plays Plays Multi-zone potential for growth (6…
  23. November 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 Large OOIP of 6 to 15.5 MMboe/section No…
  24. November 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. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 25
    Economic Sensitivities to WTI US/bbl Profit to Investment Ratio Rate of Return 3.0 500% 2.5 400% 2.0 300% 1.5 200% 1.0 100% 0.5 0.0 0% 45 50 55 60 65 45 50 55 60 65 Payout (yrs) NPV / Well (M) 3.0 5,000 WPemb Cardium STD…
  26. November 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. November 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. Clarus…
  28. November 2017 Corporate Presentation – Whitecap Resources Inc. – slide 28
    TSX:WCP www.wcap.ca November 6, 2017 28

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