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November 2017 Corporate Presentation – Bellatrix Exploration Ltd.

Bellatrix Exploration Ltd. · Nov 1, 2017 · 41 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 – Bellatrix Exploration Ltd. – slide 1
    POSITIONED FOR SUSTAINABLE LONG TERM VALUE CREATION Corporate Presentation November 2017
  2. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 2
    The New Bellatrix 3
  3. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 3
    Key Changes What Has Changed Other Key Changes Excellent Organic Board of Director additions Growth Potential Tom MacInnis Former Head of Financial Markets for National Bank Financial Lynn Kis - Member of the Board of Directors…
  4. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 4
    Corporate Profile MARKET SUMMARY Ticker Symbol TSX / NYSE: BXE Average Daily Volume1 Canada: 135,000/ U.S.: 60,000 Shares Outstanding2 49.4 million basic / 51.1 million diluted Market Capitalization3 170 million Bank Debt4 8 million…
  5. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 5
    Investment Highlights HIGH QUALITY Dominant core acreage position in west central Alberta Spirit River represents one of North Americas lowest supply cost natural gas plays ASSETS & Consistently deliver top ranked well productivity…
  6. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 6
    Maintained Production Volumes While Achieving Significant Debt Reduction Average Production (boe/d) 40,000 30,000 Production 20,000 Flat Q1/16 10,000 to Q3/17 0 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 800 700 600…
  7. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 7
    Diversified Balance Sheet & Financial Flexibility Effective capital resource management, balancing liquidity and flexibility BANK DEBT 8MM CREDIT FACILITY CONTAINS LONG TERM DEBT AT SEPTEMBER 30, 2017 ONE FINANCIAL COVENANT…
  8. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 8
    Commodity Price & Currency Risk Management NATURAL GAS HEDGING OIL HEDGING 80% 25% 3.13 % of total forecast 2017 oil & condi volumes 69.28 69.28 69.28 69.28 70% % of total forecast 2017 gas volumes 20% 60% 50% 15%…
  9. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 9
    2017 Outlook & Guidance INITIAL PREVIOUS PREVIOUS REVISED 2017 2017 ANNUAL 2017 ANNUAL 2017 ANNUAL ANNUAL CHANGE GUIDANCE GUIDANCE GUIDANCE GUIDANCE FROM INITIAL (JAN 5, 2017) (JUNE 26, 2017) (AUG 10, 2017) (NOV 10, 2017) Production…
  10. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 10
    Material Torque to Improving Commodity Prices Annualized Funds Flow Sensitivity Analysis From Operations Based on Q3/17 Financial Results ( millions) Change of 0.10/Mcf 6.5 Change of US1/bbl 3.3 AECO Gas WTI Oil 2.50 60…
  11. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 11
    Highly Concentrated Land Base DOMINANT ACREAGE POSITION WEST CENTRAL ALBERTA CORE AREA Highly focused land base in the prolific Deep Basin of FERRIER Alberta WILLESDEN GREEN 99% of total corporate GREATER PEMBINA production and…
  12. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 12
    Spirit River - The Quiet Giant WESTERN CANADA 2016 WELLS CALENDAR DAY PRODUCTION BY ZONE Spirit River Montney L Mannville Viking Bakken Glauconitic Cardium Duvernay Shaunavon Colorado Mississippian Charlie Lake 0 10,000…
  13. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 13
    North American Supply Cost Comparison 4.00 3.50 3.00 Henry Hub (US/MMbtu) 2.50 2.00 1.50 1.00 0.50 0.00 Economics assume 15% Before tax IRR, assumes US0.83 = CDN1.00, US0.75/MMbtu AECO basis, and a 20:1…
  14. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 14
    Top Wells in the Basin 18 of the top 20 best performing natural gas wells in Alberta are from the Spirit River Excellent Organic 25 Growth Potential Raw Gas IP90 Calendar Day Rate (MMcf/d) 20 Competitive Economics 15…
  15. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 15
    Bellatrixs Spirit River Play BXE Land Sections1 GREATER FERRIER AREA CORE SPIRIT RIVER PLAY 177 Gross Spirit River producing well Horizontal well 101 Net BXE Net Drilling Inventory2 86 proved 30 probable 265 unbooked 381 total…
  16. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 16
    Spirit River Geology Summary SPIRIT RIVER STACKED SANDS Broad, thick, extensive sand rich valleys in Notikewin, Falher and Wilrich members Tight sandstone: long life reserves with long term hyperbolic decline profile One square mile…
  17. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 17
    Spirit River Type Curve Bellatrix Spirit River Economics SPIRIT RIVER 5.2 BCF TYPE CURVE Economic Assumptions 9 Excellent Organic4.0 Gross CAPEX (DCE&T, MM) Gross Natural GasGrowth Potential6.6 IP30 (MMcf/d) 8 Liquids yield…
  18. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 18
    Spirit River All-In Profitability Full Cycle F&D costs C2.50/GJ C3.00/GJ Drill 1.7MM Complete 1.6MM Full cycle F&D costs /Mcfe (0.85) (0.85) Equip & tie in 0.7MM Half cycle costs 4.0MM Land/seismic/facilities 1.1MM Full cycle…
  19. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 19
    Delivering on our 2017 Objectives 2017 RESULTS OUTPERFORMING TYPE CURVE EXPECTATIONS 20 18 16 Producing day volumes (MMcf/d) 14 12 10 8 6 4 2 - 0 30 60 90 120 150 180 210 240 270 300 330 360 Days 2017 Wells…
  20. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 20
    Productivity Improvements BELLATRIX OPERATED AVERAGE SPIRIT RIVER WELL PERFORMANCE BY DATE 12 Excellent Organic Monthly average raw gas production (MMcf/d) Growth 2017 wells Potential 10 2015-2016 wells Competitive 8…
  21. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 21
    Bellatrixs Evolution of the Spirit River Excellent Organic Growth Potential Bellatrix Spirit River Development Drilled a Competitive Economics total of 127 Falher B operated Spirit River Drilled a total Notikewin wells of 85…
  22. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 22
    Drilling Inventory TOTAL INVENTORY OF 381 NET SPIRIT RIVER LOCATIONS FORMATIONAL BREAKOUT RESERVE BREAKOUT 116 Booked locations = 5 years low risk drilling at Unbooked Booked current pace of development Notikewin Falher A…
  23. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 23
    Enduring Efficiency Gains on Drill Times AVERAGE SPIRIT RIVER DRILLING CURVES DAYS SPUD TO RIG RELEASE BY YEAR 0 20 Days (Spud to Rig Release) 2014 Spirit River Average 500 15 2015 Spirit River Average 1,000 10 2016 Spirit…
  24. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 24
    Spirit River Well Costs & Capital Efficiencies FOCUSED CAPITAL COST REDUCTIONS 6.0 Long Reach Long Reach 5.0 4.0 Equip & Tie-in Costs (millions) Long Reach 3.0 Complete 2.0 Drill 1.0 0.0 2015 - 24 wells 2016 -…
  25. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 25
    Focused Spirit River Growth 80% 32,000 SPIRIT RIVER PRODUCTION GROWTH 70% 28,000 2010 Spirit River % of Total Company Volumes 60% 24,000 Spirit Average Monthly Production (boe/d) River 50% 20,000 Other 40% 16,000 30%…
  26. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 26
    Improving Cost Structure PRODUCTION EXPENDITURES DECREASED WITH FURTHER IMPROVEMENT EXPECTED IN 2018 Excellent Organic 11.00 Growth Potential 10.00 Competitive Production expense (/boe) Economics 9.00 8.00 De-risked…
  27. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 27
    Spirit River 2017 & 2018 Development Balanced Drilling Across Our Acreage Excellent Organic Growth Potential Competitive Economics De-risked Leading Well Results Technically 2018 Proposed drill locations Astute 2017…
  28. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 28
    Greater Ferrier Area Infrastructure Overview GREATER FERRIER EXISTING GREATER FERRIER AREA STRATEGIC INFRASTRUCTURE INFRASTRUCTURE ACCESS: Infrastructure gives Bellatrix control of production and growth Working interest or…
  29. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 29
    BXE Alder Flats Superior Operational Performance in Core West Central AB Area SUPERIOR & CONSISTENT PLANT PERFORMANCE FUEL/DISPOSITION EFFICIENCY Bellatrix Alder Flats Highest Bellatrix Alder Most efficient Utilization 3rd Party…
  30. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 30
    Alder Flats Plant Phase 2 Expansion Excellent Organic Growth Potential Competitive Economics De-risked Leading Well Results Technically Astute 31
  31. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 31
    Drill Bit Focused PLANT INVESTMENT & CONSTRUCTION COMPLETE Q2/18 Major compressor stations, pipelines and Bellatrix Alder Flats Plant capital investment nearing completion Proportion of incremental capital to drilling & completion…
  32. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 32
    Ample Takeaway Capacity & Market Egress AMPLE FIRM TRANSPORTATION IN PLACE FOR ALBERTA NATURAL GAS MARKET EGRESS CURRENT & GROWTH VOLUMES Firm Transportation (FT) agreements in place ALBERTA representing 120% of current gross operated…
  33. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 33
    Ample Firm Takeaway Capacity 350 FIRMExcellent Organic TRANSPORTATION 300 Growth Potential CAPACITY A STRATEGIC ADVANTAGE Natural gas volumes (MMcf/d) 250 Provides the opportunity to manage long term volume 200 growth…
  34. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 34
    Compelling Investment Opportunity Excellent Organic SUSTAINABILITY Growth Potential Competitive Economics PROFITABILITY De-risked LONG TERM GROWTH Leading Well Results Technically Astute 35
  35. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 35
    SUPPLEMENTAL INFORMATION
  36. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 36
    Concentrated Multi-Zone Acreage DEEP BASIN MULTI-ZONE ACREAGE Deep Basin is highly coveted for: Sweet, liquids rich natural gas 4,600 ft TVD Belly River 6,200 ft TVD Sweet, light gravity crude oil Cardium Multi-zone hydrocarbon…
  37. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 37
    Cardium Light Oil Resource Play BXE Land Sections1 144 Gross 84 Net BXE Net Drilling Inventory2 92 proved 29 probable 85 unbooked 206 total Cardium Resource Play Summary Largest accumulation of light oil in the WCSB…
  38. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 38
    Strategic Land Position GREATER FERRIER/BRAZEAU/WILLESDEN GREEN AREAS OF WEST CENTRAL ALBERTA Pembina Brazeau Ferrier Willesden Green Bellatrix Peyto TAQA Cenovus Tourmaline Westbrick 39 Source: Accumap, company…
  39. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 39
    Material Deleveraging & Strategic Repositioning SUCCESSFULLY RAISED OVER 450 MILLION IN THE PAST 18 MONTHS OVER MULTIPLE TRANSACTIONS WITH MINIMAL PRODUCTION DIVESTED Announcement Gross Proceeds Production sold Transaction Date MM…
  40. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 40
    Representative Spirit River Inventory Required to Maintain Production Volumes Approximately 16 net Spirit River wells1 per year maintains production in the high 30 mboe/d range through 2021 Represents scenario of drilling only 22% of…
  41. November 2017 Corporate Presentation – Bellatrix Exploration Ltd. – slide 41
    Corporate Information BOARD OF DIRECTORS SENIOR OFFICERS BANKERS W.C. (Mickey) Dunn Brent A. Eshleman, P.Eng. National Bank of Canada Chairman President & CEO Alberta Treasury Branches The Bank of Nova Scotia Murray L. Cobbe Max Lof,…

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