SIGNIFICANT DEBT REPAYMENT AND FOCUSED ASSET BASE STRENGTHENS THE FOUNDATION CORPORATE PRESENTATION November 10, 2017 CORPORATE PRESENTATION 1
2017 STRATEGY Strategic objectives for 2017 include: Achieved Execute on asset sales Materially reduce debt and improve balance sheet Position Company to execute on Lindbergh development CORPORATE PRESENTATION 2
APPROXIMATELY 1.0 BILLION OF PROCEEDS FROM DISPOSITIONS Year to date, 984 million in asset sales were announced or closed Sold 31,500 boe per day (approximately 61 percent of 2017 original guidance) Only sold 29 percent of 2P…
RESTRUCTURED AND FOCUSED COMPANY ASSET SALES HAVE IMPROVED EFFICIENCIES Disposition efforts and results have led to a more efficient business model, through the sale of high cost assets and the reduction of liabilities associated with…
MEANINGFUL DEBT REDUCTION ASSET SALES HAVE ALLOWED FOR SIGNIFICANT REDUCTION IN DEBT FROM YEAR END 2016 1.3 billion Total debt repaid in 2017 CURRENT DEBT COMPOSITION CREDIT FACILITY ( MILLION) Undrawn 262 330 million credit…
BALANCE SHEET MANAGEMENT REMAINING TERM DEBT MATURITY SCHEDULE IS EXPECTED TO BE MANAGEABLE LONG-TERM DEBT MATURITIES (CDN MILLION EQUIVALENT) Anticipated term debt repayment of 37 million with Swan hills sale proceeds 508 million of…
COVENANT RELAXATION FINANCIAL FLEXIBILITY TO PURSUE LONG-TERM GROWTH OBJECTIVES Previous financial covenants Amended financial covenants Maximum trailing 12 month 3.5x Debt to Adjusted EBITDA Waiver of all covenants for a period…
POSITION THE COMPANY FOR GROWTH NEXT STEPS IN THE TRANSFORMATION Lindbergh development represents significant growth in production and cash flow to the Company Formalize development strategy for sanctioning and development of Phase…
ASSET PORTFOLIO CORPORATE PRESENTATION 9
2017 CAPITAL BUDGET AND CORPORATE GUIDANCE Grow thermal production 80 million Corporate Lindbergh Guidance Focus on growing optimization and additional thermal engineering 2017 Average daily production (boe per day) 39,500 to…
PENGROWTHS RESOURCE BASE CONTINUING FOCUS ON THERMAL OIL AND MONTNEY GAS DEVELOPMENT AB SK Fort McMurray Lindbergh Thermal Oil Groundbirch Montney Edmonton Gas Saskatoon BC Calgary Large accumulations Long life assets…
LINDBERGH THERMAL OIL TOP TIER SAGD OPERATION Exceptional Operated SAGD Project Best in Class Economics Large Resource with Low Risk LEGEND Growth Lindbergh Liquids pipelines Lindbergh is one of the most economic, ultra…
LINDBERGH A DEMONSTRATED HIGH QUALITY PROJECT WITH TOP QUARTILE PERFORMANCE 1400 Firebag Christina Lake (CVE) 1200 1000 Average well productivity 800 Jackfish Surmont Foster Creek (bbl/d) Leismer Lindbergh 600…
PEANUT BUTTER VS. HOCKEY PUCKS LINDBERGH: THE PERFECT COMBINATION OF RESERVOIR FLUID AND ROCK Peanut butter vs. hockey pucks Athabasca Cold Lake/Lindbergh Lower API, more steam Higher API, less steam required required…
LINDBERGH THERMAL PROJECT STRONG PERFORMANCE FROM FIRST COMMERCIAL PHASE 18,000 14.00 Production (bbl/d) SOR Nameplate Capacity (12,500 bbl/d) 16,000 12.00 14,000 10.00 Bitumen Production 12,000 10,000 8.00 (bbl/d)…
COLD LAKE/LINDBERGH REGIONAL ADVANTAGES COLD LAKE REGION = SUPERIOR ECONOMICS LOWER BLENDING REQUIREMENTS = HIGHER Projects in the Cold Lake region such as Lindbergh benefit from REALIZED PRICE a number of significant regional economic…
LINDBERGH PHASE ONE OPTIMIZATION Approximately 80 million allocated in 2017 capital budget towards the optimization of Phase One production The optimization program includes the first new drilling since commercial production…
LINDBERGH GROWTH PROFILE Current Operations (Phase 1 incl. throughput initiative & Pilot) Full Field Lindbergh (Current Operations + Phase 2 expansion) Fully Developed (Full field Lindbergh + Muriel Lake expansion)…
LINDBERGH COMPETES WITH LOW COST PRODUCTION 2016 GLOBAL LIQUIDS COST CURVE Shallow water Ultra-deepwater non-OPEC Europe 120 Lindbergh NPV10 breakeven price L48 Niobrara is approximately US 46/bbl L48 other tight oil Canadian oil…
PENGROWTH MONTNEY OVERVIEW MULTI-ZONE PLAY WITH LONG-TERM GROWTH POTENTIAL 19 sections (100 percent Deep inventory of operated, 28 million cubic feet per day working interest) low risk drilling opportunities operated facility…
MONTNEY DEVELOPMENT POTENTIAL MULTI-ZONE DEVELOPMENT OPPORTUNITIES GROUNDBIRCH Multi-zone development potential Productivity and EUR are expected to be greatly enhanced by recent fracing U1 Upper advances U1 Lower U2 2014 wells…
GROUNDBIRCH MONTNEY DEVELOPMENT Current development plan 10 30 Four well development program, first well drilled in MMcf/d MMcf/d third quarter of 2017. Current Phase 1 Multi-phase development 18 MM Multi-phase development could…
MONTNEY PLAY ECONOMICS PROVIDE STRONG RETURNS THAT COMPETE WITH OIL PLAYS PER WELL METRICS DCET ( million/well) 8.6 EUR (Bcf) 10.5 Estimate of Discovered PIIP 3.7 Tcf Liquids Yield (bbl/MMcf) Gross/Net Unrisked Inventory 399/360…
SUMMARY EXECUTING ON WHAT IS IN OUR CONTROL Significant asset sales and debt reduction provides increased visibility to long-term growth and value creation potential Reduced cost structures reflect Companys drive to become low cost…
ADVISORIES Caution Regarding Engineering Terms: When used herein, the term boe means barrels of oil equivalent on the basis of one boe being equal to one barrel of oil or NGLs or 6,000 cubic feet of natural gas (6 Mcf: 1 bbl). Barrels of…
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