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January 2018 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jan 2, 2018 · 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. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / JANUARY 2018 SUSTAINABLE PER SHARE GROWTH WITHIN FUNDS FLOW
  2. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Current Pro Forma Basic 369.8 418.1 Fully diluted (1.1% dilutives) 374.5 422.8 Market capitalization (Bn) (1) 3.3 3.8 Enterprise value (Bn) 4.1 5.1 2018 production guidance…
  3. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Proforma Post Top Tier Acquisition Previous 2018 Pro Forma % Change Average production (boe/d) 58,800 - 60,000 73,600 74,800 25% per million shares 158 175 11% % Oil and NGLs 83% 86% 3% Base production decline rate 23% 19% (4%)…
  4. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Weyburn Acquisition Rationale Successful CO2 EOR Project Adds 14,800 Bpd (Net, 100% Oil) Enhances Whitecap Sustainability Characteristics Base decline of 3.5%, reduces WCP to 19% decline Asset operating netback of 32.86/boe 100MM+…
  5. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Stable Production Base with Excellent Infrastructure KEY CHARACTERISTICS 100% operated 62% WI Base - 3.5% Decline 100% under enhanced oil recovery (Waterflood & CO2) CO2 flood is 86% of current production, 98% of 2P reserves 99%…
  6. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Successful CO2 Flood with Development Potential Cenovus has been operator of the Weyburn Unit since its Phase 1 has the most CO2 flood performance history inception in 1963, waterflood commenced in 1964 Its patterns have been under CO2…
  7. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Strong Corporate Growth in 2018 from 2017 2017 Outlook (1) 2018 Pro Forma % Change Average production (boe/d) 57,000 73,600 74,800 30% per million shares 153 175 14% Funds flow (MM) 499 715 43% per share 1.34 1.69 26% Development…
  8. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 8
    WCP Long-Term Strategy Total Shareholder Returns Profitable long-term organic growth TSR 10% per year Sustainable and growing dividend Prudent debt management Pillars of Sustainability Operating Principles Low production…
  9. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 9
    Production per Share Growth 80,000 225 72,000 200 64,000 175 175 153 56,000 143 139 150 Production/MM Shares (boe/d) 130 134 48,000 122 125 Production (boe/d) 40,000 73,600 - 87 100 74,800 32,000 57,000 61 75…
  10. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Funds Flow per Share Growth US WTI 79 95 94 98 93 49 43 50 55 750 2.50 2.06 600 2.00 1.83 Funds Flow per Share (/share) 1.68 1.69 1.63 Funds Flow (CAD MM) 450 1.50 1.34 1.32 715 1.13 300 1.00 482 481 499…
  11. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 11
    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…
  12. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Financial Strength Internally Funded Growth + Dividends - No DRIP Pro Forma Credit Capacity 1.7 Billion 100% 93% 88% 90% 80% 80% 70% 400 MM 57% Existing Term Notes Total Payout Ratio 60% 67% 900 MM to 1.1B 50% 62%…
  13. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 13
    2018 Development Capital Capital by Type Capital by Area 1% 3% 3% 3% 6% 14% 22% Production growth 18% Cardium Waterflood (decline mitigation) Viking SE Sask Facilities 27% SW Sask 71% Recompletions/Workovers Deep Basin…
  14. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Sustainable Asset Base: Capital + Dividend < Funds Flow Organic Growth Within Funds Flow 200 183 181 179 180 160 62 139 Funds Flow (MM) 140 120 122 119 55 100 80 80 3 56 60 119 40 84 77 32 61 60 20 24 - Cardium…
  15. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 15
    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 Differential Hedges CAD…
  16. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 16
    2018 Pro Forma WTI Sensitivities Oil (USWTI) 45.00 50.00 55.00 60.00 65.00 FX (C/US) 0.72 0.75 0.78 0.81 0.84 Oil (Cdn/WTI) 62.50 66.67 70.51 74.07 77.38 AECO (C/GJ) 2.00 2.00 2.00 2.00 2.00 Funds flow netback (/boe) 22.90 24.80 26.40…
  17. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Free Funds Flow Flexibility 1. Debt management focus 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 areas…
  18. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 18
    Core Areas of Operations Light Oil Drilling Inventory 3,084 BRITISH COLUMBIA ALBERTA Drilling Wells SASKATCHEWAN Boundary Inventory 2017 2018 Lake Cardium 721 30 24 Viking 980 122 125 Deep SE Sask 189 - 5 Basin SW Sask 647 34…
  19. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 19
    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…
  20. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 20
    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…
  21. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 21
    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…
  22. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 22
    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…
  23. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 23
    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…
  24. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 24
    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…
  25. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 25
    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…
  26. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 26
    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) 5.0 6,000 WPemb Cardium STD…
  27. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 27
    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…
  28. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 28
    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…
  29. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 29
    TSX:WCP www.wcap.ca January 2, 2018 29

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