Skip to main content January 2018 Corporate Presentation – Perpetual Energy Inc | Shale Experts
Loading...
Pm

January 2018 Corporate Presentation – Perpetual Energy Inc

Perpetual Energy Inc · Jan 25, 2018 · 39 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 – Perpetual Energy Inc – slide 1
    C O R P O R AT E P R E S E N TAT I O N JANUARY 2018 BOLD IDEAS FOR ENERGY 1
  2. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 2
    Financial Profile Financial Profile Common Shares o/s (1) 59.3 million Management ownership 49% Share price (1) 0.90 Market capitalization 53 million Net bank debt (2) 48 million TOU share-based loan (3) 18 million Term Loan…
  3. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 3
    Operating Profile Edson Wilrich Deep Basin Multi-zone liquids-rich gas Tight oil & gas exploration Mannville heavy oil Eastern Alberta Conventional shallow gas Viking shallow shale gas Bitumen Asset Summary Production…
  4. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 4
    High Graded Asset Base 100% 100% Building a foundation 90% of resource-style plays 90% Robust multi-zone inventory 80% for profitable exploration 80% and development Proved and Probable Reserves (% of Total) 70% High working…
  5. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 5
    Diversified Portfolio for Value Creation Edson Wilrich Mannville & Panny Greater Edson secondary conventional shallow gas zones Mannville Viking shallow Columbia/Brazeau shale gas Tight conventional Waskahigan Duvernay…
  6. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 6
    2018 Strategic Priorities Grow Value of Greater Edson Liquids-Rich Gas Grow Value of Eastern Alberta Portfolio Advance High Impact Opportunities Optimize Balance Sheet For Growth Positioned to pursue profitable growth…
  7. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 7
    2017 & 2018 Forecast Capital Spending 2017 2018 2017 2017 Q4 H1 2018 H2 2018 Forecast Forecast Q3 YTD Forecast Forecast Forecast ( millions) Total Total 46 19 65 8 - 10 2 - 23 10 - 33 West Central 1 gross Up to 4 gross Up to…
  8. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 8
    Line of Sight Growth Plan 16,000 Forecast Production 2018 Avg 11,800 - 12,700 boepd Average Daily Production (Boe/d) 14,000 12,000 2017 Avg 9,900 boepd 10,000 8,000 6,000 4,000 2,000 - Q4 2016 Q1 2017 Q2 2017 Q3…
  9. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 9
    Increasing Margins 35.00 35 30.00 30 Maintaining Margins despite 25.00 25 lower AECO 2018 forward strip 20.00 20 /Boe /Boe 15.00 15 10.00 10 5.00 5 - - 2012 2013 2014 2015 2016 2017E 2018E Operating Costs…
  10. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 10
    Market Diversification Strategy 2018 Price Exposure Net of Royalties Crude Oil NGL - Other 9% Natural gas market shift to diversify portfolio NGL - 2% Condensate AECO Locked in term spreads and swapped back to Daily Index at each…
  11. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 11
    2018 Projected Funds Flow Projected 2018 2018 AECO (Cdn/GJ) Funds Flow (1) ( millions) 1.50 1.75 2.00 2.25 2.50 2.75 3.00 47.50 21 26 32 37 43 49 55 WTI (US/Bbl) 50.00 23 28 33 39 45 51 56 52.50 24 29 35 41 47 52 58 55.00…
  12. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 12
    STRATEGIC PRIORITY 1 GROW VALUE OF GREATER EDSON LIQUIDS-RICH GAS
  13. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 13
    Greater Edson Liquids-Rich Gas Wilrich Play Performance 2014: East Edson JV Royalty deal 14,000 25,000 Sold 5.6 MMcf/d plus associated liquids for 120 MM investment 2015: Growth driven by JV Royalty sale commitments 12,000…
  14. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 14
    Edson Activity Added 15 MMcf/d capacity at West Wolf 10-3 plant to bring area capacity to 78 MMcf/d Winter 2017/18 ERH program - longest well to date 3,400m horizontal length Pre 2017 2017 Q1 2018 H2 2018 2018 Drill…
  15. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 15
    Edson Type Curves McDaniel YE 2016 TPP SW Type Curve Economics(1) Price Deck McDaniel July 1/2017 Well defined TPP type curves(1) provide reliable forecasts with 2017 average results Capital (D,C & T) 4.3 MM to date slightly…
  16. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 16
    East Edson Wilrich Capital Efficiency 10.0 Capital Costs 6,000 Capital Efficiency 20,000 Average Total Drilling/Completion/E&T Cost (Millions) Average Well Capital Cost Per Horizontal Length 9.0 18,000 Capital…
  17. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 17
    Top Quartile Operating Cost Structure East Edson Operating Costs 2,500 14.00 12.00 2,000 10.00 Operating Cost (/Boe) Operating Cost (M) 1,500 8.00 6.00 1,000 4.00 500 2.00 0 0.00 Operating Costs…
  18. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 18
    STRATEGIC PRIORITY 2 GROW VALUE OF EASTERN ALBERTA PORTFOLIO
  19. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 19
    Eastern Alberta Mannville 8 Producing Mannville pools 6 Lloyd, 2 Sparky Current production 1,000 boe/d New Drill Injector Conversion New Pipeline Facility Upgrade/Set up Disposal Well Access to Large Resource 2017…
  20. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 20
    Mannville Heavy Oil Drilling Inventory Well Economics Assumptions (1) Capital (D,C & T) 0.8 MM 2017 Pricing CA44.70/bbl wellhead heavy price (McDaniel July 2017 WTI US50.00/bbl, WCS CA48.70/bbl, Offset CA-4.00/bbl forecast) NPV 10…
  21. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 21
    Mannville Heavy Oil Pools Waterflood Response(1) 800 Upper Mannville I2I Pool 600 Waterflood Wedge Volumes F&D Recycle Ratio from Capital Oil rate (bbl/d) Spent To-Date 400 McDaniel TPP & PPDP YE 2016 Waterflood To-date…
  22. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 22
    Waterflood and Enhanced Oil Recovery Scope Select Pools OOIP(4) Cumulative P+P Implied Contingent Aggregate Currently Under production Reserves Recovery Resource(3) Reserves and Waterflood to YE 2016 booked Factor Resource(3) at YE…
  23. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 23
    STRATEGIC PRIORITY 3 ADVANCE HIGH IMPACT OPPORTUNITIES
  24. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 24
    Bitumen Panny Bluesky Low rate cold flow possible without solvent or thermal assistance Average pay thickness 11 m Low viscosity bitumen 15,000 cp at 25oC 50,000 cp at 11oC reservoir temp Highly mobile at 70oC Panny Bluesky…
  25. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 25
    LEAD Process Technology Pilot Low Pressure Electro-Thermally Assisted Drive First stage of pilot single well Cyclic Heat Stimulation completed in Q2 2017 Electrical resistive heating and production in a single horizontal well to…
  26. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 26
    Viking Shallow Shale Gas Resource in Place OGIP estimated average 4 Bcf/section(1) Inventory Horizontal Viking Gas 165 BCF contingent resource(1) Perpetual Viking Hz Well Type curves developed from tight Viking production from…
  27. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 27
    STRATEGIC PRIORITY 4 OPTIMIZE BALANCE SHEET FOR GROWTH
  28. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 28
    Balance Sheet Net bank debt: 48 million(1) Credit facility borrowing limit expanded by 62.5% to 65 million; Term extended until May 2019 Next borrowing limit redetermination scheduled prior to May 31, 2018 Term Loan: 45 million…
  29. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 29
    Debt Repayment & Liquidity Profile Forecast Debt Repayment Profile 12/31/2017 50% 80 44% 44% 45% 62.9 MM 70 40% 60 35% 41.2 MM 50 30% 25% 40 20% 30 15% 12% 18.5 20 MM 10% 10 5% 0% 0 < 1 Year 1 Year < 3 Years 3…
  30. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 30
    INVESTMENT THESIS POTENTIAL FOR MULTIPLE EXPANSION RELATIVE TO PEER GROUP COMPELLING DISCOUNT TO NET ASSET VALUE TORQUE TO GAS PRICE RECOVERY
  31. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 31
    Share Price Performance Last 6 Months of Trading (Post Shallow Gas Disposition) 125.00 115.00 105.00 95.00 85.00 75.00 65.00 55.00 45.00 PMT TOU Peer Group 2018 EV/Debt 2019 EV/Debt Adjusted Funds Adjusted Funds…
  32. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 32
    Sum of the Parts (2016 Year-End) (1) Year-end 2016 reserves based on McDaniel reserves and pricing, adjusted for 1.67 MM TOU shares 28/share and Q1 equity issuance (2) Undeveloped land replaced with risk-discounted prospect…
  33. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 33
    Key Investment Highlights High Quality Assets Asset base repositioning for resource-style and diversification successful Edson Wilrich liquids-rich gas inventory well-defined providing high capital efficiency growth Mannville heavy…
  34. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 34
    ADDITIONAL INFORMATION Sue Riddell Rose President & CEO Mark Schweitzer VP Finance and CFO Lorenzo Chiarastella Investor Relations infoperpetualenergy.com EMAIL 800.811.5522 TOLL FREE 403.269.4400 PHONE 403.269.4444 FAX 3200,…
  35. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 35
    APPENDIX
  36. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 36
    Transformational Transactions Warwick Gas Storage Sale: (May 2016) Sold remaining 30% partnership interest (23 million) Senior Notes Swap: (May 2016) Positive Impact: Retired Senior Notes via swap for 4.4 MM TOU shares (214 million)…
  37. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 37
    Shallow Gas Disposition October 1, 2016 Nominal proceeds + 2 year call option Deferred Purchase Price through 2 year call on AECO gas price 2.81/GJ for 33,611 GJ/d Metrics Impact Production: (35.5 MMcfe/d) Funds Flow: 5 - 10…
  38. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 38
    Conventional Shallow Gas Belly River Conventional shallow gas asset base characteristics Primarily Mannville Area remaining post shallow gas disposition Viking Cretaceous sweet shallow…
  39. January 2018 Corporate Presentation – Perpetual Energy Inc – slide 39
    Bitumen R9 R5 R1W5 R21 R17 R13W4 T98 Perpetual OS Leases Overriding Royalty Lands Perpetual Panny Pilot T95 Experimental Primary Projects Thermal Projects 301 net sections (192,416 net acres) of oil sand leases…

From the store

Browse maps, data & reports in the Shale Experts store