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January 2018 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jan 25, 2018 · 27 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
    Whitecaps 2018+ Outlook Strong production and funds flow / share growth (14% and 26%), generating significant free funds flow Internally funded growth and income with total payout ratio less than 100% (No DRIP) Focus on key…
  3. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 418.0 Fully diluted (1.1% dilutives) 423.2 Market capitalization (B) 4.0 Enterprise value (B) 5.3 2018 production guidance (boe/d) 73,600 74,800 % oil + NGLs 86% 2018…
  4. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Strong Corporate Growth in 2018 from 2017 2017 Estimate(1) 2018 Budget % Change Average production (boe/d) 57,000 73,600 74,800 30% per million shares 153 175 14% Funds flow (MM) 506 730 44% per share 1.36 1.72 26% Development…
  5. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 5
    WCP Value Creation Strategy Pillars of Sustainability Total Shareholder Returns Low production decline rates TSR 10% per year High funds flow netback Attractive per share growth Drives within funds flow Strong organic…
  6. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Per Share Growth: Production & Funds Flow 80,000 Production 72,000 64,000 56,000 48,000 (boe/d) 40,000 32,000 24,000 16,000 8,000 - 2010 2011 2012 2013 2014 2015 2016 2017e 2018e 750 Funds Flow 79 95 94 98…
  7. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Financial Strength Internally Funded Growth + Dividends - No DRIP Credit Capacity 1.7 Billion 100% 93% 90% 87% 78% 80% 36% 21% 70% 18% 605 MM 595 MM Term Notes Total Payout Ratio 60% Bank Debt (Avg Rate 3.63%)…
  8. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 8
    2018 Development Capital Capital by Type Capital by Area 3% 3% 3% 6% 14% 1% 22% Production growth 18% Cardium Enhanced Oil Recovery (EOR) Viking SE Sask Facilities 27% SW Sask 71% Recompletions/Workovers Deep Basin…
  9. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 9
    Sustainable Growth Assets: Capital + Dividend < Funds Flow Organic Growth Within Funds Flow 200 187 186 182 180 160 67 136 140 126 Fund Flow (MM) 120 122 52 100 84 80 7 57 60 119 40 84 77 33 61 60 20 24 - Cardium…
  10. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 10
    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…
  11. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 11
    2018 WTI Sensitivities Oil (USWTI) 50.00 55.00 58.00 60.00 65.00 FX (C/US) 0.76 0.78 0.79 0.80 0.82 Oil (Cdn/WTI) 65.79 70.51 73.42 75.00 79.27 AECO (C/GJ) 1.75 1.75 1.75 1.75 1.75 Funds flow netback (/boe) 24.08 26.09 26.95 27.79…
  12. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Optimize Funds Flow Allocation 1. Balance sheet strength target net debt to funds flow of 1.2 to 1.5x unutilized credit capacity for financial flexibility 2. Organic per share growth disciplined and return on capital focused…
  13. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Core Areas of Operations Drilling Inventory Light Oil Drilling Inventory 2,992 BRITISH COLUMBIA ALBERTA Drilling Wells SASKATCHEWAN Boundary Inventory 2017 2018 Lake Cardium 680 32 24 Viking 925 125 125 Deep SE Sask 189 - 5…
  14. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Whitecap Strong Asset Portfolio Growth Growth to Low Decline Low Decline SE Sask SWSK Acquisition SESK Acquisition 14
  15. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Weyburn Acquisition Rationale Successful world class 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…
  16. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Stable Production Base with Excellent Infrastructure Weyburn WI Oil Production KEY CHARACTERISTICS Base - 3.5% Decline 100% operated 62.11% working interest 100% under enhanced oil recovery (Waterflood & CO2) CO2 flood is 86% of…
  17. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Successful CO2 Flood with Development Potential Cenovus was operator of the Weyburn Unit since its Phase 1 has 14 years of CO2 flood performance history inception in 1963, waterflood commenced in 1964 Phase 2 and Phase 3 booked at…
  18. January 2018 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. January 2018 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. January 2018 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 Standard 1.0…
  21. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Southwest Saskatchewan stable production, multi-zone Key characteristics SASKATCHEWAN Stable production base historical 2.3% decline 92% of production under EOR Multi-zone potential for growth (6 zones) Southwest SK Fosterton…
  22. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Strong Repeatable Economics U. Shaun Hz Atlas Hz 1.0 Unconventional Unconventional Stable Production Driven by Enhanced Oil Recovery Floods Type Well Economics Plays Plays Historical Decline 2.3% Drill, Complete, Equip, Tie-in…
  23. January 2018 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. January 2018 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 5% decline Avg 96% WI in 3 operated units Legacy oil pool under a…
  25. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 25
    The Whitecap Investment Opportunity Organic Per Share Growth Within Funds Flow Capital + Dividend < Funds Flow Sustainable and growing dividend, NO DRIP Long-Term Value Growth Orientation Executing on rolling 3 year business…
  26. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 26
    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…
  27. January 2018 Corporate Presentation – Whitecap Resources Inc. – slide 27
    TSX:WCP www.wcap.ca January 18, 2018 27

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