WHY we do what we do We believe: world demand for clean and reliable source of energy is rapidly growing technological advancements makes our energy cost competitive on a world scale in developing our world-class resource using the…
Canadian Natural Gas Market Increases in Canadian natural gas demand is expected to be significant Estimated 50% potential growth in demand for Canadian natural gas in the next 5 years. 6.0 2 Bcf/d of high confidence 5.0 demand…
Corporate Profile 85% annual average daily production volume growth 2017 130% annual average daily liquids production growth Growth 93% annual adjusted funds flow from operations growth 64% Proved Developed Producing reserves growth…
Significant Growth Montney Pure Play Asset The Montney is the most economic natural gas liquids play in Canada 314 net sections (201,009 net acres) of Montney lands 6.9 Tcfe (1,148 MMboe) Proved Plus Probable Reserves(1) with a…
Montney Sweet Spot Location, Location, Location Drilled first well at liquids-rich Beg during 38 sections Q1 2018 PONYs Montney Sweet Spot is: 4x thicker than the Marcellus at greater than 300 300m Beg meters (approximately 1,000…
2017 & 2018 Development Model Impressive PONY is expecting 45% annual 80 average daily production growth from 2017 to 2018 70 60 2018 366-378 MMcfe/d (61,000-63,000 boe/d) Annual Average Daily Production Volumes (mboe/d)…
2018 Sustainable Capital Spending Cash Flow Budget Annual Average Daily Production (forecast) Cash Flow (actuals) Annual 400 Average Daily Production (actual) 2018 Cash Flow (forecast)- Net of Interest Expense, G&A, and Capital Lease…
Solid Margins Drive Earnings Cost Efficiencies Drive Higher Cash Flow/Mcfe in 2018 Diverse fixed-price Cash Costs Non-Cash Costs contracts and 4.00 financial hedges Top Line Revenue (including Hedging) deliver strong netbacks…
Sustainable Capital Spending Cash Flow Budget 2018 Capital Budget Capital 185 million Production 366 378 MMcfe/d (61,000 63,000 boe/d) Annual Average Production Growth 45% Capital Efficiency 1,500/Mcfe/d (9,000/boe/d) Painted…
Forecasted Capital Expenditures 2018 2018 Capital Spending Forecast Period Capital Drilling Completions Q1 93 million(e) 16 wells(e) 17 completions(e) Q2 37 million(e) 3 wells(e) 6 completions(e) Q3 35 million(e) 6 wells(e)…
2018 Production Revenue Managing Volatility 55% of PONYs total forecast 2018 production NYMEX 7% volumes are protected through a combination of physical and financial Unhedged NGL & contracts at a volume- Condensate Condensate…
Hedging Profile Prudent Risk Management Percentage of Product on Fixed Price Contract (Financial and Physical) 69.60 100% 71.88 bbl bbl 71.22 71.88 98% bbl 72.66 bbl 94% 90% Percentage Forecast Production Hedged bbl 88%…
Diversified Market Exposure 2018 / 2019 Sales Contracts Support Strong Netbacks All currency CAD Index pricing as of March 1, 2018 Painted Pony actively markets the majority of natural gas volumes into a diversity of sales points…
Sales Hub Diversification Firm Transportation Supports Production Volumes Firm Transportation on Enbridges T-North, T- South, TransCanadas Groundbirch Lateral and Mainline allow PONY to diversify market access which greatly…
Market Diversification Natural Gas Catalysts AECO 175 MMcf/d Station 2018 Average 2 SUMAS 30 MMcf/d AECO 2018 Average Med Hat Sumas 14-year contract to initially deliver Dawn Malin 10 MMcf/d to Methanexs methanol…
The Sweet Spot Top Decile Well Performance 2,500,000 PONY has best well in 46 of top 100 North Montney with 6- wells are month cumulative PONY wells production over 2.0 Bcf 2,000,000 Cumulative Natural Gas (Mcf) Based on…
Historical Costs Drilling & Completion Efficiency As capital well costs fell, production type curves dramatically improved Continued Sequential 6-well Management type curve Program on 17-G Pad for Perf & Plug Systems Type Curve…
Economics By Area 2017 / 2018 Type Curves Capital Costs Management Type Curves Drilling 1.9 million Daiber (dry) Completions 2.1 million Blair (lean) Equip / Tie-in 0.55 million Townsend (liquids-rich) TOTAL 4.55 million Blair…
Development Economics Price Sensitivity (Half Cycle) Townsend (liquids-rich) Blair (lean) Daiber (dry) 180% High-rate Daiber 160% Liquids-enhanced, wells provide Blair wells provide natural gas exposure to 140% pricing torque…
Recycle Ratios Low Cost Reserve Additions in 2017 4.0x 1.6x Proved Developed Producing 2017 3.2x F&D Recycle Ratio 3.0x 2017 Recycle Ratios 1.9x 2.0x 1.8x 1.6x 1.6x 1.3x 1.1x 1.0x 0.0x Proved Developed Producing…
Key Reserve Information As at Dec 31, 2017 6.9 Tcfe (1.1 Billion Historical Proved Plus Probable Reserves 8.0 boe) of Proved Plus 6.9 Probable reserves 3.1 Tcfe (500 6.0 with an NPV10 of 4.9 MMboe) of Total 4.6 3.3 billion*…
Pony Points Checking Off All of the Boxes Top well performance with increasing liquids cut Low well costs Firm transportation to diverse pricing hubs Massive reserves base strategically positioned for LNG Attractive relative…
Appendices and Advisories
Financial Strength Term Debt and Credit Facility Provide Flexibility Syndicated Credit Facility 450 Million Syndicated Credit Facility Secured, Reserve Based Lending 149mm Matures April 2019 Drawn 149 million drawn as at December…
Gas Processing Complex Processing Flexibility Jedney (13 MMcf/d) Total Processing Capacity October 2017 577 MMcf/d Owned 153 MMcf/d West Blair Third-party 424 MMcf/d (25 MMcf/d) AltaGas Blair Beg Liquids Processing - 372 MMcf/d…
Corporate Overview Auditor KPMG LLP Evaluation Engineers GLJ Petroleum Consultants Ltd. Banks The Toronto-Dominion Bank The Bank of Nova Scotia Alberta Treasury Branches Canadian Imperial Bank of Commerce Royal Bank of Canada…
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