EXECUTING ON 25 PERCENT PRODUCTION GROWTH FROM A LEANER, LOWER COST PLATFORM INVESTOR PRESENTATION February 1, 2018 INVESTOR PRESENTATION 1
CORPORATE OVERVIEW KEY STATS PRODUCTION SPLIT (DECEMBER 2017) Capitalization Market Capitalization 574 million Debt 610 million 69% Enterprise Value 1,184 million 4% Operations and Financial 4% December 2017 Production 20,700…
TWO KEY 100 PERCENT OWNED GROWTH ASSETS Asset portfolio is focused on our Lindbergh SAGD and our Groundbirch Montney dry gas properties These assets account for approximately 90 percent of production and 95 percent of reserves Focus…
MEANINGFUL DEBT REDUCTION IN 2017 ASSET SALES HAVE ALLOWED FOR SIGNIFICANT REDUCTION IN DEBT FROM YEAR END 2016 1.3 billion Total debt repaid in 2017 DEBT COMPOSITION CREDIT FACILITY ( MILLION) Undrawn 221 330 million credit…
BALANCE SHEET MANAGEMENT FIRST MATURITY (CDN 56 MILLION) NOT DUE UNTIL OCTOBER 2019 LONG-TERM DEBT MATURITIES (CDN MILLION EQUIVALENT) 501 million of remaining term debt Remaining term notes 200 have a weighted average interest…
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 maintenance capital and…
2018 CAPITAL PROGRAM DEVELOPMENT FOCUSED ON LINDBERGH TO DELIVER GROWTH 2018 capital program focused on continuing to grow Lindbergh production in bite size pieces Development program follows on similar 2017 program Characteristics of…
ASSET PORTFOLIO INVESTOR PRESENTATION 8
2018 CORPORATE GUIDANCE 25 PERCENT PRODUCTION GROWTH IN 2018 CAPITAL ALLOCATION BY AREA Corporate Lindbergh Guidance Groundbirch Other 2018 Average daily 22,500 to 23,500 production (boe/d) Total capital expenditures 65 65 (…
2018 CAPITAL BUDGET 25 PERCENT PRODUCTION GROWTH AND LOWER COST STRUCTURES 25 percent year over year production growth in 2018 with exit guidance of 24,000 boe/d 6. Reduced cost structures compared to 2017 guidance: 3 Operating…
LINDBERGH THERMAL OIL TOP TIER SAGD OPERATION Exceptional Operated SAGD Project Strong Economics Large Resource with Low Risk LEGEND Growth Potential Lindbergh Liquids pipelines Lindbergh is one of the most economic, ultra…
LINDBERGH THERMAL OIL SUBSTANTIAL UPSIDE EXPOSURE Demonstrated Performance exceeding expectations with new 2017 well pairs just excellence as SAGD coming on production developer and Nameplate capacity of 12,500 bbl/d with a design…
LINDBERGH IS A TOP QUARTILE SAGD PROJECT DEMONSTRATED SUPERIOR SOR AND WELL PRODUCTIVITY 1400 Firebag Christina Lake (CVE) 1200 1000 Average well productivity 800 Jackfish Surmont Foster Creek (bbl/d) Leismer…
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 PRODUCTION CONTINUES TO EXCEED NAMEPLATE CAPACITY 18,000 14.00 Scheduled plant turnaround 16,000 12.00 14,000 Bitumen Production (bbl/d) Steam-Oil Ratio (SOR) 10.00 12,000 10,000 8.00 8,000…
LINDBERGH THERMAL PROJECT GENERATING STRONG OPERATING NETBACKS 45.00 40.00 35.00 per bbl of bitumen at 30.00 the lease 25.00 20.00 1 15.00 24.77 24.89 22.69 21.72 10.00 19.67 16.93 5.00 11.48 3.05 0.00 Q1…
2017 PAD 01 PROGRAM Company Land (100%) 2017 infill capital program included: Operating Well Pads New Well Pairs Two producing infill wells drilled and on production at a Infill Well Pairs combined rate of 1,000 bbl per day New…
2017 PAD D04 CAPITAL PROGRAM Company Land (100%) A total of nine well pairs drilled Operating Well Pads New Well Pairs One well pair drilled to test old cyclic steam (CSS) area in section 13 Six of these well pairs are currently on…
2018 CAPITAL GROWTH PROGRAM Approximately 45 million allocated in 2018 towards Company Land (100%) Operating Well Pads continued production growth at Lindbergh Infill Well Pairs Eight infill wells to be drilled on Pad D05 Wells…
WHY DOES SEYMOUR SCHULICH OWN OVER 24% OF PENGROWTH The Lindbergh SAGD thermal oil project is one of the lowest cost and best in class in Canada. At some point, the sentiment will swing back to Canadian opportunities and this will be…
SIGNIFICANT UPSIDE POTENTIAL LINDBERGH OFFERS CASH FLOW TORQUE TO INCREASING OIL PRICES AND VOLUMES WTI CRUDE OIL PRICES (US/BBL) Lindbergh Field Operating Cash Flow (Cdn Million) 60 70 80 90 20,000 202 273 343 413 BBL PER DAY…
GROUNDBIRCH MONTNEY DEVELOPMENT STRATEGIC DEVELOPMENT PLAN TO SUPPORT LINDBERGH GROWTH Pengrowth is a net consumer of natural gas for fuel needs at Lindbergh in the first quarter 2018 Groundbirch production is expected to grow…
SUMMARY Leaner, stronger company with significant upside exposure to a recovering crude oil price Focused portfolio expected to deliver 25 percent production growth in 2018 and significantly lower cost structures versus 2017 High…
APPENDIX INVESTOR PRESENTATION 24
APPROXIMATELY 1.0 BILLION OF PROCEEDS FROM DISPOSITIONS IN 2017 In 2017, 984 million in asset sales were completed Sold 31,500 boe per day (approximately 61 percent of 2017 original guidance) Only sold approximately 29 percent of 2P…
LINDBERGH RESERVOIR CHARACTERISTICS The Lloydminster zone is well defined across Lindbergh asset: No thick shale baffles or barriers or Inclined Heterolithic Stratification (IHS) Excellent porosity and vertical permeability throughout…
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 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)…
PENGROWTH GROUNDBIRCH MONTNEY OVERVIEW MULTI-ZONE PLAY WITH LONG-TERM GROWTH POTENTIAL PGF Within the Montney fairway, Pengrowths Groundbrich Pengrowth operates a 30 Pengrowth has 19 sections lands have 360 net (unrisked)…
GROUNDBIRCH 2018 MONTNEY DEVELOPMENT Current development plan Four well development program with the addition of 10 30 sales compression and pipeline tie-in to Nova-Saturn MMcf/d MMcf/d meter station. First wells drilled in 2017…
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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