INTRODUCTION Started Sept 2010, fourth Storm since Nov 1998 history of discipline with capex & focus on per share growth Market cap 240 MM (2.00/share), TSX symbol SRX 121 MM shares + 8 MM options listed on TSX eff Sep 27/17 officer…
PRODUCTION Q1/18 est 19,500 - 20,500 boe/d (Jan & Feb 19,700 boe/d) liquids increased to 19% of total prodn in Q4/17 from 17% in Q1/17 as drilling targeted areas with higher CGRs 3
financials improving with cost reductions, FINANCIAL RESULTS liquids growth, diversified nat gas sales 2017 +83% per share YOY 2017 -9% YOY (op cost -11%) f/c 2018 +25% achieving growth on a debt adjusted per share basis 2017…
significant reserves per share RESERVES growth while reducing FD&A cost 2017 PDP is 26% of 2P (vs 24% in 2016) 2017 PDP 5.76/boe (-16% YOY) all-in reflects total capital investment 2017 PDP +32% per share YOY (1P +26%,…
COST TO GROW PRODUCTION continuing to reduce cost of adding prodn 2013 - 2017 (last 5 years): capex 465 MM* funds flow 202 MM prodn +12,375 boe/d *incl 90 MM land acquisition 2014 6
UMBACH AREA (NE British Columbia) 1% H2S requires processing Montney liquids rich gas at sour gas plant 109,000 net acres (155 sections) McMahon GP provides raw gas 1,200 1,300 btu/scf access to 3 sales pipelines Q4/17 17,750 Boe/d…
UMBACH ACTIVITY Field compression totals 115 mmcf/d raw increase to 150 mmcf/d for 2 MM, supports growth in corp prodn to 27,000 boe/d Recent hzs 2,000 m 2014 - 16 avg 1,300 m Inventory 12 drilled hzs (2 completed) 2P reserves…
UMBACH HZ COSTS 2017 completions 35% longer vs 2016 2017 D&C per meter -16% vs 2016, longer hzs reducing F&D costs incl everything (lease & road construction, water handling) royalty credits not subtracted DRILLING hzs fracs…
UMBACH TYPE CURVE 10
2017 HZ PERFORMANCE 11
NIG LAND BLOCK hz offsetting Nig lands avg 4.9 mmcf/d over 22 months (3.3 Bcf & 58 Mbbls cond), CGR 50% higher vs avg Storm hz 3 hzs at Nig start prodn end Q1/18 12
UMBACH HZ FIELD CONDENSATE recent drilling (17-D pad) is targeting areas with higher CGRs (still learning) CGR at 17-D pad is 2 X Storm avg with est IP365 4 mmcf/d high CGR and high gas rate is best (more mcfs = more…
UMBACH HZ ECONOMICS AT STN 2 PRICE with CGR 50% higher (total 39 bbls/mmcf), full-cycle ROR 24% (30% at WTI 65) use Stn 2 price for flat pricing full-cycle economics as Stn 2 1.75 incremental growth in gets full-cycle nat gas is…
PROCESSING & TRANSPORTATION avoided overcommitting for Firm processing totals 80 mmcf/d raw firm process & transport Q4/17 throughput 97 mmcf/d raw McMahon GP 65 mmcf/d raw & Stoddart GP 15 mmcf/d raw McMahon processing deal started…
STORM NAT GAS PRICE VS BENCHMARKS objective is to diversify nat gas sales; not betting for/against any single market Storm sold 70% of nat gas in Chicago H2/17 Chicago sales benefit from FX 16
HEDGING (to Mar 15/18) Hedging to support growth growth is not hedged target: 50% of current prodn hedged 1 to 12 months forward 25% of current prodn hedged 13 to 24 months forward Fixed price hedges hedged 40% f/c 2018 prodn 2018:…
FINANCIAL GUIDANCE YOY prodn +25% & 2018 Forecast funds flow +20% (pricing actual to date & 2017 2016 2015 Mar 12/18 strip) Average Boe/d 20,000 21,000 16,017 13,219 9,956 per MM shares 168 132 109 83 Q4 Boe/d 20,000 - 21,000 17,936…
PRODUCTION GUIDANCE capex is flexible, adjust with commodity prices corporate decline 32% (wells producing Dec/16 to Dec/17) Umbach hz est D&C 4.7 MM capex to maintain 20,500 boe/d: 2018 60 MM (11 compln, 3 drill) 2019 35 -…
WESTERN CANADIAN NAT GAS PRICES weak W Cdn prices due to prodn growth (+1.0 bcf/d Nov/17), high W Cdn storage, & H1/17 imports from US +0.6 bcf/d YOY (reversed by Dec) prodn will decline with AECO fwd 1.50/GJ for 2018 - 20…
US NATURAL GAS SUPPLY/DEMAND Bullish US nat gas price with net supply flat/declining net supply (prodn + imports + exports) -0.3 bcf/d since Jan/15 peak exports growing with LNG export capacity to 9 bcf/d in H2/19 renewables need…
SUMMARY funds flow Growing prodn & funds flow on per share basis increasing with 2017 funds flow per share +83% YOY liquids growth, cost reductions, 2018 f/c funds flow per share +20% (strip Mar 12/18) diversified nat gas sales Low…
STORM RESOURCES LTD. CONTACT INFO For further information please contact: Brian Lavergne, President and Chief Executive Officer Michael Hearn, Chief Financial Officer Carol Knudsen, Manager Corporate Affairs Address: 200, 640 5th…
APPENDIX
UMBACH LAND POSITION Montney productive across area 2P reserves on 22% of lands Storms lands higher quality in terms of thickness (upper Mont 40 60 m) and porosity (6%)
UMBACH HZ TYPE CURVE
UMBACH HZ CONDENSATE RATES
PLANTGATE NAT GAS PRICE AT 2018 FWD STRIP 2018 FWD STRIP (Mar 2/18) Sell in Chicago (Alliance pipeline) NYMEX US2.81/mmbtu Chicago price US2.51/mmbtu NYMEX - Chicago diff - US0.30/mmbtu Chicago price Cdn3.06/GJ Alliance fuel -Cdn0.16/GJ…
NE BC SPECTRA RECEIPTS VS EXPORTS H2/17 wider Stn 2 AECO diff caused by T-south maintenance restrictions, offset by TCPL Towerbirch expansion (+150 mmcf/d Dec/17, +240 mmcf/d Apr/18)
BULLISH NAT GAS US and world nat gas demand has been increasing for the last 25+ years renewables need nat gas (wind & solar are variable)
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