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 Future Growth 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…
Proposed West Coast LNG Projects A Game Changer Proposed LNG Projects Capacity 4.0 Bcf/d Shell & Partners - LNG Canada 3.8 Bcf/d (FID expected in 2018) Pembina Pipeline Corp. 1.4 Bcf/d Jordan Cove LNG Chevron / Apache 1.3…
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…
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…
Processing & Transportation Firm Transportation & Processing Capacity Supports Production Volumes Jedney (13 MMcf/d) West Blair (25 MMcf/d) AltaGas Blair Beg Creek Plant (75 MMcf/d) Daiber (50 MMcf/d) Daiber Facilities…
The Sweet Spot Top Decile Well Performance PONY has best well in North Montney with 6- 47 of top 2,500,000 100 wells month average daily production rate of are PONY more than 11 MMcf/d wells 2,000,000 Cumulative Natural Gas…
Historical Production Profile Impressive Growth PONY is expecting 45% annual 80 average daily production growth from 2017 to 2018 366-378 MMcfe/d 70 (61,000-63,000 boe/d) Annual Average Daily Production Forecast 60 2018…
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 per Mcfe Diverse fixed-price Cash Costs Non-Cash Costs contracts and 4.00 financial hedges Top Line Revenue (including Hedging) deliver strong netbacks despite…
Sustainable Capital Spending Cash Flow Budget 2018 Capital Budget Capital 185 million Production Annual Average Production Growth 45% Capital Efficiency 1,500/Mcfe/d (9,000/boe/d) Drills / Completions 29 / 31 wells Painted…
Return on Average Capital Employed (ROACE) Because Returns Matter 25% 25% 20% 1-Year Canadian ROACE 1-Year US ROACE 20% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% Average Canada Average US -10% 4.2% -10% 4.3% -15% -15% -20%…
Canadian Natural Gas Reserves As at Dec 31, 2017 PONYs Proved plus 12 Probable natural gas reserves of 6.5 Tcf 10.7 (excluding liquids) positions PONY with the 10 third-largest natural gas 9.5 reserves of any publicly Natural…
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*…
Recycle Ratios Low Cost Reserve Additions in 2017 4.0x 1.6x Proved Developed Producing 2017 F&D Recycle 3.2x 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…
Market Diversification Natural Gas Sales Points 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 10 MMcf/d to Methanexs Malin…
2018 Production Revenue Managing Volatility 55% of PONYs total forecast 2018 production volumes NYMEX are protected through 7% a combination of physical and financial Unhedged NGL & contracts at a volume- Condensate weighted…
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%…
Historical Costs Drilling & Completions Efficiency As capital well costs fell, production type curves dramatically improved Management Perf & Plug Systems Type Curve 21 wells increased 50% Continued D&C cost 7.7 million type…
Single Well Economics by Area 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…
Single Well Development Economics Price Sensitivity (Half Cycle) Townsend (liquids-rich) Blair (lean) Daiber (dry) 180% High-rate Daiber 160% wells provide Liquids-enhanced, natural gas 140% Blair wells provide pricing torque…
Pony Points Checking Off All of the Boxes Massive reserves base strategically positioned for LNG Top well performance with increasing liquids cut Low well costs Firm transportation to diverse pricing hubs Attractive relative…
Appendices and Advisories
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…
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…
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