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April 2018 Corporate Presentation – Perpetual Energy Inc

Perpetual Energy Inc · Apr 9, 2018 · 40 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. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 1
    C O R P O R AT E P R E S E N TAT I O N APRIL 2018 BOLD IDEAS FOR ENERGY 1
  2. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 2
    Financial Profile Financial Profile (TSX: PMT) December 31, 2017 except as noted Common Shares o/s(1) 59.3 million Management ownership 49% Share price(1) 0.67 Market capitalization 40 million Net bank debt(2)(4) 48 million…
  3. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 3
    Operating Profile Edson Wilrich Deep Basin Multi-zone liquids-rich gas Tight oil & gas exploration Mannville heavy oil Eastern Alberta Conventional shallow gas Viking shallow shale gas Bitumen Asset Summary Production(1)…
  4. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 4
    High Graded Asset Base 100% 100% Building a foundation 90% of resource-style plays 90% Robust multi-zone inventory 80% for profitable exploration 80% and development Proved and Probable Reserves (% of Total) 70% High…
  5. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 5
    2018 Strategic Priorities Grow Value of Greater Edson Liquids-Rich Gas Grow Value of Eastern Alberta Portfolio Advance High Impact Opportunities Optimize Balance Sheet For Growth Positioned to pursue profitable growth…
  6. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 6
    2018 Forecast Capital Spending H1 2018 H2 2018 2018 Forecast 2017 Forecast Forecast Total ( millions) West Central 65 8 3 11 14 gross 1 gross (1.0 net) drills 0 drills 1 gross (1.0 net) drills Liquids-Rich Gas (13.4 net)…
  7. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 7
    Line of Sight Growth Plan 14,000 Forecast Production 2018 Avg 11,500 boepd Average Daily Production (Boe/d) 12,000 2017 Avg 9,876 boepd 10,000 8,000 6,000 4,000 2,000 - Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1…
  8. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 8
    Market Diversification Strategy 2018 Price Exposure Net of Royalties (1) Natural gas market shift to diversify portfolio Crude Oil Crude Oil Fixed 3% 8% Locked in term spreads and swapped back to Daily Index at five downstream…
  9. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 9
    Increasing Margins 35.00 35 30.00 30 Maintaining Margins despite 25.00 25 lower AECO 2018 forward strip 20.00 20 /Boe /Boe 15.00 15 10.00 10 5.00 5 - - 2012 2013 2014 2015 2016 2017 2018E Operating Costs…
  10. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 10
    2018 Projected Adjusted Funds Flow Sensitivities Projected 2018 Calendar 2018 NYMEX Price (US/MMbtu) Adjusted Funds Flow(1) ( CAD millions) 2.25 2.50 2.75 3.00 3.25 3.50 3.75 45.00 21 23 25 27 29 31 33 Calendar 2018 WTI 50.00…
  11. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 11
    STRATEGIC PRIORITY 1 GROW VALUE OF GREATER EDSON LIQUIDS-RICH GAS
  12. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 12
    Edson Activity Added 15 MMcf/d capacity at West Wolf 10-3 plant to bring area capacity to 78 MMcf/d Winter 2017/18 ERH program - longest well to date 3,400m horizontal length Pre 2017 2017 Q1 2018 H2 2018 2018 Drill…
  13. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 13
    Edson Type Curves McDaniel YE 2017 TPP West Type Curve Economics (1) Price Deck McDaniel January 1/2018 Average (2) Capital (D,C & T) 4.5 MM West TPP Type Curve (3) West TPP Low Type Curve (3) NPV 10 % 3.5 MM East TPP Type Curve…
  14. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 14
    East Edson Wilrich Capital Efficiency 1) Capital efficiency = Cost to drill complete, equip and tie in/first 12 months average daily production, based on actual capital and average daily production to date (with McDaniel 2017 PDP…
  15. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 15
    Top Quartile Operating Cost Structure East Edson Operating Costs 2,500 14.00 12.00 2,000 10.00 Operating Cost (/Boe) Operating Cost (M) 1,500 8.00 6.00 1,000 4.00 500 2.00 0 0.00 (1) Operating…
  16. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 16
    STRATEGIC PRIORITY 2 GROW VALUE OF EASTERN ALBERTA PORTFOLIO
  17. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 17
    Eastern Alberta Mannville 8 Producing Mannville pools 6 Lloyd, 2 Sparky Q1 2018 production 900 boe/d Access to Large Resource 2017 Capital Program 190 MMbbl Discovered Petroleum initially in place (1) 4 (3.3 net) heavy oil…
  18. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 18
    Mannville Heavy Oil Drilling Inventory Well Economics Assumptions (1) Capital (D,C & T) 0.9 MM 2018 Pricing CAD47.90/bbl wellhead heavy price (McDaniel Jan 2018 WTI US58.50/bbl, WCS CAD51.90/bbl, Offset CAD-4.00/bbl forecast) NPV…
  19. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 19
    Mannville Heavy Oil Pools Waterflood Response 800 Upper Mannville I2I Pool 600 Waterflood McDaniel Wedge Volumes F&D Recycle Ratio Oil rate, bbl/d YE 2017 from Capital Spent To-Date 400 To-date To-date Capital Current…
  20. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 20
    Waterflood and Enhanced Oil Recovery Scope Select Pools DPIIP (2) Cumulative TPP Reserves Implied Currently Under production booked at YE Recovery Waterflood to YE 2017 2017 (2) Factor (MMbbl) (MMbbl) (MMbbl) (%) Sparky I2I (1)…
  21. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 21
    STRATEGIC PRIORITY 3 ADVANCE HIGH IMPACT OPPORTUNITIES
  22. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 22
    Bitumen Panny Bluesky Low rate cold flow possible without solvent or thermal assistance Average pay thickness 11 m Low viscosity bitumen 15,000 cp at 25oC 50,000 cp at 11oC reservoir temp Highly mobile at 70oC Panny Bluesky…
  23. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 23
    LEAD Process Technology Pilot Low Pressure Electro-Thermally Assisted Drive First stage of pilot single well Cyclic Heat Stimulation completed in Q2 2017 Electrical resistive heating and production in a single horizontal well to…
  24. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 24
    STRATEGIC PRIORITY 4 OPTIMIZE BALANCE SHEET FOR GROWTH
  25. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 25
    Balance Sheet (1) Net bank debt: 48 million Comprised of 32 million revolving bank debt and 16 million working capital deficiency Credit facility borrowing limit expanded by 62.5% to 65 million; Term extended until May 2019 Next…
  26. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 26
    INVESTMENT THESIS POTENTIAL FOR MULTIPLE EXPANSION RELATIVE TO PEER GROUP COMPELLING DISCOUNT TO NET ASSET VALUE TORQUE TO GAS PRICE RECOVERY
  27. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 27
    Sum of the Parts Year-End 2017 Net Bank Debt Unbooked Inventory Unbooked Inventory (1) Net asset value per share based on 59.3 million shares outstanding. Reserve valuation based on NPV10% McDaniel reserves and pricing;…
  28. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 28
    Key Investment Highlights High Quality Assets Asset base repositioning for resource-style and diversification successful Edson Wilrich liquids-rich gas inventory well-defined providing high capital efficiency growth Mannville heavy…
  29. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 29
    ADDITIONAL INFORMATION Sue Riddell Rose President & CEO Mark Schweitzer VP Finance and CFO infoperpetualenergy.com EMAIL 800.811.5522 TOLL FREE 403.269.4400 PHONE 403.269.4444 FAX 3200, 605 5 Avenue SW Calgary, Alberta Canada…
  30. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 30
    Non GAAP Measure Advisories NON-GAAP MEASURES: The terms adjusted funds flow, adjusted funds flow per share, adjusted funds flow per boe, available liquidity, cash costs, gas over bitumen revenue, net of payments, net working capital…
  31. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 31
    Oil and Gas Advisories OIL AND GAS ADVISORIES: The presentation refers to F&D (finding and development costs), ROR (rate of return), payout and recycle ratio which have been prepared by management and are used to measure performance.…
  32. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 32
    APPENDIX
  33. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 33
    Diversified Portfolio for Value Creation Edson Wilrich Mannville & Panny Greater Edson secondary conventional shallow gas zones Mannville Viking shallow Columbia/Brazeau shale gas Tight conventional Waskahigan Duvernay…
  34. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 34
    Debt Repayment and Liquidity Profile Debt Repayment Profile 12/31/2017 60% 80 49% 70 50% 62.9 MM 60 36% 40% 50 46.2 MM 30% 40 30 20% 15% 20 MM 18.5 10% 10 0% 0 < 1 Year 1 Year < 3 Years 3 Years TOU Loan Bank…
  35. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 35
    Greater Edson Liquids-Rich Gas Wilrich Play Performance 14,000 25,000 2014: East Edson JV Royalty deal Sold 5.6 MMcf/d plus associated liquids for 120 MM investment 2015: Growth driven by JV Royalty sale commitments 12,000…
  36. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 36
    Conventional Shallow Gas Belly River Conventional shallow gas asset base characteristics Primarily Mannville Area remaining post shallow gas disposition Viking Cretaceous sweet shallow…
  37. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 37
    Viking Shallow Shale Gas Viking Tight Gas Resource Play 80 sections of P&NG rights on trend Type curves developed from tight Viking Perpetual Viking Tight Viking production from vertical wells in conjunction Horizontal Test Well…
  38. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 38
    Bitumen R9 R5 R1W5 R21 R17 R13W4 T98 Perpetual OS Leases Overriding Royalty Lands Perpetual Panny Pilot T95 Experimental Primary Projects Thermal Projects 301 net sections (192,416 net acres) of oil sand leases…
  39. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 39
    Transformational Transactions Warwick Gas Storage Sale: (May 2016) Sold remaining 30% partnership interest (23 million) Senior Notes Swap: (May 2016) Positive Impact: Retired Senior Notes via swap for 4.4 MM TOU shares (214 million)…
  40. April 2018 Corporate Presentation – Perpetual Energy Inc – slide 40
    Shallow Gas Disposition October 1, 2016 Nominal proceeds + 2 year call option Deferred Purchase Price through 2 year call on AECO gas price 2.81/GJ for 33,611 GJ/d Metrics Impact Production: (35.5 MMcfe/d) Adjusted Funds Flow: 5…

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