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1Q 2018 Earnings Presentation – Tourmaline Oil Corp.

Tourmaline Oil Corp. · May 8, 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. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 1
    Corporate Presentation May 2018
  2. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 2
    2 Current Status May 2018 Production Overview 2018 average production forecast of 270,000-280,000 boepd 2018 average liquid production of 50,000 bpd 2018 production exit estimate of 285,000-290,000 boepd. Three Major Core Areas…
  3. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 3
    3 Historical EP Performance Mar 2018 Production Growth Per Share* Reserves Growth Per Share* 350 9 Production per Thousand Shares Reserves per Share (BOEs) 300 8 7 250 6 200 5 (BOEs) 150 4 100 3 2 50 1 0 0 2009…
  4. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 4
    4 A History of Full Cycle Profitability May 2018 400 6.00 * 350 Earnings before taxes (000,000s) 5.00 AECO (CAD/mcf) Earnings before tax ( millions) 300 4.00 250 AECO (/mcf) 200 3.00 150 2.00 100 1.00…
  5. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 5
    5 Largest Canadian Gas Producers Mar 2018 1,800 2016A Natural Gas (Mmcf/d) 1,600 2017E Natural Gas (Mmcf/d) 1,400 2018E Natural Gas (Mmcf/d) 1,200 Production (Mmcf/d) Tourmaline is currently producing 1,000 between…
  6. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 6
    6 A Significant Liquids Producer May 2018 Tourmaline has doubled liquids production over the past 15 months with strong liquids growth across all three operated complexes. Condensate production will grow from current levels of 12,000…
  7. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 7
    7 Balanced Revenue and Cash Flow Streams Through Product, Marketing and Transportation Diversification May 2018 2018 BUDGETED REVENUE 19% AECO Oil 27% Fixed Price 16% NGL 11% NYMEX Basis NYMEX-Based Delivery 4%…
  8. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 8
    8 Current 5 Year Plan(1) May 2018 400,000 350,000 300,000 250,000 Spirit River Boe/d 200,000 NEBC 150,000 Deep Basin 100,000 50,000 - 2016 2017 2018 2019 2020 2021 2022 After-tax After-tax E&P Capital Free Cash…
  9. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 9
    9 Alberta Deep Basin May 2018 T65 R9 R7 R5 Current Production 180,000-185,000 boepd Current Reserves 984.4 mmboe (Jan 1, 2018) T63 Tourmaline Land Base 1.77 million acres Drilling Inventory 2,322 locations (vertical) TCPL Main…
  10. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 10
    10 Top 25 New Alberta Gas Wells for October 2017 Dec 2017 Note: Excludes plant condensate & NGLS Source: Peters & Co, GeoSCOUT
  11. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 11
    11 Alberta Deep Basin Liquids Rich Cardium Fairway Mar 2018 The combination of extensive 3D seismic coverage T59 T59 and the lowest cost drilling/completion capability Smoky make the liquids rich Cardium play a significant new…
  12. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 12
    12 NEBC Montney Gas/Condensate Complex May 2018 Black Swan Current Prod. 350-360 mmcf/d TOU Land Comp. Station, dehy C-60-A Gas Plant 25 mmcf/d 7,500-8,500 bpd condensate TOU Wells 200 MMCF/D Q4 2018 Current Reserves 1,079.4…
  13. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 13
    13 Gundy Ck Montney Development Mar 2018 Drilling Execution Efficiency Black Swan Gundy 2013 - Comp. Station, dehy Current Production: 11,000-11,500 25 mmcf/d Current Plan 2014 No of wells drilled by TOU: 26 Days 10 14 14.6 No of…
  14. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 14
    14 Peace River High Complex Triassic Oil Charlie Lake and Montney Plays Mar 2018 Mulligan 8-15 Upper Trcl Pad Q3 2016 Peace River High Charlie Lake Play 90 day production rates R. 11 R. 9 5-14 R. Mulligan 7 R. 5 Oil Battery…
  15. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 15
    15 2018/2019 Liquids Growth Projects May 2018 Doe 2-11 Facility provides capacity for additional liquid rich 3,500 bpd Sweetening Facility Montney turbidite condensate production (17 wells (Q4 2018) currently shut-in). NW Spirit…
  16. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 16
    16 Tourmaline Mid-Stream Assets Sep 2017 The infrastructure skeleton in all three core operated complexes is now complete. This infrastructure is essentially R. 15W6 R. 1W6 all newR.and 15W5in the growth areas of the WCSB. NE…
  17. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 17
    17 Historical Reserves Summary Mar 2018 Reserves (GLJ) Reserves 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 2500 (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) PDP 91.9 122.3 177.8 263.2 352.1 436.5 TP 249.2 316.5…
  18. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 18
    18 Independently Recognized Canadian 2P Reserves May 2018 12 Tourmaline has booked only 14% of 10 Natural Gas existing drilling inventory (2,074 of 8 14,471 locations See Schedule A). TCF 6 4 2 1000 0 800…
  19. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 19
    19 Gas Development Location Inventory and Economics Mar 2018 AB Deep Basin Outer Foothills AB Deep Basin B.C. Montney Charlie Lake Vertical Vertical Horizontal Horizontal Horizontal Total Well Costs 2.55 3.70 3.85 3.05 2.10 (Drill,…
  20. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 20
    20 The TOU Engineering Execution Machine Sep 2017 Drill & Complete Costs 8.00 Tourmaline has the lowest completed per stage (Equipping not included) well costs in the overall Montney play in 7.00 Western Canada and the Alberta…
  21. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 21
    Continuously Improving Well Performance 21 and Recoverable Reserves Mar 2018 2,000 Deep Basin EUR 895 mboe 1,500 IP30 1,615 boe/d 41% EUR Increase Since 2012 Boe/d 1,000 IP90 1,197 boe/d 500 IP365 671 boe/d - 1 4 7 10 13…
  22. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 22
    22 Continuous Cost Reduction Strategy Mar 2018 Operating Costs General and Administrative Costs 7.00 6.50 6.34 1.50 1.29 6.00 5.58 1.02 5.50 1.00 /boe /boe 5.00 4.87 0.79 0.74 4.43 4.35 4.37 0.60 4.50 0.45…
  23. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 23
    23 2018 Guidance May 2018 2018(1) Production Boe/d 270,000 - 280,000 Cash Flow(i) - MM 1,343 CFPS - Diluted(i) 4.95 E&P Capital Program(ii) - MM (net of non-core dispositions) 1,082 Free Cash Flow(iii) - MM 232 Exit…
  24. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 24
    24 2018 Natural Gas Transportation and Marketing Overview May 2018 2018 Natural Gas Portfolio Diversification 2018 Exit: 440 mmcf/d of gas will be to US/Other Markets 2019 Exit: 540 mmcf/d of gas will be to US/Other Markets…
  25. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 25
    25 2017 Highlights/2018 Outlook Mar 2018 Tourmaline now a Senior with production exceeding 270,000 boepd. Tourmaline is currently the second largest producer of Canadian natural gas and is a top ten Canadian liquids producer…
  26. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 26
    APPENDIX
  27. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 27
    27 Natural Gas Flows From Western Canada
  28. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 28
    28 Completed Well Costs and EUR By N. American Play Type Aug 2017 Well Costs (CAD) Vs. EUR by Play Type 25 0.47/mcf Completed Well Cost CDN EUR (Bcfe) 20.5 Bcfe 0.69/mcf 20 17.9 Bcfe 15 0.70/mcf 12.3 MM 12.5 Bcfe…
  29. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 29
    29 Tourmaline vs Natural Gas Peers Cash Costs Per BOE July 2017 Tourmaline Vs. Natural Gas Weighted Peers Cash Costs in USD* per BOE (Q1/17) Operating Transportation G&A Interest 12.00 10.26 10.00 1.45 8.00 7.15 1.54 Costs…
  30. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 30
    30 Historical Drilling Performance and Cost Improvements Mar 2017 South Deep Basin Peace River High Average Drill Days Average Drill Cost Average Drill Days Average Drill Cost 3.0 35 57% 49% 20 41% 36% 5.0 2.5 30 Decrease…
  31. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 31
    31 Historical Completions Performance Improvements Deep Basin - Completions Peace River High - Completions 3,000 3,500 47% 3,000 72% 2,500 Decrease Since 2012 Decrease Since 2012 2,500 2,000 2,000 000 000 1,500…
  32. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 32
    Tourmaline Montney 32 Efficiency + Execution Montney Peers Q2/17 Production 40,000 boe/d Sep 2017 Drilling and Completions Costs (1) Montney Operating Costs 14 Q2/2017(1) (2) 12 10 CADMM 8 7.00 6 6.00 4 5.00 2 4.00…
  33. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 33
    33 EP Growth Plan (Original Business Plan) Sept 2008 This is essentially the same business plan that was executed for Duvernay Oil Corp. (2001-2008) Primary growth mechanism will be a conventional EP Program (including Resource…
  34. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 34
    34 Banshee Alberta Gas Plant Simple, easy to construct dew point plants tied to the main TCPL sales system Total cost (2 phases) of 80M, capacity of 130 mmcfpd with enhanced liquids recovery capability
  35. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 35
    35 Tourmaline Environmental Performance Tourmaline strives to continually improve all aspects of environmental performance including the impact of its operations on air, land and water. Tourmaline ranks as a top decile performer…
  36. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 36
    36 BC Water Management 100% of all water flowed back from completion operations is recycled 90% of all water sourced for stimulation operations is recycled 187,000m3 of produced water storage capacity 3 produced water ponds…
  37. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 37
    37 Natural Gas Substitution in Operations Raw Natural Gas cost (Feb 2017) 0.10/DLE (Diesel Equivalent Liter) vs 0.69/L rack price for marked diesel 12 Drilling Rigs and all BC completion operations use a combination of NG/Diesel…
  38. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 38
    38 Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities Cost saving via novel frac water sourcing/recycling Alternative hz frac programs/processes Concurrent pairs, delayed flow-backs etc. Novel drilling…
  39. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 39
    39 Schedule A DRILLING LOCATIONS Estimated Drilling Inventory This presentation discloses drilling locations in four categories: (i) proved undeveloped locations; (ii) probable undeveloped locations; (iii) unbooked locations; and…
  40. 1Q 2018 Earnings Presentation – Tourmaline Oil Corp. – slide 40
    40 Schedule A continued Deep Basin Vertical well count : Approximately 2,767 gross prospective sections at approximately 1.5 wells per section minus 10% for areas that are inaccessible or limited by spacing requirements minus…

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