Why we do what we do We believe: Billion Toe (tonnes of oil equivalent) world demand for clean and reliable source of energy is rapidly growing technological advancements makes our energy cost competitive on a world scale in…
Canadian Natural Gas Market Future Growth 6.0 2 Bcf/d of high 5.0 Potential confidence demand Canadian LNG growth in the next 5 Gas Demand Growth (Bcf/d) Projects years; potential for 8+ 4.0 Bcf/d of growth if LNG…
Corporate Profile TSX: PONY 38% forecasted annual average daily production volume growth (2018 vs. 2017) Our 46% forecasted annual average daily liquids production growth (2018 vs. 2017) Growth 24% forecasted cash flow per share…
World Class Resource 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 Pure Play Location, Location, Location Drilled first well at liquids-rich Beg 38 PONYs Montney Sweet Spot is: sections during Q1 2018 4x thicker than the Marcellus at greater than 300 36 sections meters (approximately…
The Sweet Spot PONY has best well in North Top Decile Well Performance Montney with 6-month 47 of top average daily production rate 100 wells 2,250,000 of more than 11 MMcf/d are PONY wells 2,000,000 Based on cumulative…
Beg Test Well Significant Untapped Value in Liquids-Rich Block Black Swan - Beg 20-H 2 Upper Montney wells 5.5 MMcf/d 7 bbls/MMcf Free Condensate Jedney 6.6 day production test 3 km Final 8 hours of test Black Swan - Beg 80-G 3…
Production Profile Impressive Growth 80 PONY is expecting 38% 70 annual average daily production growth from 2017 to 2018 60 348-360 MMcfe/d Production Volumes (mboe/d) (58,000-60,000 boe/d) 2018 Annual Average Daily 50…
Historical Costs Drilling & Completions Efficiency As capital well costs fell, production type curves dramatically improved Management Perf & Plug Systems Type Curve Continued type curve 21 wells increased 50% D&C cost 7.7 million…
Single Well Economics Single Well Economics by Area Daiber IRR NPV10 2018 Management Type Curves 54% 4.7 mm (dry) Blair 64% 6.2 mm (lean; 15 bbls/MMcf) Management Type Curves Daiber (dry) Townsend 39% 2.9 mm (liquids-rich; 36…
Single Well Development Economics Price Sensitivity (Half Cycle) Townsend (liquids-rich) Blair (lean) Daiber (dry) 120% Liquids-enhanced, Blair 100% wells provide exposure to stronger Condensate, NGL and natural gas pricing…
Assuming Enterprise Value Canadian Natural Gas Reserves 4.85/sh As at Dec 31, 2017 (2.67/sh equity + 2.17/sh debt) on 6.9 Tcfe of 2P Reserves 4.85/sh 0.11/Mcfe 12 PONYs Proved plus Probable natural 42.9 Mcfe/sh or = or gas…
Reserve Information As at Dec 31, 2017 6.9 Tcfe of Proved Plus Proved Plus Probable 8.0 Total Proved Probable reserves with an 6.9 7.0 PONY Reserve Growth NPV10 of 3.3 billion* 6.0 4.9 (20.53/share) 5.0 4.6 4.0 2.9 Tcfe…
2018 Sustainable Capital Spending 2018 capital Cash Flow Budget development program to be 145 - 165 400 Average Daily Production (forecast) Annual million, matching 500 Annual Average Daily Production (actual) 2018 cash flow 350…
Solid Margins Drive Earnings Cost Efficiencies Drive Higher Cash Flow per Mcfe Top Line Revenue (including Hedging) 1.50 Pre-Tax 3.50 3.35 /Mcfe Earnings Hedging Gain 0.23 1.00 0.25 PONY can deliver 3.00 earnings despite low…
Return on Average Capital Employed (ROACE) Illustrates Operational Sustainability 25% 25% 2017 US ROACE 20% 2017 Canadian ROACE 20% 15% 15% 11% 10% 10% 5% 5% 0% 0% Average Canada -5% Average US -5% -10% 4.2% -10% 4.3%…
Market Diversification Natural Gas Sales Points BRITISH COLUMBIA Map here AECO Markets AECO 152 161 MMcf/d Station end of 2018 (fixed price & spot) 2 Medicine Sumas Hat SUMAS Market 28 32MMcf/d Enbridge End of 2018 DAWN…
2018 Production Revenue Managing Volatility 65% of PONYs Q2 Q4 2018 NYMEX production volumes are protected 9% NGL&& NGL Condensate through a combination of physical and Condensate 5% 5% financial contracts at a volume-…
Hedging Profile Prudent Risk Management Percentage on Fixed Price Contract Volume of Product on Contract (Financial and Physical) (Financial / Physical Fixed Price and Basis) 72.70 SUMAS AECO FP 100% 72.69 bbl 72.56 300 Basis…
Pony Points Checking Off All of the Boxes Massive reserves base Top well performance with increasing liquids cut Low well costs Firm transportation to diverse pricing hubs Attractive relative valuation Well situated to…
Appendices and Advisories
Diversified Market Exposure 2018 / 2019 Sales Contracts Support Strong Netbacks Painted Pony actively markets the majority Index pricing as of May 1, 2018; All currency CAD of natural gas volumes into a diversity of sales points…
Processing & Market Access Firm Transportation & Processing Capacity Supports Production Jedney (13 MMcf/d) All current processing West Blair (25 MMcf/d) requirements in- AltaGas Blair Beg place while firm Creek Plant (75…
Financial Strength Term Debt and Credit Facility Provide Flexibility 400 Million Syndicated Credit Facility Syndicated Credit Secured, Reserve Based Lending Facility 164 Matures May 2020 196 164 million drawn as at March 31, 2018…
Corporate Overview Auditor KPMG LLP Evaluation Engineers GLJ Petroleum Consultants Ltd. Banks The Toronto-Dominion Bank The Bank of Nova Scotia Alberta Treasury Branches Canadian Imperial Bank of Commerce Royal Bank of Canada…
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