EXECUTING ON PRODUCTION GROWTH FROM A LEANER, LOWER COST PLATFORM MAY 2018 CORPORATE PRESENTATION 1
CORPORATE OVERVIEW Capitalization Who are we Market Capitalization 584 million Resource play developer with asset portfolio Debt 662 million consisting of Lindbergh thermal oil and Groundbirch Montney dry gas properties Enterprise…
CORPORATE OVERVIEW Two key 100 percent owned growth assets These assets account for approximately 90 percent of production and 99 percent of 2P reserves Focus on oil development provides significant torque to recovering oil…
MEANINGFUL DEBT REDUCTION IN 2017 1.1 billion Total debt repaid in 2017 DEBT COMPOSITION CREDIT FACILITY ( MILLION) Undrawn 184 330 million credit facility 515 million Drawn 146 Matures on March 31, 2019 Term Notes Borrowing…
BALANCE SHEET MANAGEMENT LONG-TERM DEBT MATURITIES (CDN MILLION EQUIVALENT) 515 million of remaining term debt Remaining term notes have a weighted 250 average interest rate of approximately 6.5%1 200 150 100 205 121 130…
ASSET PORTFOLIO CORPORATE PRESENTATION 6
2018 CORPORATE GUIDANCE CAPITAL ALLOCATION BY AREA Corporate Lindbergh Guidance Groundbirch Other 2018 Average daily production 22,500 to 23,500 (boe/d) Total capital expenditures 65 65 ( million) million Royalties (%) 6.0%…
2018 CAPITAL PROGRAM Development focused on Lindbergh to deliver growth 2018 capital program focused on continuing to grow Lindbergh production in bite size pieces Characteristics of these capital programs: Optimization of existing…
2018 BUDGET Double-digit production growth and lower cost structures Expecting year over year double-digit production growth in 2018 with exit guidance of 24,000 boe/d Reduced cost structures compared to 2017 : Operating expenses…
LINDBERGH THERMAL OIL Exceptional Operated Thermal Oil Project Strong Economics Large Resource with Low Risk LEGEND Growth Potential Lindbergh Liquids pipelines Lindbergh is one of the most economic, ultra long-life…
LINDBERGH THERMAL OIL Demonstrated Performance exceeding expectations with new 2017 well pairs just excellence as SAGD coming on production developer and Nameplate capacity of 12,500 bbl/d with a design ISOR of 3.6x operator 2018…
LINDBERGH PROVIDES TOP QUARTILE PERFORMANCE AMONG SAGD PROJECTS 1,000 Christina Lake (CVE) Firebag 900 Surmont 800 Jackfish 700 Average well productivity (bbl/d) 600 Foster Creek 500 Leismer Lindbergh 400 Long Lake…
PEANUT BUTTER VS. HOCKEY PUCKS Lindbergh: The perfect combination of reservoir fluid and rock Peanut butter vs. hockey pucks Athabasca Cold Lake/Lindbergh Lower API, more steam Higher API, less steam required required…
PRODUCTION CONTINUES TO EXCEED NAMEPLATE CAPACITY 18,000 Scheduled plant turnaround 12.0 16,000 Bitumen Production (bbl/d) 14,000 Steam-Oil Ratio (SOR) 9.0 12,000 10,000 8,000 6.0 6,000 4,000 3.0 2,000 0…
GENERATING STRONG OPERATING NETBACKS 45.00 40.00 35.00 per bbl of bitumen at the 30.00 25.00 lease 20.00 1 15.00 24.77 24.89 26.16 22.69 21.72 10.00 19.67 16.93 5.00 11.48 3.05 0.00 Q1 2016 Q2 2016 Q3 2016…
2017 PAD D01 PROGRAM 2017 infill capital program included: Two producing infill wells drilled and on production at a combined rate of 1,000 bbl per day New well pair on D01 currently producing 850 bbl per day All wells now on…
2017 PAD D04 CAPITAL PROGRAM A total of nine well pairs drilled, first wells drilled since 2015 One well pair drilled to test area previously exploited using cyclic steam (CSS) in section 13 Six of these well pairs are currently on…
2018 CAPITAL GROWTH PROGRAM Approximately 45 million allocated in 2018 towards continued production growth at Lindbergh Eight infill wells to be drilled on Pad D05 Wells expected to be drilled in second quarter of 2018 with…
LINDBERGH TRANSPORTATION OPTIONALITY Transportation flexibility Moving product to market: Several pipeline and transload stations are located in close proximity to central processing facility. Pengrowth has flexibility to move…
WHY DOES SEYMOUR SCHULICH OWN OVER 24% OF PENGROWTH The Lindbergh SAGD thermal oil project is one of the lowest cost and best in class in Canada. At some point, the sentiment will swing back to Canadian opportunities and this will be…
GROUNDBIRCH MONTNEY OVERVIEW PGF Within the Montney fairway, Pengrowths Groundbirch Pengrowth operates a 30 Pengrowth has 19 sections lands have 360 net (unrisked) million cubic feet per day (100 percent working interest)…
GROUNDBIRCH 2018 DEVELOPMENT Current development plan Four well development program with the addition of sales 9 28 compression and pipeline tie-in to Nova-Saturn meter station. MMcf/d MMcf/d Three of the four wells drilled in 2017…
WHY YOU SHOULD INVEST IN PENGROWTH Leaner, stronger company with significant upside exposure to a recovering crude oil price Focused portfolio expected to deliver double-digit production growth in 2018 and significantly lower cost…
APPENDIX CORPORATE PRESENTATION 25
LINDBERGH RESERVOIR CHARACTERISTICS The Lloydminster zone is well defined across Lindbergh asset: No thick shale baffles or barriers or Inclined Heterolithic Stratification (IHS) Excellent porosity and vertical permeability…
COLD LAKE/LINDBERGH REGIONAL ADVANTAGES COLD LAKE REGION = SUPERIOR ECONOMICS LOWER BLENDING REQUIREMENTS = HIGHER Projects in the Cold Lake region such as Lindbergh benefit from REALIZED PRICE a number of significant regional…
2017 RESERVE SUMMARY Focused reserve profile mirrors focused asset base Not going Lindbergh 317.0 MMboe To (Mboe) Die Proved Developed Producing 33, 257 446.6 The Total Proved 192,718 MMboe Lie Probable 253,914 You can…
NET ASSET VALUE ( millions except percentages and share numbers) Discounted at 5% Discounted at 10% Value of total Proved plus Probable Reserves 3,976 2,170 Undeveloped Land 26 26 Long-term debt, including bank debt and working capital…
TAX POOLS Tax Pools as at December 31, 2017 Category (million) Canadian Oil and Gas Property - Expense Canadian Development Expense 89 Undepreciated Capital Cost 428 Canadian Exploration Expense 66 Other (Injectants,…
SLIDE FOOTNOTES Slide 2 Market capitalization as at May 14, 2018 based on TSX closing price of 1.05 Debt as at March 31, 2018 Reserves are as estimated by GLJ Petroleum Consultants Ltd. as at December 31, 2017 Slide 3 Percentages are…
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