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Annual General Meeting – Delphi Energy Corp.

Delphi Energy Corp. · May 22, 2018 · 31 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. Annual General Meeting – Delphi Energy Corp. – slide 1
    May 22, 2018 AGM PRESENTATION
  2. Annual General Meeting – Delphi Energy Corp. – slide 2
    BIGSTONE PROLIFIC, LIQUIDS RICH MONTNEY Pure play MONTNEY E&P company with WORLD CLASS ASSETS: Successful delineation drilling Grande Prairie Bigstone to the west and south Montney Edmonton Growing condensate production and high…
  3. Annual General Meeting – Delphi Energy Corp. – slide 3
    MANAGING THROUGH COMMODITY PRICE CYCLES 25.00 Early Stage Montney Focus on Montney Return to Montney Production Growth Margin Growth Production Growth 20.00 Netback (/boe) 15.00 Prolonged price weakness protected by hedges…
  4. Annual General Meeting – Delphi Energy Corp. – slide 4
    BIGSTONE MONTNEY GROWTH IN 2017 Production Q4 2016 to Q4 2017 Total corporate increased 35 percent to 9,588 boe/d driven by Montney development Field condensate increased 77 percent to 2,374 bbls/d Reserves YE 2016 to YE 2017…
  5. Annual General Meeting – Delphi Energy Corp. – slide 5
    BIGSTONE MONTNEY GROWTH Montney Production Growth Montney asset growth funded largely through cash flow and non-core asset 10,000 Liquids CAGR 63% dispositions 8,000 Nat. Gas CAGR 50% Life-to-date (LTD) capital includes land…
  6. Annual General Meeting – Delphi Energy Corp. – slide 6
    CONSISTENT ECONOMIC RESERVE GROWTH Montney Development (2012 to 1H 2018) Montney Reserves (mboe) Proved Developed Producing 52 wells (41.1 net) drilled LTD 20,000 Montney Other Reserves (mboe) 2015/16 drilling focused on…
  7. Annual General Meeting – Delphi Energy Corp. – slide 7
    HOW DOES DELPHIS BIGSTONE MONTNEY RANK: Recognized as a top tier liquids-weighted asset DEE Among the lowest break-even gas price Among the highest IRR DEE Bigstone Montney economics driven by field condensate and NGLs May…
  8. Annual General Meeting – Delphi Energy Corp. – slide 8
    NETBACK COMPARISON MONTNEY PRODUCERS Condensate yields, total liquids content and operating netbacks are among the highest Operating netbacks continue to increase as: Focus on liquids-rich West Bigstone Amine sweetening facility…
  9. Annual General Meeting – Delphi Energy Corp. – slide 9
    BUILT A DOMINANT LAND POSITION Largest Land Position at Bigstone Montney land base has grown to 170 gross sections (111 net) from 4 sections in 2011 Significant land position allows for efficient operations, control over…
  10. Annual General Meeting – Delphi Energy Corp. – slide 10
    BIGSTONE INFRASTRUCTURE FULLY INTEGRATED Amine plant commissioned and sending sweetened Montney gas to Bigstone 14-28 natural gas processing plant (25% Delphi working interest) West Bigstone 16-10 well producing to 100%…
  11. Annual General Meeting – Delphi Energy Corp. – slide 11
    7-11 AMINE PLANT ON-STREAM Delphi 17 mmcf/d amine plant to sweeten Delphi Montney sour gas 52 mmcf/d sour dehydration and compression facility May 2018 11
  12. Annual General Meeting – Delphi Energy Corp. – slide 12
    BIGSTONE SWEET GAS PROCESSING PLANT Repsol / Delphi sweet natural gas processing plant Delphi 25% working interest 85 mmcf/d capacity significantly underutilized Amine sweetened Montney gas now being processed here Material…
  13. Annual General Meeting – Delphi Energy Corp. – slide 13
    NEW AMINE PLANT IMPROVES CASH NETBACK Commissioned April 2018 Up to 17 mmcf/d (11 net) of raw gas Cash flow increases by about 0.60/mcf(1) on amine sweetened gas sold on AECO Cash flow impact increases to 0.80/mcf once…
  14. Annual General Meeting – Delphi Energy Corp. – slide 14
    SECURE MARKET ACCESS FOR GROWTH Delphi/Alliance Contracted Transportation Full Path Service to Chicago Service (mmcf/d) Alliance 57 mmcf/d of firm and priority interruptible service Access to premium pricing via Chicago City…
  15. Annual General Meeting – Delphi Energy Corp. – slide 15
    GAS MARKETING IN 2018 100% SHELTERED FROM AECO CARNAGE Natural Gas Sales by Market in 2018 (1) Approximately 80% of natural gas sold in Chicago generating significantly higher netback pricing than AECO. AECO exposure is hedged…
  16. Annual General Meeting – Delphi Energy Corp. – slide 16
    CONTRACTED ALLIANCE SERVICE IS A VALUABLE ASSET Delphis Alliance service worth approximately 25 million (1) The undiscounted value of the arbitrage between AECO and Chicago netback prices available through Delphis Alliance service…
  17. Annual General Meeting – Delphi Energy Corp. – slide 17
    PROVEN RISK MANAGEMENT PROGRAM Consistent Hedge Performance Commodity Hedges Q1 2018 Q2 2018 Q3 2018 Q4 2018 2019 Majority of near term production is Natural gas (mcf/d) 20.0 21.0 21.0 17.4 7.2 hedged Average hedge price (C/mcf)…
  18. Annual General Meeting – Delphi Energy Corp. – slide 18
    OPERATIONS UPDATE May 2018 18
  19. Annual General Meeting – Delphi Energy Corp. – slide 19
    AN ACTIVE 2017 AND Q1/2018 117MM 2017 capital 17 (11.0 net) wells drilled 6 (3.9 net) delineation wells ATH 7 (4.5 net) pad wells Start of 7-11 Amine project Expansion of 7-11 and 5-8 XTO comp/dehy facilities 21 km of main…
  20. Annual General Meeting – Delphi Energy Corp. – slide 20
    UNDERSTANDING RESULTS OF EVOLVING FRAC DESIGN Montney Frac Generation Design Evolution 1,800 Gen 6 1,600 Evolution to significantly more West Bigstone sand moving to West Bigstone 1,400 Gen 5 Sand Lb/ft 1,200 More at West -…
  21. Annual General Meeting – Delphi Energy Corp. – slide 21
    UNDERSTANDING RESULTS OF EVOLVING FRAC DESIGN Direct offset comparison of 5th to 3rd Generation Frac 10,000 Gas (mcf/d) & Field Condensate (bbl/d) Early time results 1,000 Increased condensate rates and yields Lower initial…
  22. Annual General Meeting – Delphi Energy Corp. – slide 22
    UNDERSTANDING RESULTS OF EVOLVING FRAC DESIGN Production from 5th Gen frac has started to track 3rd Gen. Based on this result, we scaled back to Gen 3 on subsequent wells at 14-18 and 16-11. 10,000 5th Gen Frac (14-15-60-23W5) vs…
  23. Annual General Meeting – Delphi Energy Corp. – slide 23
    UNDERSTANDING PAD WELL OPERATIONS / RESULTS Well Offset Frac clean-out Initial production performance of 13-9 (and other pad wells) was below expectations A partial mill/clean-out of the ball drop liner has brought…
  24. Annual General Meeting – Delphi Energy Corp. – slide 24
    WESTERN-MOST WELLS: HIGHEST CONDENSATE YIELD TO DATE Highest initial condensate yield Shallower initial decline Average IP90 field condensate yield of 203 bbl/mmcf sales Both wells completed with 40-stages and 1,350 lb/ft of…
  25. Annual General Meeting – Delphi Energy Corp. – slide 25
    MONTNEY ECONOMIC MODEL Bigstone Montney Toe Up Two Section Horizontal Hypothetical Type Wells 30+ stage Slickwater Completion Economics/Metrics - Flat Pricing: WTI US65/bbl, NYMEX US2.80/mmbtu Type Rich Type Well Well Payout yrs…
  26. Annual General Meeting – Delphi Energy Corp. – slide 26
    INCREASING CONDENSATE YIELDS Condensate Gas Ratios Significantly Greater in West Bigstone with Frac Design Changes Delphi Bigstone Montney - IP180 CGR vs. IP30 CGR 250 West Type Well - Stabilized CGR Type Well - Stabilized CGR…
  27. Annual General Meeting – Delphi Energy Corp. – slide 27
    INCREASING NETBACKS Corporate netbacks increase with addition of higher condensate yield wells Impact of Production Composition on IP90 Operating % Change Netback for Bigstone Montney(1) West vs East 50.00 Revenue 25% 45.00…
  28. Annual General Meeting – Delphi Energy Corp. – slide 28
    2H 2018 MONTNEY DRILLING PLANS Offsetting successful delineation at West Bigstone 16-10 15-19 IP30: 950 bbls/d field condensate highest yet for Delphi 1,828 boe/d 62% liquids 15-19 16-10 was recently brought on 119 gross…
  29. Annual General Meeting – Delphi Energy Corp. – slide 29
    2018 GUIDANCE FOR FIRST HALF 2018 2018 First Q1 Q2 Half Guidance Actuals Forecast 2018 capital program supported by Net Capital Program ( million) 38 - 45 41.2 5.5 - 6.0 significant production and cash flow growth Gross Well Count…
  30. Annual General Meeting – Delphi Energy Corp. – slide 30
    CASH FLOW FUNDED GROWTH Capital program of 46 million per year is required to maintain production Drill, complete, equip and tie-in 7 (4.6 net) wells(1) Annualized Q1 cash flow before hedges was 56 million (WTI price of 62.89)…
  31. Annual General Meeting – Delphi Energy Corp. – slide 31
    INDIVIDUAL MONTNEY WELL DATA Initial Production (IP) Rate Well Performance (1) Well(2) Frac Design Horizontal Number IP30 IP90 IP180 IP365 Generation Length of Fracs Total Sales Field Condy Total Sales Field Condy Total Sales Field…

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