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May 2018 Investor Presentation – Crew Energy Inc.

Crew Energy Inc. · May 31, 2018 · 28 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. May 2018 Investor Presentation – Crew Energy Inc. – slide 1
    1 BUILDING OUR FUTURE IN THE MONTNEY May 2018
  2. May 2018 Investor Presentation – Crew Energy Inc. – slide 2
    ABOUT CREW (TSX: CR) Liquids-focused, NE BC Montney producer Large, contiguous land base with a massive resource 16 billion boe Access to diversified markets with operated and growing infrastructure footprint, increasing liquids…
  3. May 2018 Investor Presentation – Crew Energy Inc. – slide 3
    NATURAL GAS FUNDAMENTALS(1) Gas market underscores need for new pipelines / takeaway AECO forward curve has been very bearish, AECO Natural Gas Prices undermining investor sentiment 5.00 2016 2017 2018 4.00 Canadian gas pipeline…
  4. May 2018 Investor Presentation – Crew Energy Inc. – slide 4
    CONDENSATE FUNDAMENTALS(1) Demand & price outlook favourable for longer term Condensate in Alberta typically realizes premium to oil prices Alberta requires condensate imports so long as demand outpaces local supply, premium will…
  5. May 2018 Investor Presentation – Crew Energy Inc. – slide 5
    CRUDE OIL FUNDAMENTALS(1) Lower inventories & robust demand growth drive price improvements 80 Oil price recovery since mid-2017 on sharp improvement WTI Oil Prices in fundamentals much lower inventories + robust global 70 demand…
  6. May 2018 Investor Presentation – Crew Energy Inc. – slide 6
    MARKET RESPONDS TO UNDERLYING COMMODITIES Montney Land Capture Phase + Infrastructure Asset Base Transition Build-Out Phase 25 140 Apr 2014 Jul 2011 Montney land acquisition (75 net secs) + Nov 2017 Caltex Energy sale of AB Deep…
  7. May 2018 Investor Presentation – Crew Energy Inc. – slide 7
    SIGNIFICANT LAND POSITION Acreage prospectivity & land value affords material optionality Montney (2007) Montney (2010) Montney (2018) Value Production Land Date Area Divested (mm) (boe/d) (acres) Apr 2010 Edson Cardium 126 1,700…
  8. May 2018 Investor Presentation – Crew Energy Inc. – slide 8
    CONVERTING PROSPECTIVE LAND TO RESOURCE Montney is a siltstone, not a shale Montney Attributes: Flatrock Exceptionally thick: up to 1,000 feet Permeability 20 - 80x greater than comparable resource plays in North America Attachie…
  9. May 2018 Investor Presentation – Crew Energy Inc. – slide 9
    EXCEPTIONAL VALUE FOR MONTNEY EXPOSURE RELATIVE TO PEER GROUP Significant & ideally positioned Montney acreage with attractive upside 18,000 Enterprise Value to Net Montney Acres 16,000 Crew has 282,000 EV / Montney Acre ( /…
  10. May 2018 Investor Presentation – Crew Energy Inc. – slide 10
    2018 BUDGET OUTLOOK Targeting higher liquids / condensate revenue Low Base Decline on Montney Production 24000 Supports Lower Capital Requirements Liquids production 50 - 60% 18000 Of forecast 2018 revenue +40% condensate…
  11. May 2018 Investor Presentation – Crew Energy Inc. – slide 11
    CREW MONTNEY STRATIGRAPHIC STACK 2 HZ Wells 4 HZ Wells 3 HZ Wells 77 HZ Wells 77 HZ Wells 10 HZ Wells West Portage Groundbirch Attachie West Septimus Septimus Tower Doig Upper Montney 9 1 AA 1 23 7 2 A 42 48 3 B 2 9 3…
  12. May 2018 Investor Presentation – Crew Energy Inc. – slide 12
    CONVERTING RESOURCE TO PRODUCTION & RESERVES At a low cost 400.0 P+P Reserves(2) (MMBOE) Montney Organic Production Growth(1) (BOE/D) 370.2 22,000 Forecast 350.0 323.9 Natural Gas boepd 20,000 300.0 Liquids mmbbls 18,000 NGLs…
  13. May 2018 Investor Presentation – Crew Energy Inc. – slide 13
    FREE CASH FLOW AT SEPTIMUS Achieved free cash flow model Long-range growth plan forecasts W. Septimus & 85 MM Free cash flow forecast 16 19(2) Groundbirch generating free cash flow in excess of 2X Septimus (16/17 actuals & 18/19…
  14. May 2018 Investor Presentation – Crew Energy Inc. – slide 14
    WEST SEPTIMUS: ULTRA CONDENSATE-RICH Compelling IRRs and robust NPVs(2) support continued development across a variety of gas prices Rate of Return Sensitivities(1) to AECO Pricing (/mcf) WTI: US60/bbl & FX: 0.80 120% AECO…
  15. May 2018 Investor Presentation – Crew Energy Inc. – slide 15
    ULTRA CONDENSATE-RICH (UCR) AREA New focus at Greater Septimus Focus on UCR development in 18 UCR Area Crew 7-30 Pad IP 60: 5 well avg Condensate ratios of 75 - 250 bbls/mmcf in area 350 bbls/d condy 172 bbls/mmcf CGR 85% IRR at…
  16. May 2018 Investor Presentation – Crew Energy Inc. – slide 16
    FUTURE GROWTH OPPORTUNITIES Groundbirch and Attachie development B13-26-84-24W6 6 Miles Crew 10-22 ATTACHIE 10.5 mmcf/d Extreme overpressured CGR: 350 bbls/mmcf IP30: 665 bbls/d condy Over-pressured 1.5 - 1.8x with 4 fracs…
  17. May 2018 Investor Presentation – Crew Energy Inc. – slide 17
    CONTINUE DE-RISKING AND HIGH GRADING PORTFOLIO WITH STAGED INFRASTRUCTURE BUILDOUT 275 mmcf/d takeaway capacity with 325 mmcf/d of processing PROCESSING 350,000 TRANSPORTATION 300,000 Groundbirch Facility Additional capacity…
  18. May 2018 Investor Presentation – Crew Energy Inc. – slide 18
    MARKET DIVERSIFICATION Expanding exposure to higher-priced hubs outside of Canada Q1 2018 Q2 & Q3 2018 Q4 2018 2019 5% 5% 9% 16% Chicago 6% 19% 15% Dawn 4% 19% 4% Malin 11% 15% 41% 4% Nymex 8% 8% 8% Sumas 13% 13% 13% AECO…
  19. May 2018 Investor Presentation – Crew Energy Inc. – slide 19
    REALIZED IMPACT OF GAS MARKET DIVERSITY Ideally positioned with access to 3 major export pipelines 3.50 Commencement of Alliance Pipeline service and initiation of diversified contract portfolio 3.00 Natural Gas Prices (C/MCF)…
  20. May 2018 Investor Presentation – Crew Energy Inc. – slide 20
    ENVIRONMENTAL STEWARDSHIP IS GOOD BUSINESS Recycled Water Used for Hydraulic Fracturing (%) Hazardous Waste Recycling Avg Per Year (2015-2017) BC AB 61% 95% 19 50% 2015 67% 2016 2017 2018 53 Tonnes 72 Tonnes Of waste…
  21. May 2018 Investor Presentation – Crew Energy Inc. – slide 21
    COMMITMENT TO CONTROLLING FLARE VOLUMES Gas Plant Flaring Performance 0.25% Crew tests new wells inline Flare volume % of Plant Inlet 0.21% 0.20% whenever possible to reduce 0.18% volumes being flared 0.15% 0.15% 0.10%…
  22. May 2018 Investor Presentation – Crew Energy Inc. – slide 22
    IMPORTANCE OF OIL & GAS TO CANADA Oil & gas is the largest contributor to Canadas GDP growth Canadas natural resources generate: 46.2% of all Canadian Manufacturing 58.3% of all Merchandise Exports 61% of all Business…
  23. May 2018 Investor Presentation – Crew Energy Inc. – slide 23
    KEY MONTNEY BUILDING BLOCKS ARE IN PLACE 16+ billion boe TPIIP(1) with 5,380 identified locations(1) on 282,000 net acres Massive Montney Resource Only 13% of Upper Montney land has reserves assigned Condensate, Light Oil & Focus…
  24. May 2018 Investor Presentation – Crew Energy Inc. – slide 24
    Contact Info: Contact Info: Dale O. Shwed, President & CEO John G. Leach, Senior Vice President & CFO Suite 800, 250 - 5th Street SW Calgary, Alberta T2P 0R4 Suite 800, 250 - 5th Street SW Telephone: (403) 266-2088 Calgary, Alberta…
  25. May 2018 Investor Presentation – Crew Energy Inc. – slide 25
    APPENDIX
  26. May 2018 Investor Presentation – Crew Energy Inc. – slide 26
    2018 CAPEX PROGRAM & FORECAST 2018 Hedging Summary as of May 8, 2018 Cash Flow (CF) (mm) 82 Volume Period Derivative Reference Price Capex (mm) 80-85 Natural Gas Year-end net debt (mm) 332 2,500 GJ/Day 2018 Swap AECO C2.62/GJ Debt to…
  27. May 2018 Investor Presentation – Crew Energy Inc. – slide 27
    NE BC MONTNEY RESOURCE EVALUATION - 2016 Dec. 31, Dec. 31, Reserves and Risked and Unrisked Economic Contingent Chance of Best Estimate Best Estimate 2016 2015 Resource (1)(2)(3)(6)(7)(8) Development Unrisked Risked Conventional…
  28. May 2018 Investor Presentation – Crew Energy Inc. – slide 28
    NE BC MONTNEY RESOURCE EVALUATION - 2016 CONTD Chance of Best Estimate Best Estimate Prospective Resources (1)(2)(3)(4)(5)(6)(7) Commerciality Unrisked Risked Conventional Natural Gas (Tcf) 66% 10,311 6,774 NGL (MMbbl) 66% 327 215…

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