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June 2018 Raging River Acquisition – Baytex Energy Corp.

Baytex Energy Corp. · Jun 18, 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. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 1
    Strategic Combination June 2018 1
  2. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 2
    Vision A Top Tier North American Oil Producer Focused on Per Share Value Creation Disciplined growth and return of capital to shareholders Production Growth 160 Target 10-15% annual total return to 150 shareholders 140…
  3. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 3
    Strategic Combination Baytex and Raging River board of directors have unanimously agreed to a strategic combination We are creating a top-tier North American oil producer with exceptional assets World Class Asset Base Attractive…
  4. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 4
    Combined Company Highlights: 2019 Annual Estimates Average annual production of 100,000 to 105,000 boe/d (85% oil and NGL) with an exploration and development capital program of 750 to 850 million, representing 5% to 10% production…
  5. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 5
    Creating a Top-Tier Oil Producer With Exceptional Assets Enterprise value 5 billion Four high quality crude oil assets 100,000 boe/d (2019E) High margins and capital World Class High Return Oil 2P Reserves 539 mmboe efficiencies…
  6. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 6
    Summary of the Combination Financial Operating Market Capitalization (1) 2.8 billion Production (3) 93,640 boe/d Net Debt (2) 2.1 billion Crude Oil and NGLs 83% Enterprise Value 4.9 billion Reserves as at December 31, 2017 (4) Common…
  7. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 7
    Preliminary 2019 Guidance 2019 annual average production of 100,000 2019 Preliminary Guidance to 105,000 boe/d E&D CapEx 750 - 850 million 8% production growth over 2018 Production 100,000 - 105,000 boe/d pro forma average annual…
  8. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 8
    A Win-Win Combination Baytex Raging River Significantly improved balance sheet Accretive to adjusted funds flow on a Enhanced netbacks with increased per share basis light oil exposure Provides scale to advance East Increased…
  9. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 9
    Aligned Strategy and Focus on Operational Excellence The board of directors and management will be comprised of members from both Baytex and Raging River Edward LaFehr, President and CEO Rodney Gray, Chief Financial Officer Richard…
  10. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 10
    World Class Asset Base Production by Core Area (1) Operating Cash Flow (2) Other Lloyd. Other Lloyd. Peace Eagle River Eagle Ford Ford Peace River Viking PEACE RIVER Viking DUVERNAY LLOYDMINSTER VIKING 2019E…
  11. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 11
    Significant Free Cash Flow Profile Significant free cash flow to pursue organic growth, reduce debt, pursue strategic acquisitions and/or reinstate a dividend (1)(2) 900 (3) (4) 3.5x Free Cash Flow Net Debt / Adjusted Funds Flow…
  12. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 12
    High Rate of Return Oil Development 200% High quality oil assets 175% Eagle Ford Superior capability to Internal Rate of Return (1)(2)(3) 150% Peace River optimize capital allocation Lloydminster 125% Viking Strong oil…
  13. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 13
    High Return Oil Development Inventory 10+ years drilling inventory in each core area Viking Eagle Ford Peace River Lloydminster East Duvernay Light Oil Light Oil Heavy Oil Heavy Oil Light Oil Self-Funding Self-Funding Self-Funding…
  14. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 14
    Top Tier North American Oil Producer Enterprise Value (1) (2) 12.0 Liquids Gas Mixed Enterprise Value (MM) 10.0 8.0 6.0 4.0 2.0 CPG VET VII MEG ARX Pro (3) WCP ERF PEY POU BIR NVA KEL TOG ATH BNP OBE TVE BNE…
  15. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 15
    Powerful Combination of Free Cash Flow and Production Growth 2019E Free Cash Flow Yield 2019E Debt-Adjusted (After Growth Capital) (1)(2) Production per Share Growth (1)(4) 10.0% 2019E Free Cash Flow Yield 15% 7.5% 2019E…
  16. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 16
    Leverage Profile Bank Debt Covenants Covenant Pro Forma Senior Secured Debt (1) / Bank EBITDA (2) Max 3.5:1 0.3x (2019E) Interest Coverage (3) Min 2:1 10x (2019E) Debt Maturities in millions Revolving Credit Facilities…
  17. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 17
    Asset Overview
  18. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 18
    Eagle Ford: Step Change in Well Performance Enhanced completions drive 180 Day Cumulative Well Production improved well performance 150 20% increase at 180 days 2017 2016 vs. 2017 Increased lateral length, proppant loading 125 and…
  19. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 19
    Eagle Ford: Strong Q1/2018 Karnes and Atascosa Drilling Results Labus Pittman Zaeske Eckols 3 well pad Wilson 2 well pad 75% oil 70% oil Karnes Average 30-day IP: 1,450 boe/d Average 30-day IP: 1,450 boe/d Best Well: 1,700 boe/d Best…
  20. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 20
    East Duvernay Shale Light Oil: Emerging Resource Play Early stage, high netback light oil resource play FOX CREEK 410 net sections (260,000 acres) within the Duvernay Oil window, 57% Crown WEST SHALE BASIN Moderate drilling…
  21. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 21
    East Duvernay Shale Light Oil: Emerging Resource Play RRX 14-36 Duvernay Well RRX 4-11 Duvernay Well Significant Q1, 2018 light oil discovery (42 API) Initial Q4/2017 light oil discovery On production March 23, 2018 (38 API) Average…
  22. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 22
    Viking Light Oil: 460 Highly Prospective Sections Shallow (700 m), Light oil (36 API) resource play Strong netback estimate 46/boe field netback at US65/bbl Short cycle, fast pay- outs spud to producing oil 20 days…
  23. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 23
    Viking Light Oil Development Reservoir Characteristics (1) Individual Wells (1) Formation Viking Formation DCET Well Cost 900,000 Depth 700 metres 30-day IP 60-90 boe/d Completion Pin point coil Frac EUR 40-60 mboe Oil Quality 34-36API…
  24. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 24
    Peace River: Driving Production Growth and Cost Reductions North Seal Development First well on acquired lands (13 laterals) generated 30- day IP rate of 900 bbl/d (facility constrained) 10 additional wells to be drilled in the…
  25. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 25
    Peace River: Multi-Lateral Horizontal Wells Reservoir Characteristics (1) Formation Bluesky Depth 600 metres Completion Open Hole Oil Quality 11 API Average Porosity 28% Permeability 1 - 5 darcies Oil Saturation 70% Recovery…
  26. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 26
    Lloydminster: Significant Land Position and Drilling Inventory Ardmore/Cold Lake Performance Drivers Increased 2 rig drilling program to continue through Lindbergh 2019 Lloydminster Tangleflags Soda Lake 100 net wells per…
  27. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 27
    Lloydminster Development Reservoir Characteristics (1) Formation Mannville Group Depth 350 800 metres Completion Horizontal Slotted Liner / Vertical Stacked Pays Oil Quality 10 16 API Average Porosity 30% Permeability 0.5 5.0…
  28. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 28
    Supplementary Information
  29. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 29
    2019E Adjusted Funds Flow Sensitivities Estimated Effect on Annual Adjusted Funds Flow (MM) (1) Sensitivities Excluding Hedges Including Hedges Change of US1.00/bbl WTI crude oil 28.1 25.8 Change of US1.00/bbl WCS heavy oil…
  30. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 30
    Crude Oil Hedge Portfolio (1) Q2/18 Q3/18 Q4/18 2019 WTI Fixed Hedges Volumes (bbl/d) 14,000 15,333 16,667 7,000 (2) Fixed Price (US/bbl) 52.31 52.53 52.53 61.22 WTI 3-Way Option Volumes (bbl/d) 2,000 2,000 2,000 2,000 Average…
  31. June 2018 Raging River Acquisition – Baytex Energy Corp. – slide 31
    Natural Gas Hedge Portfolio (1) Q2/18 Q3/18 Q4/18 2019 AECO Fixed Hedges Volumes (GJ/day) 5,000 5,000 5,000 --- Price (C/GJ) 2.67 2.67 2.67 --- NYMEX Fixed Hedges Volumes (mmbtu/d) 15,000 15,000 15,000 --- Price (US/mmbtu) 3.01…

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