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June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc.

Crew Energy Inc. · Jun 1, 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. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 1
    1 BUILDING OUR FUTURE IN THE MONTNEY June 2018
  2. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 3
    PRODUCTION GROWTH Increasing Montney production with rising condensate 28,000 25,939 25,270 +12% 23,251 5,472 Q1 18 vs 24,000 23,231 5,077 Q1 17 22,380 5,791 20,468 5,097 Crew Total Corporate Volumes (boe/d) 5,073 Crew…
  4. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 4
    NATURAL GAS & OIL FUNDAMENTALS(1) Gas market underscores need for new pipelines / takeaway while lower inventories & robust demand growth drive oil price improvements AECO Natural Gas Prices AECO forward curve has been very bearish,…
  5. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 5
    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…
  6. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 6
    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…
  7. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 7
    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…
  8. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 8
    STRATEGICALLY POSITIONED LAND BASE NE BC Montney assets are ideally situated for export Map source: Desjardins Securities A positive FID for the LNG Canada project is expected to positively impact regional pricing (Station 2 &…
  9. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 9
    EXCEPTIONAL VALUE FOR MONTNEY EXPOSURE RELATIVE TO PEER GROUP Significant & ideally positioned Montney acreage with attractive upside Enterprise Value to Net Montney Acres(1) 18,000 Crew has 16,000 14,000 282,000 MontneyAcres EV…
  10. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 16
    FUTURE GROWTH OPPORTUNITIES Groundbirch and Attachie development B13-26-84-24W6 6 Miles ATTACHIE Crew 10-22 10.5 mmcf/d CGR: 350 bbls/mmcf IP30: 665 bbls/d condy Extreme overpressured Over-pressured 1.5 - 1.8x with 4 fracs…
  17. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney Presentation – Crew Energy Inc. – slide 25
    APPENDIX
  26. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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. June 2018 Building Our Future in the Montney 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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