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July 2018 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jul 2, 2018 · 32 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. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / JULY 2018 SUSTAINABLE GROWTH WITHIN FUNDS FLOW
  2. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecaps Strategy Growth within funds flow Production per share growth 5 - 8%/annum Dividend growth supported by free funds flow Focus on premium light oil assets in Western Canada Low decline High netbacks Strong capital…
  3. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 417.2 Fully diluted (1.1% dilutives) 422.3 Market capitalization (B) 3.8 Enterprise value (B) 5.0 2018 production guidance (boe/d) 74,000 % oil + NGLs 85% 2018 funds…
  4. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Focused on Per Share Growth 80,000 600,000 72,000 Production 2P Reserves 74,000 500,000 64,000 56,000 400,000 1,141 48,000 57,451 Production (boe/d) 40,000 300,000 955 (Mboe) 32,000 200,000 24,000 16,000 100,000…
  5. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Significant Growth Within Funds Flow 2017 2018 Budget % Change Average production (boe/d) 57,450 74,000 29% Per million shares 154 175 14% Funds flow netback (/boe) 24.26 27.60 14% Funds flow (MM) 509 745 46% Per share 1.36 1.77…
  6. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 6
    2018 WTI Sensitivities Oil (USWTI) 60.00 65.00 70.00 FX (C/US) 0.76 0.78 0.80 Oil (Cdn/WTI) 78.95 83.33 87.50 AECO (C/GJ) 1.25 1.25 1.25 Funds flow (MM) 724 745 764 Development capital (MM) (1) (450) (450) (450) Dividend (MM) (133)…
  7. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Free Funds Flow Priorities 1. Balance sheet Net debt to funds flow of 1.0 to 2.0x 2. Per share growth Core area tuck-in acquisitions with growth potential Expanded capital development program 3. Return to Shareholders…
  8. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Solid Balance Sheet Conservative debt targets Between 1x to 2x net debt to funds flow Sufficient unutilized debt capacity Current 500MM liquidity Attractive long term debt with manageable maturity profile 600 3.50% 3.5% 2022…
  9. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 9
    Systematic Approach to Risk Mitigation Commodity Risk Management Mitigate price volatility to provide predictable funds flow and protect economic returns Target 40 60% of net royalty volumes hedged one year forward Target 20 40% of…
  10. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Fully Funded Income and Growth Model NO DRIP 98 Total Payout Ratio 150% 93 100 90 125% 80 65 70 100% 60 Total Payout Ratio WTI (US/bbl) 51 49 75% 43 50 40 50% 30 20 25% 10 0% - 2013 2014 2015 2016 2017…
  11. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Returning Cash to Shareholders Cumulative Dividends Paid 3.50 900 800 3.00 700 2.50 600 2.00 500 (MM) / Share 1.50 400 300 1.00 200 0.50 100 - - 2013 2014 2015 2016 2017 2018e Cumulative Dividends (MM)…
  12. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Profitable Reserves Growth Cumulative 2P Reserves 600 562.4 Acquisition Organic Growth 500 414.4 400 2P Reserves (MMboe) 320.6 300 246.1 200 147.4 95.3 100 41.2 5.1 14.2 - 2009 2010 2011 2012 2013 2014 2015…
  13. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Capital Discipline 2018 Capital Budget Area Target (MM) % West Central Sask Viking 120 27 Southwest Sask Atlas/Shaunavon 90 20 Deep Basin Cardium/Dunvegan 77 17 West Central Alberta Cardium 60 13 Southeast Sask CO2 Flood 60 13…
  14. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Self Funded Assets Operating Income by Area 250 212 207 192 200 161 150 ( Millions) 100 90 62 50 0 West Central Sask West Central Alberta Southeast Sask Southwest Sask Deep Basin Alberta Boundary Lake Capex Free…
  15. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Benchmarking Production Growth & Free Funds Flow Yield 15.0% 12.5% WCP 10.0% 2019e Free Funds Flow Yield 7.5% Median of 7.5% 5.0% 2.5% Median of 10.8% 0.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2019e 2-Year…
  16. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Benchmarking 2018e Decline Rate 45% 41% 40% 40% 40% 38% 35% 35% 33% 32% 33% 33% 31% 31% 30% 29% 29% 25% 25% 23% 20% 19% 19% 15% 15% 14% 10% 5% 0% WCP Source: National Bank Financial (June 2018) Peer Group…
  17. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Benchmarking Best in Class Sustaining Ratio 140% Dividend Payout Sustaining Capital Payout 120% Peer Average 100% 80% Sustaining Ratio 60% 40% 20% 0% WCP Source: National Bank Financial (June 2018) Peer…
  18. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 18
    Core Areas of Operations Drilling Inventory Light Oil Drilling Inventory 2,897 10 years of inventory BRITISH COLUMBIA ALBERTA Drilling Wells SASKATCHEWAN Boundary Inventory 2017 2018 Lake West Central Sask 910 125 132 West…
  19. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Whitecaps Balanced Portfolio 90,000 80,000 70,000 60,000 Growth assets - West Central Alberta 50,000 - West Central Sask - Deep Basin Alberta (Boe/d) 40,000 30,000 20,000 Low decline assets - Southwest Sask…
  20. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 20
    Benchmarking North American Oil Plays Half-Cycle Payout Period (Years) 4.0 WCP Oil Plays 3.5 North America Oil Plays 3.0 2.5 2.0 Median of 1.6 1.5 1.0 0.5 0.0 Source: Peters & Co. Limited estimates based on current…
  21. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Diversified Crude Oil Sales Crude Oil and NGL Sales by Pipeline 2% 23% 23% Taylor 7% 18% Prince George Edmonton Hardisty 11% Kerrobert 16% Regina Cromer Plains South Sask. Pembina Peace IPL Mid Sask Pembina Drayton…
  22. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Southeast Saskatchewan long life, low decline assets Successful world class CO2 EOR project Base - 3.5% Decline Added 14,800 bpd net (100% oil) Excellent infrastructure Enhances Whitecap sustainability characteristics Base decline…
  23. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 23
    Southwest Saskatchewan stable production, multi-zone Key characteristics Stable production base historical 2.3% decline 92% of production under EOR Multi-zone potential for growth (6 zones) Fosterton ASP 3 ASP flood projects (1…
  24. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 24
    Strong Repeatable Economics U. Shaun Hz Atlas Hz 1.0 Unconventional Unconventional Stable Production Driven by Enhanced Oil Recovery Floods Type Well Economics Plays Plays Historical Decline 2.3% Drill, Complete, Equip, Tie-in…
  25. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 25
    Saskatchewan Viking Oil top decile resource play Top tier inventory for sustainable growth 10 years high quality inventory, 36 API light oil Long-term growth, increasing ERH drilling Viking Resource Type Well Economics Standard 1.0…
  26. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Cardium Resource Play repeatable low risk growth Continuing capital efficiency improvement West Pembina Cardium Type Well Economics Standard 1.0 ERH 1.5x ERH drilling with improved drill technology Advancing frac designs and…
  27. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Deep Basin Light Oil Dunvegan and Cardium Oil Dunvegan Wapiti Cardium Strong play characteristics, large growth potential Type Well Economics Standard 1.0 Standard 1.0 39 to 42 API oil Drill, Complete, Equip, Tie-in (MM) 2.81 2.80…
  28. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 28
    Boundary Lake large low decline resource with growth potential Boundary Lake WI Production Long-term, low decline asset Operated, 35 API light oil, 91% oil + NGLs 5% decline Avg 96% WI in 3 operated units Legacy oil pool under a…
  29. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 29
    The Whitecap Investment Opportunity Per Share Growth Within Funds Flow Annual Funds Flow exceeds Capital + Dividends Sustainable and growing dividend Return on capital discipline Disciplined Free Funds Flow Allocation…
  30. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 30
    Research Coverage AltaCorp Capital Industrial Alliance Securities BMO Capital Markets Laurentian Bank Securities Canaccord Genuity Macquarie Securities Group CIBC World Markets National Bank Financial Cormark Securities Peters &…
  31. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 31
    TSX:WCP www.wcap.ca July 6, 2018 31
  32. July 2018 Corporate Presentation – Whitecap Resources Inc. – slide 32
    Slide Notes Reserves are based on McDaniels and GLJ Petroleum Consultants reserve evaluation reports effective December 31, 2017. Possible oil RF calculated as (proven + probable + possible reserves + current production) / DOIIP…

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