Why we do what we do We believe: Billion Toe (tonnes of oil equivalent) world demand for clean and reliable source of energy is rapidly growing technological advancements makes our energy cost competitive on a world scale in…
Canadian Natural Gas Market Future Growth 6.0 5.0 2 Bcf/d of high Potential confidence demand Gas Demand Growth (Bcf/d) Canadian LNG growth in the next 5 years; Projects 4.0 potential for 8+ Bcf/d of Increases in…
Transportation Firm Transportation & Toll Advantage to West Coast Enbridge T-North Tolls Single toll structure 0.18/Mcf Pony can deliver at either Station 2 or Sunset Creek for single toll TransCanada AECO Tolls 0.27/Mcf…
Corporate Profile TSX: PONY 38% forecasted annual average daily production volume growth (2018 vs. 2017) Our 46% forecasted annual average daily liquids production growth (2018 vs. 2017) Growth 28% forecasted cash flow per share…
World Class Resource Montney Pure Play Asset The Montney is the most economic natural gas liquids play in Canada 314 net sections (201,009 net acres) of Montney lands 6.9 Tcfe (1,148 MMboe) Proved Plus Probable Reserves(1) with a…
Montney Pure Play Location, Location, Location Drilled first well at PONYs Montney Sweet Spot is: liquids-rich Beg 38 sections 4x thicker than the Marcellus at greater than 300 during Q1 2018 meters (approximately 1,000 ft.)…
South Townsend Wells Significant Liquid Yields Two Lower Montney horizontal test wells from a single pad Open-hole ball drop completion system 1.8x over-pressured Pipeline connected to the AltaGas Townsend Facility…
Beg Test Well Significant Untapped Value in Liquids-Rich Block Black Swan - Beg 20-H 2 Upper Montney wells 5.5 MMcf/d 7 bbls/MMcf Free Condensate Jedney 6.6 day production test 3 km Final 8 hours of test Black Swan - Beg 80-G…
The Sweet Spot Top Decile Well Performance PONY has best well in North Montney with 6-month 47 of top 100 wells 2,250,000 average daily production rate are PONY of more than 11 MMcf/d wells 2,000,000 Based on 1,750,000…
Production Profile Impressive Growth PONY is expecting 38% annual average daily production growth from 80 2017 to 2018 70 Year End 2017 360 MMcfe/d Production Volumes (mboe/d) (60,000 boe/d) 60 Per GLJ Reserve Report Dec…
Historical Costs Drilling & Completions Efficiency As capital well costs fell, production type curves dramatically improved Management Continued type curve Perf & Plug Systems Type Curve 21 wells improvement with average well…
Single Well Economics by Area Single Well Economics IRR NPV10 2018 Management Type Curves Daiber 54% 4.7 mm (dry) Blair 64% 6.2 mm (lean; 15 bbls/MMcf) Management Type Curves Daiber (dry) Townsend 39% 2.9 mm (liquids-rich; 36…
Single Well Development Economics Price Sensitivity (Half Cycle) Townsend (liquids-rich) Blair (lean) Daiber (dry) 120% Liquids-enhanced, Blair 100% wells provide exposure to stronger Condensate, NGL and natural gas pricing…
Canadian Natural Gas Reserves Assuming Enterprise Value As at Dec 31, 2017 4.85/sh (2.48/sh equity + 2.17/sh debt) on 6.9 Tcfe of 2P Reserves 4.65/sh 0.11/Mcfe 12 PONYs Proved plus Probable natural 42.9 Mcfe/sh or = or gas…
Reserve Information As at Dec 31, 2017 6.9 Tcfe of Proved Plus Proved Plus Probable 8.0 Total Proved Probable reserves with an 6.9 7.0 PONY Reserve Growth NPV10 of 3.3 billion* 6.0 4.9 (20.53/share) 5.0 4.6 4.0 2.9 3.0…
Land Valuation Recent Land Sales Suggest PONY Undervalued Recent land sales have shown significant value in north east BC acreage Recent land sales have shown significant value in north east BC acreage PONY has five largely…
2018 Sustainable Capital Spending Cash Flow Budget Annual Average Daily Production (forecast) 400 2018 capital development 500 Annual Average Daily Production (actual) program to be 145 - 165 Capital Development Program million,…
Solid Margins Drive Earnings Cost Efficiencies Drive Higher Cash Flow per Mcfe Top Line Revenue (including Hedging) 1.50 Pre-Tax 3.50 3.35 /Mcfe Earnings Hedging Gain 0.23 1.00 0.25 PONY can deliver 3.00 earnings despite low…
Return on Average Capital Employed (ROACE) Illustrates Operational Sustainability 25% 25% 2017 US ROACE 20% 2017 Canadian ROACE 20% 15% 15% 11% 10% 10% 5% 5% 0% 0% -5% Average US -5% Average Canada -10% 4.3% -10% 4.2%…
Market Diversification Natural Gas Sales Points COLUMBIA Map here BRITISH AECO Markets AECO 152 161 MMcf/d Station end of 2018 (fixed price & spot) 2 Medicine Sumas Hat SUMAS Market 28 32MMcf/d Enbridge End of…
2018 Production Revenue Managing Volatility 65% of PONYs Q2 Q4 2018 NYMEX production volumes are protected 9% NGL&& NGL Condensate through a combination of physical and Condensate 5% 5% financial contracts at a volume-…
Pony Points Checking Off All of the Boxes Massive reserves base Top well performance with increasing liquids cut Low well costs Firm transportation to diverse pricing hubs Attractive relative valuation Well situated to…
Appendices & Advisories
Diversified Market Exposure 2018 / 2019 Sales Contracts Support Strong Netbacks Painted Pony actively markets the majority Index pricing as of July 1, 2018; All currency CAD of natural gas volumes into a diversity of sales…
Financial Strength Term Debt and Credit Facility Provide Flexibility 400 Million Syndicated Credit Facility Syndicated Credit Secured, Reserve Based Lending Facility 164 Matures May 2020 196 164 million drawn as at March 31, 2018…
Corporate Overview Auditor KPMG LLP Evaluation Engineers GLJ Petroleum Consultants Ltd. Banks The Toronto-Dominion Bank The Bank of Nova Scotia Alberta Treasury Branches Canadian Imperial Bank of Commerce Royal Bank of Canada…
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