Skip to main content September 2018 Corporate Presentation – Whitecap Resources Inc. | Shale Experts
Loading...
Database
Slide Database

September 2018 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Sep 4, 2018 · 26 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. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / SEPTEMBER 2018 SUSTAINABLE GROWTH WITHIN FUNDS FLOW
  2. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecaps Strategy Growth within funds flow Production per share growth 6 - 8%/annum Dividend growth supported by free funds flow Premium light oil assets in Western Canada Low decline High netbacks Strong capital efficiencies…
  3. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 417.5 Fully diluted (1.6% dilutives) 423.9 Market capitalization (B) 3.5 Enterprise value (B) 4.7 2018 production guidance (boe/d) 74,200 % oil + NGLs 85% 2018 funds…
  4. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Focused on Per Share Growth 80,000 600,000 72,000 Production 2P Reserves 74,200 64,000 500,000 56,000 1,141 57,451 400,000 48,000 Production (boe/d) 955 (Mboe) 40,000 300,000 32,000 24,000 200,000 16,000…
  5. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Significant Growth Within Funds Flow 2017 2018 Budget % Change Average production (boe/d) 57,450 74,200 29% Per million shares 154 176 14% Funds flow netback (/boe) 24.26 27.80 15% Funds flow (MM) 509 753 48% Per share 1.36 1.79…
  6. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 6
    2018 WTI Sensitivities Aug-Dec 2018 price assumptions Oil (USWTI) 60.00 65.00 70.00 75.00 FX (C/US) 0.74 0.76 0.78 0.80 Oil (Cdn/WTI) 81.08 85.53 89.74 93.75 AECO (C/GJ) 1.50 1.50 1.50 1.50 Annual 2018 Funds flow (MM) 738 753 766 777…
  7. September 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. September 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 500MM liquidity Attractive long term debt with manageable maturity profile 600 3.50% 2022 3.5% 200…
  9. September 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. September 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. September 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. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Capital Discipline 2018 Capital Budget Business Unit Target (MM) % West Central Sask Viking 129 29 Northwest Alberta & BC Cardium/Dunvegan 105 23 Southwest Sask Atlas/Shaunavon 84 19 West Central Alberta Cardium 64 14 Southeast…
  13. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Self Funded Assets Operating Income by Business Unit 250 211 209 196 200 168 167 150 ( Millions) 100 50 0 West Central Sask West Central Alberta Southeast Sask Northwest Alberta & BC Southwest Sask Capex Free…
  14. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Core Areas of Operations Drilling Inventory Light Oil Drilling Inventory 2,897 10 years of inventory BRITISH COLUMBIA ALBERTA Drilling Wells SASKATCHEWAN Inventory 2017 2018 Northwest West Central Sask 910 125 131 Alberta &…
  15. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 15
    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…
  16. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Rate of Return 50% 0% 100% 150% 200% 250% 300% 350% 400% Viking ERH 1.5 Wapiti Cardium Standard 1.0 Atlas Hz 1.0 (Unconvent'l) Viking Standard 1.0 W. Pembina Rate of Return ERH 1.5 W. Pembina…
  17. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Profit to Investment Ratio 0.0 0.5 1.0 1.5 2.0 2.5 W. Pembina ERH 1.5 Wapiti Cardium Standard 1.0 Atlas Hz 1.0 (Unconvent'l) W. Pembina Standard 1.0 Viking ERH 1.5 Profit to Investment Ratio…
  18. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 18
    Diversified Crude Oil Sales Crude Oil and NGL Sales by Pipeline 0.1% 2% 24% 23% Taylor 6% 17% Prince George Edmonton 9% Hardisty Kerrobert 20% Regina Cromer Plains South Sask. Pembina Peace TEML Weyburn/Westspur…
  19. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Large and Intermediate Producers (Liquids Weighted) 15.0% WCP 12.5% 10.0% 2019E Free Cash Flow Yield Median of 8.8% 7.5% 5.0% Median of 12.7% 2.5% 0.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2019E 2-Year…
  20. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 20
    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…
  21. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 21
    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…
  22. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 22
    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…
  23. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 23
    The Whitecap Investment Opportunity Per Share Growth Within Funds Flow Annual Funds Flow exceeds Capital + Dividends Return on capital discipline Disciplined Free Funds Flow Allocation Opportunistic acquisitions and development…
  24. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 24
    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 &…
  25. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 25
    TSX:WCP www.wcap.ca September 4, 2018 25
  26. September 2018 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Slide Notes Slide 6 Annual 2018 numbers based on Jan-July 2018 actual commodity prices and balance 2018 price assumption as per table. Slide 8 Unutilized debt capacity based on estimated 2018 year end net debt. Slide 11…

From the store

Browse maps, data & reports in the Shale Experts store