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November 2018 Corporate Presentation – Bellatrix Exploration Ltd.

Bellatrix Exploration Ltd. · Nov 1, 2018 · 41 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. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 1
    Corporate Presentation NOVEMBER 2018 1
  2. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 2
    Bellatrix Investment Highlights Dominant core acreage position in west central Alberta Top tier capital efficiencies and cost Spirit River represents one of North profile deliver full cycle profitability Americas lowest supply cost…
  3. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 3
    Corporate Profile MARKET SUMMARY Ticker Symbol TSX / NYSE: BXE Average Daily Volume1 Canada: 465,000/ U.S.: 75,000 Shares Outstanding2 61.8 million basic / 63.3 million diluted Market Capitalization3 74 million Bank Debt4 57 million…
  4. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 4
    2018 Outlook & Guidance TWO CONSECUTIVE QUARTERS OF UPDATED GUIDANCE METRICS REFLECTS STRONG RESULTS EXPERIENCED YEAR TO DATE 2018 BUDGET CURRENT PREVIOUSLY SET PREVIOUSLY SET 2018 ANNUAL 2018 ANNUAL 2018 ANNUAL STRATEGIC…
  5. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 5
    Strategic Objectives & Outlook Improving financial strength and value preservation in low commodity price environment 2017 2018 2019 New management team Manage capital Sustain operational levels established investment levels within…
  6. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 6
    Diversified Balance Sheet & Financial Flexibility Actively exploring refinancing opportunities and additional sources of liquidity BANK DEBT 57MM CREDIT FACILITY LONG TERM DEBT AT SEPTEMBER 30, 2018 FINANCIAL COVENANTS MATURITIES 250…
  7. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 7
    Debt Refinancing Transaction Closed STRENGTHENS LIQUIDITY AND INCREASES FINANCIAL FLEXIBILITY EXCHANGE NEW MONEY ADDITIONAL 2ND COMMITMENT LIEN CAPACITY Exchanged US80 million of Existing New money commitment of Senior Unsecured…
  8. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 8
    Hedging & Market Diversification Market Diversification Contracts Market Start Date End Date Volume Chicago 01-Feb-18 31-Oct-20 15,000 MMBtu/d Chicago 01-Nov-18 31-Oct-20 15,000 MMBtu/d Dawn 01-Feb-18 31-Oct-20 15,000 MMBtu/d Dawn…
  9. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 9
    Commodity Price Risk Management & Diversification NATURAL GAS MARKET DIVERSIFICATION & FIXED PRICE HEDGING COVERAGE 100% % of total forecast 2018 gas volumes 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Q4/18 Q1/19 Q2/19…
  10. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 10
    AECO Natural Gas Demand Growth Drivers INTRA-ALBERTA DEMAND GROWTH External forecasts see intra-Alberta demand growth of: 500 MMcf/d YoY in 2018 to 5.3 Bcf/d 245 MMcf/d YoY in 2019 to 5.5 Bcf/d 190 MMcf/d YoY in 2020 to 5.7…
  11. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 11
    AECO Natural Gas Expansion Projects Underway ADDITIONAL EXPORT CAPACITY BEING DEVELOPED OUT OF THE CANADIAN BASIN Effective Capacity (MMcf/d) 2017A 2018E 2019E 2020E 2021E 2022E In Service Forecasts anticipate the basin will become…
  12. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 12
    Growing High Value Liquids Growing NGL Volumes & High Value Condensate 55 100% Product % of Total Crude Oil & Condensate Volumes (bbl/d) Light oil Corporate NGL Yield 50 80% (bbl/MMcf) 45 60% 40 40% Condensate 35…
  13. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 13
    Torque to Both Oil & Natural Gas Prices Q3/18 Production (boe/d) Sensitivity Analysis Based Adjusted Funds Oil, on Q3/18 Financial Results Flow (Annualized) condensate Oil & liquids & NGL account for Change of US1/bbl 3.4 million…
  14. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 14
    Highly Concentrated Land Base DOMINANT ACREAGE POSITION WEST CENTRAL ALBERTA CORE AREA Highly focused land base in the prolific Deep Basin of FERRIER Alberta WILLESDEN GREEN 99% of total corporate GREATER PEMBINA production and…
  15. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 15
    North American Supply Cost Comparison 4.00 3.50 3.00 Henry Hub (US/MMbtu) 2.50 2.00 1.50 1.00 0.50 0.00 Economics assume 15% Before tax IRR, assumes US0.83 = CDN1.00, US0.75/MMbtu AECO basis, and a 20:1…
  16. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 16
    Pre-eminent Capital Efficient Operator in the WCSB BXE 2018 AVERAGE NATURAL GAS WELL PERFORMANCE (IP90) RANKS BEST IN BASIN 10.0 Natural Gas Rate (MMcf/d) 9.0 2018 Best IP90 Average 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0…
  17. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 17
    Bellatrixs Spirit River Play BXE Land Sections1 GREATER FERRIER AREA CORE SPIRIT RIVER PLAY 180 Gross 104 Net BXE Net Drilling Inventory2 102 proved 27 probable 225 unbooked 354 total True vertical formation depth 2,250 meters…
  18. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 18
    Spirit River Geology Summary Broad, thick, extensive sand rich valleys in SPIRIT RIVER STACKED SANDS Notikewin, Falher and Wilrich members One square Tight sandstone: long life reserves with mile section long term hyperbolic decline…
  19. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 19
    Comparing Premier Resource Plays Spirit River Montney Duvernay Tight Conventional Siltstone Shale Sandstone Porosity 6 to 18%; Porosity 0.6 to 8%; Porosity 2 to 8%; Permeability 1 to 3 mD Permeability 0.0001 to Permeability…
  20. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 20
    Low Cost Competitive Advantage BXE Spirit River Versus Canadian Plays STAGE COUNT PROPPANT PLACED 40 8,000 35 7,000 Average proppant (tonnes) Average stage count 30 6,000 25 5,000 20 4,000 15 3,000 TOTAL WELL COST…
  21. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 21
    Play Profitability Comparisons BXE Spirit River Montney Duvernay All-in Well Costs 3.4 6.4 9.4 (DCE&T, MM) Average IP365 1,070 608 459 (boe/d) IP365 Capital Efficiency 3,180 10,500 20,560 (/boe/d) Average Implied EUR 7.1…
  22. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 22
    Spirit River Type Curves Bellatrix Spirit River Economics SPIRIT RIVER 5.2 & 6.0 BCF TYPE CURVES 9 Economic Assumptions 5.2 Bcf 6.0 Bcf Gross CAPEX (DCE&T, MM) 3.4 3.4 Liquids (bbl/MMcf) Gross Natural Gas IP30 (MMcf/d) 6.6 6.3 8…
  23. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 23
    Spirit River All-In Profitability 5.2 Bcf Type Curve Full Cycle F&D costs C1.50/GJ C2.50/GJ Drill 1.5MM Complete 1.4MM Full cycle F&D costs /Mcfe (0.71) (0.71) Equip & tie in 0.5MM Half cycle costs 3.4MM Land/seismic/facilities…
  24. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 24
    Delivering on our Objectives 2018 RESULTS OUTPERFORMING EXPECTATIONS 14 12 Producing Day Volumes (MMCF/d) 10 8 6 4 2 0 0 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480 510 540 570 600 630 660 690…
  25. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 25
    Enduring Efficiency Gains on Drill Times AVERAGE SPIRIT RIVER DRILLING CURVES DAYS SPUD TO RIG RELEASE BY YEAR 20 0 Days (Spud to Rig Release) 2014 Spirit River Average 500 15 2015 Spirit River Average 1,000 10 2016 Spirit…
  26. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 26
    Spirit River Well Costs & Capital Efficiencies FOCUSED CAPITAL COST REDUCTIONS 6.0 Long Reach Long Reach 5.0 4.0 Long Reach Costs (millions) Equip & Tie-in 3.0 Complete 2.0 Drill 1.0 0.0 2015 - 24 wells…
  27. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 27
    Bellatrix Focused Spirit River Growth 90% SPIRIT RIVER PRODUCTION GROWTH 32,000 2010 80% 28,000 70% Spirit Spirit River % of Total Company Volumes River Average Monthly Production (boe/d) 2018 New 24,000 60% Drill…
  28. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 28
    Cost Reductions Achieved 27% REDUCTION IN PRODUCTION EXPENSES (/BOE) 11.00 Production expense 10.00 9.00 (/boe) 8.00 7.00 6.00 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 23% REDUCTION IN PRODUCTION EXPENSES…
  29. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 29
    Representative Spirit River Inventory Required to Maintain Production Volumes Approximately 15 net (5.2 Bcf type curve) Spirit River wells1 per year maintains production in the high 30 mboe/d range through 2022 Alternatively, 12 net…
  30. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 30
    Bellatrix Alder Flats Phase 2 PHASE 2 ON-STREAM MARCH 2018 Phase 2 brought on-stream safely, ahead of schedule, and approximately 5% under budget More than doubles throughput capacity at the plant to 230 MMcf/d (from 110 MMcf/d)…
  31. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 31
    Greater Ferrier Area Infrastructure Overview GREATER FERRIER EXISTING GREATER FERRIER AREA STRATEGIC INFRASTRUCTURE INFRASTRUCTURE ACCESS: Infrastructure gives Bellatrix control of production and growth Working interest or operatorship…
  32. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 32
    Material Facilities & Infrastructure Value MAJOR FACILITIES & INFRASTRUCTURE VALUE 190MM NET TO BXE 200 11MM 180 9MM 29MM 160 140 87MM 120 Estimated Value (MM) 100 80 60 40 55MM 20 0 BXE Alder Flats Plant Major…
  33. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 33
    Drill Bit Focused PLANT INVESTMENT PLANT PHASE & CONSTRUCTION 2 CONSTRUCTION COMPLETE COMPLETE MARCH 2018 Q2/18 Major compressor stations, pipelines and Bellatrix Alder Flats Plant capital investment nearing completion Proportion…
  34. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 34
    Ample Takeaway Capacity & Market Egress AMPLE FIRM TRANSPORTATION IN PLACE FOR ALBERTA NATURAL GAS MARKET EGRESS CURRENT & GROWTH VOLUMES Firm Transportation (FT) agreements in place for gross ALBERTA operated volumes at multiple…
  35. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 35
    Supplemental Information 36
  36. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 36
    Concentrated Multi-Zone Acreage DEEP BASIN MULTI-ZONE ACREAGE Deep Basin is highly coveted for: Sweet, liquids rich natural gas 4,600 ft TVD Belly River 6,200 ft TVD Sweet, light gravity crude oil Cardium Multi-zone hydrocarbon…
  37. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 37
    Cardium Light Oil Resource Play BXE Land Sections1 144 Gross BELLATRIX Activity Since Jan 2017 84 Net 3 Wells Drilled BXE Net Drilling Inventory2 97 proved 21 probable 95 unbooked 213 total Cardium Resource Play Summary…
  38. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 38
    Strategic Land Position GREATER FERRIER/BRAZEAU/WILLESDEN GREEN AREAS OF WEST CENTRAL ALBERTA Pembina Brazeau Ferrier Willesden Green Bellatrix Peyto TAQA Cenovus Tourmaline Westbrick Source: Accumap, company…
  39. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 39
    Last 18 Months in Review Debt reduction and maturity extension Over 1/3 of 2020 note maturities extended to 2023 Capital cost reductions 20% reduction in all-in well costs to under 3.4 million (drill, complete, equip and tie-in) from…
  40. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 40
    Corporate Information BOARD OF DIRECTORS SENIOR OFFICERS BANKERS W.C. (Mickey) Dunn Brent A. Eshleman, P.Eng. National Bank of Canada Chairman President & CEO Alberta Treasury Branches The Bank of Nova Scotia Murray L. Cobbe Max Lof,…
  41. November 2018 Corporate Presentation – Bellatrix Exploration Ltd. – slide 41
    www.bxe.com 42

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