Why we do what we do We believe: world demand for clean Billion Toe (tonnes of oil equivalent) and reliable energy is rapidly growing technological advancements makes our energy cost competitive on a world scale in developing…
Corporate Profile TSX: PONY Forecasted 2018 Annual Growth 32% Adjusted Funds Flow Per Share 34% Production 45% Liquids Production Q3 2018 Production 350 MMcfe/d (58,330 boe/d) 5,248 bbls/d Liquids Balance Sheet 362 million…
Global LNG Market Supply Shortage / Growth Demand 9.0 Monthly Chinese LNG Imports 8.0 7.0 6.0 Global LNG market is facing additional (Bcf/d) 5.0 tightness in 2019 as demand growth 4.0 continues to outstrip supply growth…
Alberta Natural Gas Market Continued Demand Growth 8.0 Coal-to-Gas Conversions Alberta is expected to increase natural gas consumption by over 45% between 2018 Significant demand growth is taking 6.0 and 2023 place in Alberta…
Transportation Firm Transportation & Toll Advantage to West Coast Enbridge T-North Tolls Single toll structure 0.20/Mcf Pony can deliver at either Station 2 or Sunset Creek for single toll TransCanada AECO Tolls 0.27/Mcf…
World Class Resource Montney Pure Play Asset The Montney is the most economic natural gas liquids play in Canada 306 net sections (195,840 net acres) of Montney lands 6.9 Tcfe (1,149 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 during Q1 2018 sections 4x thicker than the Marcellus at greater than 300 36 meters (approximately 1,000 ft.)…
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 3 km Final 8 hours of seven day test Black Swan - Beg 80-G 2,000 boe/d…
Land Valuation Recent Land Sales Suggest PONY Undervalued Recent land sales have shown significant Recent land sales have shown value in north east BC acreage significant value in north east BC acreage PONY has five largely…
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 70 Year End 2017 360 MMcfe/d (60,000 boe/d) 60 PONY is expecting 34% annual average daily production growth from 2017 to 2018 Production Volumes (mboe/d) 50 2018f 339-348 MMcfe/d…
Historical Costs Drilling & Completions Efficiency As capital well costs fell, production type curves dramatically improved Management Continued type curve Perf & Plug Systems Type Curve improvement with average well 21 wells…
Single Well Economics by Area 2018 Management Type Curves Management Type Curves Single Well Economics IRR NPV10 Pay Out Daiber (dry) Blair (lean) Daiber 59.1% 5.6 mm 21 months (dry) Townsend (liquids-rich) 8,000 Blair 66.8%…
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 As at Dec 31, 2017 12 PONYs Proved plus Probable 10.7 natural gas reserves of 6.5 Tcf (excludes liquids) positions PONY 10 9.5 with the third-largest natural gas reserves of any publicly traded…
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…
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 YTD Top Line Revenue as at Sept 30, 2018 (including Hedging) 1.50 3.25 3.24 /Mcfe PONY can deliver 3.00 Hedging Gain 0.39 1.00 0.27 (1) earnings…
2019 Market Diversification Natural Gas Sales Points St 2 Market 25 MMcf/d 2019 average (fixed price) AECO AECO Market Station 120 MMcf/d 2019 average (fixed price & spot) 2 Medicine Sumas Hat SUMAS Market 25 MMcf/d 2019…
2019 Production Revenue Managing Volatility Expected 2019 Production Revenue by Source 40% of PONYs 2019 production revenue is protected through a SUMAS DAWN combination of physical and STN 2 financial contracts at a volume-…
2018 and 2019 Market Exposure Diversified Market Access Improves Realizations Well-diversified sales exposure through firm transportation agreements combine with financial and physical hedges to provide PONY with strong prices…
Pony Points Checking Off All of the Boxes Massive reserves base Top well performance Low well costs Firm transportation to diverse pricing hubs Attractive relative valuation Well situated to supply Canadian west coast LNG…
Appendices & Advisories
Financial Strength Term Debt and Credit Facility Provide Flexibility 400 Million Syndicated Credit Facility Syndicated Credit Secured, Reserve Based Lending Facility Matures May 2020 173 million drawn as at September 30, 2018 186…
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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