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December 2018 Corporate Presentation – Seven Generations Energy Ltd

Seven Generations Energy Ltd · Dec 5, 2018 · 23 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. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 1
    CORPORATE PRESENTATION December 2018 TSX: VII.TO
  2. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 2
    7G CORPORATE PROFILE Corporate Highlights Premier Alberta Montney Pure-Play Canadas Largest Condensate Producer 87 Mbbl/d of condensate sales in Q3 2018 156 bbls/MMcf condensate-gas-ratio YTD 2018 Diversity of Product Streams and…
  3. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 3
    LEVEL 1 CORPORATE POLICY Stakeholder Differentiation We believe that companies have only the rights given to them by society. While people have a natural entitlement to basic rights, corporations are an instrument created by society to…
  4. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 4
    SEVEN GENERATIONS KEY FOCUS AREAS Balancing production growth with free funds flow profile Profitable Revenue growth driven by increasing liquids production and strong condensate pricing Growth Reducing production volatility and…
  5. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 5
    TRACK RECORD OF INDUSTRY LEADING RETURNS AND ADJUSTED FUNDS FLOW PER-SHARE GROWTH 7G Quarterly and Annual Adjusted Funds Flow per Diluted Share (/share) Q1-Q3 Annualized - 4.88/sh 5.00 250% increase since IPO 4.50 4.00 2017 -…
  6. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 6
    2018 BUDGET - A PRODUCTION BASE THAT DRIVES FREE FUNDS FLOW Corporate Production MBOE/d 2018 Guidance(1) 250 Total Production (MBOE/d) 200 210 Liquids Production (%) 58 60% 200 Condensate Production (%) 35 36% NGL Production…
  7. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 7
    2018 BUDGET: CAPITAL INVESTMENT AND FUNDS FLOWS 2018 Budget Capital Investment and Adjusted Funds Flow(1)(2) Adjusted Funds Flow - Sustaining Capital 1,725 MM = Discretionary Free Funds Flow US65.00/bbl WTI 1,775 MM Uses of…
  8. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 8
    DISCRETIONARY FREE FUNDS FLOW ENHANCEMENTS (60 WTI) (3) Trajectory of Improvements to Discretionary Free Funds Flow Generation Pricing Sensitivities Efficiency Gains Funds Flow Capital Allocation Priorities Balance Sheet…
  9. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 9
    CONDENSATE PREMIUM PRICING DRIVES RETURNS Albertas Largest Condensate Producer 450 WCSB condensate Alberta Condensate Supply and 400 demand is estimated at 600,000 bbl/d 350 7G condensate Demand (Mbbl/d) 300 production…
  10. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 10
    7GS NEST MONTNEY DEVELOPMENT AREA 7G Development Area Segmentation Development Inventory(1) 1,400 Locations across Nest development area: Nest 1 500 Locations Nest 2 700 Locations South 140 West 100 North 290 East 170 Nest 3…
  11. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 11
    DEVELOPMENT AREA FORECAST ECONOMICS Nest 2 Nest 1 Key Stats Nest 3 (2014) Weighted South East West North Average IP30 (boe/d) 1,250 2,000 1,950 - 2,350 IP365 (boe/d) 675 1,400 1,150 - 1,650 DCET Cost (MM) 9.5 11.0 10.5 -…
  12. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 12
    CONTINUOUS COMPLETION DESIGN INNOVATION Increased Nitrogen High Intensity Tailored to Slickwater Stages, Less Foam Slickwater Regional Completions Tonnage per Completions Completions Attributes stage 2014 2015 2015 2016…
  13. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 13
    MARKET ACCESS PRODUCT AND LOCATION DIVERSITY Product and Geographical Diversity 2018 Forecasted Revenue by Product(1)(2) Condensate Close proximity to major demand centre (oil sands) Alberta condensate trades in-line with WTI…
  14. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 14
    INFRASTRUCTURE SUMMARY Infrastructure Footprint Natural Gas Processing: 1 Bcf/d capacity 510 MMcf/d owned & operated at Cutbank/Lator 250 MMcf/d owned & operated at Gold Creek (on-stream in Q4/18) Access to 3rd party…
  15. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 15
    BEYOND THE NEST MULTIPLE HORIZON DEVELOPMENT POTENTIAL 230 net sections with 120 locations identified (Falher, Wilrich, etc.) Spirit River Two minority interest Wilrich wells (12.5% 7G) drilled in 2017 with average first-month IP…
  16. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 16
    THE 7G VALUE PROPOSITION Among North Americas lowest supply cost oil and condensate producers Asset Quality Canadas largest condensate producer 800 net sections of Montney rights with decades of drilling opportunities…
  17. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 17
    Appendix 17
  18. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 18
    CURRENT HEDGE POSITION Hedge Position September 30, 2018 2018 2019 2020 2021 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Liquids Hedging Total WTI Hedged…
  19. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 19
    SELECTED FINANCIAL AND OPERATIONAL INFORMATION VII - Recent Quarterly Results OPERATING RESULTS Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016 Q2 2016 Q1 2016 YE 2017 YE 2016 Average daily production Condensate…
  20. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 20
    SWEET SPOT OF THE MONTNEY Over Pressured High Productivity Brittle Rock High Recovery Factor Thickness Large Resources in Place Lower Temperature High Liquids Content Sources: Canadian Discovery Ltd. & Graham Davies Geological…
  21. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 21
    RESPONSIBLE DEVELOPMENT HIGHLIGHTS Safety Environment Community Safety first Low GHGs GP Hospital 0.64 TRIF in 2017 0.0126 carbon intensity(1) 2.4 million raised Building a culture of safety Among lowest carbon 7Gs annual…
  22. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 22
    DEFINITIONS AND ABBREVIATIONS A annual Mcf thousand cubic feet AECO physical storage and trading hub for natural gas on the TransCanada Alberta transmission mcfe thousand cubic feet equivalent system MM million AFF adjusted funds flow…
  23. December 2018 Corporate Presentation – Seven Generations Energy Ltd – slide 23
    INVESTOR RELATIONS CONTACTS Brian Newmarch Vice President Capital Markets bnewmarch7genergy.com 403.767.0752 Ryan Galloway Investor Relations Manager ryan.galloway7genergy.com 403.718.0709 Seven Generations Energy Ltd. 4400, 525…

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