Why we do what we do With more than 6.9 Tcfe of 2P reserves, PONY is developing a world-class resource of clean natural gas in Canada We believe: world demand for clean and reliable energy is rapidly growing (tonnes of oil…
Corporate Profile TSX: PONY Forecasted 2018 Annual Growth 32% Adjusted Funds Flow Per Share 34% Production 45% Liquids Production Forecasted 2018 Production 339 - 348 MMcfe/d (56,500 58,000 boe/d) Balance Sheet 362 million…
Global LNG Market Supply Shortage / Growth Demand Monthly Chinese LNG Imports Global LNG Netbacks 12.00 10.0 10.00 8.0 USD/MMBtu 8.00 Bcf/d 6.0 6.00 4.0 2.0 4.00 India Spain Japan UK 0.0 2.00 Jan-15 Mar-15…
Alberta Natural Gas Market Continued Demand Growth 8.0 Alberta is expected to increase natural gas consumption by over 45% Significant demand growth is taking 6.0 between 2018 and 2023 Power Generation (including Coal-to-Gas…
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…
North American Natural Gas Storage Persistently Low 2018 Canadian Storage 900 5-Yr Range 5-Yr Avg. 2017 2018 800 700 600 500 400 Bcf 300 200 100 Storage levels across North 0 America have remained Jan Feb Mar Apr…
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 meters (approximately 1,000 ft.)…
The Sweet Spot Top Decile Well Performance PONY has the 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…
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…
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…
Cost Structure Challenging Commodity Price Environment YTD Top Line Revenue Forecasted as at Sept 30, 2018 2019 Revenue 3.50 3.24 /Mcfe 3.22 /Mcfe 3.00 Cash Flow 0.80 (pre-hedging) 1.19 Cash Flow 0.95 (pre-hedging) 0.89 2.50…
2019 Production Revenue Managing Volatility Expected 2019 Production Revenue by Source 50% of PONYs 2019 production revenue is protected through a AECO combination of physical and financial contracts at a volume- DAWN SUMAS…
Production Profile Impressive Growth Quarterly production per share Quarterly average daily production (actual) 533% forecast increase in Quarterly average daily production (forecast) 400 annual average daily 5 Enbridge production…
2018 / 2019 Capital Spending Cash Flow Budgets Annual Average Daily Production (forecast) Annual Average Daily Production (actual) 400 500 Capital Development Program Cash 350Flow (actuals) Cash Flow (forecast) 400 339 348…
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 49.9% 4.7 mm 23 months (dry) Townsend (liquids-rich) 8,000 Blair 55.7%…
Single Well Development Economics Price Sensitivity (Half Cycle) Townsend (liquids-rich) Blair (lean) Daiber (dry) 180 160 140 Liquids-enhanced, Blair wells provide exposure to stronger Condensate, NGL Rate of Return (%…
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…
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 Probable reserves with Total Proved an NPV10 of 3.3 billion* 8.0 (20.53/share) 6.9 7.0 PONY Reserve Growth 6.0 4.9 5.0 4.6 4.0 2.9 3.0…
Pony Points Checking Off All of the Boxes Well situated to supply Canadian west coast LNG projects Diversified Market Access Massive reserves base Top well performance Attractive relative valuation 23
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…
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…
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…
Loading...
