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Capital Markets Day 2019 – International Petroleum Corp.

International Petroleum Corp. · Feb 12, 2019 · 78 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. Capital Markets Day 2019 – International Petroleum Corp. – slide 1
    Capital Markets Day 2019 February 12, 2019 NC00050 02.18 IPC CMD 2019
  2. Capital Markets Day 2019 – International Petroleum Corp. – slide 2
    International Petroleum Corp. Agenda February 12, 2019 1. Introduction Mike Nicholson 2. 2018 Operations Review Daniel Fitzgerald 3. 2019 Overview 4. Asset Overview 4a. Canada 4b. Malaysia Chris Hogue 4c. France Daniel…
  3. Capital Markets Day 2019 – International Petroleum Corp. – slide 3
    1. Introduction Mike Nicholson CMD, February 12, 2019 3
  4. Capital Markets Day 2019 – International Petroleum Corp. – slide 4
    International Petroleum Corp. Corporate Strategy Deliver operational excellence Maintain financial resilience Maximise the value of our resource base Grow through M&A NC00115 p34 01.19 IPC CMD 2019 4
  5. Capital Markets Day 2019 – International Petroleum Corp. – slide 5
    International Petroleum Corp. 2018 Highlights Production Guidance Full year average production exceeds high case CMD guidance at 34,400 boepd Operating Costs(1) Operating costs of 12.4 USD/boe, below 2018 guidance of 12.6 USD/boe…
  6. Capital Markets Day 2019 – International Petroleum Corp. – slide 6
    International Petroleum Corp. 2019 Highlights 2019 guidance: 46,000 to 50,000 boepd Production Guidance 2019 forecast exit rate 50,000 boepd Production growth targeted in all countries Operating Costs (1) Operating costs forecast…
  7. Capital Markets Day 2019 – International Petroleum Corp. – slide 7
    International Petroleum Corp. Net Reserves and Contingent Resources (MMboe) Resource Growth 2P + 2C 1,137 100% reserves replacement in 2018 More than doubled 2P reserves to 288 MMboe (1) 849 2C 6x Increased reserves life…
  8. Capital Markets Day 2019 – International Petroleum Corp. – slide 8
    International Petroleum Corp. Production Growth Production (boepd) 50,000 boepd wth Gro +10% 46,100 boepd 46,000 boepd Production guidance of 46,000 to 50,000 boepd 34,400 boepd 50,000 boepd exit rate forecast 5x…
  9. Capital Markets Day 2019 – International Petroleum Corp. – slide 9
    International Petroleum Corp. Production and Reserves per Share Production per share (boepd/million shares) Reserves per share (boe/share) 294 282 1.76 1.47 2.5x 5x 117 0.33 2017(1) 2018(2) 2019(2,3) 2017(1) 2018(1)…
  10. Capital Markets Day 2019 – International Petroleum Corp. – slide 10
    International Petroleum Corp. Operating Cash Flow (MUSD)(1) WTI-WCS WTI-WCS differential differential -20 -15 332 70 USD/bbl 306 70 USD/bbl 279(2) 265 258 60 USD/bbl 232 60 USD/bbl 189 50 USD/bbl 163 50 USD/bbl 138…
  11. Capital Markets Day 2019 – International Petroleum Corp. – slide 11
    International Petroleum Corp. Organic Growth 2019 capital expenditure range of 146 to 166 MUSD Flexibility to increase or decrease based on commodity prices Targeting growth in all countries Manville Oil Sands Wabasca…
  12. Capital Markets Day 2019 – International Petroleum Corp. – slide 12
    International Petroleum Corp. Canadian Macro Supply and Pipeline Egress Western Canada oil supply vs. pipeline Egress 7.5 December announcement of 325 Mbopd (8.7%) production curtailment in Alberta 7.0 ) ,044 Reduced to 250…
  13. Capital Markets Day 2019 – International Petroleum Corp. – slide 13
    International Petroleum Corp. Net Asset Value (MUSD)(1) 2,314 With YE 2017 Pricing 111 PXX 166 IPCO 2,037 1,274 BlackPearl 70% discount to NAV 590 526 Suffield 1,151 543 514 International 2017 2018 2019(1) Net…
  14. Capital Markets Day 2019 – International Petroleum Corp. – slide 14
    International Petroleum Corp. Net Asset Value Per Share(1) 14 14 NAV per share IPCO USD share price USD per share 01/01/19 13 13 USD 12.4 12 12 11 +37% 11 10 01/01/18 10 USD per share USD 9.1 9 Additional gas 9…
  15. Capital Markets Day 2019 – International Petroleum Corp. – slide 15
    2. 2018 Operations Review Daniel Fitzgerald CMD, February 12, 2019 15
  16. Capital Markets Day 2019 – International Petroleum Corp. – slide 16
    2018 Production International Petroleum Corp. 2018 Production Gas 53% Oil (Brent) 29% Production above 2018 CMD high case at 34,400 boepd Oil (WCS) Bertam infill well performance Ahead of expectation 18% Canada gas…
  17. Capital Markets Day 2019 – International Petroleum Corp. – slide 17
    International Petroleum Corp. CAPEX Movements 2018 2018 Net Capital Expenditure 0.8 39.0 1.7 2018 capital expenditure: 39 MUSD (original guidance 32 MUSD) 32.2 4.3 Additional organic growth sanctioned during 2018 Successful…
  18. Capital Markets Day 2019 – International Petroleum Corp. – slide 18
    4. 2019 Overview Daniel Fitzgerald CMD, February 12, 2019 18
  19. Capital Markets Day 2019 – International Petroleum Corp. – slide 19
    International Petroleum Corp. Track Record of Reserves Growth Proven track record of reserves increases through organic growth 103% reserves replacement ratio in 2018(1) 174% in France Villeperdue reservoir performance upgrade and…
  20. Capital Markets Day 2019 – International Petroleum Corp. – slide 20
    International Petroleum Corp. Production Growth in All Countries 2019 Production Growth (net boepd) 2019 forecast exit 2019 focus on organic growth rate 50,000 boepd 20% Production Additions 10% Production forecast to…
  21. Capital Markets Day 2019 – International Petroleum Corp. – slide 21
    International Petroleum Corp. 2019 Production Production Guidance International, 19% France sia Canada Gas, 38% y ala Production guidance for 2019 : 46,000 to 50,000 boepd net M Suffield Gas a Ot her Canad…
  22. Capital Markets Day 2019 – International Petroleum Corp. – slide 22
    International Petroleum Corp. Operating Costs(1) 2019 full year operating costs forecast at 12.9 USD/boe Includes production optimisation, workovers and maintenance provisions Net Unit Operating Costs 2019 Guidance (USD/boe)…
  23. Capital Markets Day 2019 – International Petroleum Corp. – slide 23
    International Petroleum Corp. 2019 Capital Allocation(1) Development Capital Expenditure (net) France, 30% Canada, 42% 2019 Guidance: 120 to 140 MUSD Opportunity to ramp up or down depending on commodity pricing Strong economic…
  24. Capital Markets Day 2019 – International Petroleum Corp. – slide 24
    2019 Budget : MUSD 26 International Petroleum Corp. Exploration and Appraisal Expenditure (net) Canada 38% Malaysia 62% Blackrod - 744 MMboe of Contingent Resources (1) Keruing - targeting 3 to 16 MMboe of Prospective Resources…
  25. Capital Markets Day 2019 – International Petroleum Corp. – slide 25
    International Petroleum Corp. 2019 Drilling Schedule Majority of production additions in second half of 2019 Firm 2019 Country Licence - Prospect Wells Q1 Q2 Q3 Q4 Malaysia Bertam - infill, appraisal, Keruing-1 6 Exploration,…
  26. Capital Markets Day 2019 – International Petroleum Corp. – slide 26
    International Petroleum Corp. Organic Growth Opportunity portfolio continues to grow Potential to accelerate future projects into 2019 Future Opportunities 2019 Projects Projects Executed in 2018 Canada Onion Lake Thermal…
  27. Capital Markets Day 2019 – International Petroleum Corp. – slide 27
    International Petroleum Corp. 2P Reserves Year End 2018(1) Light Oil 9% Gas 26% 2P Reserves Life Index 16 years International, 9% Heavy Oil 65% Malaysia light oil, 3% France light oil, 6% Canada gas - Suffield, 26% 2P…
  28. Capital Markets Day 2019 – International Petroleum Corp. – slide 28
    International Petroleum Corp. 2C Contingent Resources - Year End 2018(1) International, 2% France light oil, 16 13 x year on year Canada heavy oil, 50 contingent resources increase Canada gas, 39 Total 2C Contingent…
  29. Capital Markets Day 2019 – International Petroleum Corp. – slide 29
    4. Asset Overview Daniel Fitzgerald, Chris Hogue CMD, February 12, 2019 29
  30. Capital Markets Day 2019 – International Petroleum Corp. – slide 30
    4a. Canada Chris Hogue CMD, February 12, 2019 30
  31. Capital Markets Day 2019 – International Petroleum Corp. – slide 31
    IPC - Canada Asset Overview - 1 Billion Barrels of Resource(1) Suffield Area Peace River Athabasca Blackrod Conventional heavy oil and natural gas MMboe Mooney Cold Lake 2018 production 23,900 boepd 2P Reserves 100.5 Edmonton…
  32. Capital Markets Day 2019 – International Petroleum Corp. – slide 32
    IPC - Canada Mooney Blackrod Suffield Area Asset Overview CANA Edmonton DA Calgary Onion Lake Suffield Area Regina Ottawa USA Suffield Area Operated by IPC Outperformed in 2018 in IPCs first year as operator…
  33. Capital Markets Day 2019 – International Petroleum Corp. – slide 33
    %; % % % ;%; ; %;% ; ; ;; % %% ; ;;;;;% % ;;;%%;% % ; ; ;% ;;;;; % ; % % %;% % % ; % ; ; ;%;% %; % ; % % ; %; % %;% % % % % ;; ;;;% %%; ;%; % ;; % ; % %;; ;%;% ;%;; ; %% % % %; % %%; ; ; ; YYY % % %% ; % % %; ;; %% ;; ;…
  34. Capital Markets Day 2019 – International Petroleum Corp. – slide 34
    IPC - Canada Suffield Area - Gas Optimisation Suffield Gas Annual Historical Decline Rates (1) 4% 2% 2% Average Annual Decline Rate (%) 0% 1% -2% -4% -6% 8% 8% -8% 9% 9% 10% -10% 11% Successfully offset shallow gas…
  35. Capital Markets Day 2019 – International Petroleum Corp. – slide 35
    IPC - Canada N2N Facilities Suffield N2N Project Successful track record Analogous to IPC operated UU and YYY alkaline-surfactant-polymer floods Production and injection facility in place 22 MCAD invested by prior operator,…
  36. Capital Markets Day 2019 – International Petroleum Corp. – slide 36
    IPC - Canada Athabasca Blackrod Peace River Onion Lake Thermal Asset Overview Cold Lake Mooney Onion Lake Edmonton Calg ary Calgary Canada Regina Medecine Hat Suffield Onion Lake Area Operated by IPC Early…
  37. Capital Markets Day 2019 – International Petroleum Corp. – slide 37
    IPC - Canada Onion Lake Phase 1 and 2 Facilities Onion Lake Thermal Reservoir Description Highly delineated with over 300 wells already drilled Pad A Pad E Pad C Pad B Pad F Initial primary production transitioned to thermal…
  38. Capital Markets Day 2019 – International Petroleum Corp. – slide 38
    IPC Canada Forecast High Facility Optimisation Onion Lake Thermal Production Capacity 16,000 Historical Production Facility Nameplate Capacity Low 14,000 12,000 Phase 2 design Phase 1 design capacity Barrels Per Day…
  39. Capital Markets Day 2019 – International Petroleum Corp. – slide 39
    IPC - Canada Blackrod Asset Overview Blackrod Athabasca Blackrod Peace River Cold Lake Mooney Edmonton Onion Lake Blackrod area Operated by IPC Calg ary Calgary Canada Regina Amongst the best greenfield SAGD projects…
  40. Capital Markets Day 2019 – International Petroleum Corp. – slide 40
    IPC - Canada Mooney Blackrod Summary Edmonton CANA DA Calgary Onion Lake Suffield Regina USA Ottawa 2 major acquisitions completed in 2018 Suffield - N2N Facilities Adds 1 billion barrels of high quality strategic long…
  41. Capital Markets Day 2019 – International Petroleum Corp. – slide 41
    4b. Malaysia Daniel Fitzgerald CMD, February 12, 2019 41
  42. Capital Markets Day 2019 – International Petroleum Corp. – slide 42
    Bertam Facilities IPC - Malaysia Asset Overview Malaysia Reservoir and operational performance ahead of expectation 0 KM 400 Proven track record of reserve additions Successful programme of high value infill wells Focus on…
  43. Capital Markets Day 2019 – International Petroleum Corp. – slide 43
    IPC - Malaysia Operational Excellence Consistently delivering operational excellence Over 99% facility uptime since startup Bertam Field Gross Production 14,000 Safe operations - LTI free for over 2.5 years Infill wells Base…
  44. Capital Markets Day 2019 – International Petroleum Corp. – slide 44
    IPC - Malaysia 2019 Capital Programme Malaysia Bertam N 2016 Infill 3 Infill wells completed (2016 & 2018) 2018 Infills 2018 infills paid back in 6 months A15 A17 Infill 3 - A19 3 Infill wells planned for 2019…
  45. Capital Markets Day 2019 – International Petroleum Corp. – slide 45
    N A15 IPC - Malaysia A15 Location - Further Infill Opportunity A15 Year on year reserves increases in A15 area Water cut delayed from pre-drill expectations Oil in place larger than initial expectation 2019 Programme 0…
  46. Capital Markets Day 2019 – International Petroleum Corp. – slide 46
    N IPC - Malaysia Keruing Seismic Amplitude Keruing Exploration C B A 0 500m Keruing 2019 exploration targeting 2.7 to 15.7 MMboe(1) Exploration well location Potential high value tie-back to existing infrastructure 3D view…
  47. Capital Markets Day 2019 – International Petroleum Corp. – slide 47
    4c. France Daniel Fitzgerald CMD, February 12, 2019 47
  48. Capital Markets Day 2019 – International Petroleum Corp. – slide 48
    IPC - France France Asset Overview Paris Basin France Aquitaine Basin Paris and Aquitaine Basins Long life low decline assets Strong reservoir performance in 2018 Reserve replacement ratio of 174% in 2018 0 KM 400 Focus on…
  49. Capital Markets Day 2019 – International Petroleum Corp. – slide 49
    IPC - France Cash Generation Significant resource growth through time (1) Significant cash generation through time Opportunity to deliver material production growth through investment u r ce R eso bbls Cumulative Net Cashflow…
  50. Capital Markets Day 2019 – International Petroleum Corp. – slide 50
    Villeperdue West - Potential Sanction 2019 IPC - France Resource Maturation (1) rage ic Cove Proven track record of resource growth ism D Se 3 Potential development Villeperdue 3.8 MMboe targets +130% Largest single…
  51. Capital Markets Day 2019 – International Petroleum Corp. – slide 51
    IPC France Vert-La-Gravelle Project Project Sanctioned Q4 2018 Targeting unswept oil in central and southern areas On track for Q2 2019 spud 2 horizontal producers and 1 injector (phase 1) Vert-La-Gravelle Hydrocarbon Saturation…
  52. Capital Markets Day 2019 – International Petroleum Corp. – slide 52
    Villeperdue Reservoir Thickness IPC - France Villeperdue West Development Overview ge C overa ic eism 3D S Undeveloped potential in western flank Oil-water contact extends beyond current wellstock Potential development…
  53. Capital Markets Day 2019 – International Petroleum Corp. – slide 53
    Asset Highlights Daniel Fitzgerald CMD, February 12, 2019 53
  54. Capital Markets Day 2019 – International Petroleum Corp. – slide 54
    International Petroleum Corp. 2019 Programme Production Production Guidance Record production - targeting to increase through 2019 46,000 to 50,000 boepd exit rate forecast Exit rate forecast at 50,000 boepd 50,000 boepd e s o…
  55. Capital Markets Day 2019 – International Petroleum Corp. – slide 55
    Q&A CMD, February 12, 2019 55
  56. Capital Markets Day 2019 – International Petroleum Corp. – slide 56
    BREAK CMD, February 12, 2019 56
  57. Capital Markets Day 2019 – International Petroleum Corp. – slide 57
    5. Financial Overview Christophe Nerguararian CMD, February 12, 2019 57
  58. Capital Markets Day 2019 – International Petroleum Corp. – slide 58
    International Petroleum Corp. CMD Guidance Main Assumptions Forecast Financials USD/boe Production 46,000 to 50,000 boepd Revenue 27.2 Exit Rate 50,000 boepd Operating Cash Flow (1) 13.2 Capital Expenditure 146 to 166 MUSD…
  59. Capital Markets Day 2019 – International Petroleum Corp. – slide 59
    International Petroleum Corp. Economic Assumptions(1) Low Case Base Case High Case Oil in USD/bbl Brent 50 60 70 WTI 44 52 60 WCS (-20 USD/bbl) 24 32 40 Realised price in Canada WCS -5 Gas in CAD/mcf Empress 2.50 2.50…
  60. Capital Markets Day 2019 – International Petroleum Corp. – slide 60
    International Petroleum Corp. Realised Oil Prices Bertam Realised oil price 2018 realised oil prices France Realised oil price Brent, WTI & WCS Spot Price (USD/bbl) Suffield Realised oil price 90 78.32 78.21 77.58 80 73.10…
  61. Capital Markets Day 2019 – International Petroleum Corp. – slide 61
    International Petroleum Corp. Realised Gas Prices AECO, Empress and realised gas prices Realised Price CAD/Mcf 2018 realised price 6% ahead of 2018 CMD guidance of 2.40 CAD/Mcf Empress / AECO differential AECO Day Ahead Index 9…
  62. Capital Markets Day 2019 – International Petroleum Corp. – slide 62
    International Petroleum Corp. Margin Netback (1) (USD/boe) 2019 Forecast Low Base High 2018 50 (44) 60 (52) 70 (60) Actual USD/bbl Average Brent oil price (WTI) WTI - WCS differential (20) = WCS 24 32 40 71 Production guidance…
  63. Capital Markets Day 2019 – International Petroleum Corp. – slide 63
    International Petroleum Corp. Operating Costs Forecast (USD/boe)(1) USD/boe Operating Costs USD/boe 14.0 14.0 13.5 13.5 13.0 13.0 12.9 USD/boe 12.5 12.5 12.0 12.0 0 0 NC00116 p03 01.19 Q1 2019 Q2 2019 Q3…
  64. Capital Markets Day 2019 – International Petroleum Corp. – slide 64
    International Petroleum Corp. Operating Cash Flow (1) and EBITDA Netback (2) (USD/boe) 2019 Forecast Brent oil price (USD/bbl) 50 60 (Base) 70 Cash Margin Netback 9.4 13.3 17.7 Cash Taxes -0.1 -0.3 Operating Cash Flow Netback…
  65. Capital Markets Day 2019 – International Petroleum Corp. – slide 65
    International Petroleum Corp. Profit Netback (USD/boe)(1) 2019 Forecast Brent oil price (USD/bbl) 50 60 (Base) 70 Cash Margin Netback 9.4 13.3 17.7 Depletion/Depreciation -9.2 -9.2 -9.2 G&A -0.8 -0.8 -0.8 Financial items, net…
  66. Capital Markets Day 2019 – International Petroleum Corp. – slide 66
    International Petroleum Corp. Oil Sensitivity to WTI/WCS Differential 2019 Forecast Brent oil price (USD/bbl) 60.00 60.00 60.00 WTI/WCS Differential (USD/bbl) 25.00 20.00 15.00 Difference Total Revenue (USD/boe) 25.7 27.2 28.7…
  67. Capital Markets Day 2019 – International Petroleum Corp. – slide 67
    International Petroleum Corp. Gas Sensitivity to Realised Canadian Gas Price 2019 Forecast Base Case Brent oil price (USD/bbl) 60.00 60.00 60.00 WTI/WCS Differential (USD/bbl) 20.00 20.00 20.00 Gas price (CAD/mcf) 2.25 2.50 2.75…
  68. Capital Markets Day 2019 – International Petroleum Corp. – slide 68
    International Petroleum Corp. Liquidity and Funding (USD/boe) 2019 Forecast Brent oil price (USD/bbl) 50 60 (Base) 70 Operating Cash Flow Netback 9.4 13.2 17.4 General and Administration Costs -0.8 -0.8 -0.8 Cash Financial…
  69. Capital Markets Day 2019 – International Petroleum Corp. – slide 69
    6. Reserves Valuation Rebecca Gordon CMD, February 12, 2019 69
  70. Capital Markets Day 2019 – International Petroleum Corp. – slide 70
    International Petroleum Corp. Brent Price (1) Price Decks Brent USD/bbl (1) 80 70 60 50 2019 2020 2021 2022 2023 2024 NC00116 p15 01.19 Year End 2017 Reserves Price Deck (1) See Reader Advisory and MCR Year…
  71. Capital Markets Day 2019 – International Petroleum Corp. – slide 71
    International Petroleum Corp. Canadian Pricing (1) Western Canadian Select (WCS) USD/bbl Empress Gas Price CAD/MMbtu 75 4.5 70 4.0 65 60 3.5 CAD/MMbtu USD/bbl 55 3.0 50 45 2.5 40 2.0 35 30 1.5 2019 2020…
  72. Capital Markets Day 2019 – International Petroleum Corp. – slide 72
    International Petroleum Corp. Net Present Value (NPV) Changes 2018 to 2019 (MUSD) (1) 1,151 355 With Year End 2017 1,040 166 pricing With 874 Year End 2017 pricing 794 NPV Net Debt(2) NAV NPV Net Debt(2) NAV January 1,…
  73. Capital Markets Day 2019 – International Petroleum Corp. – slide 73
    International Petroleum Corp. Net Asset Value (MUSD) 2,314 111 PXX 166 IPCO 2,037 1,274 BlackPearl 60% PPDP 526 Suffield 514 International NPV(1) Net Debt(2) NAV(1) NC00116 p19 01.19 1) As at December 31,…
  74. Capital Markets Day 2019 – International Petroleum Corp. – slide 74
    International Petroleum Corp. Net Asset Value Per Share since Inception(1) 14 14 NAV per share 01/01/19 13 13 USD 12.4 12 12 11 11 10 01/01/18 10 USD 9.1 9 9 USD per share USD per share 8 260% 8 7 value uplift 7…
  75. Capital Markets Day 2019 – International Petroleum Corp. – slide 75
    7. Closing Remarks CMD, February 12, 2019 75
  76. Capital Markets Day 2019 – International Petroleum Corp. – slide 76
    International Petroleum Corp. Closing Remarks Two transformational acquisitions completed in 2018 Significant long life reserves base Low cost production growth Material contingent resource base Strong balance sheet to fund…
  77. Capital Markets Day 2019 – International Petroleum Corp. – slide 77
    Q&A CMD, February 12, 2019 77
  78. Capital Markets Day 2019 – International Petroleum Corp. – slide 78
    IPC CMD 2019

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