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March 2019 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Mar 1, 2019 · 22 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. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / MARCH 2019 FOCUSED ON LONG-TERM SUSTAINABILITY
  2. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 413.2 Fully diluted (1.5% dilutives) 419.1 Market capitalization (B) 2.1 Enterprise value (B) 3.4 2019 production guidance (boe/d) 70,000 72,000 % oil + NGLs 85% 2019…
  3. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Disciplined Strategy Financial flexibility Balance sheet strength and credit capacity Return on capital focused investing Growth within funds flow 6 to 8% production per share growth Dividend growth supported by free funds…
  4. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Strategic Priorities Balance sheet strength Enhance per share growth Return to shareholders Target Allocation 10% 5% 2% Organic Growth 43% Decline Mitigation 10% 20% HS&E 5% 43% Facilities 2% Dividends 20% Free Funds…
  5. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Sustainable Dividends Cumulative Dividends Paid 4.00 1,200 3.50 1,000 3.00 800 2.50 2.00 600 (MM) / Share 1.50 400 1.00 200 0.50 - - 2013 2014 2015 2016 2017 2018 2019e Cumulative Dividends (MM) Cumulative…
  6. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Solid Balance Sheet Conservative debt use and management Maintain 1x to 2x net debt to annual funds flow Total debt capacity: 1.7 BN Unutilized debt capacity: 400 MM Attractive Long-Term Debt with no Near-Term Maturities…
  7. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Commodity Price Risk Mitigation Objectives: Mitigate price volatility and protect economic returns Target 40 to 60% of net royalty volumes hedged 12 months forward Target 20 to 40% of net royalty volumes hedged 12 24 months…
  8. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Disciplined and Flexible 2019 Budget Defensive 1H/2019 Flexible 2H/2019 Full Year 2019 Funds flow (MM) 302 326 628 Capital expenditures (MM) (160) (290) (450) Dividends (MM) (67) (68) (135) Free funds flow (MM) 76 (32) 43 Total…
  9. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 9
    2019 WTI Price Sensitivities Oil (USWTI) 45.00 55.00 65.00 FX (C/US) 0.71 0.75 0.79 Oil (Cdn/WTI) 63.38 73.33 82.28 AECO (C/GJ) 1.67 1.67 1.67 Funds flow netback (/boe) 20.50 24.25 27.90 Funds flow (MM) 531 628 723 Development…
  10. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Per Share Growth Focus 80,000 600,000 72,000 Production 2P Reserves 64,000 500,000 71,000 56,000 489,451 400,000 48,000 Production (boe/d) 40,000 (Mboe) 300,000 32,000 24,000 200,000 16,000 100,000 8,000 - 0…
  11. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Internally Funded Income and Growth Model NO DRIP 98 Total Payout Ratio 125% 93 100 90 100% 80 65 70 Total Payout Ratio 75% 55 60 WTI (US/bbl) 51 49 43 50 50% 40 30 25% 20 10 0% - 2013 2014 2015 2016…
  12. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Capital Allocation 2019 Capital Budget Business Unit Target (MM) % West Central Sask Viking 112 25 Northwest Alberta & BC Cardium 112 25 Southwest Sask Atlas/Shaunavon 94 21 West Central Alberta Cardium 81 18 Southeast Sask CO2…
  13. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Core Areas of Operations Light Oil Drilling Inventory 2,834 8 years of inventory BRITISH COLUMBIA ALBERTA Drilling Wells SASKATCHEWAN Inventory 2018 2019 West Central Sask 813 135 103 Northwest Alberta & BC Southwest Sask 776…
  14. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 14
    IRR 50% 0% 100% 150% 200% 250% Atlas Hz 1.0 (Unconvent'l) Viking ERH 1.5 Refer to slide Notes and Advisories. Wapiti Cardium Standard 1.0 W. Pembina ERH 1.5 Rate of Return Viking Standard 1.0 W.…
  15. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Depth and Quality of Inventory for Organic Growth Profit to Investment Ratio 2.5 2.0 Average = 1.7 Historically, inventory expanded through high quality acquisitions Profit to Investment Ratio 1.5 Tuck-in acquisitions…
  16. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Diversified Crude Oil Sales Crude Oil and NGL Sales by Pipeline 0.1% 2% 24% 23% Taylor 6% 17% Prince George Edmonton 9% Hardisty Kerrobert 20% Regina Cromer Plains South Sask. Pembina Peace TEML Weyburn/Westspur…
  17. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Crude Oil Price Diversification Midale Par 25% Fosterton Midale receives premium to Edmonton light 25% Par Fosterton receives premium to WCS Edmonton 50% Par Differential Hedges for 1H/2019 Edmonton Par differential…
  18. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 18
    Benchmarking 2019e Decline Rate 45% 40% 40% 38% 36% 35% 35% 34% 34% 33% 30% 30% 29% 29% 25% 25% 25% 25% 23% 23% 20% 20% 19% 15% 10% 5% 0% WCP Source: National Bank Financial (December 2018) Peer Group…
  19. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Benchmarking Best in Class Sustaining Ratio 120% Dividend Payout Sustaining Capital Payout 100% Peer Average 80% Sustaining Ratio 60% 40% 20% 0% WCP Source: National Bank Financial (December 2018) Peer…
  20. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 20
    Benchmarking North American Oil Plays Half-Cycle Payout Period (Years) 5.0 WCP Oil Plays 4.0 North American Oil Plays 3.0 Median of 2.0 2.0 1.0 0.0 Source: Peters & Co. Limited estimates based on US60.00/B WTI,…
  21. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 21
    The Whitecap Investment Opportunity Financial Flexibility with Balance Sheet Strength Organic Growth within Funds Flow Sustainable and Growing Dividend Strong Focus on Governance and Environment 21
  22. March 2019 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Research Coverage AltaCorp Capital Laurentian Bank Securities BMO Capital Markets Macquarie Securities Group Canaccord Genuity National Bank Financial CIBC World Markets Peters & Co. Cormark Securities Raymond James Desjardins…

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