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February 2019 Corporate Presentation – Seven Generations Energy Ltd

Seven Generations Energy Ltd · Feb 28, 2019 · 28 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. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 1
    TSX: VII CORPORATE PRESENTATION February 2019
  2. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 2
    SEVEN GENERATIONS ENERGY Serving our stakeholders through: Differentiated attention to selection, development & replenishment of the lowest supply cost resource Best in class execution through safe, responsible and efficient…
  3. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 3
    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…
  4. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 4
    THE CORNERSTONES OF OUR BUSINESS Return of Capital Return on Capital Free Cash Flow Financial Market Sustainability Resource Access Quality & Low Supply Cost Stakeholder Strong Service balance sheet Large,…
  5. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 5
    7GS LOW SUPPLY COST Montney Breakeven Henry Hub at Flat 60/bbl WTI, 10% IRR (/Mcf)1…
  6. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 6
    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 4.50 4.00 2017 - 3.37/sh 3.50 3.00 2016 -…
  7. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 7
    MARKET ACCESS THAT DIFFERENTIATES 7G Gas Market Sales Points AECO 9% AECO 11% AECO 5% Dawn 13% Dawn 15% Dawn 15% Ventura 4% Malin 13% Gulf 18% Gulf 18% Gulf 17% Chicago 55% Chicago 55% Chicago 50% GTN: 90 MMcf/d…
  8. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 8
    CANADIAN CONDENSATE MARKET OVERVIEW Forecast Supply & Demand of WCSB Condensate (Mbbl/d) 1 Edmonton Condensate vs. Crude Oil Prices (US/bbl)2 800 Supply grew faster than demand + Maintenance & curtailments impacts 70 60 50 600 Total…
  9. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 9
    A HIGH QUALITY RESOURCE 15+ years of core inventory Nest 1/2/3 Upper & Middle Montney Most economic resource in Canada Canadas largest condensate producer 750 MMcf/d of owned gas processing capacity Extensive…
  10. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 10
    ROBUST OWNED & OPERATED INFRASTRUCTURE NETWORK 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) 250…
  11. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 11
    2019 BUDGET 2019 Guidance Sustaining Capital 1.1 billion Nest 2 Development Discretionary Capital 0.15 billion Value Total Capital Investment 1.25 billion Enhancing Average Production 200 - 205 Mboe/d H1/19 Production 195-200…
  12. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 12
    DEVELOPMENT PLAN 2018 2019 2020+ Integrate Nest 3 Return to Nest 1 for Step into Nest 1 development Nest 3 development pads Define Nest 2 sub- Grow Nest 3 into regions pipeline capacity Expand understanding of Nest 1…
  13. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 13
    2019 CAPITAL ALLOCATION GUIDING PRINCIPALS 2.0B Spending to fall Other by 0.5B y/y with Delineation flat production 70 WTI Substantial E&P discretionary free Adjusted funds flow with Infrastructure Funds improved prices Flow 60…
  14. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 14
    NEST 2 UPDATE Nest 2 2019 Activity Condensate gas ratios (bbl/MMcf) vs. time (normalized month) 500 0 0 12 24 2017 Nest 2 Type Curve North South East West Liquids Nov 2017 May 2018 2019 More geotechnical data supports…
  15. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 15
    NEST 1 UPDATE ENHANCED ECONOMICS IP60 (2 HZ) 1,413 1,963 BOE/d Cumulative condensate (Mbbl) vs. time (normalized month) Nest 1 2019 Activity 64% Condensate 300 IP96 2,030 BOE/d 250 55% Condensate 200 Flowtest IP20 (7 HZ) IP80…
  16. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 16
    LOWER MONTNEY UPDATE Triple-stack test Comingled vertical test (5d): 2MMcf gas; 162 bbls condensate 2,800-3,000 meters IP90: 1048 boe/d, 72% condensate Denotes approximate areas of delineation activity Latest test…
  17. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 17
    SUMMARY OF PREMIUM SINGLE WELL DCE&T ECONOMICS 1,300 premium Upper and Middle Montney locations in the Nest Over a decade of additional drilling opportunities beyond the core of the Nest Lower Montney Wapiti Rich Gas…
  18. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 18
    THE 7G INVESTMENT THESIS Expanding discretionary adjusted funds flow Moderating declines reduce sustaining capital Major gas processing investments completed Delivering operating excellence Execution, optimization and cost…
  19. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 19
    TSX: VII APPENDIX
  20. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 20
    7GS GUIDING PRINCIPLE STAKEHOLDER SERVICE Stakeholder Differentiation We believe that companies have only the rights given to them by society. While people have a natural entitlement to basic rig hts, corporations are an instrument…
  21. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 21
    2019 BUDGET: BALANCE SHEET MANAGEMENT Net debt to trailing 12 month adjusted EBITDA Comfortably levered in lower prices 2.4x < 2.0x Target 1.8x 1.8x Potentially under- 1.4x 1.2x levered with 1.2x higher prices 0.9x 2015…
  22. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 22
    HEDGING STRATEGY Quarterly Revenue (/boe) 60 Hedging program has reduced revenue Objectives: volatility by 25% - Reduce revenue volatility 40 - Protect capital program - Preserve balance sheet 20 2014 2015 2016 2017 2018…
  23. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 23
    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 -…
  24. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 24
    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…
  25. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 25
    SWEET SPOT IN THE MONTNEY Over Pressured High Productivity Brittle Rock High Recovery Factor Thickness Large Resources in Place Lower Temperature High Liquids Content 1) Sources: Canadian Discovery Ltd. & Graham Davies…
  26. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 26
    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…
  27. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 27
    DEFINITIONS AND ABBREVIATIONS A annual m metres AECO physical storage and trading hub for natural gas on the TransCanada Alberta transmission Mbbl thousand of barrels system Mboe thousands of barrels of oil equivalent AFF adjusted…
  28. February 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 28
    For more information: Brian Newmarch Vice President Capital Markets 1.403.767.0752 bnewmarch7genergy.com Ryan Galloway Investor Relations Manager 1.403.718.0709 ryan.galloway7genergy.com www.7genergy.com TSX: VII

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