Skip to main content March 2019 Corporate Presentation – Bellatrix Exploration Ltd. | Shale Experts
Loading...
Pm

March 2019 Corporate Presentation – Bellatrix Exploration Ltd.

Bellatrix Exploration Ltd. · Mar 15, 2019 · 41 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 – Bellatrix Exploration Ltd. – slide 1
    Corporate Presentation MARCH 2019 1
  2. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 2
    Bellatrix Investment Highlights Dominant core acreage position in west central Alberta Top tier capital efficiencies and cost Spirit River represents one of North profile deliver full cycle profitability Americas lowest supply cost…
  3. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 3
    Corporate Profile MARKET SUMMARY Ticker Symbol TSX : BXE Average Daily Volume1 610,000 Shares Outstanding2 80.9 million basic / 84.6 million diluted Market Capitalization3 52 million Bank Debt4 48 million Senior Unsecured Notes due…
  4. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 4
    2018 Guidance History Delivering on Expectations PREVIOUS PREVIOUS PREVIOUS 2018 ACTUAL 2018 ANNUAL 2018 ANNUAL 2018 ANNUAL ANNUAL VERSUS GUIDANCE GUIDANCE GUIDANCE RESULTS PRIOR3 (APR 3, 2018) (AUG 2, 2018) (NOV 1, 2018)…
  5. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 5
    2019 Guidance & Objectives 2019 CAPITAL BUDGET DELIVERS STABLE PRODUCTION VOLUMES 1 2019 BUDGET ATTRIBUTES CURRENT 2019 ANNUAL Reduced maintenance capital requirements. The GUIDANCE combination of lower well capital costs (3.4MM…
  6. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 6
    Strategic Objectives & Outlook Improving financial strength and value preservation in low commodity price environment 2017 2018 2019 New management team Manage capital Advance debt refinance established investment levels within…
  7. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 7
    Low Cost FD&A Performance 6.00 FD&A costs (/boe) 5.00 4.00 3.00 2.00 1.00 0.00 2018 2017 3 Year Avg 2018 2017 3 Year Avg ('16-'18) ('16-'18) FD&A Costs Including Plant Capital FD&A Costs Excluding Plant Capital PDP FD&A…
  8. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 8
    NAV of 1.12 Billion or 13.84 Per Share 2P NAV PER SHARE1 20.00 0.78 18.00 (5.48) 5.57 16.00 14.00 Value ( per basic share) 12.00 7.13 13.84 10.00 8.00 6.00 5.84 4.00 2.00 0.00 2 2 2 PDP 1P 2P Other 3 Net debt 4…
  9. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 9
    Diversified Balance Sheet & Financial Flexibility Actively exploring refinancing opportunities and additional sources of liquidity BANK DEBT 48MM CREDIT FACILITY LONG TERM DEBT AT DECEMBER 31, 2018 FINANCIAL COVENANTS MATURITIES 5.0…
  10. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 10
    AECO Natural Gas Expansion Projects Underway ADDITIONAL EXPORT CAPACITY BEING DEVELOPED OUT OF THE CANADIAN BASIN Effective Capacity (MMcf/d) 2017A 2018E 2019E 2020E 2021E 2022E Forecasts anticipate the basin will become In Service…
  11. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 11
    AECO Natural Gas Demand Growth Drivers INTRA-ALBERTA DEMAND GROWTH External forecasts see intra-Alberta demand growth of: 500 MMcf/d YoY in 2018 to 5.3 Bcf/d 245 MMcf/d YoY in 2019 to 5.5 Bcf/d 190 MMcf/d YoY in 2020 to 5.7…
  12. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 12
    Hedging & Market Diversification Market Diversification Contracts Market Start Date End Date Volume Chicago 01-Feb-18 31-Oct-20 15,000 MMBtu/d Chicago 01-Nov-18 31-Oct-20 15,000 MMBtu/d Dawn 01-Feb-18 31-Oct-20 15,000 MMBtu/d Dawn…
  13. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 13
    Commodity Price Risk Management & Diversification NATURAL GAS MARKET DIVERSIFICATION & FIXED PRICE HEDGING COVERAGE 70% % of total forecast 2019 gas volumes 60% 50% 40% 30% 20% 10% 0% Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20…
  14. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 14
    Growing High Value Liquids Growing NGL Volumes & High Value Condensate 55.00 100% Corporate NGL yield (bbl/MMcf) 90% Light oil Product % of Total Crude Oil & Condensate Volumes (bbl/d) 50.00 80% 70% 45.00 60% 50% 40.00…
  15. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 15
    Highly Concentrated Land Base DOMINANT ACREAGE POSITION WEST CENTRAL ALBERTA CORE AREA Highly focused land base in the prolific Deep Basin of FERRIER Alberta WILLESDEN GREEN 99% of total corporate GREATER PEMBINA production and…
  16. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 16
    North American Supply Cost Comparison 4.00 3.50 3.00 Henry Hub (US/MMbtu) 2.50 2.00 1.50 1.00 0.50 0.00 Economics assume 15% Before tax IRR, assumes US0.83 = CDN1.00, US0.75/MMbtu AECO basis, and a 20:1 oil-to-gas…
  17. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 17
    Pre-eminent Capital Efficient Operator in the WCSB BXE 2018 AVERAGE NATURAL GAS WELL PERFORMANCE (IP90) RANKS BEST IN BASIN 10.0 9.0 Natural Gas Rate (MMcf/d) 8.0 2018 Best IP90 Average 7.0 6.0 5.0 4.0 3.0 2.0 1.0…
  18. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 18
    Bellatrixs Spirit River Play BXE Land Sections1 GREATER FERRIER AREA CORE SPIRIT RIVER PLAY 198 Gross 118 Net BXE Net Drilling Inventory2 105 proved 27 probable 250 unbooked 382 total True vertical formation depth 2,250 meters…
  19. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 19
    Spirit River Geology Summary Broad, thick, extensive sand rich valleys SPIRIT RIVER STACKED SANDS in Notikewin, Falher and Wilrich members One square Tight sandstone: long life reserves with mile section long term hyperbolic decline…
  20. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 20
    Comparing Premier Resource Plays Spirit River Montney Duvernay Tight Conventional Siltstone Shale Sandstone BXE Typical Reservoir Porosity 6 to 18%; Porosity 0.6 to 8%; Porosity 2 to 8%; Permeability 1 to 3 mD Permeability…
  21. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 21
    Low Cost Competitive Advantage BXE Spirit River Versus Canadian Plays STAGE COUNT PROPPANT PLACED 40 8,000 35 7,000 Average proppant (tonnes) Average stage count 30 6,000 25 5,000 20 4,000 15 3,000 TOTAL WELL COST 10…
  22. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 22
    Play Profitability Comparisons BXE Spirit River Montney Duvernay All-in Well Costs 3.4 6.4 9.4 (DCE&T, MM) Average IP365 1,070 608 459 (boe/d) IP365 Capital Efficiency 3,180 10,500 20,560 (/boe/d) Average Implied EUR 7.1…
  23. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 23
    Spirit River Type Curves SPIRIT RIVER 5.2 & 6.0 BCF TYPE CURVES Bellatrix Spirit River Economics 9 Economic Assumptions 5.2 Bcf 6.0 Bcf Liquids (bbl/MMcf) Gross CAPEX (DCE&T, MM) 3.4 3.4 8 Gross Natural Gas IP30 (MMcf/d) 6.6 6.3…
  24. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 24
    Spirit River All-In Profitability 5.2 Bcf Type Curve C1.50/GJ C2.50/GJ Full Cycle F&D costs Drill 1.5MM Full cycle F&D costs /Mcfe (0.71) (0.71) Complete 1.4MM Equip & tie in 0.5MM Half cycle costs 3.4MM Land/seismic/facilities…
  25. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 25
    Delivering on our Objectives 2018 RESULTS OUTPERFORMED EXPECTATIONS 14 12 10 Producing Day Volumes (MMCF/d) 8 6 4 2 0 0 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480 510 540 570 600 630 660 690…
  26. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 26
    Enduring Efficiency Gains on Drill Times AVERAGE SPIRIT RIVER DRILLING CURVES DAYS SPUD TO RIG RELEASE BY YEAR 0 20 Days (Spud to Rig Release) 2014 Spirit River 500 Average 15 2015 Spirit River Average 1,000 10 2016 Spirit…
  27. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 27
    Spirit River Well Costs & Capital Efficiencies FOCUSED CAPITAL COST REDUCTIONS 6.0 Long Reach Long Reach 5.0 Equip & Long Reach 4.0 Costs (millions) Tie-in Long Reach 3.0 Complete 2.0 Drill 1.0 0.0…
  28. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 28
    Bellatrix Focused Spirit River Growth SPIRIT RIVER PRODUCTION GROWTH 80% 2010 32,000 70% 28,000 Spirit River % of Total Company Volumes Spirit Average Monthly Production (boe/d) 60% 2018 New River 24,000 Drill 2014…
  29. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 29
    Cost Reductions Achieved 38% REDUCTION IN PRODUCTION EXPENSES (/BOE) 11.00 Production expense 10.00 9.00 (/boe) 8.00 7.00 6.00 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 32% REDUCTION IN PRODUCTION EXPENSES…
  30. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 30
    Representative Spirit River Inventory Required to Maintain Production Volumes Approximately 12-15 net (5.2 Bcf type curve) Spirit River wells1 per year maintains production in the high 30 mboe/d range through 2023 Alternatively,…
  31. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 31
    Bellatrix Alder Flats Phase 2 PHASE 2 ON-STREAM MARCH 2018 Phase 2 brought on-stream safely, ahead of schedule, and approximately 5% under budget More than doubles throughput capacity at the plant to 230 MMcf/d (from 110 MMcf/d)…
  32. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 32
    Greater Ferrier Area Infrastructure Overview GREATER FERRIER AREA STRATEGIC INFRASTRUCTURE GREATER FERRIER EXISTING INFRASTRUCTURE ACCESS: Infrastructure gives Bellatrix control of production and growth Working interest or operatorship…
  33. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 33
    Material Facilities & Infrastructure Value MAJOR FACILITIES & INFRASTRUCTURE VALUE 190MM NET TO BXE 200 11MM 180 9MM 29MM 160 140 87MM 120 Estimated Value (MM) 100 80 60 40 55MM 20 0 BXE Alder Flats Plant Major…
  34. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 34
    Drill Bit Focused PLANT PHASE 2 CONSTRUCTION COMPLETE MARCH 2018 Major compressor stations, pipelines and Bellatrix Alder Flats Plant capital investment completed Proportion of incremental capital to drilling & completion expected to…
  35. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 35
    Ample Takeaway Capacity & Market Egress ALBERTA NATURAL GAS MARKET EGRESS AMPLE FIRM TRANSPORTATION IN PLACE FOR CURRENT & GROWTH ALBERTA VOLUMES Firm Transportation (FT) agreements in place for gross operated volumes at multiple…
  36. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 36
    Supplemental Information 37
  37. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 37
    Concentrated Multi-Zone Acreage DEEP BASIN MULTI-ZONE ACREAGE Deep Basin is highly coveted for: Sweet, liquids rich natural gas 4,600 ft TVD Belly River Sweet, light gravity crude oil 6,200 ft TVD Cardium Multi-zone hydrocarbon…
  38. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 38
    Cardium Light Oil Resource Play BXE Land Sections1 176 Gross 117 Net BELLATRIX Activity Since Jan 2017 5 Wells Drilled BXE Net Drilling Inventory2 105 proved 22 probable 124 unbooked 251 total Cardium Resource Play Summary…
  39. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 39
    Strategic Land Position GREATER FERRIER/BRAZEAU/WILLESDEN GREEN AREAS OF WEST CENTRAL ALBERTA Pembina Brazeau Ferrier Willesden Green Source: Accumap, company presentations and various public sources 40
  40. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 40
    Operational Execution Scorecard Operating cost reductions 38% reduction in production expenditures to a record low level of 6.59/boe in Q4/18 from 10.57/boe in Q4/16 Capital cost reductions 20% reduction in all-in well costs to under…
  41. March 2019 Corporate Presentation – Bellatrix Exploration Ltd. – slide 41
    Corporate Information BOARD OF DIRECTORS SENIOR OFFICERS BANKERS W.C. (Mickey) Dunn Brent A. Eshleman, P.Eng. National Bank of Canada Chairman President & CEO Alberta Treasury Branches The Bank of Nova Scotia Murray L. Cobbe Max Lof,…

From the store

Browse maps, data & reports in the Shale Experts store