Why we do what we do Our Mission is to establish Painted Pony as a low-cost supplier of clean natural gas to Canada and the world. We believe: world demand for clean and reliable energy is Oil rapidly growing Percentage of…
Corporate Profile TSX: PONY 3-Year Growth Profile 104% Increase in Adjusted Funds Flow Per Share 149% Production Volume Increase Forecasted 2019 Production 324 - 336 MMcfe/d (54,000 56,000 boe/d) Balance Sheet 1.4x Net…
2018 Highlights Take Aways Strong Production Volumes and Free Funds Flow 35% Annual production volume growth to 347 MMcfe/d (57,879 boe/d) 43% Annual liquids production growth to 5,128 bbls/d (45% Condensate) 154 million Capital…
Global LNG Market Supply Shortage / Growth Demand Monthly Chinese LNG Imports Global LNG Netbacks 12.00 10.0 177% 10.00 8.0 increase in Chinese LNG USD/MMBtu imports 8.00 Bcf/d 6.0 since 2015 6.00 4.0 2.0…
Proposed West Coast LNG & LPG Projects Game Changer T-North Enbridge Mainline LNG Projects Capacity British LNG Canada Columbia Shell, Petronas, Mitsubishi, Petro- 1.9 3.8 Bcf/d AltaGas Ridley Island China, KOGAS (Under…
Alberta Natural Gas Market Continued Demand Growth Significant demand growth is Alberta is expected to increase taking place in Alberta (Bcf/d) 8.0 8.0 natural gas consumption by over 45% between 2018 and 2023 Steady phase-out…
World Class Resource Montney Pure Play Natural Gas Pipeline Coastal GasLink Pipeline Asset The Montney is the most economic natural gas and natural gas liquids play in Canada British Alberta Columbia 305 net sections (195,187…
Montney Pure Play Location, Location, Location PONYs Montney Sweet Spot is: 38 sections 4x thicker than the Marcellus at greater 36 than 300 meters (approximately 1,000 sections Beg ft.) thick Dry Liquids a continuous sweet…
The Sweet Spot North Montney 6-Month Cumulative Production Volumes British Columbia 2,250,000 PONY has the best well in North Montney with 6- North month average daily Montney PONY 2,000,000 production rate of more than 11…
Development Horizons Significant Unrealized Upside Across 7 Layers of Montney Resource Doig formation Townsend Blair Beg A 1 A 2 3 4 5 6 Upper Montney Middle Montney 290 m 330 m Lower Montney Belloy formation 6 5…
2018 Reserves Significant Resource, Significant Value 6.9 Tcfe of Total 2P (3) Proven 1.0 Tcfe of PDP reserves Reserves Developed Producing 19% annual growth of PDP reserves at a cost of 0.55/Mcfe (14% of Reserves) 31% annual…
2018 Reserves Consistently Profitable Recycle Ratios Industry leading PDP recycle ratio delivered returns through Corporate Netback* 1.71/Mcfe corporate netbacks which 2018 PDP 3.1x PDP Finding, Development = = Recycle Ratio…
Land Valuation Recent Land Sales Suggest PONY Undervalued Recent land sales have shown significant value in north east BC Recent land sales have shown acreage significant value in north east BC PONY has five largely contiguous…
Market Diversification & Growing US Exports Higher Prices for Natural Gas; PONY 2018 Realized Price 69% Higher than AECO 5A St 2 Market 29 MMcf/d 2019 average (spot) AECO AECO Market Station 132 MMcf/d 2019 average 2 (fixed price…
Transportation Firm Transportation & Toll Advantage to West Coast Enbridge T-North Tolls Single toll structure 0.22/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 2018 Actual Top Line Revenue (excluding realized hedging) 2019 Forecasted 3.19 /Mcfe (1) Top Line Revenue (excluding realized hedging) 0.30 Hedging Gain 3.22 /Mcfe…
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 fixed-price contracts DAWN SUMAS at a…
Production Profile Profile Optimizes Balance Sheet Flexibility Quarterly production per share Quarterly average daily production (actual) Quarterly average daily production (forecast) 400 Enbridge 5 T-South Quarterly Average…
Capital Spending & Adjusted Funds Flow Impressive Per Share Adjusted Funds Flow Growth Annual Average Daily Production Volumes 400 500 Capital Spending 21 million Free Adjusted Funds Flow(1) free adjusted 350 Adjusted Funds Flow(1)…
2019 Capital Program Cash Flow Budget Cash Flow Budget - matching capital spending with internally generated adjusted funds flow Investing 95 - 110 million Forecast annual average daily production volume of 324 MMcfe/d (54,000…
Historical Costs Drilling & Completions Efficiency As capital well costs fell, production type curves dramatically improved Continued type curve improvement with Management average Total 2P(1) well Perf & Plug Systems Type Curve…
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 Rate of Return (% BT) 120 stronger…
Pony Points Checking Off All of the Boxes Well situated to supply Canadian west coast LNG projects Diversified Market Access and Sales Points Massive reserves base Top well performance Industry leading PDP recycle ratio at…
Appendices & Advisories
Financial Strength Term Debt and Credit Facility Provide Flexibility 400 Million Syndicated Credit Facility Secured, Reserve Based Lending Syndicated Matures May 2020 Credit Facility 163 million drawn as at December 31, 2018 237…
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…
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