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April 2019 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Apr 2, 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. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / APRIL 2019 FOCUSED ON LONG-TERM SUSTAINABILITY
  2. April 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. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Strategic Priorities Balance sheet strength and financial flexibility Production per share growth within funds flow Return to shareholders Target Allocation 10% 5% 2% Organic Growth 43% Decline Mitigation 10% 20% HS&E 5%…
  4. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 4
    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…
  5. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 5
    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…
  6. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 6
    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…
  7. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 7
    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…
  8. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 8
    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…
  9. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 9
    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…
  10. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 10
    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…
  11. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 11
    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…
  12. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 12
    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.…
  13. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 13
    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…
  14. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 14
    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,…
  15. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 15
    North American Producers: Dividend Yield & 2020E 3-Yr PPSG 30.0% CDN Dividend Yield 25.0% CDN 2020E 3-Year PPSG U.S. Dividend Yield 20.0% U.S. 2020E 3-Year PPSG 15.0% Median of 11% 10.0% 5.0% 0.0% -5.0% -13%…
  16. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 16
    North American Producers: 2020E ROACE 2020E ROACE % 12% CDN Producers 10% U.S. Producers 8% 6% Median of 5% 4% 2% 0% WCP Source: Peters & Co. Limited estimates. Note: (1) North American producers peer group consists of…
  17. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 17
    North American Producers: 2020E Free Cash Flow Yield 2020E Free Cash Flow Yield % 30% CDN Producers 25% U.S. Producers 20% 15% 10% Median of 7% 5% 0% WCP Source: Peters & Co. Limited estimates. Note: (1) North American…
  18. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 18
    North American Producers: 2020E EV/DACF - Unhedged 2020E EV/DACF - Unhedged 10.0 20.7 CDN Producers 8.0 U.S. Producers 6.0 Median of 5.6 4.0 2.0 0.0 WCP Source: Peters & Co. Limited estimates. Note: (1) North…
  19. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 19
    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…
  20. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 20
    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…
  21. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 21
    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…
  22. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 22
    The Whitecap Investment Opportunity Top decile total returns (yield and growth) Focus on ROACE Top decile free funds flow yield Solid balance sheet 22
  23. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 23
    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…
  24. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 24
    TSX:WCP www.wcap.ca April 1, 2019 24
  25. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 25
    Slide Notes Commodity price assumptions used throughout this presentation for 2019 are at WTI US55.00/bbl, C/US0.75, MSW Differential (US-7.00/bbl), WCS differential (US-15.00/bbl) and AECO C1.67/GJ. Funds flow netback assumptions can be…
  26. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Forward-Looking Statements (contd) The assumptions used for the 2019 funds flow netbacks (/boe) used in this presentation are as follows: 1H/2019e 2H/2019e 2019e Petroleum and natural gas revenues 52.80 51.69 52.23 Tariffs (0.70)…
  27. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Oil and Gas Advisory Boe means barrel of oil equivalent on the basis of 6 mcf of natural gas to 1 bbl of oil. Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy…
  28. April 2019 Corporate Presentation – Whitecap Resources Inc. – slide 28
    Oil and Gas Advisory (contd) This presentation also discloses drilling inventory in three categories: (i) proved locations; (ii) probable locations and (iii) unbooked locations. Proved locations and probable locations are derived from…

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