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1Q 2019 Earnings Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · May 2, 2019 · 25 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. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / MAY 2019 SUSTAINABLE FREE FUNDS FLOW
  2. 1Q 2019 Earnings 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) 2.3 Enterprise value (B) 3.5 2019 production guidance (boe/d) 70,000 72,000 % oil + NGLs 85% 2019…
  3. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 3
    Whitecap 2019 Strategies & Objectives Conservative 1H/19 Capital program within funds flow monitor WTI and differential pricing Strengthen balance sheet by 100MM from free funds flow Deliver 5 8% production growth from Q4/18 to…
  4. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 4
    Disciplined and Flexible 2019 Budget Defensive 1H/2019 Flexible 2H/2019 Full Year 2019 Funds flow (MM) 353 373 726 Capital expenditures (MM) (165) (285) (450) Dividends (MM) (68) (71) (139) Free funds flow (MM) 120 17 137 Total…
  5. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 5
    2019 WTI Price Sensitivities Oil (USWTI) 53.00 63.00 73.00 FX (C/US) 0.74 0.75 0.76 Oil (Cdn/WTI) 71.62 84.00 96.05 AECO (C/GJ) 1.23 1.23 1.23 Funds flow netback (/boe) 24.00 28.00 31.50 Funds flow (MM) 622 726 817 Development…
  6. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 6
    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…
  7. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 7
    Internally Funded Income and Growth Model NO DRIP 98 Total Payout Ratio 125% 93 100 90 100% 80 65 70 61 Total Payout Ratio 75% 60 WTI (US/bbl) 51 49 43 50 50% 40 30 25% 20 10 0% - 2013 2014 2015 2016…
  8. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 8
    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…
  9. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 9
    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 813 135 100 Northwest Alberta & BC Southwest Sask 776…
  10. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 10
    Capital Allocation 2019 Capital Budget Business Unit Target (MM) % West Central Sask Viking 112 25 Northwest Alberta & BC Cardium 107 24 Southwest Sask Atlas/Shaunavon 91 20 West Central Alberta Cardium 87 19 Southeast Sask CO2…
  11. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 11
    Sustainable Growth Assets: Capital + Dividend < Funds Flow Organic Growth Within Funds Flow 220 210 200 174 180 164 159 160 119 140 47 Fund Flow (MM) 120 77 102 128 100 7 80 55 60 112 91 87 95 40 43 20 46 -…
  12. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 12
    IRR 50% 0% 100% 150% 200% 250% 300% 350% 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…
  13. 1Q 2019 Earnings 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 Focus on continually…
  14. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 14
    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…
  15. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 15
    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 Balance of 2019 Q2/2019 Edmonton…
  16. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 16
    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: 500 MM Attractive Long-Term Debt with no Near-Term Maturities…
  17. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 17
    Strong Safety Record WCP Total Recordable Injury Frequency (TRIF) 0.9 0.8 0.81 0.7 0.6 0.68 0.64 0.5 0.52 0.4 0.3 0.2 0.26 0.1 0 2014 2015 2016 2017 2018 17
  18. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 18
    Environment a Priority WCP Direct GHG Intensity (tonnes C02/boe) 0.0700 0.0620 0.0540 0.0460 0.0380 0.0462 0.0423 0.0405 0.0300 0.0336 0.0220 0.0140 0.0060 -0.0020 2015 2016 2017 2018 18
  19. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 19
    Carbon Capture and Sequestration 2018 CO2 Emission & Sequestration (tonnes/year) 2,000,000 Weyburn asset is the largest 1,500,000 Indirect CO2 capture and sequesterer Emissions 534,000 for oil and gas sector in the 1,000,000…
  20. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 20
    Research Coverage AltaCorp Capital Industrial Alliance Securities BMO Capital Markets Laurentian Bank Securities Canaccord Genuity National Bank Financial CIBC World Markets Peters & Co. Cormark Securities Raymond James Desjardins…
  21. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 21
    TSX:WCP www.wcap.ca May 1, 2019 21
  22. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 22
    Slide Notes Commodity price assumptions used throughout this presentation for 2019 are actuals for Q1 and balance of year at WTI US63.00/bbl, C/US0.75, MSW Differential (US-7.00/bbl), WCS differential (US-15.00/bbl) and AECO C1.23GJ.…
  23. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 23
    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 57.40 60.71 59.10 Tariffs (0.63)…
  24. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 24
    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…
  25. 1Q 2019 Earnings Presentation – Whitecap Resources Inc. – slide 25
    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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