Skip to main content 2019 Investor Day Webcast Presentation – Frontera Energy Corp. | Shale Experts
Loading...
Pm

2019 Investor Day Webcast Presentation – Frontera Energy Corp.

Frontera Energy Corp. · May 9, 2019 · 82 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. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 1
  2. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 2
    Agenda Safety Briefing Chairmans Welcome Strategy & Key Initiatives Operations & Production Break Exploration Transportation Puerto Baha Finance Closing Remarks and Q&A
  3. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 3
    Chairmans Welcome
  4. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 4
    Strategic Implementation Substantial Progress Made Towards Key Board Priorities People Completion of executive team transition to drive execution of strategy Ongoing implementation of optimization and efficiency programs More…
  5. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 5
    Company Strategy Sustaining Base Production for the Next Three to Five Years from Core Assets Optimizing Cash Generation and Delivering Enhanced Shareholder Returns Core Portfolio of Stable Assets with Growth Options Maintain Strong…
  6. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 6
    Frontera Offers Deep Value Following Restructuring Improved Liquidity Driven by Share Buyback and Stock Split Enterprise Value (US)/2019 Guidance (Boe/d)(1) Enterprise Value (US)/2P Reserves (2018/2017) (1) 50,000 18.00 45,000 16.00…
  7. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 7
    Strategy & Key Initiatives
  8. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 8
    The Frontera Leadership Team Presenting Speakers Gabriel de Alba Richard Herbert David Dyck Andrew Kent Grayson Andersen Chairman Chief Executive Officer Chief Financial Officer General Counsel VP, Capital Markets Duncan…
  9. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 9
    Regional Strategic Focus North Andean Core Areas Exploration Watching Brief Development Production Exploration Country Entry Production Core Frontera Focus Region 11
  10. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 10
    Company Strategy Enhancing Fronteras Portfolio and Unlocking Value Pursue Strategic Unlock Sustain Base Production Growth Opportunities Additional Value + Carefully manage core Potential to add new Drive down cost structure…
  11. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 11
    Core Assets Deliver Stable Base Production Seven Year Production Profile from Restructuring to Growth Frontera Daily Production (before royalties Boe/d) In the Portfolio Future Opportunities 90,000 Restructuring Transition Growth…
  12. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 12
    Key Initiatives to Unlock and Create Value What We Have Done, What We Are Doing, Where We Are Going 2018 2019 Plan Future Restrictive hedges rolled off Improve balance sheet Hedge to protect the balance Corporate G&A reduced by…
  13. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 13
    Operations & Production
  14. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 14
    Our Portfolio Large Diversified Asset Base with Significant Acreage and Infrastructure CORE Quifa Guatiqua Cubiro SUSTAINING CPE-6 Z-1 Near field exploration GROWTH Colombia new acreage Offshore Guyana Ecuador bid…
  15. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 15
    Core Assets Deliver Stable Base Production Seven Year Production Profile from Restructuring to Growth Frontera Daily Production (before royalties Boe/d) In the Portfolio Future Opportunities 90,000 Restructuring Transition Growth…
  16. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 16
    Quifa: Cornerstone of Heavy Oil Production Stable Production at 27,000 Bbl/d for Five Years Recent Exploration Discoveries 30,000 Quifa, Cajua, Jaspe & Sabanero 25,000 Bbl/d (before royalties) 20,000 15,000 10,000 5,000…
  17. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 17
    Quifa: New Drilling and Water Control Technologies New Methods and Tools Improve Oil Rates Typical Drilling Curve Better Water Control Improves Returns Conventional Slotted Liner Promotes Fingering Surface Casing AICD: Autonomous…
  18. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 18
    Guatiqua: Cornerstone of Light Oil Production Stable Production at 15,000 Bbl/d for Three Years ACAA, Candelilla, Yatay, Coralillo 20,000 18,000 Bbl/d (before royalties) 16,000 14,000 12,000 10,000 8,000 6,000 4,000…
  19. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 19
    Coralillo: Part of the Guatiqua Complex Expanding Our Core Light Oil Area Coralillo Development Plan 7,000 6,000 Bbl/d (before royalties) 5,000 4,000 3,000 2,000 1,000 0 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21…
  20. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 20
    Coralillo Field Multiple Light Oil Target Zones Guadalupe LS1A LS-3 Guadalupe Lower Sand 1 Lower Sand 3 Productive Reservoir Present in Candelilla Yatay fields Average 12-19 13-19 16 Guadalupe, Lower Sand 1 and Lower Sand 3…
  21. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 21
    Coralillo Field Improved Drilling Performance and Costs Savings 3 SECTION 2 SECTION Indicator 3-Section 2-Section Drilling Avg. Time (Days) 26.2 22.5 Avg. Cost 3.5 MM 3.0 MM CSG 9,625 2,500 ft Cost/Foot 287.5 247.5 Completion…
  22. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 22
    Cubiro: Additional Light Oil Potential Core Growth Area with Development Drilling and Pressure Maintenance Cubiro 14,000 12,000 Bbl/d (before royalties) 10,000 8,000 6,000 4,000 2,000 Successful Waterflood Pilot 0…
  23. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 23
    Cubiro: Multizone Light Oil Opportunities Development Drilling and Waterflooding Multiple Productive Zones Carbonera C-3 Carbonera C-5 Carbonera C-7 C3 C5 C7 Average 22 23 24 API 34 40 40 25
  24. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 24
    Cubiro: Drilling Efficiency Improvements Improved Drilling Performance and Over 40% Costs Savings MECHANICAL STATUS CSG 9,625 500 ft Indicator 2015 2017-2018 Design Conventional Slim Rig Capacity (HP) 1,500 1,000 1,200 Drilling…
  25. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 25
    Hamaca Field (CPE-6) Large Oil In Place, Reserves, Production Upside CPE-6 9,000 8,000 7,000 6,000 5,000 4,000 Phase 4 3,000 Phase 3 2,000 Phase 2 1,000 Phase 1 0 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 1P Block…
  26. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 26
    Hamaca Field: A Mini Quifa Field Expansion Projection from 1,000 Bbl/d to 5,000 Bbl/d Production 6.00 300 5.00 250 MBbl/d (before royalties) Mbbl/d of water 4.00 200 3.00 150 2.00 100 1.00 50 0.00 0 Jan2018…
  27. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 27
    Hamaca Field: Large Oil in Place Extensive Seismic Improves Reservoir Understanding Net Pay Map Basal Sand Unit D H D H H LEGEND Development Wells Water Disposal Well Future Development Clusters 3D Seismic HAMACA FIELD…
  28. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 28
    Hamaca Field Basal Sands are the Target Formation A A HAMACA AREA CARBONERA C7 Secondary Reservoir UNIT Main Reservoir BASAL SANDS UNIT 30
  29. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 29
    Per
  30. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 30
    Per Onshore and Offshore Blocks Provide Upside Opportunity Area of Current Disruption 32
  31. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 31
    Per Block 192 Nine Months Remaining on Service Contract Heavy Oil Medium Oil Light Oil 33
  32. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 32
    Per Z-1 Offshore Production with Exploration and Natural Gas Opportunities 34
  33. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 33
    Per Z-1 Potential Gas Development Scheme 35
  34. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 34
    Core Assets Deliver Stable Base Production Seven Year Production Profile from Restructuring to Growth Frontera Daily Production (before royalties Boe/d) In the Portfolio Future Opportunities 90,000 Restructuring Transition Growth…
  35. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 35
    Break
  36. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 36
    Exploration
  37. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 37
    Exploration Strategy: Colombia Provides the Core Opportunities in Three Core Basins of Colombia 39
  38. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 38
    Core Assets Deliver Stable Base Production Seven Year Production Profile from Restructuring to Growth Frontera Daily Production (before royalties Boe/d) In the Portfolio Future Opportunities 90,000 Restructuring Transition Growth…
  39. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 39
    Quifa
  40. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 40
    Quifa: Cornerstone of Heavy Oil Production Stable Production at 27,000 Bbl/d for Five Years Recent Exploration Discoveries 30,000 Quifa, Cajua, Jaspe & Sabanero 25,000 Bbl/d (before royalties) 20,000 15,000 10,000 5,000…
  41. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 41
    Jaspe: Recent Wells Confirm Thick Oil Column Multiple Productive Zones C7 43
  42. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 42
    Lower Magdalena Valley (VIM-1 and Guama)
  43. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 43
    Lower Magdalena Valley Basin Oil, Natural Gas and Natural Gas Liquids Exploration Opportunities 45
  44. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 44
    VIM-1: Lower Magdalena Valley Basin New Farm-In Agreement with Parex 46
  45. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 45
    Guama: Exploration and Production Contract Liquids Rich Natural Gas Potential 47
  46. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 46
    Guama Schematic Play Opportunities and Exploratory Well Asa 1 Guama Block Exploration Area Exploitation Area LIGIA - 1 Asa-1 Loc Guama Field GUAMA FIELD SW NE ALLUVIUM 1 INACTIVE TUBARA SHALLOW GAS AA SHALE DIAPIR GUAMA…
  47. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 47
    Caguan
  48. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 48
    CAG-6 and CAG-5: Northern Putumayo Basin Large Acreage Position Provide Multiple Exploration Opportunities 50
  49. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 49
    CAG-6 Exploration & Production Seismic Coverage Provides Confidence in Exploration Potential N S 200 msec Pepino/ Eocene Subtle relief Subtle relief Subtle relief Villeta/ K PreK Unc PreK 4 km 51
  50. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 50
    CAG-5 Exploration & Production Geological Understanding of the Basin Identifies Future Opportunities New 2D seismic Limonero Discovery Preliminary location of Stratigraphic well Air-mandur Structure R: Villeta, 28 API 25…
  51. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 51
    Guyana
  52. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 52
    Guyana: One of the Worlds Hottest Exloration Basins Ownership and JV Farm-in Terms Subject to consent from the government of Guyana, CGX and Frontera have formed a two thirds/one third Joint Venture to explore CGXs two offshore…
  53. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 53
    Guyana: Exciting Exploraiton Opportunities On Trend with Multiple Targets and Play Types Primary 55
  54. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 54
    Guyana Blocks Well Positioned to Trap Oil Position of CGX/Frontera Joint Oil is trapped onshore in the Oil is trapped on the slope in Guyana at the Tambaredjo field (Suriname) Venture Blocks Hammerhead and Pluma locations Oil…
  55. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 55
    Ecuador
  56. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 56
    Ecuador: Existing Discoveries with Available Infrastructure Available Blocks During March 2019 Bid Round 58
  57. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 57
    Core Assets Deliver Stable Base Production Seven Year Production Profile from Restructuring to Growth Frontera Daily Production (before royalties Boe/d) In the Portfolio Future Opportunities 90,000 Restructuring Transition Growth…
  58. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 58
    Transportation
  59. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 59
    2018 OPEC+ Cuts Better Heavy Oil Differentials 61
  60. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 60
    Commercial Outlook for 2019 Continued Diversification of Our Counterparties and Markets USWC Market: Frontera is committed to supply this market which is constrained to receive U.S. shale production due to the Joness Act Long term…
  61. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 61
    Colombian Pipeline Capacity 1.0 Million Bbl/d of Capacity for 875,000 Bbl/d of Supply Total Capacity Colombia (Bbl/d) ODL 340 OCENSA P135 135 OCENSA BASE (I- II) 616 OCENSA BASE (III) 415 OCENSA Unloading 60 Monterrey - Porvenir…
  62. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 62
    Trucking in Colombia Trucking Provides Flexibility 64
  63. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 63
    Transportation and Diluent Cost Reduced Transportation and Diluent Costs Over Time Transportation Cost (/Boe) 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - 2014 2015 2016 2017 YTD2018 2019E…
  64. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 64
    NorPeruano Pipeline Inventory Over 70 Million of Value 1,700,000 100,000,000 1,600,000 1,500,000 90,000,000 1,400,000 80,000,000 1,300,000 1,200,000 70,000,000 1,100,000 1,000,000 60,000,000 900,000 Bbl 50,000,000…
  65. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 65
    2019 Transportation Opportunities Continued Focus Will Deliver Optimized Prices and Costs 1. To optimize logistics costs and revenues: Reduce pipeline tariffs for the regulation period 2019- 2023 Taking advantage of Frontera storage…
  66. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 66
    Puerto Baha
  67. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 67
    Puerto Baha (Frontera 39.2% Ownership) Only Deep Water Port in Cartagena 2.67 MMBbls Storage Expandable 2 9 1 4 8 3 10 5 TANK 2 - Heated Fuel Oil TANK 5 Heated TANK 8 TANK 10 Fuel Oil TANK 3 Crude Naphtha Crude…
  68. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 68
    Finance
  69. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 69
    2019 Guidance Strong EBITDA, Lower Capex, Stable Costs 2019 Guidance Metrics(1) 2018 2019 Guidance Operating EBITDA(2) 400 - 450 MM 400 - 450 MM Capital Expenditures 440 - 460 MM 325 - 375 MM Average Daily Production 70 72 MBoe/d 65…
  70. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 70
    2019 Guidance Strong EBITDA, Lower Capex, Lower Costs Daily Production, before royalties (Boe/d) Operating EBITDA and Capex (MM) 80,000 500 450 70,000 400 60,000 350 50,000 300 40,000 250 30,000 200 150 20,000 100 10,000…
  71. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 71
    Hedging Policy and Position Oil Hedges Using Puts and COP/USD Foreign Exchange Hedging Percentage of Monthly Production Hedged at 55/Bbl Brent COP/USD Foreign Exchange Hedging (MM) 70% 60 60% 50 50% 40 40% 30 30% 20 20% 10% 10…
  72. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 72
    Balance Sheet Strength Strong Cash Position, Low Leverage Ratios Balance Sheet Metrics September 30, 2018 Total Cash(1)/Cash and Cash Equivalents (MM) 786/587 Net Debt/EBITDA(2) 0.0x Debt to Book Capitalization(3) 22.7% Interest…
  73. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 73
    Improved Capital Efficiency Processes Enable Better Capital Allocation and Project Selection Various evaluation and follow-up tools: Oversight Scorpion Charts Biweekly Corporate Investment Full-life economics After…
  74. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 74
    Oversight: Key Investment Financial Metrics Discipline in Economic Evaluations of Projects to Deploy Capital Metric Acceptable ranges Comments Typically 25-35% range for managed decline IRR 15% projects IE 0.3…
  75. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 75
    Lessons Learned on Capital Efficiency in 2018 Improved Costs and Operational Efficiency Lessons learned Actions for 2019 Cost per foot drilled can be further New well designs piloted and ready to roll-out Development improved Better…
  76. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 76
    Economic Analysis of Work-Overs and Well-Services Significant Value Created 78
  77. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 77
    Field Development Drilling Lookback Analysis Plan (5 well types weighted average) Actuals/Reforecast Cumulative production (MBbls) Brent Actuals Metric %Var. 63/Bbl (Norm 63) CapEx 63 53 (16%) (MM) Reserves 8 7 (12%)…
  78. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 78
    Cost Reduction Initiatives G&A and Operating Costs Improvements 2018 Improved G&A by 10-15% by redesigning support functions and structure 2019 Internal savings plan Structural review of aiming to further assets to reduce per…
  79. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 79
    Closing Remarks
  80. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 80
    Core Assets Deliver Stable Base Production Seven Year Production Profile from Restructuring to Growth Frontera Daily Production (before royalties Boe/d) In the Portfolio Future Opportunities 90,000 Restructuring Transition Growth…
  81. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 81
    2019 Guidance Strong EBITDA, Lower Capex, Stable Costs 2019 Guidance Metrics(1) 2018 2019 Guidance Operating EBITDA(2) 400 - 450 MM 400 - 450 MM Capital Expenditures 440 - 460 MM 325 - 375 MM Average Daily Production 70 72 MBoe/d 65…
  82. 2019 Investor Day Webcast Presentation – Frontera Energy Corp. – slide 82
    Q&A

From the store

Browse maps, data & reports in the Shale Experts store