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June 2019 Corporate Presentation – Seven Generations Energy Ltd

Seven Generations Energy Ltd · Jun 5, 2019 · 31 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. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 1
    TSX: VII CORPORATE PRESENTATION June 2019
  2. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 2
    SEVEN GENERATIONS ENERGY Serving our stakeholders through: Differentiated attention to selection, development & replenishment of the lowest supply cost resource Best in class execution through safe, responsible, innovative and…
  3. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 3
    7G CORPORATE PROFILE Largest Producer of Condensate, Premier Alberta Montney Pure-Play Canadas Most Valuable Hydrocarbon 197 Mboe/d (37% condensate, 22% NGL, 41% gas) in Q1/19 Multiple market exposures provide maximum gas price…
  4. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 4
    THE CORNERSTONES OF OUR BUSINESS Return of Capital Return on Capital Free Cash Flow Strategic Principles Financial Market Sustainability Resource Access Quality & Low Supply Cost Stakeholder Strong Service balance…
  5. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 5
    STRATEGIC PRINCIPLES: STAKEHOLDER SERVICE Governance Environment Social Practices That Drive Diversity, A Low GHGe Footprint vs Peers (2) Total Recordable Incident and Lost Time Injury Frequency Rates (Tonnes of CO2e / boe)…
  6. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 6
    STRATEGIC PRINCIPLES: STAKEHOLDER SERVICE ESG PERFORMANCE 2019 2018 2019 2018 2019 2018 Environment 2 3 Social 2 6 Governance 2 3 Risks and 3 8 Human Rights 3 4 Board Structure 2 3 Opportunities Carbon and Labor, Health 2…
  7. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 7
    STRATEGIC PRINCIPLES: HIGH QUALITY RESOURCE Most Economic Infrastructure Footprint Resource in Canada Canadas largest producer of high-value condensate Natural Gas Processing: 1 Bcf/d capacity Nest IRRs average 125% 510 MMcf/d…
  8. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 8
    STRATEGIC PRINCIPLES: MARKET ACCESS FOR NATURAL GAS 7G Gas Market Sales Points AECO 8% AECO 10% AECO 5% Dawn 15% Dawn 15% Dawn 15% Ventura 4% Malin 13% Gulf 18% Gulf 24% Gulf 26% Chicago 55% Chicago 49% Chicago 41% GTN:…
  9. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 9
    STRATEGIC PRINCIPLES: MARKET ACCESS FOR CONDENSATE Forecast Supply & Demand of WCSB Condensate (Mbbl/d)(1)(3) Edmonton Condensate vs. Crude Oil Prices (US/bbl)(2) 250 Mbbl/d+ 80 800 gap between 70 supply & demand 60 Total Demand 50…
  10. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 10
    STRATEGIC PRINCIPLES: FINANCIAL SUSTAINABILITY Net debt to trailing 12 month adjusted EBITDA Solid Balance Sheet 2.4x < 2.0x Target Leverage is 2.1x below 2x at US50 WTI 1.8x 1.5x 1.3x 1.2x 0.9x C1.7 B of liquidity C1.4B…
  11. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 11
    7GS TRACK RECORD OF INDUSTRY LEADING RETURNS 7G Adjusted Funds Flow 7G Cash Return on Invested Capital (per Diluted Share)(2) (CROIC)(2) 4.60 19.1% 3.50 to 4.75 17.9% 3.37 17.4% at 50 - 65 16.4% WTI (1) 2.32 1.46 1.53…
  12. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 12
    7GS STRATEGIC EVOLUTION TOWARD FREE CASH FLOW (1)(2)(3) Adjusted Funds Flow Production (MM) (Mboe/d) 2,000 250 1,500 200 150 1,000 100 500 50 0 0 2014 2015 2016 2017 2018 2019E Capital Investments Free Cash Flow (3) As a…
  13. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 13
    DEVELOPMENT ROADMAP Return to Nest 1 for development Define Nest 2 Core Integrate Nest 3 development Step into Nest 2 East sub-regions Areas Define Nest 1 perimeter Nest 3 resource to fill pipeline Step into Nest 1 investments…
  14. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 14
    2019 BUDGET 2019 Guidance Sustaining Capital 1.1 billion Nest 2 Development Discretionary Capital 0.15 billion Value Total Capital Investment 1.25 billion Enhancing Average Production 200 - 205 Mboe/d H1/19 Production 195 - 200…
  15. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 15
    2019 CAPITAL ALLOCATION GUIDING PRINCIPLES Dollars (MM) Free cash flow upside from higher prices 2,000 1,800 70 WTI 1,600 1,400 55 WTI 1,200 50 WTI Delineation 1,000 800 600 2019 Free cash flow upside Sustaining from…
  16. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 16
    NEST 2 DEVELOPMENT PRIMARY LIQUIDS-RICH REGION Nest 2 2019 Activity Condensate gas ratios (bbl/MMcf) vs. time (normalized month) 500 0 0 12 24 2017 Nest 2 Type Curve North South East West Liquids Nov 2017 May 2018 2019 &…
  17. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 17
    NEST 1 DEVELOPMENT ULTRA-RICH CONDENSATE REGION IP60 (2 HZ) 1,413 1,963 boe/d Nest 1 2019 Activity 64% Condensate IP96 2,030 boe/d 55% Condensate Cumulative condensate (Mbbl) vs. time (days) IP80 1,203 boe/d 300 52% Condensate…
  18. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 18
    NEST 3 DEVELOPMENT NEW HIGH DELIVERABILITY REGION 80 MM connector to broader Nest 2 infrastructure 30 MM river crossing pipeline 2019 Development Plans Beyond 2019 Up-front capital investment enables future Sub-8,000/boe/d…
  19. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 19
    LOWER MONTNEY POTENTIAL Triple-stack test Comingled vertical test (5d): 2MMcf gas; 162 bbls condensate 2,800-3,000 Partial triple-stack meters IP90: 1,048 boe/d Partial triple-stack 72% condensate IP30: 1,250 boe/d…
  20. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 20
    SUMMARY OF PREMIUM SINGLE WELL ECONOMICS & OTHER INVENTORY Nest 2 Core Nest Weighted Nest 1 Nest 3 Development Inventory Average South East West North IP30 (boe/d) 1,500 1,950 - 2,350 2,000 1,900 15 years IP365 (boe/d) 775 1,150…
  21. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 21
    THE 7G INVESTMENT THESIS Expanding free cash flow Moderating declines reduce sustaining capital Major gas processing investments completed Delivering operating excellence Execution, optimization and cost control Consistent…
  22. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 22
    TSX: VII APPENDIX
  23. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 23
    7GS GUIDING PRINCIPLE STAKEHOLDER SERVICE Stakeholder Differentiation We believe that companies have only the rights given to them by society. While people have a natural entitlement to basic rights, corporations are an instrument…
  24. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 24
    HEDGING STRATEGY Quarterly Revenue (/boe) 60 Hedging program has 12.00 Realized Hedge Gain/(Loss) (b/oe) reduced revenue volatility by 25% Price Realization (/boe) 50 8.00 40 4.00 30 0.00 20 -4.00 Hedging…
  25. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 25
    CURRENT HEDGE POSITIONS AS AT MARCH 31, 2019 Crude Oil CAD WTI Collars CAD WTI Sold Puts USD WTI Swaps and Collars USD WTI Sold Puts bbl/d C/bbl bbl/d C/bbl bbl/d US/bbl bbl/d US/bbl RoY 2019 21,333 58.05 75.69 6,000 41.11 10,667…
  26. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 26
    SELECTED FINANCIAL AND OPERATIONAL INFORMATION VII - Recent Quarterly Results OPERATING RESULTS Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 YE 2018 YE 2017 Average daily production Condensate (1) (mbbl/d)…
  27. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 27
    SWEET SPOT IN THE MONTNEY Over Pressured High Productivity Brittle Rock High Recovery Factor Thickness Large Resources in Place Lower Temperature High Liquids Content 1) Sources: Canadian Discovery Ltd. & Graham Davies…
  28. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 28
    IMPORTANT NOTICE Nest 2 (North) type curve is based on production data mostly from wells analysis are based on the companys best estimate of the liquids to be section and a lateral well lengths of 2,310 metres based upon industry…
  29. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 29
    IMPORTANT NOTICE The commingled vertical test referenced on the slide titled Lower Montney previously been on production, and the date of resumption of production compared to the cost of drilling a well) is required to render them…
  30. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 30
    DEFINITIONS AND ABBREVIATIONS A annual m metres AECO physical storage and trading hub for natural gas on the TransCanada Alberta transmission Mbbl thousand of barrels system Mboe thousands of barrels of oil equivalent Alliance…
  31. June 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 31
    For more information: Brian Newmarch Vice President, Capital Markets and Stakeholder Engagement 1.403.767.0752 bnewmarch7genergy.com Ryan Galloway Investor Relations Manager 1.403.718.0709 ryan.galloway7genergy.com…

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