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June 2019 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jun 5, 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. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / JUNE 2019 SUSTAINABLE FREE FUNDS FLOW
  2. June 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) 3.3 2019 production guidance (boe/d) 70,000 72,000 % oil + NGLs 85% 2019…
  3. June 2019 Corporate 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. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 4
    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…
  5. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 5
    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 5
  6. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 6
    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 6
  7. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Disciplined and Flexible 2019 Budget Defensive 1H/2019 Flexible 2H/2019 Full Year 2019 Funds flow (MM) 335 362 697 Capital expenditures (MM) (165) (285) (450) Dividends (MM) (68) (71) (139) Free funds flow (MM) 102 6 108 Total…
  8. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 8
    2019 WTI Price Sensitivities Oil (USWTI) 50.00 60.00 70.00 FX (C/US) 0.73 0.74 0.75 Oil (Cdn/WTI) 68.49 81.08 93.33 AECO (C/GJ) 1.25 1.25 1.25 Funds flow netback (/boe) 23.45 26.90 30.25 Funds flow (MM) 608 697 784 Development…
  9. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 9
    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…
  10. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Internally Funded Income and Growth Model NO DRIP 98 Total Payout Ratio 125% 93 100 90 100% 80 65 70 59 Total Payout Ratio 75% 60 WTI (US/bbl) 51 49 43 50 50% 40 30 25% 20 10 0% - 2013 2014 2015 2016…
  11. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 11
    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…
  12. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 12
    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…
  13. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Capital Allocation 2019 Capital Budget Business Unit Target (MM) % West Central Sask Viking 111 25 Northwest Alberta & BC Cardium 107 24 Southwest Sask Atlas/Shaunavon 91 20 West Central Alberta Cardium 88 19 Southeast Sask CO2…
  14. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Sustainable Growth Assets: Capital + Dividend < Funds Flow Organic Growth Within Funds Flow 220 199 200 180 167 155 155 160 140 108 Fund Flow (MM) 44 120 67 98 121 100 3 80 53 60 111 91 88 95 40 41 20 46 -…
  15. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 15
    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…
  16. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 16
    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…
  17. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 17
    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…
  18. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 18
    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…
  19. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Solid Balance Sheet Conservative debt use and management Maintain 1x to 2x net debt to annual funds flow Total debt capacity: 1.77 BN Unutilized debt capacity: 570 MM Attractive Long-Term Debt with no Near-Term Maturities…
  20. June 2019 Corporate 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. June 2019 Corporate Presentation – Whitecap Resources Inc. – slide 21
    TSX:WCP www.wcap.ca June 1, 2019 21
  22. June 2019 Corporate 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. June 2019 Corporate 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 55.70 58.90 57.34 Tariffs (0.63)…
  24. June 2019 Corporate 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. June 2019 Corporate 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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