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June 2019 Corporate Presentation – Tourmaline Oil Corp.

Tourmaline Oil Corp. · Jun 3, 2019 · 45 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 – Tourmaline Oil Corp. – slide 1
    Corporate Presentation June 2019
  2. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 2
    2 Current Status May 2019 Production Overview 2019 average production forecast of 300,000 boepd 1H 2019 production 290,000-300,000 boepd, 2H 2019 production 310,000 320,000 boepd 2019 average liquid production of 66,000 bpd Three…
  3. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 3
    3 Historical EP Performance Mar 2019 Production Growth Per Share* Reserves Growth Per Share* 400 10 Production per Thousand Shares Reserves per Share (BOEs) 350 8 300 250 6 (BOEs) 200 150 4 100 2 50 0 0 2009…
  4. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 4
    4 A History of Full Cycle Profitability May 2019 400 6.00 * 350 Earnings before taxes (000,000s) 5.00 AECO (CAD/mcf) Earnings before tax ( millions) 300 4.00 250 AECO (/mcf) 200 3.00 150 2.00 100 1.00…
  5. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 5
    5 Largest WCSB Gas Producers Mar 2019 1,800 1,600 1,400 1,200 Tourmaline will be the largest Production (Mmcf/d) natural gas producer in Canada 1,000 (Based on 2019 Estimates) 800 600 400 200 -…
  6. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 6
    6 A Significant Liquids Producer Mar 2019 Tourmaline has doubled liquids production over the past 1.5 years with strong liquids growth across all three operated complexes. The 2019 liquid production growth rate of 35-40% is amongst…
  7. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 7
    7 Balanced Revenue and Cash Flow Streams Through Product, Marketing and Transportation Diversification May 2019 2019 BUDGETED REVENUE AECO & Station 2 16% Oil and Condensate Fixed Price 31% 9% NYMEX Basis NGL 11% 10%…
  8. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 8
    8 Free Cash Flow Acceleration Plan June 2019 Growth capital directed primarily to Gundy BC, the highest return project in inventory. Alberta Deep Basin/Peace River High effectively in maintenance capital mode, no new facility…
  9. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 9
    9 Free Cash Flow Acceleration 5 Year Plan June 2019 FREE CASH FLOW ACCELERATION PLAN(1) After-tax After-tax E&P Capital Free Cash Ending Prodn Cash Flow CFPS - Program Flow Dividend (Net Debt) BOEPD MM Diluted MM MM MM MM 2019E…
  10. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 10
    10 Current 5 Year Plan(1) June 2019 400,000 350,000 300,000 250,000 Spirit River Boe/d 200,000 NEBC 150,000 Deep Basin 100,000 50,000 - 2016 2017 2018 2019 2020 2021 2022 2023 Ending After-tax After-tax E&P…
  11. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 11
    11 Alberta Deep Basin May 2019 The contiguous Tourmaline interconnected Deep Basin T65 R9 R7 R5 Cretaceous gas asset is effectively Albertas Largest Gas Field. T63 Current Production 185,000-190,000 boepd Current Reserves 1,041.4…
  12. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 12
    12 Alberta Deep Basin Liquids Rich Cardium Fairway Mar 2019 The combination of extensive 3D seismic coverage T59 T59 and the lowest cost drilling/completion capability Smoky make the liquids rich Cardium play a significant new…
  13. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 13
    13 NEBC Montney Gas/Condensate Complex May 2019 TOU Land Black Swan Current Prod. 400-425 mmcf/d Comp. Station, dehy 12,500-13,500 bpd condensate C-60-A Gas Plant 25 mmcf/d TOU Wells 200 MMCF/D 4,000-4,500 bpd ngl Q4 2019…
  14. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 14
    14 Gundy Ck Montney Development Mar 2019 Mar 2019 Construction of Phase 1 Deep Cut Gas Plant has commenced in the field, a 50,000 boepd operated production increment to be A-078-A PAD Avg Rate Number Avg Free Avg Total realized by…
  15. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 15
    15 Gundy Horizontal Well Performance Nov 2018 2017/2018 average completed well costs of 3.3-3.5 million, and along with Sunrise-Dawson, the least expensive for the entire Canadian Montney sector.
  16. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 16
    16 Gundy Creek Phase 1 Construction May 2019
  17. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 17
    17 Tourmaline Long Term NEBC Montney Growth June 2019 225,000 Tourmaline can grow to a 200,000 boepd NEBC Montney producer within three years. 200,000 Sundown Sundown development is not in the current five year Phase One plan,…
  18. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 18
    Tourmaline Montney 18 Efficiency + Execution Apr 2019 Montney Net Production (MMCFE/d) 1,400 1,200 1,000 800 600 400 200 0 Source: Goldman Sachs except for Tourmaline (Q2/19E) Select Montney Peers ARC Resources,…
  19. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 19
    19 Peace River High Complex Triassic Oil Charlie Lake and Montney Plays Mar 2019 Mulligan 8-15 Upper Trcl Pad Q3 2016 Peace River High 90 day production rates R. 11 R. 9 5-14 R. Mulligan 7 R. 5 Oil Battery 1,850 Horizontal…
  20. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 20
    20 Tourmaline Mid-Stream Assets May 2019 The infrastructure skeleton in all three core operated complexes is now complete. This infrastructure is essentially R. 15W6 R. 1W6 all newR.and 15W5in the growth areas of the WCSB. NE…
  21. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 21
    21 Tourmaline Condensate Production Outlook 2018-2020 Nov 2018 35,000 Current Base Production totals reflect anticipated 31,500(+) total condensate production by the 30,000 end of the specified period. Deep Basin Kca (750 bpd)…
  22. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 22
    22 Historical Reserves Summary Feb 2019 Reserves (GLJ) Reserves 2012 2013 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) 3000 PDP 91.9 122.3 177.8 263.2 352.1 436.5…
  23. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 23
    23 Independently Recognized Canadian 2P Reserves(1) May 2019 14 12 Natural Gas Tourmaline has booked only 15% of Natural Gas (1) 10 existing drilling inventory (2,243 of 14,766 locations See Schedule A). 8 TCF 6 4…
  24. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 24
    24 Gas Development Location Inventory and Economics Mar 2019 AB Deep Outer AB Deep B.C. Gundy B.C. PRH PRH Basin Foothills Basin Montney Montney Charlie Lake Montney Vertical Vertical Horizontal Horizontal Horizontal Horizontal…
  25. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 25
    25 The TOU Engineering Execution Machine Sep 2017 Drill & Complete Costs 8.00 Tourmaline has the lowest completed per stage (Equipping not included) well costs in the overall Montney play in 7.00 Western Canada and the Alberta…
  26. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 26
    26 Continuous Cost Reduction Strategy Mar 2019 Operating Costs General and Administrative Costs 7.00 6.50 6.34 1.50 1.29 6.00 5.58 1.02 5.50 1.00 /boe /boe 5.00 4.87 0.79 0.74 4.43 4.35 4.37 0.60 4.50 0.45…
  27. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 27
    27 2019 Guidance June 2019 2019(1) Production Boe/d 300,000 Cash Flow(i) - MM 1,500 CFPS - Diluted(i) 5.50 E&P Capital Program(ii) - MM 1,150 Free Cash Flow(iii) - MM 318 Exit Net Debt(i) - MM 1,527 Debt to CF…
  28. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 28
    28 2019 Natural Gas Transportation and Marketing Overview May 2019 Q2-Q4 2019 Average Natural Gas Portfolio Diversification 2019 Exit: 540 mmcf/d of gas will be to US/Other Markets 20% Station 2 10% 10% (1) 41% 29%…
  29. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 29
    29 Highlights and Outlook Apr 2019 Tourmaline now a Senior with production exceeding 300,000 boepd. Tourmaline is the largest producer of Canadian natural gas and is a top ten Canadian liquids producer (excluding oil…
  30. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 30
    APPENDIX
  31. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 31
    31 Return Metrics Price to Earnings Price / 2019E Earnings Per Share (Canada) 100x Price to Earnings Multiple 80x 60x 40x 20x 0x Price / 2019E Earnings Per Share (United States) 60x Price to Earnings…
  32. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 32
    32 Natural Gas Flows From Western Canada
  33. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 33
    33 Completed Well Costs and EUR By N. American Play Type Mar 2019 Well Costs DC,T (CAD) Vs. EUR by Play Type 18 0.66/mcf Completed Well Cost CDN EUR (Bcfe) 16 15.5 Bcfe 0.94/mcf 14 1.10/mcf 12.8 Bcfe 12.0 MM 12 10.6 MM 10.2…
  34. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 34
    34 Tourmaline vs Natural Gas Peers Cash Costs Per BOE Mar 2019 Tourmaline Vs. US Gas Weighted Peers Cash Costs in USD* per BOE (Q3/18) Operating Transportation G&A Interest 10.00 9.52 9.00 7.89 8.00 7.00 6.24 Costs Per…
  35. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 35
    35 Doe 2-11 Condensate/NGL Facility A 3,000-3,500 boepd project started up in late September 2018 Sep 2018
  36. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 36
    36 EP Growth Plan (Original Business Plan) Sept 2008 This is essentially the same business plan that was executed for Duvernay Oil Corp. (2001-2008) Primary growth mechanism will be a conventional EP Program (including Resource…
  37. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 37
    37 Banshee Alberta Gas Plant Simple, easy to construct dew point plants tied to the main TCPL sales system Total cost (2 phases) of 80M, capacity of 130 mmcfpd with enhanced liquids recovery capability
  38. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 38
    CTD (mmcfpd) 1000 800 0 100 200 300 400 500 600 700 900 Tourmaline 02-19-050-20W5 Tourmaline 10-14-058-01W6 Tourmaline 12-17-049-19W5 Tourmaline 12-08-050-20W5 Tourmaline 13-18-050-20W5 Advantage…
  39. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 39
    39 Tourmaline Environmental Performance Tourmaline strives to continually improve all aspects of environmental performance including the impact of its operations on air, land and water. Tourmaline ranks as a top decile performer…
  40. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 40
    40 GHG Emissions Peer Comparison Jul 2018 Tourmaline has the lowest GHG emissions intensity (CO2/boe) among Canadian Senior E&P peers Canadian E&P GHG Emissions 2016 25,000,000 0.080 0.070 20,000,000 0.060 (tonnes…
  41. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 41
    41 BC Water Management 100% of all water flowed back from completion operations is recycled 90% of all water sourced for stimulation operations is recycled 187,000m3 of produced water storage capacity 3 produced water ponds…
  42. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 42
    42 Natural Gas Substitution in Operations Raw Natural Gas cost (Feb 2017) 0.10/DLE (Diesel Equivalent Liter) vs 0.69/L rack price for marked diesel 12 Drilling Rigs and all BC completion operations use a combination of NG/Diesel…
  43. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 43
    43 Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities Cost saving via novel frac water sourcing/recycling Alternative hz frac programs/processes Concurrent pairs, delayed flow-backs etc. Novel drilling…
  44. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 44
    44 Schedule A DRILLING LOCATIONS Estimated Drilling Inventory This presentation discloses drilling locations in four categories: (i) proved undeveloped locations; (ii) probable undeveloped locations; (iii) unbooked locations; and…
  45. June 2019 Corporate Presentation – Tourmaline Oil Corp. – slide 45
    45 Schedule A continued Deep Basin Vertical well count : Approximately 2,582 gross prospective sections at approximately 1.5 wells per section minus 10% for areas that are inaccessible or limited by spacing requirements minus…

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