Skip to main content 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. | Shale Experts
Loading...
Pm

2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd.

Bellatrix Exploration Ltd. · Aug 8, 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. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 1
    Building a Solid Foundation for a Cleaner Energy Future CORPORATE PRESENTATION - AUGUST 2019 1
  2. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 2
    Natural Gas Represents the Bridge Fuel for the Future MATERIAL NATURAL GAS DEMAND GROWTH EXPECTED THROUGH 2040 (1.7% COMPOUNDED) OVERTAKES COAL AS 2ND LARGEST GLOBAL ENERGY SOURCE BY 2040 Source: BP Energy Outlook, 2019 edition 3
  3. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 3
    Canada is a Leader is Lower Emissions & Environmental Stewardship Global CO2 Emissions (2018) Canadian Natural Gas GHG Emissions & Production 58 16,000 Canadian Natural Gas Production (MMcf/d) Natural Gas Extraction GHG…
  4. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 4
    Bellatrix Environmental Metrics DIRECT GHG EMISSIONS FLARED & VENTED GAS 0.55 8,000 e3m3/year 6,000 0.50 4,000 Tonnes CO2e (millions) 2,000 0 0.45 2015 2016 2017 2018 Flared Gas Vented Gas 0.40 REPORTABLE RELEASES…
  5. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 5
    The Call on Canadian Natural Gas to Meet Increased Demand Five Year The call on WCSB natural gas Current Outlook Growth is estimated at 3 to 6 Bcf/d over the next five years Regional Canadian demand 5 Bcf/d 7 Bcf/d 2 Bcf/d This…
  6. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 6
    AECO Basis Differential Forecast Improvemment AECO Basis Differential (US/MMBtu) 1.00 0.50 Historical Forecast 0.00 (0.50) (1.00) (1.50) Historical average (Jan 2003 to July 2019) (2.00) US0.80/MMBtu (2.50) (3.00)…
  7. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 7
    AECO Natural Gas Expansion Projects Underway ADDITIONAL EXPORT CAPACITY BEING DEVELOPED OUT OF THE CANADIAN BASIN Effective Capacity (MMcf/d) 2017A 2018 2019E 2020E 2021E 2022E 2023E 2024E In Service Alliance 1,800 1,800 1,800 1,800…
  8. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 8
    AECO Natural Gas Demand Growth Drivers INTRA-ALBERTA DEMAND GROWTH External forecasts see intra-Alberta demand growth of: 500 MMcf/d YoY in 2018 to 5.3 Bcf/d 245 MMcf/d YoY in 2019 to 5.5 Bcf/d 190 MMcf/d YoY in 2020 to 5.7…
  9. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 9
    The World Needs More Canadian Natural Gas Canada has significant long term natural gas resources and is the fourth largest producing country globally1 Natural gas represents the bridge Canadian Natural Gas Industry Scorecard fuel…
  10. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 10
    Bellatrix Investment Highlights Dominant core acreage position in Top tier capital efficiencies and cost west central Alberta profile deliver full cycle profitability Spirit River represents one of North Asset portfolio provides…
  11. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 11
    Corporate Profile MARKET SUMMARY Ticker Symbol TSX : BXE Average Daily Volume1 130,000 Shares Outstanding2 40.9 million basic / 41.6 million diluted Market Capitalization3 27 million Bank Debt4 60 million Second Lien Notes due 20235…
  12. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 12
    Strategic Objectives & Outlook Improving financial strength and value preservation in low commodity price environment 2017 2018 2019 New management team Manage capital Advance debt refinancing established investment levels within…
  13. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 13
    2019 Guidance & First Half Results STRONG OPERATIONAL PEFORMANCE IN THE FIRST HALF OF 2019 RELATIVE TO ANNNUAL GUIDANCE EXPECTATIONS1 2019 INITIAL ACTUAL RESULTS FIRST HALF 2019 ANNUAL GUIDANCE VERSUS MIDPOINT RESULTS (JAN 15,…
  14. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 14
    Hedging & Market Diversification Market Diversification Contracts Market Start Date End Date Volume Chicago 01-Feb-18 31-Oct-20 15,000 MMBtu/d Chicago 01-Nov-18 31-Oct-20 15,000 MMBtu/d Dawn 01-Feb-18 31-Oct-20 15,000 MMBtu/d Dawn…
  15. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 15
    Commodity Price Risk Management & Diversification NATURAL GAS MARKET DIVERSIFICATION & FIXED PRICE HEDGING COVERAGE 80% 70% % of total forecast 2019 gas 60% 50% volumes 40% 30% 20% 10% 0% Q3/19 Q4/19 Q1/20 Q2/20 Q3/20…
  16. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 16
    Growing High Value Liquids Growing NGL Volumes & High Value Condensate 60.00 100% Corporate NGL yield (bbl/MMcf) 55.00 90% Light oil Product % of total crude oil & condensate volumes (bbl/d) 80% 50.00 70% 60% 45.00 50%…
  17. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 17
    Recapitalization Transaction COMPLETED JUNE 4, 2019 Total outstanding debt reduced by approximately 110 million (approximately 23%) Term debt maturities extended until 2023 Annual cash interests payments reduced by approximately 12…
  18. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 18
    Diversified Balance Sheet & Financial Flexibility Actively exploring refinancing opportunities and additional sources of liquidity BANK DEBT 60MM CREDIT FACILITY LONG TERM DEBT AT JUNE 30, 2019 FINANCIAL COVENANTS MATURITIES 5.0 300…
  19. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 19
    Highly Concentrated Land Base DOMINANT ACREAGE POSITION WEST CENTRAL ALBERTA CORE AREA Highly focused land base in the prolific Deep Basin of FERRIER Alberta WILLESDEN GREEN 99% of total corporate GREATER PEMBINA production and…
  20. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 20
    North American Supply Cost Comparison 4.00 3.50 3.00 Henry Hub (US/MMbtu) 2.50 2.00 1.50 1.00 0.50 0.00 Economics assume 15% Before tax IRR, assumes US0.83 = CDN1.00, US0.75/MMbtu AECO basis, and a 20:1 oil-to-gas…
  21. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 21
    Pre-eminent Capital Efficient Operator in the WCSB BXE BEST IN CLASS ON 2018 ALL-IN CAPITAL EFFICIENCY 45,000 All-in capital efficiencies, excl. A&D (/boe/d) 40,000 35,000 30,000 25,000 20,000 15,000 10,000…
  22. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 22
    Bellatrixs Spirit River Play BXE Land Sections1 GREATER FERRIER AREA CORE SPIRIT RIVER PLAY 198 Gross 118 Net BXE Net Drilling Inventory2 105 proved 27 probable 250 unbooked 382 total True vertical formation depth 2,250 meters…
  23. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 23
    Spirit River Geology Summary Broad, thick, extensive sand rich valleys SPIRIT RIVER STACKED SANDS in Notikewin, Falher and Wilrich members One square Tight sandstone: long life reserves with mile section long term hyperbolic decline…
  24. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 24
    Comparing Premier Resource Plays Spirit River Montney Duvernay Tight Conventional Siltstone Shale Sandstone BXE Typical Reservoir Porosity 6 to 18%; Porosity 0.6 to 8%; Porosity 2 to 8%; Permeability 1 to 3 mD Permeability…
  25. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 25
    Low Cost Competitive Advantage BXE Spirit River Versus Canadian Plays STAGE COUNT PROPPANT PLACED 40 8,000 35 7,000 Average proppant (tonnes) Average stage count 30 6,000 25 5,000 20 4,000 15 3,000 TOTAL WELL COST 10…
  26. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 26
    Play Profitability Comparisons BXE Spirit River Montney Duvernay All-in Well Costs 3.4 6.4 9.4 (DCE&T, MM) Average IP365 1,070 608 459 (boe/d) IP365 Capital Efficiency 3,180 10,500 20,560 (/boe/d) Average Implied EUR 7.1…
  27. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 27
    Spirit River Type Curves SPIRIT RIVER 5.2 & 6.0 BCF TYPE CURVES Bellatrix Spirit River Economics 9 Economic Assumptions 5.2 Bcf 6.0 Bcf Liquids (bbl/MMcf) Gross CAPEX (DCE&T, MM) 3.4 3.4 8 Gross Natural Gas IP30 (MMcf/d) 6.6 6.3…
  28. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 28
    Spirit River All-In Profitability 5.2 Bcf Type Curve C1.50/GJ C2.50/GJ Full Cycle F&D costs Drill 1.5MM Full cycle F&D costs /Mcfe (0.71) (0.71) Complete 1.4MM Equip & tie in 0.5MM Half cycle costs 3.4MM Land/seismic/facilities…
  29. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 29
    Delivering on our Objectives RESULTS OUTPERFORMING EXPECTATIONS 14 12 10 Producing Day Volumes (MMCF/d) 8 6 4 2 0 0 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480 510 540 570 600 630 660 690 720…
  30. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 30
    Enduring Efficiency Gains on Drill Times AVERAGE SPIRIT RIVER DRILLING CURVES DAYS SPUD TO RIG RELEASE BY YEAR 0 20 Days (Spud to Rig Release) 2014 Spirit River Average 500 15 2015 Spirit River Average 1,000 10 2016 Spirit…
  31. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 31
    Spirit River Well Costs & Capital Efficiencies FOCUSED CAPITAL COST REDUCTIONS 6.0 Long Reach Long Reach 5.0 Long Reach 4.0 Costs (millions) Long Reach Equip & Tie-in 3.0 Complete 2.0 Drill 1.0 0.0…
  32. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 32
    Bellatrix Focused Spirit River Growth SPIRIT RIVER PRODUCTION GROWTH 80% 2010 32,000 70% 28,000 Spirit Spirit River % of Total Company Volumes River Average Monthly Production (boe/d) 60% 2018 New 24,000 2014 Drill…
  33. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 33
    Cost Reductions Achieved 36% REDUCTION IN PRODUCTION EXPENSES (/BOE) 11.00 Production expense 10.00 9.00 (/boe) 8.00 7.00 6.00 5.00 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 29% REDUCTION IN…
  34. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 34
    Low Cost FD&A Performance 6.00 FD&A costs (/boe) 5.00 4.00 3.00 2.00 1.00 0.00 2018 2017 3 Year Avg 2018 2017 3 Year Avg ('16-'18) ('16-'18) FD&A Costs Including Plant Capital FD&A Costs Excluding Plant Capital PDP FD&A…
  35. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 35
    Representative Spirit River Inventory Required to Maintain Production Volumes Approximately 12-15 net (5.2 Bcf type curve) Spirit River wells1 per year maintains production in the high 30 mboe/d range through 2023 Alternatively,…
  36. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 36
    Greater Ferrier Area Infrastructure Overview GREATER FERRIER AREA STRATEGIC INFRASTRUCTURE GREATER FERRIER EXISTING INFRASTRUCTURE ACCESS: Infrastructure gives Bellatrix control of production and growth Working interest or operatorship…
  37. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 37
    Drill Bit Focused PLANT PHASE 2 CONSTRUCTION COMPLETE MARCH 2018 Major compressor stations, pipelines and Bellatrix Alder Flats Plant capital investment completed Proportion of incremental capital to drilling & completion expected to…
  38. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 38
    Ample Takeaway Capacity & Market Egress ALBERTA NATURAL GAS MARKET EGRESS AMPLE FIRM TRANSPORTATION IN PLACE FOR CURRENT & GROWTH ALBERTA VOLUMES Firm Transportation (FT) agreements in place for gross operated volumes at multiple…
  39. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 39
    Supplemental Information 40
  40. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 40
    Concentrated Multi-Zone Acreage DEEP BASIN MULTI-ZONE ACREAGE Deep Basin is highly coveted for: Sweet, liquids rich natural gas 4,600 ft TVD Belly River Sweet, light gravity crude oil 6,200 ft TVD Cardium Multi-zone hydrocarbon…
  41. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 41
    Cardium Light Oil Resource Play BXE Land Sections1 176 Gross 117 Net BELLATRIX Activity Since Jan 2017 5 Wells Drilled BXE Net Drilling Inventory2 105 proved 22 probable 124 unbooked 251 total Cardium Resource Play Summary…
  42. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 42
    Strategic Land Position GREATER FERRIER/BRAZEAU/WILLESDEN GREEN AREAS OF WEST CENTRAL ALBERTA Pembina Brazeau Ferrier Willesden Green Source: Accumap, company presentations and various public sources 43
  43. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 43
    AER Calculated LMR 0 4 8 12 16 20 24 28 LMR as at July 6, 2019 Advantage Oil and Gas Birchcliff Energy Pengrowth Energy Bellatrix Exploration Torc Oil and Gas NuVista Energy Kelt Exploration Tamarack Valley…
  44. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 44
    Operational Execution Scorecard Production expense reductions 40% reduction in production expenditures to 6.29/boe in H1/19 from 10.57/boe in Q4/16 Capital cost reductions 20% reduction in all-in well costs to under 3.4 million…
  45. 2Q 2019 Earnings Presentation – Bellatrix Exploration Ltd. – slide 45
    Corporate Information BOARD OF DIRECTORS SENIOR OFFICERS BANKERS Todd Dillabough, B.Sc. Brent A. Eshleman, P.Eng. National Bank of Canada Chairman President & CEO Alberta Treasury Branches Canadian Western Bank Cody Church Max Lof, CFA…

From the store

Browse maps, data & reports in the Shale Experts store