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August 2019 Corporate Presentation – Seven Generations Energy Ltd

Seven Generations Energy Ltd · Aug 13, 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. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 1
    TSX: VII CORPORATE PRESENTATION August 2019
  2. August 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. August 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 202 Mboe/d (38% condensate, 22% NGL, 40% gas) in Q2/19 Multiple market exposures provide maximum gas price…
  4. August 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. August 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 Accountability and Effective Oversight Lost Time Injury…
  6. August 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. August 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. August 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. August 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. August 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 C1.7B of liquidity C1.4B…
  11. August 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% 3.37 3.50 to 4.75 17.4% 17.9% at US50 - 65 16.4% WTI (1) 2.32 1.46…
  12. August 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 (2) (3) As a…
  13. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 13
    NEAR TERM DEVELOPMENT GOALS 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…
  14. August 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. August 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 US70 WTI 1,600 1,400 US55 WTI 1,200 US50 WTI Delineation 1,000 800 600 2019 Free cash flow upside Sustaining…
  16. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 16
    LOWER MONTNEY EMERGING DEVELOPMENT POTENTIAL Successful Full triple-stack Triple-Stack Development vertical test IP60: 1,467 boe/d 67% condensate (3-well average) Partial triple-stack Partial triple-stack IP90: 1,048…
  17. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 17
    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 &…
  18. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 18
    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 Flowtest IP20 (7 Hz) Cumulative condensate (Mbbl) vs. time (days) 1,068 1,972…
  19. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 19
    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…
  20. August 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. August 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. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 22
    TSX: VII APPENDIX
  23. August 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. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 24
    HEDGING STRATEGY Quarterly Revenue (/boe) 60 12.00 Realized Hedge Gain/(Loss) (b/oe) Hedging program has reduced revenue volatility by 25% Price Realization (/boe) 50 8.00 40 4.00 30 0.00 20 -4.00 Hedging…
  25. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 25
    CURRENT HEDGE POSITIONS AS AT JUNE 30, 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 19,000 58.16 75.60 4,000 41.25 18,500…
  26. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 26
    SELECTED FINANCIAL AND OPERATIONAL INFORMATION VII - Recent Quarterly Results OPERATING RESULTS Q2 2019 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)…
  27. August 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. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 28
    IMPORTANT NOTICE The Company has opted to rely upon the type-curve forecasts that have results will differ from the forecasts for the reasons described above and drilling locations have been de-risked by drilling existing wells in…
  29. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 29
    IMPORTANT NOTICE Oil and Gas Definitions proved reserves are those reserves that can be estimated with a high infrastructure, nor do they take into account land acquisition costs, degree of certainty to be recoverable. It is likely…
  30. August 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 30
    DEFINITIONS AND ABBREVIATIONS A annual LPG liquified petroleum gas AECO physical storage and trading hub for natural gas on the TransCanada Alberta transmission system LTIF lost time incidence frequency Alliance Alliance pipeline m…
  31. August 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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