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Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd.

Tamarack Valley Energy Ltd. · Sep 10, 2019 · 27 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. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 1
    TVE : TSX Predictable, Sustainable & Responsible Per Share Growth Peters & Co. Limited Energy Conference 2019 See Disclaimers and Forward Looking Statements attached
  2. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 2
    Environment, Social & Governance Tamarack remains a committed & responsible steward of nature, people and shareholder capital Environment 98% of all gas production conserved in 2018 5 emission reduction projects undertaken in 2018…
  3. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 3
    Potential Catalysts in 2019 1) Impact of increases to OOIP in Veteran as a result of tuck-in acquisitions and drilling step-outs in Q1/19 added an estimated 60 mmboe OOIP in 2019 from step-outs alone 2) Continue to develop waterflood…
  4. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 4
    Tamarack Valley Sustainable Growth into 2019 Drilling inventory in place for long-term, sustainable per share growth at current commodity prices Market Summary (as at Sept 3/19) TVE: TSX Share price 1.89 +1.3 million Shares…
  5. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 5
    Viking Area Driving Corporate Growth Viking Opportunity 1.3 billion bbls of OOIP on TVE lands 14,000 Production (boe/d) (1) 12,000 Gas Oil 10,000 Closed Spur 8,000 acquisition 250% oil growth 6,000…
  6. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 6
    Spur Viking Acquisition Look-Back 400 Valuation Pre-Acquisition Jan 2017 (PV10%) 1000 Current Valuation at Dec 31, 2018 (PV10%) Total Value - 254MM Total Value - 920MM 800 640 Total 200 304 Drilling 600 244 Waterflood 396 0…
  7. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 7
    Veteran Waterflood Activity 2018 2019 H1 2019 H2 Reserve 2020 H1 Internal Estimate Booking Waterflood 10.5% 0.5% Remaining Primary 5.1% 3.9% Recovered to date 2.0% 2.0% Estimated Ultimate 6.4% Recovery 17.6% Development…
  8. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 8
    Veteran Waterflood Injector Count 22,000 55 20,000 50 18,000 45 16,000 40 14,000 35 Total Water Injection (bbl/d) 12,000 30 Injector Count 10,000 25 8,000 20 6,000 15 4,000 10 2,000 5 0 0 Actual/Forecast…
  9. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 9
    Declining Corporate Declines(1) Base 2018 Wedge Waterflood 2019 Wedge 30,000 25,000 Production (BOE/D) 20,000 15,000 2,400 bbls/d 10,000 5,000 0 2018 2019 2020 TVE internal risked forecast has corporate declines…
  10. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 10
    Significant Drilling Inventory 9+ years 911 900 Total Drilling Locations: 1,397 gross (1,296 net) (1) 800 700 Proved Probable Unbooked 522 600 24% Well Count (gross) 500 400 56% 300 300 182 20% 200 202 128 100 207…
  11. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 11
    Wilson Creek Cardium Generated Free Cash Flow(1) in 2018 10,000 Gas Oil 8,000 Production (boe/d) 6,000 4,000 2,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 Operating…
  12. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 12
    2019 Guidance, Price Assumptions & Sensitivities 2019 Guidance(1) Targeted 3-5% DAPPS(2) growth Q4/19 to Q4/18, while continuing to invest in the Veteran waterflood Annual production 23,500 24,500 boe/d (64-66% oil & liquids)…
  13. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 13
    Historical Netbacks, Capital Efficiencies and Per Share Growth Capital Efficiency(1) (/boepd Q4 to Q4) Q4 Production Growth Operating Netbacks*(1) (/boe) (per million shares O/S) 114 28.02 26,700 109 24.22 21,000 101 20,600…
  14. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 14
    Improving Cash Costs Leads to Long-term Sustainability All-in cash costs have steadily declined while production continues to grow Total Cash Costs 30,000 20 29% 18.00 2014 to Q1/19 despite increasing 25,000 1.21 oil weighting…
  15. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 15
    Current Hedges Term Hedge Type Volume Pricing % hedged July 1, 2019 to September 30, 2019 WTI Put 3,105 bbls/d US 60.00/bbl 21% Remainder of 2019 October 1, 2019 to December 31, 2019 WTI Put 2,990 bbls/d US 60.00/bbl 19% 20% hedged…
  16. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 16
    H1/19 Delivering on Promises & H2/19 Outlook What we said we would accomplish in H1/19 What we accomplished to end of H1/19 Second half 2019 objectives Hold production constant to comply with Alberta government Hold production…
  17. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 17
    Summary Investing in long-term projects that will ultimately decrease decline rates, increase sustainability and returns Current shareholders have optionality upside on waterflood that does not appear to be priced in the current…
  18. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 18
    Appendix
  19. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 19
    Management Team Brian Schmidt Ron Hozjan, CPA Dave Christensen Kevin Screen President & CEO VP Finance & CFO VP Engineering VP Production & Operations Spearpoint Energy - President & CEO; sold to Vaquero Resources - VP Finance & CFO;…
  20. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 20
    TVE Internally Calculated Full Cycle(1) ROR vs WTI 100 60% 80 40% 60 40 20% 20 0 0% 2014 2015 2016 2017 2018 2019 WTI USD TVE Full Cycle Rate of Return Budget Pricing (Current ROR Outlook) (1) Fully burdened,…
  21. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 21
    Reserves Summary Year End 2018(1) Strong reserves growth with oil weighted reserves up 20% 30 Total Proved + Probable Reserves 60.0 Total Proved Reserves 55.7 101.6 50.0 49.8 25 100 91.4 20.9 90 35.3 40.0 18.7 20 80 FD&A…
  22. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 22
    Conservatively Booked PUDs Sustain Future Upside Conservatively booked reserves future development capital (FDC) for P+P reserves of 700 MM = 3.5 years of cash flow(1) at current strip 2019 FDC only 127 MM vs 175 MM 2019 capex budget…
  23. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 23
    Why TVE Viking is Different UPPER VIKING 2017 drills UPPER SST-THICKER, 2018 drills TIGHT PERMEABILITY 2017 infrastructure 2018 infrastructure 1980s injectors HAMILTON LAKE HIGHER PERMEABILITY ZONE WATER FLOODED IN 80S By…
  24. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 24
    Veteran Activity Increasing Resource Size Through Delineation 2018 North Veteran Extension o Average P 880 kpa 2018 Veteran Unit Water-flood o Average IP30 45 bbls/d o Sec 29 flood initiated August 2018 o Belly River Hz source well…
  25. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 25
    New Cardium Efficiencies(1) /m Horizontal m/d Linear (/m Horizontal) Linear (m/d) 2000 600 Drilling: more capable rigs (top drives) due to 1750 greater HP, bigger pumps and more torque Costs per meter drilled and time to drill…
  26. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 26
    2019 Areas of Focus Q2 2019 Production BOE/D % Liquids Viking light oil 12,299 73% ALBERTA SASKATCHEWAN Cardium light oil 8,416 54% Penny light oil 1,641 79% Other 1,734 19% VIKING OIL Total 24,090 63% CARDIUM OIL Redwater H1…
  27. Peters and Co Limited Energy Conference – Tamarack Valley Energy Ltd. – slide 27
    Financial Stats per BOE 2017 Q3/18 Q4/18 2018 H1/19 WTI (USD) 51.00/bbl 69.54/bbl 58.79/bbl 64.78/bbl 57.34/bbl Edm Par (Cdn) 62.23/bbl 77.26/bbl 48.26/bbl 69.14/bbl 70.05/bbl AECO (Cdn) (monthly index) 2.41/GJ 1.35/GJ 1.89/GJ…

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