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November 2019 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Nov 1, 2019 · 39 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. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / NOVEMBER 2019 SUSTAINABLE FREE FUNDS FLOW
  2. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 410.6 Fully diluted (1.9% dilutives) 418.3 Market capitalization (B) 1.6 Enterprise value (B) 2.8 2020 production guidance (boe/d) 71,000 72,000 % oil + NGLs 85% 2020…
  3. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Whitecap Strategy Balance Sheet Strong net debt to funds flow ratio Strength Top tier free funds flow generation Balance sheet as a strategic asset Operational excellence Total Shareholder Return Sustainable 10 15%/annum…
  4. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Focused on Free Funds Flow 2019 Forecast 2020 Budget % Change Average production (boe/d) 70,000 - 72,000 71,000 - 72,000 1% - per debt adjusted share 179 184 3% Funds flow netback (/boe) 25.70 24.20 (6%) Funds flow (MM) 666 633…
  5. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Strong Balance Sheet Debt to EBITDA 1.7x Target < 2x Total debt to capitalization 30% Target 20 35% Liquidity 570MM 1.77B total credit facilities Attractive long-term debt with no near-term maturities Amount Type 1 Rate…
  6. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 6
    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…
  7. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Environmental Sustainability 2018 CO2 Emission & Sequestration (tonnes/year) 2,000,000 1,500,000 Indirect Emissions Weyburn asset is the largest 534,000 1,000,000 CO2 capture and sequesterer Direct for oil and gas sector in…
  8. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Operational Philosophy Safety is a core element of our culture and is considered in everything we do Industry leading 2018 TRIF for publicly disclosed peers at 0.26 Competency based assessment and training throughout all operations…
  9. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 9
    Core Areas of Operations Light Oil Drilling Inventory 2,827 8 - 10 years of inventory BRITISH COLUMBIA ALBERTA Drilling Wells SASKATCHEWAN Inventory 2019 2020 West Central Sask 813 95 75 Northwest Alberta & BC Southwest Sask…
  10. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Capital Allocation Business Unit Target (MM) % West Central Sask Viking 85 23 Northwest Alberta & BC Cardium 100 27 Southwest Sask Atlas/Shaunavon 67 18 West Central Alberta Cardium 48 13 Southeast Sask CO2 Flood 63 17…
  11. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Sustainable Growth Assets: Capital + Dividend < Funds Flow Self Funding Assets 220 200 180 163 158 156 160 140 Fund Flow (MM) 120 73 104 100 89 93 100 7 80 56 60 51 40 85 86 63 67 37 20 48 14 - SE Sask Viking…
  12. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Internally Funded Income and Growth Model NO DRIP 98 Total Payout Ratio 125% 93 100 90 100% 80 65 70 56 Total Payout Ratio 75% 55 60 WTI (US/bbl) 51 49 43 50 50% 40 30 25% 20 10 0% - 2013 2014 2015…
  13. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Per Share Growth Focus 80,000 Production 600,000 2P Reserves 72,000 64,000 500,000 71,500 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 -…
  14. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Returning Value to Shareholders 6% 0.0285 73 million 968 million Q2/19 dividend Monthly dividend Share repurchases completed Total dividends paid increase (as at Sep 30, 2019) (3.37/share) Total Dividends Total Share Buybacks…
  15. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Free Funds Flow Allocation Funds Flow Less: Capital Expenditures Free Funds Flow 60% 50-60% Return of Capital 40-50% 40% Balance Sheet Strength 2019e 2020 Target Refer to slide Notes and Advisories. 15
  16. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Opportunistic Acquisition SW Saskatchewan (2016) 180,000 Free Funds Flow (FFF) 160,000 140,000 120,000 100,000 50 Years FFF Totalling 2.4B 80,000 60,000 40,000 20,000 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18…
  17. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Opportunistic Acquisition SE Saskatchewan (2017) 200,000 Free Funds Flow (FFF) 150,000 42 Years FFF Totalling 3.9B 100,000 50,000 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32…
  18. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 18
    IRR 50% 0% 100% 150% 200% 250% 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 1.0 W.…
  19. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Depth and Quality of Inventory for Organic Growth Profit to Investment Ratio 2.5 2.0 Historically, inventory expanded through high quality acquisitions Profit to Investment Ratio Average Average == 1.4 1.4 1.5 Focus…
  20. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 20
    Crude Oil Marketing Active seller and shipper on 6 oil feeder PL connected to Enbridge mainline 33% of production is protected from Enbridge apportionment rail and Midale - Light Oil direct sales to refineries Price…
  21. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Research Coverage BMO Capital Markets Laurentian Bank Securities Canaccord Genuity National Bank Financial CIBC World Markets Peters & Co. Cormark Securities Raymond James Eight Capital RBC Capital Markets GMPFirstEnergy Capital…
  22. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 22
    TSX:WCP www.wcap.ca November 1, 2019 22
  23. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 23
    Appendix Asset Overview 23
  24. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 24
    Northwest Alberta (Deep Basin) Core Growth Asset Asset Summary Depth 1,400 2,700 m Large defined oil-in-place Oil Quality / Benchmark 32o - 39o API / MSW High-quality, short cycle projects Multiple expansion and growth DOIIP…
  25. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 25
    Wapiti Cardium Standard Length 3,500 Net operating income (NOI) 3,000 2,500 2,000 Capital payout < 1 Year 1,500 1,000 35 Years NOI 500 Totalling 14.4MM - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 Year MM…
  26. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Dunvegan Standard Length Net operating income (NOI) 2,500 2,000 1,500 Capital payout < 1 .5 Years 1,000 32 Years NOI Totalling 8.3MM 500 - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 Year MM US50 US55 US60 Capital…
  27. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 27
    West Central Saskatchewan Core Growth Asset Asset Summary Depth 700 m High ROR and short capital payout projects Oil Quality / Benchmark 36o API / MSW Industry leading capital efficiencies DOIIP (Bbbls) 1.3 (1.1 net) Reduced…
  28. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 28
    Viking Standard Length 800 Net operating income (NOI) 700 600 500 Capital payout < 1 Year 400 300 16 Years NOI 200 Totalling 1.6MM 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Year MM US50 US55 US60 Capital 0.8 0.8…
  29. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 29
    West Central Alberta Stable and Predictable Asset Summary Depth 1,300 2,300 m Large oil-in-place and low risk development Oil Quality / Benchmark 39o API / MSW Underdeveloped enhanced oil recovery projects DOIIP (Bbbls) 1.6…
  30. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 30
    West Pembina Cardium Standard Length Net operating income (NOI) 2,500 2,000 1,500 Capital payout < 1.5 Years 1,000 39 Years NOI 500 Totalling 12.4MM 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 Year…
  31. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 31
    Southwest Saskatchewan Sustainable Free Funds Flow Asset Summary Depth 900 1,200 m Large defined oil-in-place in multiple horizons Oil Quality / Benchmark 22o API / FOS Enhanced oil recovery opportunities DOIIP (Bbbls) 3.3 (1.9…
  32. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 32
    SW Saskatchewan Atlas 1,600 Net operating income (NOI) 1,400 1,200 1,000 Capital payout < 1 Year 800 600 37 Years NOI 400 Totalling 5.9MM 200 - 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 Year MM US50 US55…
  33. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 33
    SW Saskatchewan Upper Shaunavon Net operating income (NOI) 1,400 1,200 1,000 800 Capital payout < 1.5 Years 600 400 37 Years NOI 200 Totalling 5.1MM 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 Year MM…
  34. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 34
    Southeast Saskatchewan Free Funds Flow Engine Asset Summary Depth 1,400 m Opportunities to optimize and expand CO2 flood Oil Quality / Benchmark 36o API / Midale Reserve life 40 years Generates 100MM excess cash flow DOIIP…
  35. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 35
    Southeast Saskatchewan Net operating income (NOI) 900 800 700 Capital payout < 4.5 Years 600 500 400 37 Years NOI 300 Totalling 13.1MM 200 100 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27…
  36. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 36
    Slide Notes (contd) Slide 19 1. New well economics are based on: WTI US55.00/bbl; C/US0.75 and AECO C1.75/GJ all escalated by 2%/annum; MSW Differential US-8.00/bbl; WCS Differential US- 17.00/bbl. Slide 24 1. See Oil and Gas Advisory…
  37. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 37
    Slide Notes (contd) Slide 31 1. See Oil and Gas Advisory in the Advisories for additional information on DOIIP. 2. See Oil and Gas Advisory in the Advisories for additional information on drilling locations. Slide 32 1. Net operating…
  38. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 38
    Advisories (contd) The assumptions used for the 2019 forecast and 2020 budget funds flow netbacks (/boe) used on slides 2 and 6 of this presentation are as follows: 2019 Forecast 2020 Budget Petroleum and natural gas revenues 54.69…
  39. November 2019 Corporate Presentation – Whitecap Resources Inc. – slide 39
    Advisories (contd) Drilling Locations 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…

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