Why we do what we do Our Mission is to establish Painted Pony as a low-cost supplier of clean natural gas to Canada and the world. We believe: world demand for clean and (tonnes of oil equivalent) Oil reliable energy is…
Clean-Burning Natural Gas PONY supplements diesel Lowest GHG Emissions fuel with natural gas fuel completion operations which reduces per well capital costs and lowers PONYs GHG emissions Converting coal-fired electricity…
Global LNG Market Demand Growth Mtpa (Million Tonnes per Annum) is a typical measurement unit in Global LNG LNG markets .for production demand forecasted to 500 increase Approximate conversion: 1 mtpa = 0.132 Bcf/d 34% 57 1…
Proposed West Coast LNG & LPG Projects Game Changer T-North Enbridge Mainline LNG Projects Capacity British Columbia LNG Canada Shell, Petronas, Mitsubishi, 1.9 3.8 Bcf/d Petro-China, KOGAS (Under AltaGas Ridley Island…
LNG Canada Construction Underway Kitimat, BC Site August 2018 November 2019 LNG Canadas export facility at Kitimat has been under construction since October 2018 5
NEBC Montney Massive Resource Over the next 20 years, natural gas production from the Montney in BC will continue to grow and by 2040 is estimated to make up 38% of Canadas total natural gas production 25 Duvernay Rest of…
Alberta Natural Gas Market Continued Demand Growth Significant demand growth is taking place in Alberta Alberta is expected to increase (Bcf/d) 8.0 8.0 natural gas consumption by over Steady phase-out of coal in 45% between…
Corporate Profile TSX: PONY First 9 Months of 2019 Average Daily Production 302 MMcfe/d (50,262 boe/d) 2019 Capital Budget 80 - 95 million 2P Reserves 6.9 Tcfe (1.15 billion boe) 2P Reserve Life Index* 60 Years Enterprise…
PONY Asset Sale Significant Land Value Sold 11,280 gross acres (8,460 net acres) for cash proceeds of 45 million Sale price of 5,300 per acre is consistent with average Montney transactions over past two years Land sold was 4%…
World Class Resource Natural Gas Pipeline Coastal GasLink Pipeline Montney Pure Play Asset The Montney is the most economic natural gas and natural gas liquids play in Canada 292 net sections (186,727 net acres) of Montney…
2019 Capital Program Disciplined Capital Investment Current PONY budget maintains net capital spending within adjusted funds flow from operations Investing 80 - 95 million for the year Forecast annual average daily production…
Montney Pure Play Location, Location, Location PONYs Montney Sweet Spot is: 38 sections 4x thicker than the Marcellus at greater 36 sections than 300 meters (approximately 1,000 Beg ft.) thick Dry Liquids a continuous sweet…
The Sweet Spot North Montney 6-Month Cumulative Production Volumes British Columbia 2,250,000 PONY has the best well in North Montney with North 6-month average daily Montney PONY 2,000,000 production rate of more than 11…
2018 Reserves Significant Resource, Significant Value 6.9 Tcfe of Total 2P (2) Proven Reserves Developed 1.0 Tcfe of PDP reserves Producing (14% of Reserves) 19% annual growth of PDP reserves at a cost of 0.55/Mcfe 1.0 Tcfe…
2018 Reserves Consistently Profitable Recycle Ratios 2018 Corporate Netback 1.71/Mcfe = 2018 PDP = 3.1x PDP Finding, Development Recycle Ratio & Acquisition Cost 0.55/Mcfe 4.0x Industry leading 3.7x PDP recycle ratio 3.1x…
2018 Natural Gas Reserves Fourth-Largest 2P Natural Gas Reserves 12 11.7 4th largest natural gas reserves of any publicly- Proved plus Probable Reserves (Tcf) 10 9.6 traded company in Canada 8 7.3 6.4 6 5.1 4.6 4.1…
Development Horizons Significant Unrealized Upside Across 7 Layers of Montney Resource Doig formation Townsend Blair Beg 1 2 3 4 5 6 Upper Montney Middle Montney 330 m 290 m Lower Montney 6 5 4 Belloy formation 3…
Canbriam Transaction Closed June 2019 Canbriam Energy sold for 1 billion Offsetting acreage analog for PONY Validates land sale prices in NEBC Montney Landholdings Painted Pony Energy (186,727 net acres) Canbriam Energy…
Canbriam Deal Research Commentary Sell-Side PONY Analysis We estimate that the deal value mapped to 1.0 billion based on Suncors Q2/19 disclosures, with metrics generally favourable when compared to public companies. We dont expect…
Canbriam Energy Transaction 1 Billion Transaction Canbriam PONY Land Acres Valuation Equity Valuation 171,436 acres = 5,833/acre 186,727 1,089 mm 769 mm 4.78/sh Production Q1 2019 Q1 2019 Value/boe/d Equity 36,953 boe/d =…
Land Valuation Land Sales Suggest PONY Undervalued The weighted-average price per acre of land transactions for the past two years for Montney parcels is 4,703/acre Bernadet (Conoco) 2019 corporate sale of Canbriam 4,454/acre…
Market Diversification Higher Prices for Natural Gas AECO Market PONY 132 MMcf/d 2019 average (fixed price & spot) St 2 Market AECO C14-year A Ncontract A D A(began MEDICINE HAT in 2017) 29 MMcf/d 2019 average Station…
Market Diversification Managing Volatility Expected 2019 Q4 Production Revenue by Source 45% of PONYs fourth quarter 2019 production revenue is protected through a AECO / STN 2 combination of physical and financial…
Sales Diversification PONYs Net Exposure of Physical and Financial Contracts PONY regularly adds new contracts as part of ongoing risk management through sales hub diversification 100% 10% 9% 90% Natural Gas Volume Net Exposure by…
Transportation Enbridge T-North Tolls Firm Transportation & Toll Advantage to West Coast Single toll structure 0.24/Mcf Pony can deliver at either Station 2 or Sunset Creek for single toll TransCanada AECO Tolls 0.27/Mcf receipt…
Cost Structure Challenging Commodity Price Environment 2019 Top Line Revenue (forecasted*, includes Q1, Q2, Q3 actuals) 3.10 /Mcfe Hedging Gain 0.12 Adjusted Funds Flow 0.64 0.76 from Operations Forecasted Adjusted Funds…
Historical Costs Drilling & Completions Efficiency Continued type curve As capital well costs fell, production type curves improvement with dramatically improved average Total 2P(1) well booking of 9.2 Bcfe/well Management Perf &…
Blair Long Lateral Wells Using longer laterals PONY Encouraging Performance has the opportunity to improve capital efficiency Both wells completed with 30 by approximately stages using 0.85 2,000/boe/d tonnes/meter 9,000 1,800…
Single Well Economics by Area Driving Increased Capital Efficiencies Through Longer Lateral Wells Well Capital Costs Single Well Economics* IRR NPV10 Pay Out 1,800 meter lateral Daiber 1,800 m lateral (dry) 52% 5.1 mm 1.9 years…
ESG Environmental, Social, Governance Environmental CO2 Emissions Reduction PONY is committed to reducing GHG emissions through deliberate actions which produce measurable improvements year after year, as evidenced by the 62%…
ESG Environmental, Social, Governance Social Indigenous Relations PONY strives to: Grow relationships with local Indigenous neighbours to instill trust and earn support for current and future operational activities Strengthen employee…
ESG Environmental, Social, Governance Governance Institutional Shareholder Services Inc. (ISS) is the worlds leading provider of corporate governance and responsible investment ratings. On a 1-10 scale where 1 is excellent and 10 is…
Pony Points Checking Off All of the Boxes Well situated to supply Canadian west coast LNG projects Diversified Market Access and Sales Points Massive reserves base Top well performance Industry leading PDP recycle ratio at…
Appendices & Advisories
Financial Strength Term Debt and Credit Facility Provide Financial Flexibility 375 Million Syndicated Credit Facility Secured, Reserve Based Lending Matures May 2021 Syndicated 120 million drawn as at November 8, 2019 120 Credit…
Corporate Overview Auditor KPMG LLP Evaluation Engineers GLJ Petroleum Consultants Ltd. Banks The Toronto-Dominion Bank Canadian Imperial Bank of Commerce The Bank of Nova Scotia Alberta Treasury Branches Royal Bank of Canada…
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