Corporate Presentation A Premier Pure-Play Pipestone Montney Company Sustainable long-term condensate growth NOVEMBER 2019
Pipestone Energy Corp. Overview 148 net Montney sections in the heart of the condensate fairway Large Contiguous Undeveloped Acreage Position in the Condensate- Rich Montney Internally Funded Growth Plan to 33,000 boe/d (35%…
In the Sweet Spot The Pipestone Montney is one of the most prospective areas in the WCSB Scotiabank November 2019 playbook ranks Pipestone Montney as the 9th best play for Profit to Investment Ratio(1) in North America with a 9.8 MM…
Capitalization and Guidance Overview Focused on maintaining a strong and flexible balance sheet Pipestone PipestoneEnergy Capitalization Energy Capitalization Company Guidance 2019E Capital Ticker Symbol TSX-V PIPE Expenditures…
2019 Achievements & Future Game Plan Delivered on key development milestones in 2019. Go-Forward Objective: Deliver Compelling Corporate Returns Relative to All Sectors Achievements 2019 Capital Program Delivered Production Ramp Up…
Pipestone Energy Development Focus Near-term capital program focus will be on pad development along the constructed in-field gathering system Company Development Map Legend 6-24 Pad: 6 additional wells drilled PIPE Acreage in H2…
Prepared for Production Growth Pipestone Energy estimates it will require 9 new wells to hold production flat at the midpoint of its 2019 exit guidance of 14,000 16,000 boe/d Pipestone Energy Operated North of Wapiti River (Keyera /…
Persistent Focus on Capital Costs Pipestone has significantly reduced its capital costs through improved efficiency in a relatively flat service cost environment Drilling Cost Performance Completion Cost Performance Drilling Cost per…
Decades of Drilling Inventory Most future locations will be developed with a 3,000-meter lateral Booked Development Locations Multiple Layers within the Montney at Pipestone of Gross Montney Well Locations 600 522 500…
Significant Reserves & Resource Recognition 164 MMboe of 2P reserves (47% liquids) and 218 MMboe of Best Estimate Contingent resource (47% liquids) Condensate NPV 10% BT NPV 10% Volume / Oil NGLs Total Liquids (B-Tax) (1) Per Share…
Supportive Offset Well Performance Pipestone Montney operators have demonstrated very strong natural gas production performance with high condensate gas ratios Pipestone Montney Very Rich Gas Condensate Historical Well Results -…
Attractive Type Curve Economics Pipestone Montney wells deliver highly competitive half-cycle returns with paybacks of 13 months and IRRs of 100% at US55 WTI and 1.75 AECO Pipestone Very Rich Gas Condensate (Montney B) Type Curve…
Secured Processing Capacity Infrastructure & committed third party facilities will support initial growth to 33,000 boe/d; all contracted Keyera capacity is Priority 1 (highest) Raw Gas (MMcf/d) Keyera Wapiti Gas Plant - Option…
Committed Egress Capacity In Place Firm access to natural gas egress solutions to match existing processing commitments and support future production growth PIPE will seek to further diversify natural gas Sales Gas price exposure…
Commodity Price Hedging Program Managing commodity price risk to improve capital program funding certainty Pipestone Energy is committed to utilizing hedging to reduce the volatility of future cash flows and provide greater funding…
Environment, Social, & Governance Highlights State of the Art Design & Facilities, Focused on Generating Zero Emissions Environment Fuel gas to replace diesel on drilling rigs and frac fleets Air powered instrumentation (vs.…
Investment Highlights A premier high growth pure-play condensate rich Montney company Pure-play Pipestone Montney company in the sweet spot of the condensate fairway Internally Funded Growth Pathway to Current Infrastructure…
APPENDIX
Experienced Management and Board Pipestone Energy is led by a management team with significant Montney experience Management Team Board of Directors Paul Wanklyn Gordon Ritchie, Chairman President and CEO Previously Vice Chairman for…
Compelling Valuation Pipestone Energy is currently trading at 60% discount to its 2P net asset value at strip pricing C Millions Assumes no value attributed for 2/3rd of Pipestone Energy acreage base (vs. current share price…
Rem. 2019 Capital Program Status Throughout 2019 we will continue to measure our performance relative to our objectives Rem. 2019 Objective Updated - November 2019 Status Drilling: 06-24 Pad drilling currently (5 / 6 wells drilled)…
Consistent Geology The latest well at 03-12 confirms the lateral continuity of Montney resource potential across our land base Pipestone Area Cross Section Encana Pipestone Energy A A Montney B and C zones have been proven…
Hedge Position Summary Strong hedge positions on liquids and natural gas production through 2020 Commodity price risk management improves funding certainty for the 2020 capital program 2020 2019 2020 Q4 Q1 Q2 Q3 Q4 FY FY Swap Hedge…
Employing Leading Edge Technology Pipestone is employing and evaluating several technologies and evaluation tools to refine its completion methodologies early in the development lifecycle Current Applications Downhole/Surface Array…
Advisories (Continued) Analogous Information Certain information in this presentation may constitute analogous information within the meaning of NI 51-101, including information relating to areas, wells or operations that are in…
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