Corporate Snapshot & Select Guidance Q3 2019 average production 80,548 boe/d Q3 2019 adjusted funds flow (millions / per share) 63.0 / 0.24 per share Estimated 2019 annual average production 77,000 79,000 boe/d % oil and NGL 22%…
Q3 2019 HIGHLIGHTS Record quarterly average production of 80,548 boe/d, a 2% increase from 79,331 boe/d inQ3 2018 Quarterly adjusted funds flow of 63.0 million (0.24/basiccommon share), a 16% decrease from 75.4 million (0.28/basic…
INVESTMENT HIGHLIGHTS Focused assets in the Peace River Arch Area of Alberta on the Montney/Doig Resource Play Essentially 100% working interest; 99% of production is operated Large, contiguous undeveloped land base with an average…
PRODUCTION HISTORY 90,000 77,000 - 78,000 - 79,000 82,000 80,000 77,096 Compound per-share production growth of 12% per year since 2005. 70,000 67,963 (14% since PC Gas Plant Phase I Average Production(boe/d) Completion in…
CORPORATE RESERVES 1,200,000 7,000 PDP - Reserves 1,100,000 TP - Reserves 2P - Reserves 6,000 1,000,000 PDP - NPV10 On a per share basis PDP, 1P and 2P 900,000 TP - NPV10 reserves have increased at a compound 5,000 2P - NPV10…
PROVEN TRACK RECORD AS A LOW COST PRODUCER 5 Year Profitability Breakdown: 2014 2015 2016 2017 2018 Average Average AECO (CAD/GJ) 4.27 2.55 2.05 2.04 1.42 2.47 Average WTI (USD/bbl) 92.99 48.80 43.32 50.95 64.77 60.17 P&NG…
CORPORATE RESPONSIBILITY Environmental, Social & Governance Waste heat recovery units on phases V & VI of the PC Gas Plant and additional emission reduction initiatives take the equivalent of 5,000 cars off the road annually…
CORPORATE RESPONSIBILITY Community Involvement Over 3 million donated to more than 100 local community groups and organizations in the last 3 years Continued partnerships with local communities through educational, cultural, and…
LOOKING FORWARD 2019 Plans & Beyond
2019 CAPITAL PROGRAM THEMES Birchcliff continues to target its total capital expenditures to be less than its adjusted funds flow in 2019(1) 2019 annual average production guidance is for 77,000 to 79,000 boe/d Birchcliffs 2019 F&D…
2019E NATURAL GAS MARKETING AECO 1.50 0.03 0.32 1.15 142,000GJ/d 34% 38% 3% 163,000GJ/d Dawn 3.05 13,000GJ/d 0.13 Alliance 1.20 25% 1.72 2.47 0.03 0.62 105,000GJ/d 1.82 Note: All Birchcliff gas realizes a HenryHub…
Q3/19 REALIZED NATURAL GAS PRICING PHYSICAL SALES 3.50 In Q3/19, Birchcliff realized a 74% premium to AECO spot pricing for its 2.98 3.00 natural gas 2.50 2.00 1.71 1.63 /Mcf 1.50 1.02 0.98 1.00 0.90 0.67 0.50…
OPEX/TRANSPORT COSTS VS GAS PRICING Opex down 36% Q3/19 vs Q3/17 9.00 4.00 T&M has increased due toincreasing access to new markets, realizinga 8.00 74% premium to AECO in Q3/19 3.50 7.00 3.00 6.00 Operating & T&M Costs…
RISK MANAGEMENT, HEDGING & DIVERSIFICATION(3) In 2019, approximately 66% of Birchcliffs natural gas production will effectively be sold at prices that are not based on AECO (based on 2019 production guidance of 77,000 - 79,000…
INCREASING WCSB NATURAL GAS EGRESS Additional 5.2 Bcf/d coming online 2019-2024 Intra-Alberta +1.5 Bcf/d East Gate +1.3 Bcf/d LNG 2.0 Bcf/d Intra-AB Demand West Gate +0.4 Bcf/d 1.5 Bcf/d West Coast LNG +2.0 CANADA Bcf/d…
BORROWING BASE DETAILS Birchcliff has extendible revolving credit facilities in the aggregate principal amount of 1.0 billion, which are comprised of an extendible revolving syndicated term credit facility of 900 million and an…
MONTNEY/DOIG RESOURCE PLAY A Significant Position in a World Class Play
MONTNEY/DOIG - A WORLD CLASS RESOURCE PLAY Resource density. Stacked resource up to 300 metres thick. Large areal extent. Extends over 50,000 square miles. Exceptional fracability. Low clay Birchcliff Montney/Doig content, low…
MONTNEY/DOIG MINEROLOGY LEADS TO EXCELLENT FRACABILITY The Montney/Doig Resource Play rock type is composed of a Some other Resource Plays have a high percentage of clays high percentage of hard minerals, and a low percentage of and…
BIRCHCLIFF MONTNEY/DOIG RESOURCE PLAY The Gordondale Acquisition in 2016 added a fourth commercial development interval in the Montney D2 Large contiguous land base with 367.4 sections prospective for the Montney/Doig as at…
STACKED RESOURCE PROVIDES SUBSTANTIAL FUTURE UPSIDE November 14, 2019 27
MONTNEY/DOIG MULTI LAYER OPPORTUNITY November 14, 2019 28
BIRCHCLIFF MONTNEY/DOIG INVENTORY November 14, 2019 29
FOCUSED ASSETS FOCUSED INFRASTRUCTURE POUCE COUPE GORDONDALE Key Natural Gas Processing Infrastructure Key Natural Gas Processing Infrastructure Pouce Coupe Natural Gas Plant AltaGas Gordondale 3-22-078-12W6 Sour Deep Cut Gas Plant…
WATER STORAGE INFRASTRUCTURE Birchcliff has extensive water storage infrastructure in place to support its completion operations 920,000 m3 of water storage at 10 strategically located sites This volume provides Birchcliff…
POUCE COUPE OVERVIEW Proven asset in development phase Wells show high initial deliverability, low terminal decline and stable long term production Predictable results with improving gas rates & liquids yields 100% owned and…
CONTINUED NATURAL GAS RATE IMPROVEMENT Only 3 wellsin 2019 with 7 or more months of production data Deloitte Tier 0 Type Curve November 14, 2019 33
CONTINUED CONDENSATE RATE IMPROVEMENT Birchcliff continues to target condensate-rich natural gas wells in Pouce Coupe, which has materially impacted the amount of liquids (primarily condensate) being produced at the Pouce Coupe…
CONTINUED CONDENSATE RATE IMPROVEMENT November 14, 2019 35
GORDONDALE OVERVIEW Acquired in 2016, Gordondale consolidated a sizeable and contiguous land base within Birchcliffs existing core area High oil & NGLs weighting Strategic infrastructure Low base decline production High quality…
GORDONDALE BASE PRODUCTION HISTORY Last well drilled in 2014 (on-stream Birchcliff Scheduled 40,000 2015) with peak production of Acquisition AltaGas Plant 35,000 boe/d (22,000 BOE/d) Turnaround 35,000 2018 AltaGas Deep Cut Plant…
2017 LIQUIDS SUMMARY 2017 Well Rates (IP60 Avg. Per Well) BUILDING ON THE GORDONDALE ACQUISITION GORDONDALE: CRUDE OIL Excellent Lower Montney oil inventory in D1 and D2 intervals Engineered completions drive recovery factor…
2018 LIQUIDS SUMMARY 2018 Well Rates (Rates are IP60) FURTHER REFINING OUR LIQUIDS STRATEGY GORDONDALE: CRUDE OIL Strong Montney D2 oil and total boe test rates Strong Montney D1 oil and total boe test rates Further refinements of…
2019 LIQUIDS SUMMARY 2019 Well Rates (Rates are IP60 or noted by pad) CONTINUED PURSUIT OF INCREASED LIQUIDS GORDONDALE: CRUDE OIL Successful delineation of the Montney D1 and D2 oil trends to the south Significant Montney D1 and…
ELMWORTH DEVELOPMENT Received regulatory approval for an Second acid gas injection well in August 2016 Exploration Horizontal Preliminary planning underway for a 100% owned and operated 40 MMcf/d natural gas processing plant;…
CONCEPTUAL MONTNEY/DOIG FIELD DEVELOPMENT MODEL STATUS OF MODEL CALIBRATION AND DERISKING FACIES & PETROPHYSICAL G EO LO G I C A L, G EO PH Y S I C AL, G EO M EC H A N C A L HYDRAULIC F R A C & M I C R O SEIS. RESERVOIR M O D EL O…
POUCE COUPE DRILLING PERFORMANCE 2018 2018 2017 2017 2016 2016 November 14, 2019 46
ENGINEERED COMPLETIONS FOR MONTNEY/DOIG FULL FIELD DEVELOPMENT Industry Range Birchcliff Best Practices Oil Birchcliff Best Practices Gas Liner type Openhole or Cemented Openhole or Cemented Openhole or Cemented Inter-well spacing…
TERMINAL DECLINE CHANGES IQRE continued support for low terminal decline rates from Birchcliffs existing wells and offsetting industry wells with significant production history. Deloittes 2P Tier 0 type curve has remained at 8.2 Bcf…
CONTINUED COST AND DESIGN REFINEMENT Both Pouce Coupe and Gordondale have moved to increased frac intensity to maximize oil and condensate rates Overall well costs have slightly increased due to increased frac intensity…
PC GAS PLANT The Engine for Future Growth
Production Processed through the PC Gas 2014 2015 2016 2017 2018 9mo/19 Plant Average daily production, net to Birchcliff: Natural gas (Mcf) 132,808 163,641 168,444 193,417 250,011 264,699 Oil, condensate & NGLs (bbls) 1,065 1,287…
Corporate Operating Costs vs. % of Natural Gas Sales KEY STRATEGIC Volumes Processed at the PC Gas Plant 10.00 100% Corporate Operating Cost (/boe) ADVANTAGES Volume Through PC Gas Plant 8.00 80% 6.00 60% 100% owned…
PC GAS PLANT HIGHLIGHTS Following the successful condensate-rich drilling program, Birchcliff is initiating the engineering and planning of a 20,000 bbls/d liquids handling hub at the PC Plant (anticipated completion in Q3/2020).…
BUILDING ON OUR PAST Over 14 Years of Success
Forecasted annual average production of Birchcliffs average daily production was 77,096 boe/d in 77,000-79,000 boe/d in 2018 compared to 2,793 boe/d in 2005, a compounded 2019 annual growth rate of 29% per year over that span.…
Birchcliff has increased production at a compound annual growth rate of 29% since 2005. Operating & Cash Costs * 20 18 16 14 Operating and cash costs have decreased by 66% and 41% since 12 /boe 10 8 2008 largely due…
Reserves Growth 1,200 4,000 1,000 3,200 Birchcliff has added significant low cost reserves since commencing operations in 2005. On a per common share 800 boe/1,000shares 2,400 MMboe 600 1,600 basis, PDP, 1P and 2P…
APPENDIX
CANADAS LNG ADVANTAGE Cleaning Our Worlds Environment, a 2.4 Bcf/d LNG Facility Could; Displace 52.6 million tonnes of carbon emissions from coal-fired power generations. Replace approximately 34 coal fired power plants in China…
ENOUGH RESOURCE TO FILL A 2.2 Bcf/d LNG TRAIN FOR OVER 20 YEARS 1 Bcf/d LNG Train X 365 Days X 20 Years = 7.3 Tcf BIR Remaining Reserves as BIR Contingent Resource as at Dec 31, 2018 (gas only) at Dec 31, 2018 (gas only) 5.1 Tcf…
PROXIMAL TO INFRASTRUCTURE WITH LONG TERM EXPOSURE TO LNG EXPORT Montney/Doig Birchcliff Montney/Doig Production Resource Play Owned Infrastructure Pouce Coupe Gas Plant Nova Pipeline System North American Market LNG…
2018 MONTNEY/DOIG RESOURCE ASSESSMENT Reserves and Resource Volumes (Bcfe)(1)(2) Resource Class Raw/Sales Low Estimate Case Best Estimate Case High Estimate Cumulative Production(3) Sales 995.4 995.4 995.4 Remaining Reserves(3)(4)…
2018 YEAR END MONTNEY/DOIG RESERVES Drilled 27 HZ M/D wells and acquired 2 HZ M/D wells Drilled 53 HZ M/D wells Drilled 20 HZ M/D wells 385 (380.6 net) Montney/Doig horizontal and acquired 87 HZ M/D wells wells drilled as of…
MONTNEY/DOIG WELL LOCATIONS Existing and Potential Future Drilling Locations by Interval at December 31, 2018 Average Proved Plus Probable Reserves plus Cumulative Gross Number of 2P Net Number of 2P Production Horizontal Well…
SERIES A PERPETUAL PREFERRED SHARES Preferred Share Details Series A Number of Shares 2 million Issue Date August 8, 2012 TSX Trading Symbol BIR.PR.A Issue / Par Price 25.00 per share Quarterly Dividend 0.523375 per share Yield…
SERIES C PREFERRED SHARES Preferred Share Details Series C Number of Shares 2 million Issue Date June 14, 2013 TSX Trading Symbol BIR.PR.C Issue / Par Price 25.00 per share Quarterly Dividend 0.4375 per share Yield at Issue 7.0%…
EXECUTIVE OFFICERS Mr. Tonken is the President, Chief Executive Officer and Chairman of the Board of Birchcliff. He has more than 36 years of of A. Jeffery experience in the oil and natural gas industry and is one of the Corporations…
EXECUTIVE OFFICERS Mr. Carlsen is the Vice-President, Engineering of Birchcliff and is a Professional Engineer. He previously served as Asset Asset Christopher A. Team Lead and and Senior Senior Exploitation Exploitation Engineer…
BOARD OF DIRECTORS A. Jeffery Tonken See Mr. Tonkens biography under Executive Officers. President, CEO and Chairman of the Board Mr. Surbey is a Director of Birchcliff and is a member of the Reserves Evaluation Committee. Mr.…
BOARD OF DIRECTORS Ms. Gerlach is a Director of Birchcliff and is a member of the Audit Committee, Compensation Committee, Nominating Debbie Committee and Reserves Evaluation Committee. Ms. Gerlach was a partner with Deloitte LLP for…
PRESENTATION OF OIL AND GAS RESERVES AND RESOURCES: Deloitte prepared the 2018 Consolidated Reserves Report, the 2017 Consolidated Reserves Report, the 2018 Deloitte Reserves Report and the 2017 Deloitte Reserves Report. McDaniel…
THANK YOU TEAM BIRCHCLIFF Jeffrey Akeroyd, Bradley Alexander, Karen Allen, Diana Almeida, Camille Ashton, Gates Aurigemma, Valerie Babkov, Angela Belbeck, Tyrus Bender, Daniel Blattler, Calvin Bohdan, Angela Boire, Darryl Bolch,…
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