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December 2019 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Dec 3, 2019 · 42 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. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / DECEMBER 2019 SUSTAINABLE FREE FUNDS FLOW
  2. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 409.5 Fully diluted (1.8% dilutives) 416.9 Market capitalization (B) 1.8 Enterprise value (B) 3.0 2020 production guidance (boe/d) 71,000 72,000 % oil + NGLs 85% 2020…
  3. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Whitecap Strategy Balance Sheet Top tier free funds flow generation Strength Strong net debt to funds flow ratio Balance sheet as a strategic asset Profitable per share growth Total Shareholder Return Sustainable 10 15%/annum…
  4. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Capturing Opportunities in the Downturn 2016 / 2017 Opportunistic acquisitions to add future drilling inventory Low decline with significant free funds flow Optimization and growth opportunities on premium oil assets 2018 / 2019…
  5. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Karr Montney JV Oil Rich Resource Opportunity Montney Inventory Expansion Pay 100% on 2 drills and 1 completion to earn 34 (21.5 net) Montney sections Potential for 144 (84.2 net) drilling locations (30,000 boe/d) upside 65%…
  6. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 6
    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 179 188 5% Funds flow netback (/boe) 25.70 25.80 Funds flow (MM) 666 675 1%…
  7. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 7
    2020 WTI Price Sensitivities Oil (USWTI) 52.00 57.00 62.00 FX (C/US) 0.74 0.75 0.76 Oil (Cdn/WTI) 70.27 76.00 81.58 AECO (C/GJ) 1.75 1.75 1.75 Funds flow netback (/boe) 22.20 25.80 29.00 Funds flow (MM) 581 675 759 Development…
  8. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Strong Balance Sheet Total Debt Capacity 1.77B Net Debt 1.20B Available Liquidity 570MM Attractive long-term debt with no near-term maturities Amount Type 1 Rate Maturity date 200 MM Bank - Fixed 3.25% 2024 200 MM Sr. Notes -…
  9. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 9
    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…
  10. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 10
    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…
  11. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Capital Allocation Business Unit Target (MM) % West Central Sask Viking 85 23 Northwest Alberta & BC Cardium 100 27 Southwest Sask Atlas/Shaunavon 65 18 West Central Alberta Cardium 48 13 Southeast Sask CO2 Flood 65 18…
  12. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Sustainable Growth Assets: Capital + Dividend < Funds Flow Self Funding Assets 220 200 180 168 167 165 160 149 140 119 120 80 49 103 102 100 80 71 60 51 100 40 85 65 65 37 20 48 14 - Southeast Sask Southwest Sask…
  13. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Internally Funded Income and Growth Model NO DRIP 98 Total Payout Ratio 125% 93 100 90 100% 80 65 70 57 57 Total Payout Ratio 75% 60 WTI (US/bbl) 51 49 43 50 50% 40 30 25% 20 10 0% - 2013 2014 2015 2016…
  14. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 14
    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 -…
  15. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 15
    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…
  16. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 16
    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. 16
  17. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 17
    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…
  18. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 18
    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…
  19. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 19
    Environmental Sustainability Weyburn Carbon Capture Internationally Recognized Project: Largest Carbon Capture & Utilization Storage (CCUS) project in the world CO2 injection commenced in October 2000 Have safely captured and stored…
  20. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 20
    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…
  21. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 21
    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.…
  22. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 22
    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…
  23. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 23
    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…
  24. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 24
    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…
  25. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 25
    TSX:WCP www.wcap.ca December 2, 2019 25
  26. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Appendix Asset Overview 26
  27. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 27
    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…
  28. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 28
    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…
  29. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 29
    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…
  30. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 30
    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…
  31. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 31
    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…
  32. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 32
    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…
  33. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 33
    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…
  34. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 34
    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…
  35. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 35
    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…
  36. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 36
    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…
  37. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 37
    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…
  38. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 38
    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…
  39. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 39
    Slide Notes (contd) Slide 18 1. Free funds flow is calculated as net operating income less capital expenditures. 2. Free funds flow to December 2019 is based on actuals from the date of acquisition to December 31, 2018 and estimates for…
  40. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 40
    Slide Notes (contd) Slide 31 1. Net operating income is based on: WTI US50.00/bbl, US55.00/bbl or US60.00/bbl; C/US0.75 and AECO C1.75/GJ all escalated by 2%/annum; MSW Differential US- 8.00/bbl; and WCS Differential US-17.00/bbl. 2.…
  41. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 41
    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…
  42. December 2019 Corporate Presentation – Whitecap Resources Inc. – slide 42
    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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