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December 2019 Corporate Presentation – Seven Generations Energy Ltd

Seven Generations Energy Ltd · Dec 3, 2019 · 32 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 – Seven Generations Energy Ltd – slide 1
    TSX: VII CORPORATE PRESENTATION December 2019
  2. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 2
    SEVEN GENERATIONS ENERGY Serving our stakeholders through: Differentiated attention to selection, development & replenishment of the lowest supply cost resource Best in class execution through safe, responsible, innovative and…
  3. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 3
    7G CORPORATE PROFILE Largest Producer of Condensate, Premier Alberta Montney Pure-Play Canadas Most Valuable Hydrocarbon 205 Mboe/d (37% condensate, 21% NGL, 42% gas) in Q3/19 Multiple market exposures provide maximum gas price…
  4. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 4
    2020 BUDGET - SETTING THE STAGE Budget Objectives: Value Creation Economic growth in per-share production, cash flow and free cash flow Shareholder Focus Cash flow upside from higher prices benefits shareholders…
  5. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 5
    NEAR TERM DEVELOPMENT GOALS Nest 1 development Integrate Nest 3 Core development Step into Nest 2 East Areas Define Nest 1 perimeter Nest 3 resource to fill infrastructure Balanced Nest development across all 3 layers Optimize…
  6. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 6
    2020 CAPITAL BUDGET & GUIDANCE 2020 Capital Budget & Guidance Completions Sustaining Capital(1) 1.0 billion Discretionary Capital(2) 0.1 billion Total Capital Investment 1.1 billion Average Production 200 - 205 Mboe/d 1.1…
  7. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 7
    2020 CAPITAL ALLOCATION GUIDING PRINCIPLES Dollars (MM) 1,800 Value Enhancing 1,600 Delineation 70 WTI 1,400 Major Infra 60 WTI Value Enhancing Growth Reduced break-even costs 1,200 Delineation and FCF growth Value…
  8. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 8
    THE CORNERSTONES OF OUR BUSINESS Return of Capital Return on Capital Free Cash Flow Strategic Principles Financial Market Sustainability Resource Access Quality & Low Supply Cost Stakeholder Strong Service balance…
  9. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 9
    STRATEGIC PRINCIPLES: FINANCIAL SUSTAINABILITY Net debt to trailing 12 month adjusted EBITDA Solid Balance Sheet 2.4x Leverage is 2.1x below 2x at US50 WTI 1.5x 1.6x 1.3x 1.4x 1.2x 0.9x 1.6B of liquidity 1.3B available on…
  10. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 10
    7GS TRACK RECORD OF INDUSTRY LEADING RETURNS 7G Cash Return on Invested Capital (CROIC)(2) 19.1% 17.4% 17.9% 16.4% 2015 2016 2017 2018 Top Quartile Returns vs North American Sectors 2018 EBITDA / Total Average Capital…
  11. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 11
    7GS STRATEGIC EVOLUTION TOWARD FREE CASH FLOW (1)(2)(3) Capital Investments Free Cash Flow (2) (3) As a Percentage of Adjusted Funds Flow (MM) 350% Nearly 300 MM free cash flow potential between 200 Total Capital 50-60/bbl WTI…
  12. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 12
    STRATEGIC PRINCIPLES: STAKEHOLDER SERVICE Governance Environment Social Practices That Drive Diversity, A Low GHGe Footprint vs Peers (2) Total Recordable Incident Frequency Accountability and Effective Oversight Full-Time…
  13. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 13
    STRATEGIC PRINCIPLES: STAKEHOLDER SERVICE ESG PERFORMANCE 2019 2018 2019 2018 2019 2018 Environment 2 3 Social 2 6 Governance 2 3 Risks and 3 8 Human Rights 3 4 Board Structure 2 3 Opportunities Carbon and Labor, Health 2…
  14. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 14
    STRATEGIC PRINCIPLES: HIGH QUALITY RESOURCE Most Economic Infrastructure Footprint Resource in Canada Canadas largest producer of high-value condensate Natural Gas Processing: 1 Bcf/d capacity Nest IRRs average 125% 510 MMcf/d…
  15. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 15
    STRATEGIC PRINCIPLES: MARKET ACCESS FOR NATURAL GAS 7G Gas Market Sales Points AECO 10% AECO 5% AECO 5% Dawn 15% Dawn 14% Dawn 15% Malin 13% Malin 18% Gulf 24% Gulf 26% Gulf 24% Chicago 49% Chicago Chicago 41% 38% GTN: 90…
  16. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 16
    STRATEGIC PRINCIPLES: MARKET ACCESS FOR CONDENSATE Forecast Supply & Demand of WCSB Condensate (Mbbl/d)(1)(3) Edmonton Condensate vs. Crude Oil Prices (US/bbl)(2) 250 Mbbl/d+ 80 800 gap between 70 supply & demand 60 Total Demand 50…
  17. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 17
    LOWER MONTNEY EMERGING DEVELOPMENT POTENTIAL Successful Triple-Stack Development vertical test Full triple-stack IP60: 1,520 boe/d 67% condensate (3-well average) Partial triple-stack 2,800-3,000 IP90: 1,048 boe/d…
  18. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 18
    NEST 3 DEVELOPMENT NEW HIGH DELIVERABILITY REGION Cumulative condensate (Mbbl) vs. time (days) 120 100 80 60 40 20 0 0 30 60 90 120 150 180 2018 Curve Latest Nest 3 Actuals 2019 Development 2020+ Up-front capital…
  19. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 19
    NEST 1 DEVELOPMENT ULTRA-RICH CONDENSATE REGION IP60 (2 Hz) 1,413 1,963 boe/d 64% Condensate Nest 1 2019 Activity IP96 2,030 boe/d 55% Condensate Flowtest IP20 (7 Hz) Cumulative condensate (Mbbl) vs. time (days) 1,068 1,972 boe/d…
  20. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 20
    SUMMARY OF PREMIUM SINGLE WELL ECONOMICS & OTHER INVENTORY Nest 2 Core Nest Weighted Nest 1 Nest 3 Development Inventory Average South East West North IP30 (boe/d) 1,500 1,950 - 2,350 2,000 1,900 15 years IP365 (boe/d) 775 1,150…
  21. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 21
    THE 7G INVESTMENT THESIS Expanding free cash flow Moderating declines reduce sustaining capital Major gas processing investments completed Delivering operating excellence Execution, optimization and cost control Consistent…
  22. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 22
    TSX: VII APPENDIX
  23. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 23
    7GS GUIDING PRINCIPLE STAKEHOLDER SERVICE Stakeholder Differentiation We believe that companies have only the rights given to them by society. While people have a natural entitlement to basic rights, corporations are an instrument…
  24. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 24
    2019 BUDGET 2019 Guidance Sustaining Capital(1) 1.1 billion Nest 2 Development Discretionary Capital(2) 0.15 billion Value Total Capital Investment 1.25 billion Enhancing Average Production 200 - 205 Mboe/d H1/19 Production 195…
  25. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 25
    HEDGING STRATEGY Quarterly Revenue (/boe) 60 12.00 Realized Hedge Gain/(Loss) (b/oe) Hedging program has reduced revenue volatility by 25% Price Realization (/boe) 50 8.00 40 4.00 30 0.00 20 -4.00 Hedging…
  26. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 26
    CURRENT HEDGE POSITIONS AS AT SEPTEMBER 30, 2019 Crude Oil CAD WTI Collars CAD WTI Sold Puts USD WTI Swaps and Collars USD WTI Sold Puts bbl/d C/bbl bbl/d C/bbl bbl/d US/bbl bbl/d US/bbl RoY 2019 16,000 58.13 74.90 2,000 40.00…
  27. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 27
    SELECTED FINANCIAL AND OPERATIONAL INFORMATION VII - Recent Quarterly Results OPERATING RESULTS Q3 2019 Q2 2019 Q1 2019 Q4 2018 Q3 2018 Q2 2018 Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 YE 2018 YE 2017 Average daily production…
  28. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 28
    SWEET SPOT IN THE MONTNEY Over Pressured High Productivity Brittle Rock High Recovery Factor Thickness Large Resources in Place Lower Temperature High Liquids Content 1) Sources: Canadian Discovery Ltd. & Graham Davies…
  29. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 29
    IMPORTANT NOTICE The Company has opted to rely upon the type-curve forecasts that have results will differ from the forecasts for the reasons described above and drilling locations have been de-risked by drilling existing wells in…
  30. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 30
    IMPORTANT NOTICE Oil and Gas Definitions proved reserves are those reserves that can be estimated with a high infrastructure, nor do they take into account land acquisition costs, degree of certainty to be recoverable. It is likely…
  31. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 31
    DEFINITIONS AND ABBREVIATIONS A annual LPG liquified petroleum gas AECO physical storage and trading hub for natural gas on the TransCanada Alberta transmission system LTIF lost time incidence frequency Alliance Alliance pipeline m…
  32. December 2019 Corporate Presentation – Seven Generations Energy Ltd – slide 32
    For more information: Brian Newmarch Vice President, Capital Markets and Stakeholder Engagement 1.403.767.0752 bnewmarch7genergy.com Ryan Galloway Investor Relations Manager 1.403.718.0709 ryan.galloway7genergy.com…

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