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January 2020 Investor Presentation – Tourmaline Oil Corp.

Tourmaline Oil Corp. · Jan 10, 2020 · 45 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. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 1
    Corporate Presentation January 2020
  2. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 2
    Tourmaline Overview 2 The Scale, Resource, and Infrastructure Required to Profitably Grow in the WCSB and Provide Returns to Shareholders Jan 2020 Tourmaline Overview 2.2MM Net Acres, 2.5 Billion Boe 2P Reserves R. 15W6 R. 1W6 R.…
  3. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 3
    3 Historical EP Performance Mar 2019 Production Growth Per Share* Reserves Growth Per Share* 400 10 Production per Thousand Shares Reserves per Share (BOEs) 350 8 300 250 6 (BOEs) 200 150 4 100 2 50 0 0 2009…
  4. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 4
    4 GHG Emissions Peer Comparison Sept 2019 Tourmaline has the lowest GHG emissions intensity (CO2/boe) among Canadian Senior E&P peers Canadian E&P GHG Emissions 2018 25,000,000 Tourmaline has achieved a 62% reduction in 0.12…
  5. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 5
    5 A History of Full Cycle Profitability Nov 2019 400 6.00 * 350 Earnings before taxes (000,000s) 5.00 AECO (CAD/mcf) Earnings before tax ( millions) 300 4.00 250 AECO (/mcf) 200 3.00 150 2.00 100 1.00…
  6. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 6
    6 Largest WCSB Gas Producers Sept 2019 1,800 1,600 1,400 1,200 Tourmaline is the largest natural Production (Mmcf/d) gas producer in Canada 1,000 (Based on 2019 Estimates) 800 600 400 200 - TOU…
  7. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 7
    7 Liquids Ramp Continues Through 2019 Nov 2019 The liquids mix within corporate production continues to ramp very quickly, growing at 20% Y/Y In 2019 50% of liquids production is weighted towards high value product that receives a…
  8. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 8
    8 Current 5 Year Plan(1) Dec 2019 450,000 400,000 350,000 300,000 250,000 Spirit River Boe/d 200,000 NEBC 150,000 Deep Basin 100,000 50,000 - 2016 2017 2018 2019 2020 2021 2022 2023 2024 Ending E&P Surplus After-tax…
  9. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 9
    9 Alberta Deep Basin Nov 2019 The contiguous Tourmaline interconnected Deep Basin T65 R9 R7 R5 Cretaceous gas asset is effectively Albertas Largest Gas Field. T63 Current Production 175,000 - 180,000 boepd Current Reserves…
  10. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 10
    10 Alberta Deep Basin Liquids Rich Cardium Fairway Nov 2019 Only the initial Cardium delineation 16-20-50-22W5 PAD (2 Hztl) 6-1-51-23W5 PAD (2 Hztl) 12-36-50-23W5 PAD (1 Hztl) locations are depicted, the potential IP 90 16.8 mmcfpd…
  11. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 11
    11 NEBC Montney Gas/Condensate Complex Dec 2019 TOU Land Black Swan Current Prod. 525-540 mmcf/d Comp. Station, dehy 13,000-14,000 bpd condensate C-60-A Gas Plant 25 mmcf/d TOU Wells 200 MMCF/D 7,500-8,000 bpd ngl Q4 2019…
  12. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 12
    12 Gundy Ck Montney Development Sept 2019 A-078-A PAD Avg Rate Number Avg Free Avg Total 9 wells to Date of Days Cond Yield Liquid Yield Gundy Rig Released June 2017 (mmcf/d) (bbl/mmcf) (bbl/mmcf) Current Production: 200 mmcfpd,…
  13. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 13
    Top BC Montney Wells 13 (On-stream between Sept Nov 2019) Jan 2020 180,000 Liquids Gas 160,000 140,000 120,000 100,000 boe 80,000 60,000 40,000 20,000 0 ARC 15-23 Tourmaline d-043 Tourmaline…
  14. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 14
    14 Gundy Creek Phase 1 Deep Cut Plant May 2019 Plant Start-up in May 2019, constructed in 6 months, 200 mmcfpd/13,500 bpd capacity, on budget and ahead of schedule
  15. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 15
    Tourmaline Montney 15 Efficiency + Execution Apr 2019 Montney Net Production (MMCFE/d) 1,400 1,200 1,000 800 600 400 200 0 Source: Goldman Sachs except for Tourmaline (Q2/19E) Select Montney Peers ARC Resources,…
  16. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 16
    16 Peace River High Complex Triassic Oil Charlie Lake and Montney Plays July 2019 R. 11 R. 5 Peace River High R. 9 R. 7 1,850 Horizontal Locations* along Regional Mulligan/Earring Upper Charlie Lake IP30 production rates…
  17. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 17
    17 PRH Complex Asset Acquisition Overview Nov 2019 25 % Share of Complex Dec 2014 Sale Aug 2019 Acquisition (Reserves, Reserve Value Jan 1, 2019) Production 3,000 boepd 5,600 boepd PDP Reserves 3.7 mmboe 9.8 mmboe Value…
  18. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 18
    18 Tourmaline Mid-Stream Assets Nov 2019 The infrastructure skeleton in all three core operated complexes is now complete. This infrastructure is essentially R. 15W6 R. 1W6 all newR.and 15W5in the growth areas of the WCSB. NE…
  19. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 19
    19 Historical Reserves Summary Feb 2019 Reserves (GLJ) Reserves 2012 2013 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) 3000 PDP 91.9 122.3 177.8 263.2 352.1 436.5…
  20. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 20
    20 Gas Development Location Inventory and Economics Mar 2019 AB Deep Outer AB Deep B.C. Gundy B.C. PRH PRH Basin Foothills Basin Montney Montney Charlie Lake Montney Vertical Vertical Horizontal Horizontal Horizontal Horizontal…
  21. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 21
    21 The TOU Engineering Execution Machine Sep 2019 Drill & Complete Costs 8.00 Tourmaline has the lowest completed per stage (Equipping not included) well costs in the overall Montney play in 7.00 Western Canada and the Alberta…
  22. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 22
    22 Continuous Capital Efficiency Improvements Dec 2019 22,500 2019 and 2020 will yield the best capital efficiency 20,000 metrics in company history. 2018 was affected by the major Gundy Phase 1 Deep Cut 17,500 gas plant…
  23. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 23
    23 Continuous Cost Reduction Strategy Mar 2019 Operating Costs General and Administrative Costs 7.00 6.50 6.34 1.50 1.29 6.00 5.58 1.02 5.50 1.00 /boe /boe 5.00 4.87 0.79 0.74 4.43 4.35 4.37 0.60 4.50 0.45…
  24. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 24
    24 2020 Guidance Dec 2019 2020(1) Production Boe/d 320,000 Cash Flow(i) - MM 1,305 CFPS - Diluted(i) 4.80 E&P Capital Program(ii) - MM 925 Free Cash Flow(iii) - MM 345 Exit Net Debt(i) - MM 1,554 Debt to CF 1.2x…
  25. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 25
    25 Balanced Revenue and Cash Flow Streams Through Product, Marketing and Transportation Diversification Dec 2019 2020 BUDGETED REVENUE AECO & Station 2 21% Oil and Condensate 32% Fixed Price 7% NYMEX Basis NGL 10%…
  26. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 26
    26 2020 Cash Flow & Free Cash Flow Sensitivity Jan 2020 Tourmaline has excellent free cash flow resiliency in 2020, with significant positive free cash flow expected, even well below the current strip Tourmalines budget is free…
  27. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 27
    27 2020 Natural Gas Transportation and Marketing Overview Nov 2019 2020 Average Natural Gas Portfolio Diversification 2020 Exit: 490 mmcf/d of gas will be to US/Other Markets 2022 Exit: 590 mmcf/d of gas will be to US/Other…
  28. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 28
    28 Tourmaline/Topaz Transaction Nov 2019 Tourmaline crystallizes a portion of the unrealized intrinsic value in the Companys extensive infrastructure complex and utilizes the very low cost EP business to create a new hybrid…
  29. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 29
    29 Highlights and Outlook Nov 2019 Tourmaline now a Senior with production exceeding 300,000 boepd. Tourmaline is the largest producer of Canadian natural gas and is a top ten Canadian liquids producer (excluding oil…
  30. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 30
    APPENDIX
  31. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 31
    31 Return Metrics Price to Earnings Price / 2019E Earnings Per Share (Canada) 100x Price to Earnings Multiple 80x 60x 40x 20x 0x Price / 2019E Earnings Per Share (United States) 60x Price to Earnings…
  32. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 32
    32 Natural Gas Flows From Western Canada
  33. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 33
    33 Completed Well Costs and EUR By N. American Play Type Mar 2019 Well Costs DC,T (CAD) Vs. EUR by Play Type 18 0.66/mcf Completed Well Cost CDN EUR (Bcfe) 16 15.5 Bcfe 0.94/mcf 14 1.10/mcf 12.8 Bcfe 12.0 MM 12 10.6 MM 10.2…
  34. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 34
    34 Tourmaline vs Natural Gas Peers Cash Costs Per BOE Mar 2019 Tourmaline Vs. US Gas Weighted Peers Cash Costs in USD* per BOE (Q3/18) Operating Transportation G&A Interest 10.00 9.52 9.00 7.89 8.00 7.00 6.24 Costs Per…
  35. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 35
    35 A Significant Liquids Producer Nov 2019 Tourmaline has doubled liquids production over the past 1.5 years with strong liquids growth across all three operated complexes. The 2019 liquid production growth rate of 25-30% is amongst…
  36. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 36
    36 Independently Recognized Canadian 2P Reserves(1) May 2019 14 12 Natural Gas Tourmaline has booked only 15% of Natural Gas (1) 10 existing drilling inventory (2,243 of 14,766 locations See Schedule A). 8 TCF 6 4…
  37. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 37
    37 EP Growth Plan (Original Business Plan) Sept 2008 This is essentially the same business plan that was executed for Duvernay Oil Corp. (2001-2008) Primary growth mechanism will be a conventional EP Program (including Resource…
  38. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 38
    38 Banshee Alberta Gas Plant Simple, easy to construct dew point plants tied to the main TCPL sales system Total cost (2 phases) of 80M, capacity of 130 mmcfpd with enhanced liquids recovery capability
  39. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 39
    39 Gundy Horizontal Well Performance Nov 2018 2017/2018 average completed well costs of 3.3-3.5 million, and along with Sunrise-Dawson, the least expensive for the entire Canadian Montney sector.
  40. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 40
    40 Tourmaline Environmental Performance Tourmaline strives to continually improve all aspects of environmental performance including the impact of its operations on air, land and water. Tourmaline ranks as a top decile performer…
  41. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 41
    Continuous Environmental Performance Improvement 41 Through Innovative Application of New Technologies Massive reduction in flaring Water recycling for fracs Tech Service Gas fired drilling rigs/fracs Methane leakage elimination…
  42. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 42
    Tourmaline Environmental Performance 42 Improvement Highlights June 2019 BC Water Management Alberta Water Management 95-100% of all water sourced for stimulation operations is 1st, and only, company in Alberta to be licenced…
  43. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 43
    43 Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities Cost saving via novel frac water sourcing/recycling New Waste heat recovery technology Alternative hz frac programs/processes Concurrent pairs, delayed…
  44. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 44
    44 Schedule A DRILLING LOCATIONS Estimated Drilling Inventory This presentation discloses drilling locations in four categories: (i) proved undeveloped locations; (ii) probable undeveloped locations; (iii) unbooked locations; and…
  45. January 2020 Investor Presentation – Tourmaline Oil Corp. – slide 45
    45 Schedule A continued Deep Basin Vertical well count : Approximately 2,582 gross prospective sections at approximately 1.5 wells per section minus 10% for areas that are inaccessible or limited by spacing requirements minus…

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