Skip to main content Encana Anadarko Day Webcast – Ovintiv Inc. Investor Presentation | Shale Experts
Loading...
Pm

Encana Anadarko Day Webcast – Ovintiv Inc.

Ovintiv Inc. · Jan 29, 2020 · 39 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. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 1
    Anadarko Basin Operational leader with the Ovintiv Edge January 29 30, 2020
  2. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 2
    2 We are Ovintiv
  3. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 3
    3 We are Ovintiv Leading crude Deep World Class & condensate Multi-Basin Operator producer Resource To make modern life possible for all. Track Record of Socially Ticker Significant FCF Innovative Responsible NYSE: OVV &…
  4. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 4
    WE ARE OVINTIV 4 Demonstrated Excellence Goal Metric Details G&A Synergies 200 MM Annualized G&A synergies Effective integration of NFX acquisition, one culture 1.5x original target of 125 MM STACK D&C Cost Reduction 6.0 MM…
  5. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 5
    WE ARE OVINTIV 5 Strong 2019 Performance Proforma Guidance PF Excluding Capex Results Original Midpoint Current Low High Results FY19 Dispositions 2 FY18 FY19 (YoY) 2.8B Midpoint of guidance Total Liquids FY19 Upstream Free…
  6. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 6
    WE ARE OVINTIV 6 Strong Anadarko Basin Production Significant YoY volume growth in the Anadarko +18% o Oil and condensate cut and production flat in 2H19 despite reduction in rig count 124 net wells on production in 2019 o 25%…
  7. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 7
    WE ARE OVINTIV 7 Why the Anadarko Works for Ovintiv World Class Operator o Quality multi-basin assets with scale STACK IRRs Compete with All Basins 1 o Proven operational expertise 50% o Top tier ESG performance Targeted,…
  8. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 8
    8 World Class Operator
  9. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 9
    WORLD CLASS OPERATOR 9 Multi-Basin Scale Critical for Through Cycle Performance Substantial operational scale 589 MBOE/d PF FY19 (55% liquids) 1 425 gross operated wells drilled in FY19 Montney 2 million net acres 2 In top North…
  10. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 10
    WORLD CLASS OPERATOR 10 Ovintiv: A Leading Crude & Condensate Producer Quality multi-basin portfolio drives performance 3Q19 Liquids Production (Mbbls/d) 2 Peer 1 OVV 329 (70% crude + condensate) Scale provides flexibility across…
  11. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 11
    WORLD CLASS OPERATOR 11 The Ovintiv Edge Leveraging multi-basin scale and technical expertise to unlock value o Substantial experience with 4,300 horizontal wells drilled across North America over the last 10-years o Traded for…
  12. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 12
    WORLD CLASS OPERATOR 12 Industry Leading ESG Performance 6th Consecutive Safest Year Ever Proven Safety Results Environmental Performance 1 TRIF Methane Intensity 2018 Water Use 0.44 0.34 0.30 0.30 0.28 0.21 1 0.43…
  13. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 13
    13 Targeted, Contiguous Acreage Position
  14. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 14
    TARGETED, CONTIGUOUS ACREAGE POSITION 14 What We Saw in the Anadarko Purchase Price: K / Net Acre Attractive basin entry supports full cycle corporate returns Permian 1 76 2018 Permian Permian 2 55 2018 Multiple stacked…
  15. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 15
    TARGETED, CONTIGUOUS ACREAGE POSITION 15 Primed for Full-Field Development Anadarko Basin Acreage 1 385k net acres in the Anadarko Basin sourced through grass roots leasing o Clear acreage cut off lines to the north and east of…
  16. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 16
    TARGETED, CONTIGUOUS ACREAGE POSITION 16 Advantaged Midstream & Marketing Position Substantial in-place midstream infrastructure Advantaged Proximity to Key Pricing Hubs o Diversified, well established midstream providers Conway o…
  17. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 17
    17 Quality Reservoir
  18. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 18
    QUALITY RESERVOIR 18 Large Contiguous Reservoir Underpins Acreage World class Woodford source rock with fully charged Meramec Anadarko Basin Acreage 1 o Thick hydrocarbon window with multiple stacked targets STACK o Hydrocarbon…
  19. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 19
    QUALITY RESERVOIR 19 Anadarko Basin Regional Geology Anadarko Basin Acreage 1 Acreage focused in the core of the well delineated black oil window Well established subsurface understanding o Significant core & logging data drive…
  20. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 20
    QUALITY RESERVOIR 20 STACK + Top Tier Operator = Premier Resource Play Building the STACK acreage position Key Characteristics OVVs Acreage o Targeted for pressure, oil cut and thickness o Geological variables tie directly to oil…
  21. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 21
    21 Ovintiv Edge
  22. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 22
    OVINTIV EDGE 22 The Ovintiv Edge Supply Chain Completions 95 MM savings in the Anadarko as +150% operational pumping hours a result of supply chain initiatives (4Q19 vs FY18 average) Drilling Well Performance 20% reduction in…
  23. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 23
    OVINTIV EDGE 23 Differentiated Supply Chain Management OVVs advantaged supply chain management approach 95 MM Anadarko Commercial Savings 1 o Leverage multi-basin market knowledge o Unbundle key services to access low-cost, best…
  24. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 24
    OVINTIV EDGE 24 STACK Drilling Innovation OVV Leading STACK Driller (Ft/day) 1 Top-Tier operator in Anadarko 2,208 1,999 2,103 o Recent 9-day SPUD to RR in STACK: 1,747 1,696 1,590 60% faster rate of penetration in lateral vs…
  25. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 25
    OVINTIV EDGE 25 Execution Rapidly Improved Anadarko Returns Completion operation overhauled day one to maximize efficiency o Pump rate increased from 80 100+ Bbls/min o Significant frac efficiency improvement Increased pumping…
  26. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 26
    OVINTIV EDGE 26 Redesigned Production Facilities Sustainable wellsite cost reductions o Standardized design leads to reduced engineering and equipment costs o New design allows for pre-fabrication and lower install costs o…
  27. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 27
    OVINTIV EDGE 27 Base Production Optimization 35 Base Decline - Anadarko Basin Oil Cross-basin collaboration unlocking value o Optimized artificial lift performance 30 Exceeded mid-year projection by 1,000 Bopd over final 5…
  28. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 28
    OVINTIV EDGE 28 Cycle Times Matter Applying cross-basin learnings faster than peers is a Cross-Basin Learnings = Cycle Time Reduction (Days) 1 true competitive advantage 1Q 3Q19 o Leading edge development practices applied across…
  29. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 29
    29 Strong Returns
  30. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 30
    STRONG RETURNS 30 Consistent STACK Well Performance Core STACK Black Oil Window Generating 50% 2 IRR…
  31. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 31
    STRONG ECONOMICS 31 Each Cube is a Unique Development 6-Well Cube Meramec Development Case Study Customize cube design to maximize value 100% Maximizing value and returns Ovintiv D&C o Specific geologic variables (i.e. reservoir…
  32. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 32
    STRONG ECONOMICS 32 STACK Return Sensitivities Pacesetter performance better OVV Well Positioned vs. In-Basin Peers than this today +10% 60% +15% 50% 1 +7% +3% 25% Anadarko Peers Favorable Lower Royalties: Capital…
  33. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 33
    STRONG ECONOMICS 33 Substantial Running Room STACK 200 Undeveloped Operated DSUs SCOOP 70 Undeveloped Operated DSUs Future development focused in black oil region Immediately applying STACK learnings to SCOOP o Cost savings &…
  34. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 34
    KEY TAKEAWAYS 34 Why the Anadarko Works for Ovintiv STACK Returns Compete with All Basins 1 50% World Class…
  35. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 35
    KEY TAKEAWAYS 35 We Are Ovintiv Financial Ability to manage volatility through the cycle Free cash flow generation and return of capital to shareholders Stable capital structure & improving leverage Operational Sustainable…
  36. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 36
    38
  37. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 37
    39 Appendix
  38. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 38
    40 Anadarko Basin Play Details STACK SCOOP Black Oil Springer Woodford IRRs (55 / 2.50 flat) 40% 60% 40% 60% 40% 60% EUR (MMboe) 0.9 1.2 1.1 1.3 0.8 1.1 D&C costs ( MM) 5.0 6.0 9.0 10 5.4 6.2 Remaining Operated DSUs (gross)1…
  39. Encana Anadarko Day Webcast – Ovintiv Inc. – slide 39
    41 Reconciliation of FY19 Guidance to Reportable Impact of Newfield Reportable Jan 1 Feb 13, FY 2019 Guidance Guidance 2019 Proforma Total Liquids (Mbbls/d) 297 301 15 312 316 Natural Gas (MMcf/d) 1,560 1,575 55 1,615 1,630…

From the store

Browse maps, data & reports in the Shale Experts store