Corporate Presentation A Premier Pure-Play Pipestone Montney Company Sustainable long-term condensate growth JANUARY 2020
Pipestone Energy Corp. Overview Over 140 net Montney sections in the heart of the condensate fairway Large Contiguous Undeveloped Acreage Position in the Condensate- Rich Montney December Avg. Production of 17,700 boe/d beat top…
In the Sweet Spot The Pipestone Montney is one of the most prospective areas in the WCSB Peters & Co.s Winter 2020 Energy Overview ranks Montney Pipestone as the 6th best Natural Gas play based on payback periods in North America…
Capitalization and Guidance Overview Focused on maintaining a strong and flexible balance sheet Pipestone PipestoneEnergy Capitalization Energy Capitalization Company Guidance Forecast Production & Cash Flow(4) Ticker Symbol…
2019 Achievements & Future Game Plan Delivered on all key capital and production milestones in 2019. Go-Forward Objective: Deliver Compelling Corporate Returns Relative to All Sectors Achievements Reduced DCE&T costs by 27% Exceeded…
Pipestone Energy Development Focus Near-term capital program focus will be on pad development offsetting the highest liquids results observed to date along the infrastructure spine PIPE Acreage Company Development Map PIPE Pipelines…
Platform for Continued Production Growth Pipestone Energy estimates it would require 14 new wells to hold production flat at the midpoint of its 2020 exit guidance of 20,000 22,000 boe/d Pipestone Energy Operated Well Status Well Count…
Persistent Focus on Capital Costs Pipestone has significantly reduced its capital costs through improved efficiency in a relatively flat service cost environment Drilling Cost Performance Completion Cost Performance Drilling Cost per…
Initial Pipestone Energy Well Performance Production from the 3-1 and 15-14 pads are demonstrating on type curve performance 3-1 Pad Results to Date 15-14 Pad Results to Date Cumulative Production (boe) Cumulative Production (boe) 2P…
Attractive Type Curve Economics Pipestone Montney wells deliver highly competitive half-cycle returns with paybacks of 13 months and IRRs of 100% at US55 WTI and 1.75 AECO Pipestone Very Rich Gas Condensate (Montney B) Type Curve…
Secured Processing Capacity Infrastructure & committed third party facilities will support initial growth to 33,000 boe/d; all contracted Keyera capacity is Priority 1 (highest) Raw Gas (Mcf/d) 175 CNRL Gold Greek Gas Plant - IT…
Committed Egress Capacity In Place Firm access to natural gas egress solutions to match existing processing commitments and support future production growth PIPE will seek to further diversify natural gas price exposure after first…
Commodity Price Hedging Program At the mid-point of its guidance range, Pipestone Energy has approximately 49% of its net after-royalties production hedged for 2020 At the mid-point of Pipestone Energys guidance range, approximately…
Environment, Social, & Governance Highlights State of the Art Design & Facilities, Focused on Minimizing Emissions Environment In-field fuel gas to displace diesel on drilling rigs and frac fleets Air powered instrumentation vs.…
Experienced Management and Board Pipestone Energy is led by a management team with significant Montney experience Management Team Board of Directors Paul Wanklyn Gordon Ritchie, Chairman President and CEO Previously Vice Chairman for…
Investment Highlights A premier high growth pure-play condensate rich Montney company On-Track To Generate Peer Leading Corporate Returns On Capital Employed Internally Funded Growth Pathway To Fill Current Infrastructure Capacity…
APPENDIX
Decades of Drilling Inventory Most future locations will be developed with a 3,000-meter lateral Booked Development Locations Multiple Layers within the Montney at Pipestone of Gross Montney Well Locations 600 522 500…
Significant Reserves & Resource Recognition 164 MMboe of 2P reserves (47% liquids) and 218 MMboe of Best Estimate Contingent resource (47% liquids) Condensate NPV 10% BT NPV 10% Volume / Oil NGLs Total Liquids (B-Tax) (1) Per Share…
Consistent Geology The latest well at 03-12 confirms the lateral continuity of Montney resource potential across our land base Pipestone Area Cross Section Encana Pipestone Energy A A Montney B and C zones have been proven…
Supportive Offset Well Performance Pipestone Montney operators have demonstrated very strong natural gas production performance with high condensate gas ratios Pipestone Montney Very Rich Gas Condensate Historical Well Results -…
Employing Leading Edge Technology Pipestone is employing and evaluating several technologies and evaluation tools to refine its completion methodologies early in the development lifecycle Current Applications Downhole/Surface Array…
Advisories (Continued) Analogous Information Certain information in this presentation may constitute analogous information within the meaning of NI 51-101, including information relating to areas, wells or operations that are in…
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