Skip to main content February 2020 Investor Presentation – Peyto Exploration & Development Corp | Shale Experts
Loading...
Database
Slide Database

February 2020 Investor Presentation – Peyto Exploration & Development Corp

Peyto Exploration & Development Corp · Feb 10, 2020 · 55 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. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 1
  2. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 2
    PEY.TO Who We Are PEYTO Exploration & Development Corp. N Pure Play Alberta Deep Basin 410 mmcf/d Gas, 13,000 boe/d NGLs N Returns Focused Strategy Avg ROCE 16%, ROE 29% over last 20 yrs, among highest in industry N Long…
  3. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 3
    PEY.TO Growth Per Share PEYTO Exploration & Development Corp. Production/share Reserves/share FFO/share 2P NPV5/debt adj. (MMcfe/d/mm sh) (2P Bcfe/mm sh) (/sh) share (/sh) 1363 29.2 4.33 1289 1222 40 40 26.3 38 1179 36 38…
  4. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 4
    PEY.TO Total Shareholder Return Model PEYTO Exploration & Development Corp. Future Prospects Past Profits 5 BOE factor - 6 mcf = 1 bbl of oil equivalent 2/10/2020
  5. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 5
    The Big Picture They Want More Energy We Wont Change That PEYTO Exploration & Development Corp. 6 Source: BP Energy Outlook 2019 2/10/2020
  6. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 6
    The Big Picture The World Needs More Canadian Energy PEYTO Exploration & Development Corp. Environmental Regulations Worker Safety Russia Saudi Iran Iraq Human Rights Ethical Standards Gender Equality Indigenous…
  7. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 7
    The Big Picture Peyto Does It Better PEYTO Exploration & Development Corp. Emission Intensity by Source Type for Canadian Oil and Gas (1990, 2005, 2016) 140 140 121.4 Emission Intensity per Barrel (kg CO2eq/bbl) 120 105.4…
  8. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 8
    The Big Picture Continuously Improving Environmental Performance PEYTO Exploration & Development Corp. Peyto GHG Emissions Intensity tCO2eq/boe (direct and indirect) 0.029 0.026 0.025 0.024 0.022 0.021 in GHG Emissions…
  9. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 9
    The Big Picture So What Does All This Mean PEYTO Exploration & Development Corp. Canada has energy abundance. Canada has a moral obligation to provide the rest of the world with our clean, responsibly developed energy to…
  10. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 10
    The Peyto Strategy PEYTO Exploration & Development Corp. 11 2/10/2020
  11. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 11
    Peytos Strategy What We Continue To Believe PEYTO Exploration & Development Corp. N Natures gas is the fuel for the future. N Our gas and NGLs have some of the lowest emissions of any hydrocarbons produced in Canada. N Our business…
  12. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 12
    Peytos Strategy Changing Gas Market Requires Changing Strategy PEYTO Exploration & Development Corp. US Natural Gas (EIA) Canadian Natural Gas (EIA) 92.1 80 110 70 100 90 60 84.5 80 50 That growth is 70 potentially…
  13. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 13
    Peytos Strategy Integrate the Entire Oil & Gas Value Chain PEYTO Exploration & Development Corp. 14 2/10/2020
  14. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 14
    Peytos Strategy Fast Becoming an Integrated Energy Business PEYTO Exploration & Development Corp. Exploration and Development Production and Processing Storage and Marketing Midstream and Power Generation 647 Lands Purchased (YE…
  15. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 15
    Peytos Strategy Alberta Egress Challenge PEYTO Exploration & Development Corp. Do we revert back to a 0.20 difference off New Alberta NYMEX government has made solving AECO market disconnection a priority New Ministry of…
  16. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 16
    Peytos Strategy Canadian Gas Egress Is Expanding PEYTO Exploration & Development Corp. Dry Natural Gas Production - Canada 25 (EIA) 9 LNG Export 8 2.0 Bcf/d 21 7 LNG Canada 20 6 NGTL Expansion 5+40% BCF/D 19 4 15…
  17. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 17
    The Peyto Strategy Fund Growth From Cashflow PEYTO Exploration & Development Corp. 7,000 6,182 120,000 6,000 100,000 5,000 80,000 6,092 Peyto FFO 4,000 60,000 CTD Q3/19 3,000 40,000 2,000 1,000 20,000 0 1999 - 2000…
  18. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 18
    The Peyto Strategy Invest For Profit Not Growth PEYTO Exploration & Development Corp. 800 700 600 500 Peyto Capital 400 CTD Q3/19 300 200 100 - 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012…
  19. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 19
    The Peyto Strategy Dividend Sustainability PEYTO Exploration & Development Corp. 3,000 2,500 2,000 Peyto Ctd. Earnings (MM) 1,500 Q3/19 1,000 500 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009…
  20. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 20
    Peytos Profitable Business PEYTO Exploration & Development Corp. 21 2/10/2020
  21. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 21
    Peytos Profitable Business Build it for less than we sell it PEYTO Exploration & Development Corp. 2018 PEY 2014 PEY 2015 PEY 2016 PEY 2017 PEY 2018 Land/Acq/Disp Seismic Drilling PDP FD&A /mcfe (2.25) (1.64) (1.44) (1.36)…
  22. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 22
    Peytos Profitable Business The Price Bar Is Now Very Low, We Must Go Lower PEYTO Exploration & Development Corp. AECO 10 Monthly /GJ Peyto Realized Gas Price (/mcfe) 8 36% Avg. 6 Profit CTD Bonus 4 PDP FD&A 35% 2…
  23. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 23
    Peytos Profitable Business Competitive In The North American Marketplace PEYTO Exploration & Development Corp. 100% Montney 60% DB/40% Mont. 100% Deep 100% Montney 10% DB/90% Mont. VII 2018* TOU 2018* Basin PEY 2018 AAV 2018* ARX…
  24. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 24
    Peytos Profitable Business Results in a Low-Cost Advantage PEYTO Exploration & Development Corp. 2.92 4.47 (0.34) 0.88 25 BOE factor - 6 mcf = 1 bbl of oil equivalent Data from Peters & Co. 2/10/2020 Gas…
  25. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 25
    Peytos Unique Assets PEYTO Exploration & Development Corp.
  26. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 26
    Peytos Assets Geographically Focused Core Areas PEYTO Exploration & Development Corp. 563,500 net acres 9 operated gas plants Cutbank ---(835 mmcf/d net capacity) 2,000+ km pipelines 1,250+ producing zones Kakwa 80,000 boe/d…
  27. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 27
    Peytos Assets PEYTO Deep Basin Permeability Segregation Exploration & Development Corp. FOOTHILLS STRUCTURES GAS AS ING INCRE BILITY EA PERM WATER TRANSITION ZONE WATER GAS ASE INCRE AREA OF GAS DEPTH…
  28. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 28
    Peytos Assets Multi Zone Stacked Sandstone Reservoirs PEYTO Exploration & Development Corp. Detailed Petrophysical work on the Spirit River sands revealed 30% more reserves per section Up to per section* 29 *NGL…
  29. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 29
    Peytos Assets PEYTO Large Hz MSF Inventory Exploration & Development Corp. Done1 To Do Total Total Total Total Hz(Vt) Hz Locations Vertical Hz Locations Unbooked Wells Wells Booked* (2) 2 440 113 363(12) 384 5 1 5 7 1…
  30. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 30
    Peytos Assets Deep Basin Lands Go A Long Way PEYTO Exploration & Development Corp. 1,000 Peyto Lands 900 800 700 Net Sections 600 Net Peyto Sections 500 400 300 200 100 - Net Sections of Cardium, Dunvegan,…
  31. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 31
    Peytos Assets Facility Ownership And Control PEYTO Exploration & Development Corp. Cutbank Kakwa Oldman (with Deep Cut) & Oldman North Nosehill Wildhay Galloway Swanson Peyto Gas Plants YE 2014 YE 2015 YE 2016 YE…
  32. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 32
    Peytos Assets Big Sunny Natural Gas Storage Scheme PEYTO Exploration & Development Corp. R.25 R.24 R.23 R.22 R.21 R.20 R.19 R.18 Nosehill Creek North Meter Station 139 mmcfd Capacity T.56 T.56 Obed North Oldman Meter Station…
  33. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 33
    Peytos Assets Unique Infrastructure Location PEYTO Exploration & Development Corp. Alliance Oldman & Oldman North Nosehill Wildhay Galloway Swanson 240 kV Power Lines Highway 16 Greater Sundance Area Bickerdike…
  34. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 34
    Peytos Assets The New Cardium Play Abundant Opportunities PEYTO Exploration & Development Corp. Oldman & Oldman North Nosehill Wildhay Swanson Galloway 35 2/10/2020
  35. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 35
    Peytos Assets The New Cardium Play Improving Execution PEYTO Exploration & Development Corp. Peyto Cardium D/C/E/T Capital Costs 4,500,000 2018 2019 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000…
  36. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 36
    Peytos Assets The New Cardium Play Liquids Rich Revenue PEYTO Exploration & Development Corp. Wildhay Cardium NOI by Component 4,000,000…
  37. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 37
    Peytos Assets New Montney Play and Potential Expiries PEYTO Exploration & Development Corp. Potential Montney Intermediate Term Expiries 2019-2020 38 2/10/2020
  38. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 38
    Peytos Assets What Shareholders Currently Own PEYTO Exploration & Development Corp. Tangible Infrastructure (Replacement Value as at Dec 31, 2019) 80 Compressors (3.25MM each) 259 MM 17 Inlets (1.8MM each) 31 MM 20 Refrigeration…
  39. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 39
    Peytos Incredible Returns PEYTO Exploration & Development Corp. 40 2/10/2020
  40. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 40
    Peytos Returns 2018 Postmortem Returns Analysis PEYTO Exploration & Development Corp. Cardium completion attempts with cased hole and cemented systems 41 Full cycle IRR is determined using actual capital spent on each well,…
  41. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 41
    Peytos Returns High Returns On Your Capital And Equity PEYTO Exploration & Development Corp. 60% 12 50% 10 40% 8 20 yr Avg ROE to 2018 30% 6 20% 4 10% 2 0% 0 Return On Capital Employed (%) Return On Equity…
  42. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 42
    Peytos Future PEYTO Exploration & Development Corp.
  43. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 43
    Peytos Future 2020 Outlook PEYTO Exploration & Development Corp. Drill 80Hz Wells (Liquids Rich Natural Gas) vs 50 in 2019 Market 3rd Party Capacity Offer Excess Capacity to Other Operators Increase Opportunities Undeveloped…
  44. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 44
    Peytos Future Gas Price Stability Before Returning to Growth PEYTO Exploration & Development Corp. 5 14 bbl/mmcf 14 bbl/mmcf 17 bbl/mmcf 20 bbl/mmcf 27 bbl/mmcf 32 bbl/mmcf 36 bbl/mmcf, exit 18,000 bbl/d Lean gas 4.19…
  45. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 45
    Peytos Future Lower Costs and Increase Liquids to Preserve Profit PEYTO Exploration & Development Corp. PEY 2017 PEY 2018 PEY 2019 Goals 91% Gas 2.30/GJ AECO*115% 89% Gas 1.43/GJ*1.16 86% Gas 1.54/GJ*1.15 14% NGLs45/bbl=(60%of…
  46. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 46
    Gas Marketing Future Market Diversification and Gas Price Protection PEYTO Exploration & Development Corp. Q3 2019 Sales Gas 456,000 GJ/d* 47 *Average Heating Value of approximately 1.15 GJ/mcf for Peytos gas 2/10/2020
  47. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 47
    Gas Marketing Successful Hedging Strategy Smoothes Volatility PEYTO Exploration & Development Corp. Gas Price (/mcf) 12.00 12.00 Peyto has beat the AECO 10.00 monthly price in 11 of the 10.00 last 13 years using a 8.00 methodical…
  48. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 48
    Gas Marketing Balanced Revenue Stream PEYTO Exploration & Development Corp. Peyto Quarterly Revenue Breakdown 300,000 60% 250,000 50% 200,000 40% 150,000 30% 100,000 20% 50,000 10% 0 0% Q4 2009 Q2 2010 Q4 2010…
  49. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 49
    Gas Marketing Fixed Price Swaps For Gas and Liquids PEYTO Exploration & Development Corp. Peyto Marketing Summary 1.15 Heating Value GJ/mcf AECO 7A Fixed Price Swaps (CAD/GJ) 1.300 cad/usd TOTAL TOTAL TOTAL TOTAL TOTAL Q4 2019…
  50. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 50
    Gas Marketing LNG Consortium and Export Potential PEYTO Exploration & Development Corp. 51 2/10/2020
  51. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 51
    Appendix PEYTO Exploration & Development Corp. N Quarterly Track Record N Tax Pools N Leverage N Reserves Growth 52 2/10/2020
  52. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 52
    Quarterly Track Record PEYTO Exploration & Development Corp. 2019 2018 2017 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Q3 Q2 Q1 Total Q4 Operations Production Oil & NGLs (bbl/d) 10,650 11,110 10,703 9,692 10,273 9,209 9,243 10,043 9,337…
  53. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 53
    Organic Business Model Peytos Tax Pools PEYTO Exploration & Development Corp. 1,800 1,600 1,400 1,200 Federal Tax Pools Millions 1,000 800 Q4/18 600 400 200 - 1999 2000 2001 2002 2003 2004 2005 2006 2007…
  54. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 54
    Peytos Debt Careful Use Of Debt For Leveraged Returns PEYTO Exploration & Development Corp. Peyto Net Debt/PDP NPV10 100% 80% Peyto becomes NAIC2 rated, gains access to 60% cheaper term debt 40% 20% Debt/PDP…
  55. February 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 55
    Peytos Assets Reserves Growth PEYTO Exploration & Development Corp. 7,000 6,000 5,000 17% CAGR 4,000 3,000 1644 2,000 TCFe of 1,000 1,682 Discovered Reserves 0 Probable Additional Proved Undeveloped Proved…

From the store

Browse maps, data & reports in the Shale Experts store