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Capital Markets Day 2020 Stockholm – International Petroleum Corp.

International Petroleum Corp. · Feb 11, 2020 · 67 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. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 1
    Capital Markets Day 2020 Stockholm February 11, 2020 NC00160 p01 02.20 IPC CMD 2020
  2. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 2
    International Petroleum Corp. Agenda February 11, 2020 1. Introduction Mike Nicholson 2. 2020 Outlook Daniel Fitzgerald 3. Asset Overview Presenting today 3a. Canada Chris Hogue 3b. Malaysia Daniel Fitzgerald 3c. France Mike…
  3. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 3
    1. Introduction Mike Nicholson CEO Capital Markets Day 2020 February 11, 2020 NC00160 p03 02.20 IPC CMD 2020 3
  4. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 4
    International Petroleum Corp. 2019 Highlights Production Full year average production at 46 Mboepd in line with Q3 guidance Operating Costs(1) Full year average operating costs of 12.8 USD/boe; in line with Q3 guidance 2019 capital…
  5. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 5
    International Petroleum Corp. Strongly Positioned to Create Shareholder Value(1) 2020-2024 50 Mboepd (1) Gr o w th anic s(1) Org of reso urce ion boe Bill 210% 1.4 75 44% p.a.(4) 1,300 MUSD FCF(1,2,3) Stakeholder…
  6. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 6
    Reserves Replacement (MMboe) International Petroleum Corp. 30 MMboe Replaced 103% 89% 14.8 Reserves Growth 12.9 76% 2.9 2017 2018 2019(1) Reserves growth continues 89% reserves replacement excluding acquisitions (1) Net…
  7. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 7
    International Petroleum Corp. Contingent Resources(1) Net Contingent Resources (MMboe) 1,089 102 Contingent resource base 1 billion boe(1,2) 849 105 Maturing resources in all countries Canada - Blackrod pilot - Granite…
  8. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 8
    International Petroleum Corp. Production Growth Production Growth Through Time 50 50 46 46 50 Mboepd Year on year production growth since inception 40 34 2020 production guidance of 46,000 to 50,000 boepd (1) Assumes full…
  9. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 9
    International Petroleum Corp. Operating Cash Flow (MUSD) (1) WTI-WCS WTI-WCS differential differential -20 -15 332 325 308 70 USD/bbl 279(2) 293 265 70 USD/bbl 2019 Guidance 240 233 60 USD/bbl 2018 208 Guidance 60…
  10. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 10
    International Petroleum Corp. 2020 - Investment Strategy Forecast capital expenditure down 18% to 149 MUSD Includes 3 MUSD of 2019 carry over and 10 MUSD Granite adds CAPEX 149 MUSD Investment Strategy Develop on success in…
  11. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 11
    International Petroleum Corp. Forecast 2P Reserves Capital Expenditure (1)…
  12. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 12
    International Petroleum Corp. Free Cash Flow Generation (1,2) 2017 2018 2019 2020-2024 Production (1) Mboepd 46 50 10 34 210% 75 44% p.a.(5) Brent (1) 1,300 MUSD FCF (1,2,3) 55 72 64 USD/bbl 150% 65 30% p.a.(5) 900…
  13. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 13
    International Petroleum Corp. Canadian Supply and Egress W. CDA total oil supply to market Keystone XL (830) TMX (590) ENB L3R (370) Others (690) AB & SK refineries, industry demand Existing crude & pipelines (4,298) by rail…
  14. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 14
    International Petroleum Corp. Net Asset Value (MUSD) (1) NPV 2,576 2,410 291 With YE 2018 Pricing 2,314 2,120 ...... d 71% discount to NAV de e ad valu 1,151 USD 1.5 B ..... 597 543 ...... 2017 2018 2019 2020 2020…
  15. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 15
    International Petroleum Corp. Net Asset Value Per Share vs Share Price (1) 01/01/20 14 14 USD 13.3 NAV per share IPCO USD share price 13 01/01/19 13 USD 12.4 12 12 11 11 10 01/01/18 10 USD 9.1 AG R 9 C 9 71% USD per…
  16. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 16
    International Petroleum Corp. Sustainability & ESG ESG strategy Carbon Footprint Reductions Lowering IPCs carbon footprint over the next 5 years to global average Emission Intensity, Upstream O&G, kg CO2e/boe1 Canadian Industry…
  17. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 17
    2. 2020 Outlook Daniel Fitzgerald COO Capital Markets Day 2020 February 11, 2020 NC00160 p05 02.20 IPC CMD 2020 17
  18. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 18
    France International Petroleum Corp. 45 40 Resource Maturation Strategy 35 30 +64% 25 MMboe - 20 15 10 5 0 2002 YE 2016 YE 2019 (1) Proven track record of additions through organic growth 30 MMboe of reserve…
  19. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 19
    International Petroleum Corp. Developed and Undeveloped Reserves 2P Reserves Year End 2019 (1) 300 119 300 Other 6% 250 Onion Lake 34% Year on year organic reserves replacement continued in 2019 200 181 Thermal Reserves life…
  20. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 20
    International Petroleum Corp. 2C Contingent Resources - Year End 2019 (1) Contingent Resources History 240 MMboe additions to contingent resources in 2019 1,089 Opportunities to mature contingent resources to reserves in all…
  21. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 21
    International Petroleum Corp. 2020 Production Production Guidance International, 18% France sia Canada Gas, 35% y ala M Suffield r Gas d a Othe Can a 2020 Production guidance: 46,000 to 50,000 boepd net(1)…
  22. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 22
    International Petroleum Corp. Operating Costs (1) 2020 full year operating cost forecast 13.7 USD/boe OPEX reduced by 15% since spin-off 2020 Guidance Operating Costs 2020 Guidance (USD/boe) International, 29% Canada, 71%…
  23. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 23
    International Petroleum Corp. 2020 Capital Allocation Capital Expenditure France, 24% Canada, 62% 2020 Guidance: 149 MUSD(1) Ability to increase or decrease spend depending on commodity pricing Malaysia, 14% Projects ramping up…
  24. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 24
    International Petroleum Corp. 5 Year Outlook(1) Production (Mboepd) 50 50 Mboepd 46 46 50 Mboepd average for the next 5 years(1) 34 Assumes our base 2P reserves position only Assumes no additions from reserves replacement or…
  25. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 25
    International Petroleum Corp. Future Growth Potential Opportunity portfolio continues to grow Potential to accelerate future projects Strategic acquisitions continue to add opportunities Future Opportunities 2020 Projects…
  26. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 26
    3. Asset Review Daniel Fitzgerald Chris Hogue COO Sr VP Canada Capital Markets Day 2020 February 11, 2020 NC00160 p06 02.20 IPC CMD 2020 26
  27. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 27
    3a. Canada Chris Hogue Sr VP Canada Capital Markets Day 2020 February 11, 2020 NC00160 p07 02.20 IPC CMD 2020 27
  28. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 28
    Alberta Saskatchewan IPC Canada IPC Canada Assets Overview Blackrod Continue to grow production through 2020 Mooney Onion Lake Deliver on organic growth Thermal heavy oil Conventional heavy oil Ramp up Onion Lake Thermal to…
  29. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 29
    Suffield Area Assets IPC Canada Suffield Suffield Asset 2020 oil drilling focus area Deliver 2020 development programme 2020 gas recompletion focus areas 20 well oil drilling programme 200 gas well recompletions CFB…
  30. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 30
    IPC Canada Ferguson Asset (Granite) (1) 0 50 KM 200 Major Oil pipeline Major Gas pipeline 0 20 Miles 100 IPC asset High margin, light oil production Blackrod Historically assets have been capital constrained Saskatchewan…
  31. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 31
    IPC Canada Ferguson Asset (Granite) (1) Main Producing Horizon - Reservoir Net Pay R19 R18 R17 R16 R15W4 0 1 KM 4 T4 0 0.5 Miles 2 A 2020 drilling within defined area of existing pool T3 Cross Section 6…
  32. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 32
    IPC Canada Onion Lake Thermal Asset Onion Lake Thermal R1W4 R27W3 Facility upgrades completed in 2019 D Pad F Pad online, field production 12,000 bopd D E L T56 A C T56 D Pad drilling ongoing, steam injection from Q3 2019…
  33. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 33
    IPC Canada Blackrod Growth Opportunity 12 18 26 10 28 8 16 WP3 26 22 WP2 1 billion barrels of 2C contingent resource(1) 20 24 22 243 MMbbl acquired in 2019 8 12 20 26 26 Blackrod 16 T78 22 WP1 24 22 4…
  34. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 34
    IPC Canada Mooney Blackrod Summary Edmonton CANA DA Calgary Onion Lake Regina Granite USA Area Suffield Ottawa 3 major acquisitions completed since 2018 Suffield Facilities Adding 1 billion barrels of high quality long…
  35. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 35
    3b. Malaysia Daniel Fitzgerald COO Capital Markets Day 2020 February 11, 2020 NC00160 p08 02.20 IPC CMD 2020 35
  36. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 36
    IPC Malaysia Strategy Malaysia Maximise value in North East region of Bertam field (A15 / A20) Opportunistic approach to growing the business NCF00165 p01 01.20 IPC CMD 2020 36
  37. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 37
    IPC Malaysia Bertam Performance Update Phase 3 programme on track with pre-drill prognosis A20 is the largest contributor above expectation Infills account for 70% of 2020 average production Bertam Infill Wells Ultimate…
  38. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 38
    IPC Malaysia Bertam A15 Area Malaysia Bertam K10.1 Base Bertam North East Region A20 Bertam-2 Bertam-3 A19 10 -16 Bertam-5 Further upside potential in A15/A20 area Infill drilling locations being matured for potential 2021…
  39. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 39
    3c. France Daniel Fitzgerald COO Capital Markets Day 2020 February 11, 2020 NC00160 p09 02.20 IPC CMD 2020 39
  40. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 40
    IPC France Strategy Paris Basin France Maximise value Aquitaine Basin Execute Phase I Villeperdue development Optimise Vert-la-Gravelle production and injection Mature Rhaetian opportunities to investment decision 0 KM 400…
  41. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 41
    Villeperdue West - Execution Q2 2020 IPC France Resource Maturation (1) rage Cove Proven track record of resource growth ic ism D Se Horizontal wells unlock further potential 3 Phase I development Villeperdue…
  42. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 42
    IPC France Vert-la-Gravelle Project Update Vert-la-Gravelle Top Reservoir Structure Map Successful delivery of first Rhaetian horizontal producer Initial rates of up to 1,500 bopd from VGR113, stable rates 1,000 bopd Pressure…
  43. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 43
    Villeperdue West IPC France Villeperdue West Development Overview NW N19H Development targets reservoir extensions in undeveloped area SE Potentially large unswept area to the west 2017 3D seismic programme helps to define…
  44. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 44
    International Petroleum Corp. 2020 Guidance 2020 Overview Production Production 5 year business plan targeting 50 Mboepd (1) 46 to 50 Mboepd Based on delivering our 2P reserve position (2) Excludes contingent resource…
  45. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 45
    Break Capital Markets Day 2020 February 11, 2020 NC00160 p10 02.20 IPC CMD 2020 45
  46. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 46
    4. Financial Overview Christophe Nerguararian CFO Capital Markets Day 2020 February 11, 2020 NC00160 p10 02.20 IPC CMD 2020 46
  47. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 47
    International Petroleum Corp. CMD Guidance Main Assumptions(1) Forecast Financials USD/boe Production 46,000 to 50,000 boepd Revenue 27.4 Capital Expenditure 149 MUSD Operating Cash Flow (2) 11.7 Operating Costs (2) 13.7 USD /…
  48. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 48
    International Petroleum Corp. Economic Assumptions (1) Low Case Base Case High Case Oil in USD/bbl Brent 50 60 70 WTI 45 54 63 WCS (-20 USD/bbl) 25 34 43 Gas in CAD/mcf Empress 2.25 2.25 2.25 Sensitivities WTI-WCS…
  49. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 49
    International Petroleum Corp. Oil Prices Forecast Actual USD/bbl 2020 2019 2018 Brent 60 64.2 71.3 Malaysia 65 (+5) 69.9 (+5.7) 74.9 (+3.6) France 59 (-1) 63.5 (-0.7) 70.2 (-1.1) WTI 54 56.8 65.1 WCS 34 44.2 38.9 Suffield…
  50. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 50
    International Petroleum Corp. AECO, Empress and Realised Gas Prices Forecast Actual CAD/mcf 2020 2019 2018 AECO 1.75 1.80 1.50 Empress 2.25 2.49 3.07 Realised 2.77 (+0.28) 2.54 (-0.53) 9 Realised Price CAD/Mcf 8 AECO Day Ahead…
  51. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 51
    International Petroleum Corp. Margin Netback (1,2) (USD/boe) 2020 Forecast 2019 Low Base High Actual USD/bbl Brent/WTI/WCS 50/45/25 60/54/34 70/63/43 64/57/44 Production guidance 46,00050,000 boepd 46,000 boepd Revenue 22.3 27.4…
  52. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 52
    International Petroleum Corp. Operating Costs Forecast (USD/boe) (1) Operating Costs USD/boe USD/boe 20 20 18 18 16 16 14 14 13.7 USD/boe 12 12 10 10 8 8 6 6 4 4 2 2 0 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 NC00167…
  53. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 53
    International Petroleum Corp. Operating Cash Flow (1,2) and EBITDA Netback (1,2) (USD/boe) 2020 Forecast Brent oil price (USD/bbl) 50 60 (Base) 70 Cash Margin Netback 7.3 12.3 17.2 Cash Taxes -0.3 -0.6 -0.8 Operating Cash Flow…
  54. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 54
    International Petroleum Corp. Profit Netback (USD/boe) (1) 2020 Forecast Brent oil price (USD/bbl) 50 60 (Base) 70 Cash Margin Netback 7.3 12.3 17.2 Depletion/depreciation -8.7 -8.7 -8.7 Business development and exploration…
  55. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 55
    International Petroleum Corp. Oil Sensitivity to WTI/WCS Differential 2020 Forecast Base Case Brent oil price (USD/bbl) 60 60 WTI/WCS Differential (USD/bbl) 20 15 Difference Total Revenue (USD/boe) 27.4 29.2 + 1.8 Operating…
  56. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 56
    International Petroleum Corp. Gas Sensitivity to Realised Canadian Gas Price 2020 Forecast Base Case Brent oil price (USD/bbl) 60 60 WTI/WCS Differential (USD/bbl) 20 20 Gas price (CAD/mcf) 2.25 2.50 Difference Total Revenue…
  57. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 57
    International Petroleum Corp. Liquidity and Funding (USD/boe) 2020 Forecast Brent oil price (USD/bbl) 50 60 (Base) 70 Operating Cash Flow Netback(1) 7.0 11.7 16.4 General and Administration Costs -0.7 -0.7 -0.7 Cash Financial…
  58. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 58
    5. Reserves Valuation Rebecca Gordon VP Investor Relations and Corporate Planning Capital Markets Day 2020 February 11, 2020 NC00160 p10 02.20 IPC CMD 2020 58
  59. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 59
    International Petroleum Corp. Long-term Brent Price (1) Price Decks Brent USD/bbl (1) 80 77 75 74 73 71 71 71 70 70 68 68 65 64 60 50 2018 2019 2020 2021 2022 2023 2024 NC00167 p15 01.19 Year End 2018…
  60. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 60
    International Petroleum Corp. Long-term Canadian Pricing (1) Western Canadian Select (WCS) USD/bbl Empress Gas Price CAD/MMbtu 75 4.5 70 4.0 65 60 3.5 CAD/MMbtu USD/bbl 55 3.0 50 2.77 2.54 45 44 2.5 40 39…
  61. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 61
    International Petroleum Corp. Net Asset Value(1) (MUSD) 2,410 59 Granite Granite 208 232 IPCO 2,120 Canada 1,725 64% PPDP International 478 NPV(1) Net Debt(2) NAV(1) NC00167 p19 01.19 1) As at December 31, 2019,…
  62. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 62
    International Petroleum Corp. NAV(1) Changes 2017 to 2020 2,410 2,314 291 277 2,120 2,037 1,151 355 796 543 MUSD Net Debt(2) NAV 2017 2018 2019 2020 NC00167 p11 01.19 1) As at December 31, 2019, see Reader…
  63. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 63
    6. Closing Remarks Mike Nicholson CEO Capital Markets Day 2020 February 11, 2020 NC00160 p10 02.20 IPC CMD 2020 63
  64. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 64
    International Petroleum Corp. Adding Shareholder Value - Looking Back -25.5 -7.6 156.2 +75.8 Million IPC shares outstanding 38% 5x production Dilution 113.5 10x 2P Reserves(1) 9 Years added to Reserves Life(1) 1…
  65. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 65
    International Petroleum Corp. Adding Shareholder Value - Looking Forward 2020-2024 50 Mboepd (1) Gr o w th anic s(1) Org of reso urce ion boe Bill 210% 1.4 75 44% p.a.(4) 1,300 MUSD FCF(1,2,3) Stakeholder Returns Debt…
  66. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 66
    Q&A Capital Markets Day 2020 February 11, 2020 NC00160 p10 02.20 IPC CMD 2020 66
  67. Capital Markets Day 2020 Stockholm – International Petroleum Corp. – slide 67
    IPC CMD 2020

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