Corporate Snapshot & Select Guidance Q4 2019 average production 77,962 boe/d 2019 annual average production 77,977 boe/d % oil and NGL 22% 2019 adjusted funds flow (millions) 335 2019 free funds flow (millions) 78 Estimated…
Corporate Snapshot & Select Guidance Continued Total debt as at December 31, 2019 (millions) (3) 633 Credit facilities limit as at December 31, 2019 (billions) 1.0 Common shares (basic) as at December 31, 2019 (millions) 265.9…
LOOKING FORWARD 2020 Plans & Beyond
2020 CAPITAL PROGRAM 2020 Capital Program - Capital Expenditures by Classification Classification Capital (MM) DCCET Pouce Coupe(1) 104 - 110 (1) 95 - 100 Gordondale (2) 21 - 22 Additional Well Completions Capital Total DCCET…
2020 CAPITAL PROGRAM 2020 Capital Program - Wells to be Drilled and Brought on Production Total w ells to be brought on Area Total w ells to be drilled in 2020 production in 2020(1) Pouce Coupe Montney D1 horizontal natural gas…
FIVE YEAR PLAN THEMES Fully utilizing the available capacity of Birchcliffs existing infrastructure Increasing Birchcliffs free funds flow and reducing per-unit operating costs Maintaining and strengthening Birchcliffs balance…
FIVE YEAR PLAN PRODUCTION Filling all existing infrastructure to drive down per-unit costs and maximize efficiencies 100,000 Average Production (boe/d) 95,000 90,000 85,000 80,000 75,000 70,000 2020 2021 2022 2023 2024…
FIVE YEAR PLAN FINANCIAL 600 500 Full utilization of infrastructure 400 millions drives 300 significant free 200 cash flow growth 100 0 2020 2021 2022 2023 2024 Sustaining Capital Growth Capital Free Funds Flow 2020…
MULTI-INTERVAL CUBE-STYLE DEVELOPMENT It is very important to note that all rock is not the same and Birchcliff has material, proprietary knowledge respecting all aspects of the Montney/Doig Resource Play in our area of focus. This…
MULTI-INTERVAL CUBE-STYLE DEVELOPMENT 2,400m 1,600m February 12, 2020 13
BIRCHCLIFFS HISTORY A Track Record of Execution
INVESTMENT HIGHLIGHTS Focused assets in the Peace River Arch Area of Alberta on the Montney/Doig Resource Play Essentially 100% working interest; 99% of production is operated Large, contiguous undeveloped land base with an average…
KEYS TO SUCCESS Executives with proven track record, continuity since inception and significant ownership Management Highly experienced Management Team with excellent technical knowledge and a long history with the company 425 (417.4…
PRODUCTION HISTORY 90,000 80,000 82,000 77,977 80,000 77,096 Compound per-share production growth of 11% per year since 2005. 70,000 67,963 (12% since PC Gas Plant Phase I Average Production (boe/d) Completion in 2010)…
CORPORATE RESERVES 1,200,000 7,000 PDP - Reserves 1,100,000 TP - Reserves 2P - Reserves 6,000 1,000,000 On a per share basis PDP, 1P and 2P PDP - NPV10 reserves have increased at a compound 900,000 TP - NPV10 annual growth rate…
PROVEN TRACK RECORD AS A LOW COST PRODUCER 5 Year Profitability Breakdown: 2015 2016 2017 2018 2019 Average Average AECO (CAD/GJ) 2.55 2.05 2.04 1.42 1.67 1.95 Average WTI (USD/bbl) 48.80 43.32 50.95 64.77 57.03 52.97 P&NG…
TRUE ASSET VALUE Infrastructure Assets(1) = 605 MM or 2.27/sh. 3,000 Pouce Coupe Gas Plant = 375 MM 100% WI Oil Batteries = 75 MM x 2 2,500 Sales & Gathering Lines = 30 MM Field Compression Hubs = 10 MM x 3 Non-Op Plant Ownership…
CORPORATE RESPONSIBILITY Environmental, Social & Governance Waste heat recovery units on phases V & VI of the PC Gas Plant and additional emission reduction initiatives take the equivalent of 5,000 cars off the road annually…
CORPORATE RESPONSIBILITY Community Involvement Over 3 million donated to more than 100 local community groups and organizations in the last 3 years Continued partnerships with local communities through educational, cultural, and…
2020E NATURAL GAS MARKETING AECO 2.10 0.04 0.34 1.72 91,000 GJ/d 22% 44% 1% 185,000 GJ/d Dawn 3.15 5,000 GJ/d 0.12 Alliance 1.20 33% 2.47 1.82 0.03 0.62 140,000 GJ/d 1.82 Note: All Birchcliff gas realizes a Henry…
RISK MANAGEMENT, HEDGING & DIVERSIFICATION(3) In 2020, approximately 78% of Birchcliffs natural gas production will effectively be sold at prices that are not based on AECO (based on 2020 production guidance of 80,000 - 82,000…
OPEX/TRANSPORT COSTS VS GAS PRICING Opex down 28% Q4/19 vs Q3/17 9.00 T&M has increased due to increasing 4.00 access to new markets, realizing a 8.00 14% premium to AECO in Q4/19 3.50 7.00 3.00 6.00 Operating & T&M Costs…
INCREASING WCSB NATURAL GAS EGRESS Additional 5.6 Bcf/d coming online by 2023 Intra-Alberta +1.5 Bcf/d East Gate +1.3 Bcf/d LNG 2.1 Bcf/d Intra-AB Demand West Gate +0.7 Bcf/d 1.5 Bcf/d West Coast LNG +2.1 CANADA Bcf/d…
BORROWING BASE DETAILS Birchcliff has extendible revolving credit facilities in the aggregate principal amount of 1.0 billion, which are comprised of an extendible revolving syndicated term credit facility of 900 million and an…
MONTNEY/DOIG RESOURCE PLAY A Significant Position in a World Class Play
MONTNEY/DOIG - A WORLD CLASS RESOURCE PLAY Resource density. Stacked resource up to 300 metres thick. Large areal extent. Extends over 50,000 square miles. Exceptional fracability. Low clay Birchcliff Montney/Doig content, low…
MONTNEY/DOIG MINEROLOGY LEADS TO EXCELLENT FRACABILITY The Montney/Doig Resource Play rock type is composed of a Some other Resource Plays have a high percentage of clays high percentage of hard minerals, and a low percentage of and…
BIRCHCLIFF MONTNEY/DOIG RESOURCE PLAY The Gordondale Acquisition in 2016 added a fourth commercial development interval in the Montney D2 Large contiguous land base with 413.2 sections prospective for the Montney/Doig as at…
STACKED RESOURCE PROVIDES SUBSTANTIAL FUTURE UPSIDE 413 (406.2 net) Montney/Doig horizontal wells producing as of Dec 31, 2019 February 12, 2020 33
MONTNEY/DOIG MULTI LAYER OPPORTUNITY February 12, 2020 34
BIRCHCLIFF MONTNEY/DOIG INVENTORY 2019YE Note: Location inventory includes three (3) 100% W.I. existing wells that have proved non-producing reserves. (2 in Pouce Coupe and 1 in Elmworth) February 12, 2020 35
FOCUSED ASSETS FOCUSED INFRASTRUCTURE POUCE COUPE GORDONDALE Key Natural Gas Processing Infrastructure Key Natural Gas Processing Infrastructure Pouce Coupe Natural Gas Plant AltaGas Gordondale Gas Plant 3-22-078-12W6 Sour Deep Cut Gas…
WATER STORAGE INFRASTRUCTURE Birchcliff has extensive water storage infrastructure in place to support its completion operations 1,170,000 m3 of water storage at 11 strategically located site This volume provides Birchcliff…
POUCE COUPE OVERVIEW Proven asset in development phase Wells show high initial deliverability, low terminal decline and stable long term production Predictable results with improving gas rates & liquids yields 100% owned and…
CONTINUED NATURAL GAS RATE IMPROVEMENT Only 3 wells in 2019 with 9 or more months of production data Deloitte Tier 0 Type Curve February 12, 2020 39
CONTINUED CONDENSATE RATE IMPROVEMENT Birchcliff continues to target condensate-rich natural gas wells in Pouce Coupe, which has materially impacted the amount of liquids (primarily condensate) being produced at the Pouce Coupe…
CONTINUED CONDENSATE RATE IMPROVEMENT February 12, 2020 41
GORDONDALE OVERVIEW Acquired in 2016, Gordondale consolidated a sizeable and contiguous land base within Birchcliffs existing core area High oil & NGLs weighting Strategic infrastructure Low base decline production High quality…
GORDONDALE BASE PRODUCTION HISTORY Birchcliff Scheduled Acquisition AltaGas Plant (22,000 BOE/d) Turnaround Last well drilled in 2014 (on-stream 2015) with peak production of 35,000 boe/d AltaGas Deep Cut Plant on stream…
2018 LIQUIDS SUMMARY 2018 Well Rates (Rates are IP60) FURTHER REFINING OUR LIQUIDS STRATEGY GORDONDALE: CRUDE OIL Strong Montney D2 oil and total boe test rates Strong Montney D1 oil and total boe test rates Further refinements of…
2019 LIQUIDS SUMMARY 2019 Well Rates (Rates are IP60) CONTINUED PURSUIT OF INCREASED LIQUIDS GORDONDALE: CRUDE OIL Successful delineation of the Montney D1 and D2 oil trends to the south Significant Montney D1 and D2 results…
ELMWORTH DEVELOPMENT Received regulatory approval for an Second Exploration acid gas injection well in August 2016 Horizontal Preliminary planning underway for a 100% owned and operated 40 MMcf/d natural gas processing plant…
CONCEPTUAL MONTNEY/DOIG FIELD DEVELOPMENT MODEL STATUS OF MODEL CALIBRATION AND DERISKING FACIES & PETROPHYSICAL GEOLOGICAL, GEOPHYSICAL, GEOMECHANCAL HYDRAULIC FRAC & MICRO SEIS. RESERVOIR MODEL OPTIMIZED DCC & PRODUCTION BASAL…
ENGINEERED COMPLETIONS FOR MONTNEY/DOIG FULL FIELD DEVELOPMENT Industry Range Birchcliff Best Practices Oil Birchcliff Best Practices Gas Liner type Openhole or Cemented Cemented Cemented Inter-well spacing 100 400 m (300 1,200 ft)…
TERMINAL DECLINE CHANGES IQRE continued support for low terminal decline rates from Birchcliffs existing wells and offsetting industry wells with significant production history. Deloittes 2P Tier 0 type curve has remained at 8.2 Bcf…
CONTINUED COST AND DESIGN REFINEMENT Both Pouce Coupe and Gordondale have moved to increased frac intensity to maximize oil and condensate rates Overall well costs have slightly increased due to increased frac intensity…
PC GAS PLANT The Engine for Future Growth
Production Processed through the PC Gas 2014 2015 2016 2017 2018 2019 Plant Average daily production, net to Birchcliff: Natural gas (Mcf) 132,808 163,641 168,444 193,417 250,011 263,108 Oil, condensate & NGLs (bbls) 1,065 1,287…
KEY STRATEGIC Corporate Operating Costs vs. % of Natural Gas Sales Volumes Processed at the PC Gas Plant 10.00 100% ADVANTAGES Corporate Operating Cost (/boe) Volum e Through PC Gas Plant 8.00 80% 6.00 60% 100%…
PC GAS PLANT HIGHLIGHTS Following the successful condensate-rich drilling program, Birchcliff is initiating the engineering and planning of a 20,000 bbls/d liquids handling hub at the PC Plant (anticipated completion in Q3/2020).…
BUILDING ON OUR PAST Over 15 Years of Success
Forecasted annual average production of Birchcliffs average daily production was 77,977 boe/d in 81,000-82,000 boe/d in 2019 compared to 2,793 boe/d in 2005, a compounded 2020 annual growth rate of 29% per year over that span.…
Birchcliff has increased production at a compound annual growth rate of 29% since 2005. Operating & Cash Costs * 20 18 16 14 Operating and cash costs have 12 decreased by 70% and 41% since /boe 10 8 2008 largely due to…
Re serves Grow th 1,200 4,800 Birchcliff has added significant low cost 1,000 4,000 reserves since commencing operations in 800 3,200 2005. On a per common share boe/1,000shares MMboe 600 2,400 basis, PDP, 1P and 2P…
APPENDIX
CANADAS LNG ADVANTAGE Cleaning Our Worlds Environment, a 2.4 Bcf/d LNG Facility Could; Displace 52.6 million tonnes of carbon emissions from coal-fired power generation Replace approximately 34 coal fired power plants in China…
ENOUGH RESOURCE TO FILL A 2.2 Bcf/d LNG TRAIN FOR OVER 20 YEARS 1 Bcf/d LNG Train X 365 Days X 20 Years = 7.3 Tcf BIR Remaining Reserves as BIR Contingent Resource as at Dec 31, 2019 (gas only) at Dec 31, 2018 (gas only) 5.2 Tcf…
PROXIMAL TO INFRASTRUCTURE WITH LONG TERM EXPOSURE TO LNG EXPORT Montney/Doig Birchcliff Montney/Doig Production Resource Play Owned Infrastructure Pouce Coupe Gas Plant Nova Pipeline System North American Market LNG…
MONTNEY/DOIG WELL LOCATIONS Existing and Potential Future Drilling Locations by Interval at December 31, 2019 Average Proved Plus Probable Reserves plus Gross Number of 2P Net Number of 2P Cumulative Production Horizontal Well…
SERIES A PERPETUAL PREFERRED SHARES Preferred Share Details Series A Number of Shares 2 million Issue Date August 8, 2012 TSX Trading Symbol BIR.PR.A Issue / Par Price 25.00 per share Quarterly Dividend 0.523375 per share Yield…
SERIES C PREFERRED SHARES Preferred Share Details Series C Number of Shares 2 million Issue Date June 14, 2013 TSX Trading Symbol BIR.PR.C Issue / Par Price 25.00 per share Quarterly Dividend 0.4375 per share Yield at Issue 7.0%…
EXECUTIVE OFFICERS Mr. Tonken is the President, Chief Executive Officer and Chairman of the Board of Birchcliff. He has more than 36 years of A. Jeffery experience in the oil and natural gas industry and is one of the Corporations…
EXECUTIVE OFFICERS Mr. Carlsen is the Vice-President, Engineering of Birchcliff and is a Professional Engineer. He previously served as Asset Christopher A. Team Lead and Senior Exploitation Engineer with Birchcliff. Mr. Carlsen is a…
BOARD OF DIRECTORS A. Jeffery Tonken See Mr. Tonkens biography under Executive Officers. President, CEO and Chairman of the Board Mr. Surbey is a Director of Birchcliff and is a member of the Reserves Evaluation Committee. Mr.…
BOARD OF DIRECTORS Ms. Gerlach is a Director of Birchcliff and is a member of the Audit Committee, Compensation Committee, Nominating Debbie Committee and Reserves Evaluation Committee. Ms. Gerlach was a partner with Deloitte LLP for…
PRESENTATION OF OIL AND GAS RESERVES AND RESOURCES: Deloitte prepared the 2019 Consolidated Reserves Report, the 2018 Consolidated Reserves Report, the 2019 Deloitte Reserves Report and the 2018 Deloitte Reserves Report. McDaniel…
THANK YOU TEAM BIRCHCLIFF Jeffrey Akeroyd, Bradley Alexander, Karen Allen, Diana Almeida, Tracy Anderson, Camille Ashton, Gaetano Aurigemma, Angela Belbeck, Tyrus Bender, Riley Berge, Daniel Blattler, Calvin Bohdan, Angela Boire,…
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