Corporate Presentation A Premier Pure-Play Pipestone Montney Company Sustainable long-term condensate growth FEBRUARY 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 Positioned to Generate 20% Production per Share…
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…
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 Exceeded 2019 Exit Guidance Achievements…
Capitalization and Guidance Overview Focused on maintaining a strong and flexible balance sheet Pipestone PipestoneEnergy Capitalization Energy Capitalization Company Guidance Ticker Symbol TSX-V PIPE Forecast Production & Cash…
Pipestone Energy Development Focus Near-term capital program focus will be on pad development offsetting the highest liquids results observed to date along the existing infrastructure corridors PIPE Acreage Company Development Map PIPE…
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…
Efficient Reserve Growth Increased reserve volumes materially across all categories since YE 2018; improved capital cost efficiencies reflected in significantly lower future development costs Y-o-Y Reserve Volume Increase(1)…
Significant Reserves & Resource Recognition Increased reserve volumes with decreased FDC driving a 57% year-over-year increase to 2P NAVPS (strip pricing) to 5/share(2) NPV 10% Volume Condensate / Oil NGLs Total Liquids 3C Price…
Reserves Benchmarking Pipestone ranks very favourably versus its Montney peers on key reserve metrics 2019 PDP Recycle Ratio Years of Capital Spending Booked vs. Reserve Life Index (RLI) 2019 Operating Netback / PDP Additions (x) 2P FDC…
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 type curve performance 3-1 Pad Results to Date 15-14 Pad Results to Date Cumulative Production (boe) Cumulative Production (boe) 2P B…
Attractive Type Curve Economics Pipestone Montney wells deliver highly competitive half-cycle returns with paybacks of 12 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 Robust hedging program provides increased certainty on future cash flow amid commodity price volatility Condensate / NGLs: Pipestone Energy expects to derive a majority of its near-term revenue from…
Environment, Social, & Governance Highlights State of the Art Design & Facilities, Focused on Minimizing Emissions Environment In-field fuel gas displacing 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 600 543 500…
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 Future Upside Layer Montney B and C…
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…
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