INTRODUCTION TSX symbol SRX, started Sep 2010 fourth Storm since Nov 1998 history of discipline with capital investment & per share growth Market cap 160 MM (1.30/share) Q4/19 FF 18 MM (22,375 boe/d, 19% liquids), Q4/19 debt 129 MM…
2019 prodn per share +99% vs 2015 PRODUCTION GROWTH 2019 reduced by outages (McMahon GP 37 days) & shut-ins for low AECO, Stn 2 prices Nig GP reduces impact of 3rd party outages & low nat gas prices 3
results reflect cost reductions, improving hzs, disciplined capital investment FINANCIAL 2019 reduced by outages & NGL pricing (-10 MM) costs to continue declining with Nig GP 2019 profit reduced by higher PDP FD&A (Nig GP…
growing reserves per share with low FD&A cost, strong PDP recycle ratio RESERVES 2019 PDP adds 2019 PDP FD&A higher replaced 1.2 X prodn with Nig GP capex 61 MM (1P 1.9 X, 2P 2.8 X) PDP FD&A 2019 11.43/boe 3 yr 6.79/boe PDP…
achieving growth with return on capital RETURN ON CAPITAL CROCE better, not return on capital is affected by non-cash consistent with PDP hedging gains/losses recycle (3 yr 1.6 X) 2019 +2 MM 2018 -6 MM 2017 +25 MM 6
UMBACH/NIG/FIREWEED (NE British Columbia) 0.1% - 1.2% H2S Montney liquids rich gas requires processing raw gas 1,200 - 1,300 btu/scf at sour gas plant 19% liquids McMahon GP accesses 3 sales pipelines 38 bbls/mmcf, 57% cond 80 hzs…
material future upside, only 8% lands with PDP (25% with 2P) LARGE LAND POSITION 170 net sections 120,000 net acres Near term growth from Nig & Fireweed Montney productive across the area learning from offsetting hz results…
maintaining prodn, growth depends on Stn 2 price UMBACH (100% WI) H2S 1.2% 113 net sections, 70 hzs drilled Q4/19 16,400 boe/d (19% liquids) 38 bbls/mmcf (55% cond) Facility capacity 150 mmcf/d raw Q4/19 avg 112 mmcf/d raw incl…
highest rate hzs with gas plant diversifies processing, reduces op cost, increases % liquids NIG (100% WI) H2S 0.2% Growth to 10,500 boe/d late Q1/20 16 net sections, 7 hzs drilled Q4/19 5,600 boe/d (21% liquids) 43 bbls/mmcf (59%…
higher CGR increases condensate prodn (CGR 2 5 X vs Umbach) FIREWEED (50% WI) 2020 hz drills JV with privateco 50/50 consolidated land in 2019, 24 net sections, 3 hzs drilled development starts in 2020 Building 50 mmcf/d field…
% liquids increasing with growth at Nig, Fireweed LIQUIDS RECOVERY BY AREA Estimated liquids recovery by area field cond Raw Gas Sales Liquids Condensate avg life CGR(1) Bcf/hz Gas Plant Mboe Mbbls Mbbls bbls/mmcf raw Umbach 8.0(2)…
improving by adding length/fracs & targeting better quality areas HZ RESULTS 13
DAILY GAS RATES 14
DAILY CONDENSATE RATES 15
LONGER TERM PRODN HISTORY 16
COMPARING MONTNEY RESULTS 17
HZ COSTS reducing FD&A with longer hzs Umbach 2017-18 hzs vs 2014-16: length +42% D&C cost +13% 2P EUR +33% (excl Nig) costs include roads, lease construction, & water handling (ie, all costs) DRILLING hzs length cost COMPLN…
growth increases % liquids and reduces op cost GROWTH PLAN forecasting growth to 27,500 Boe/d in Q4/20 (boe/d +36% & liquids +54% vs 2019 avg) can reduce capex if required to maintain strong balance sheet growth from Umbach…
majority of 2019 20 capex directed to growth opportunities CAPITAL INVESTMENT 2020 capex to maintain prodn 25 MM 5 new hzs to maintain 25,000 boe/d in 2020 2020 growth capex incl finishing Nig GP, 2 hzs at Nig, Fireweed…
diversified nat gas sales reduces price volatility NATURAL GAS MARKETING Stn 2 improved with T- started diversifying sales in south repair (Dec/19), 2015 by adding firm TCPL North Montney pipeline capacity (increases Feb/20 (+1.4…
SUMMARY Converting large Montney resource into debt adjusted per share growth in funds flow and asset value Results reflect focus on per share growth, return on capital per share growth since 2015: prodn +99%, funds flow +44% 2019:…
STORM RESOURCES LTD CONTACT INFO For further information please contact: Brian Lavergne, President and Chief Executive Officer Michael Hearn, Chief Financial Officer Carol Knudsen, Manager Corporate Affairs Address: 600, 215 2nd…
APPENDIX 24
incl 25 day McMahon GP GUIDANCE & FINANCIAL RESULTS turnaround in Sep/20 2020 Guidance 2019 2018 2017 2016 Average Boe/d 23,500 26,000 20,182 20,538 16,017 13,219 per MM shares 167 169 132 109 % liquids 21% 19% 18% 18% 17% FX…
UMBACH & NIG CUM GAS VS TIME 26
UMBACH & NIG CUM FIELD CONDENSATE VS TIME 27
pricing is approx fwd strip for 2021 ( Jan 6/20) GROWTH ECONOMICS NIG & FIREWEED Flat Pricing: Stn 2 1.75/GJ, WTI US55/bbl, Edm cond -US5/bbl, FX 0.77 butane 30% WTI, propane US0.43/gal Conway & US0.83/gal FEI Fireweed - McMahon Gas…
HEDGING (to Mar 20/20) Hedging to support growth up to 50% prodn 12 months forward growth is not hedged up to 25% prodn 13 to 24 months forward Q2 Q4/20 8,900 Boe/d or 36% forecast prodn hedged: 8,200 mmbtu/d Chicago Cdn3.31/mmbtu…
avoid overcommitting for firm take or pay, reduces PROCESSING & TRANSPORTATION flexibility if prices decline Processing totals 130 mmcf/d raw (firm contracts + Nig GP) Q4/19 actual 112 mmcf/d raw McMahon GP 65 mmcf/d raw & Stoddart…
PLANT GATE NAT GAS PRICE CALCULATION 2020 FWD STRIP (Jan 27/20) Sell in Chicago (Alliance pipeline) NYMEX US2.13/mmbtu Chicago price US1.97/mmbtu NYMEX - Chicago diff -US0.16/mmbtu Chicago price cdn2.46/GJ Alliance fuel -cdn0.13/GJ…
US NAT GAS DEMAND VS SUPPLY US supply demand 2 - 3 bcf/d however, prodn growth flattening (next slide) while demand growth continues (especially LNG exports) 12 months to Dec/19: YOY consumption +2.6 bcf/d YOY supply +5.2 bcf/d…
MARCELLUS/UTICA NAT GAS PRODUCERS Data from AR, ASCENT, CNX, COG, EQT, GPOR, MR, RRC, SWN (2019 19.5 bcf/d or 60% Appalachia prodn) financially challenged by high debt : funds (higher if hedge gains excluded) rising cash…
Loading...
