Annual General Meeting of Shareholders May 7, 2020
US Crude Oil Demand Below 2019 Levels and 5-Year Range US crude oil demand is 31% lower now than compared to 2019 demand levels and 28% lower than the average of the last five years 7.8 MMbbl/d less than March 4, 2020…
Crude Oil Pricing All Major Benchmarks Down WTI prices were 44% lower as at April 29, 2020 compared to just one month prior and 84% lower than one year previous years 44% Lower than the previous month Source: Bloomberg, TD…
US Drilling Rig Count Crude Oil Drilling Activity Falls US crude oil drilling rigs fell from 665 on March 16, 2020 to 361 on April 27, 2020, a reduction of 46% in just 6 weeks Down 46% Source: CIBC World Markets; April 30,…
US Natural Gas Demand Consistent Demand Natural gas demand levels are approximately in-line with previous years and have not shown signs of non-seasonal decline Electric Power Plants Natural Gas Demand Industrial Plants Natural Gas…
US Natural Gas Supply Marcellus Drop of 1Bcf/d from peak levels of production Marcellus Production Source: Bloomberg, TD Securities; April 23, 2020 6
US Natural Gas Supply Utica Gas production off by 1 Bcf/d from peak levels of production Utica Production Source: Bloomberg, TD Securities; April 23, 2020 7
US Natural Gas Supply Permian Gas production growth is flattening Permian Production Source: Bloomberg, TD Securities; April 23, 2020 8
US Natural Gas Production Year-over-Year Key Play Production Growth Slowing Since Q4 2019, the year-over-year growth in natural gas production from these key US plays has been declining At the current pace of decline combined with…
NYMEX Forward Price Strip Significant Improvement in NYMEX Prices Forward strip prices at NYMEX reversed a drop from earlier in 2020 with current forward strip prices for October 2020 exceeding the strip from one year ago Current…
Canadian Natural Gas Storage Western Canada Below 5-Year Average Natural gas storage levels remain low, with storage levels as of April 30, 2020 an additional 2% lower than 2019s remarkably low levels Western Canada Natural Gas…
AECO Forward Price Strip Significant Improvement at AECO Prices Improvement in the current forward strip price at AECO for 2020 and 2021 compared to one year ago and average over CAD2.50/Mcf for the next 24 months AECO Forward…
Station 2 Pricing Station 2 Surviving the trough Station 2 Historical and Forward Strip Pricing (April 24, 2020) 3.00 July 2017 to Oct 2019 2.50 (28 Months) Avg Price 0.98/Mcf 2.00 Nov 2020 to Oct 2023 /Mcf 36…
Investor Update May 7, 2020
Vision Statement To establish PONY as the low-cost, secure supplier of Clean Natural Gas energy to Canada and the World.
Why we do what we do Our Mission is to establish PONY as a low-cost supplier of clean natural gas to Canada and the world. Percentage of Global Energy Needs Oil Gas Coal Renewables Hydro Nuclear We believe: world…
Clean-Burning Natural Gas PONY supplements diesel Lowest GHG Emissions fuel with natural gas fuel for completion operations which reduces per well capital costs and lowers PONYs GHG emissions Converting coal-fired electricity 250…
Global LNG Market Demand Growth Mtpa (Million Tonnes per Annum) is a typical measurement unit in Global LNG LNG markets .for production demand forecast 500 to increase Approximate conversion: 1 mtpa = 0.132 Bcf/d 34% 57 1 Bcf/d =…
Proposed West Coast LNG & LPG Projects Game Changers LNG Projects Capacity LNG Canada Shell, Petronas, Mitsubishi, Petro- China, KOGAS 1.9 3.8 Bcf/d Phase 1 - under construction T-North Enbridge Mainline Woodfibre LNG Pacific…
LNG Canada Construction Underway Kitimat, BC Site August 2018 In 2019, the global LNG market continued to evolve according to the latest Shell LNG Outlook, with demand increasing for LNG and natural gas in power and non-power…
Alberta Natural Gas Market Continued Demand Growth Alberta is expected to increase natural gas Natural Gas Demand (Bcf/d) 0 8.0 consumption by over 45% Significant demand growth taking place in Alberta between 2018 and 2023…
Corporate Profile TSX: PONY (as at May 6, 2020) Q1 2020 Average Daily Production 319 MMcfe/d (53,141 boe/d) 2019 2P Reserve Life Index* 64 Years 1H 2020 Capital Budget 25-30 million Enterprise Value 540 million Common Shares…
World Class Resource Natural Gas Pipeline Coastal GasLink Pipeline Montney Pure Play Asset The Montney is the most economic natural gas and natural gas liquids play in Canada 290 net sections (185,704 net acres) of Montney…
2020 Capital Program Disciplined Capital Investment Investing 25 - 30 million for 1H of 2020 Q1 capital spending of 21 million PONY will review capital budget at mid-year to determine appropriate 2H 2020 spending levels Current…
Montney Pure Play Location, Location, Location North River Jedney Plant Jedney Facility Jedney Dry Liquids PONYs Montney Beg Sweet Spot is: 4x thicker than the Marcellus at greater than West Blair Blair 300 meters…
The Sweet Spot BRITISH North Montney 6-Month Cumulative Production Volumes COLUMBIA ALBERTA North Montney 2,250,000 PONY has the best well in North Montney with 6-month average daily 2,000,000 production rate of more 60 of…
2019 Reserves 2019 Operating Netback 2019 PDP Significant Resource, Significant Value 1.66/Mcfe Recycle Ratio 2019 Future Development 2019 PDP Finding, Development = 1.3x Capital was reduced by more & Acquisition Cost than 2019…
2019 Natural Gas Reserves Fourth-Largest 2P Natural Gas Reserves 14 12.3 12 4th largest domestic natural gas reserves of any publicly-traded Proved plus Probable Reserves (Tcf) 10 9.5 company in Canada 8 6.8 6.3 6…
Canbriam Transaction Closed June 2019 Canbriam Energy sold to Pacific Oil & Gas for 1 billion Offsetting acreage analog for PONY Validates land sale prices in NEBC Montney Landholdings Painted Pony Energy (185,704 net acres)…
Market Diversification Natural Gas Physical Delivery PONY Sales / Pricing Exposure PONY Western Markets St. 2 & AECO 174 MMcf/d AECO C A N AMEDICINE D A HAT 10 MMcf/d to Methanexs Station 2 methanol plant in Alberta…
Transportation Firm Transportation & Toll Advantage to West Coast Enbridge T-North (St 2 or TC Energy Sunset Creek) NMML 0.24/Mcf 0.59/Mcf to Sunset Creek PONY has a net 0.35/Mcf transportation toll advantage delivering…
Historical Costs Drilling & Completions Efficiency Continued type curve As capital well costs fell, production type curves improvement with dramatically improved average Total 2P(1) well booking of 9.2 Bcfe/well Management Perf &…
Blair Long Lateral Wells Encouraging Performance Using longer laterals, PONY has the opportunity to improve capital efficiency to approximately 6,000/boe/d 16 2,700+ m long lateral length wells (see advisories for well locations)…
Single Well Economics by Area Driving Increased Capital Efficiencies Through Longer Lateral Wells Well Capital Costs Single Well Economics* IRR NPV10 Pay Out 1,800 meter lateral Daiber 1,800 m lateral (dry) 127% 10.1 mm 1.0 years…
ESG Environmental, Social, Governance Social Social Responsibility With Indigenous Communities, PONY strives to: Grow relationships with local Indigenous neighbours to instill trust and earn support for current and future…
ESG Environmental, Social, Governance Greenhouse Gas Emissions and Water Usage CO2 Intensity 0.01 Emissions Reduction 0.008 0.0087 tonnes CO2e/boe PONY is committed to 0.0076 0.006 reducing Greenhouse Gas 0.0064 (GHG)…
ESG Environmental, Social, Governance Governance Institutional Shareholder Services Inc. (ISS) is the worlds leading provider of corporate governance and responsible investment ratings. On a 1-10 scale where 1 is excellent and 10 is…
PONY Points Checking Off All of the Boxes Well situated to supply Canadian west coast LNG projects Diversified Market Access and Sales Points Massive reserves base Top well performance Recent adjacent transaction shows…
Appendices & Advisories
Financial Strength Term Debt and Credit Facility Provide Financial Flexibility 350 Million Syndicated Credit Facility Secured, Reserve Based Lending Matures May 2021 Syndicated 121 million drawn as at March 31, 2020 121 Credit…
Corporate Overview Auditor KPMG LLP Evaluation Engineers GLJ Petroleum Consultants Ltd. Banks The Toronto-Dominion Bank Canadian Imperial Bank of Commerce The Bank of Nova Scotia Alberta Treasury Branches Royal Bank of Canada…
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