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June 2020 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jun 1, 2020 · 30 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. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / JUNE 2020 NAVIGATING VOLATILITY AND DELIVERING AN INCOME GROWTH MODEL
  2. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares Outstanding (MM) Basic 408.1 Fully diluted 415.1 2020 Guidance Production (boe/d) 65,000 67,000 Capital (MM) 190 Dividend per share (annual) 0.171 Per share (monthly) 0.01425 2
  3. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Starting in a Position of Strength Solid Q1 Results funds flow of 131.8 MM (0.32 per share) Q1 Actuals Forecast Production (boe/d) 73,452 72,000 73,000 Capital investment (MM) 138.8 140 - 150 Strong Q1 Credit Profile well within…
  4. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Managing Economic Uncertainty Actions Taken Phase 1 March 17 Cash Reduction Revised Forecast Capital Expenditures 160 MM 200 - 210 MM Dividend Payments 70 MM 70 MM/Year (0.171/share) Phase 2 April 30 Cash Reduction Revised…
  5. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Whitecap Competitive Advantages Strong Financial Position: Committed facility with no near-term maturities and ample liquidity. Robust Hedge Portfolio: Mark to market value of commodity hedges at the end of Q1 was 146 million.…
  6. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Financial Strength Strong credit profile and ample available liquidity Q1 Actuals Covenants Debt / EBITDA 1.7x < 4.0x EBITDA / Interest 14.0x 3.5x Net Debt Total Credit Unused Capacity 1.27B 1.77B 500MM 100% of debt termed out…
  7. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Robust Hedge Portfolio Objectives: Mitigate price volatility and protect economic returns Target 40 60% of net royalty volumes 12 months forward Target 20 40% of net royalty volumes 12 24 months forward Current oil hedges Q2/2020…
  8. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Premium Assets High operating income netbacks Only 3% (2,000 boe/d) of production currently shut-in and majority is being restored Majority of production generates positive operating income Operating income break-even at 16.50 US…
  9. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 9
    Environmental Sustainability We operate and are the majority owner of the largest Carbon Capture and Utilization Storage Project (CCUS) in the world Annually Whitecap stores more CO2 than we emit corporately, both direct and…
  10. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 10
    How It Works 1. Collecting Waste Emissions We purchase CO2 from coal plants in Saskatchewan and North Dakota. Without the Weyburn Unit, the majority of CO2 would otherwise be released to the atmosphere. CO2 captured is equivalent to…
  11. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 11
    How It Works 3. Sustainable Oil Production The CO2 acts likes a solvent to flush otherwise unrecoverable oil from pores in the rock. This results in incremental oil production that could not be achieved with conventional means. 4.…
  12. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Disciplined Management Team Capital investment requires an acceptable Return on capital Return of capital is important but must be supported by funds flow Mitigate risk through balance sheet and hedging Track record of Investing…
  13. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Track Record of Per Share Growth Production 2P Reserves 80,000 600,000 70,000 60,000 12% CAGR per share 500,000 17% CAGR per share 50,000 400,000 Boe/d Mboe 40,000 300,000 30,000 200,000 20,000 10,000 100,000 - -…
  14. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Our Priorities Continue to Protect the Enhance optimize Focus on balance Returning value costs while sheet and cash to operating through shareholder preserve shareholders creative returns safely and liquidity structures…
  15. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Areas We Are Watching Demand outlook for both crude oil and refined products Impact of COVID-19 and the demand outlook on a recovery Q2 will be a very challenging quarter Supply outlook for crude oil Global oil and gas budget…
  16. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Core Areas of Operations 2,895 drilling locations provides 10 years growth BRITISH COLUMBIA Drilling ALBERTA SASKATCHEWAN Inventory Northwest West Central Sask 825 Alberta & BC Southwest Sask 736 Northwest AB & BC 614 West…
  17. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Northwest Alberta (Deep Basin) Significant Resource Upside Large defined oil-in-place High quality short cycle projects Multiple expansion and growth opportunities Well economics Wapiti Cardium DCE&T costs (MM) 3.2 WTI (US/bbl)…
  18. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 18
    West Central Alberta - Cardium Stable and Predictable Large oil-in-place and low risk development Underdeveloped enhanced oil recovery projects Opportunities for continued capital efficiency optimization Well economics - Primary Well…
  19. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 19
    West Central Saskatchewan - Viking Short Capital Payouts High ROR and short capital payout projects Industry leading capital efficiencies Reduced D&C costs 38% since entering the play in 2012 Well economics - Viking DCE&T costs…
  20. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 20
    Southwest Saskatchewan Sustainable Free Funds Flow Enhanced oil recovery opportunities Significant free funds flow generation Low base production decline rate of 8% Well economics - Atlas Well economics Lower Shaunavon DCE&T costs…
  21. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Southeast Saskatchewan Free Funds Flow Engine Opportunities to optimize and expand CO2 flood Reserve life 40 years Low base production decline rate < 3% Well economics DCE&T costs (MM) 1.6 WTI (US/bbl) 40 50 Payout (yrs.) 3.3…
  22. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Significant Resource Upside Large resource in place supports sustainable income growth model Resource Upside DOIIP (Bbbls) 10.8 (7.8 net) Recovered to date 14.7% Booked 2P recovery factor 19.5% Possible recovery factor 24.5%…
  23. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 23
    Crude Oil Marketing Active seller and shipper on 6 oil feeder pipeline connected to Enbridge mainline 33% of production is protected from Enbridge apportionment rail and Midale - Light Oil direct sales to refineries MSW Light…
  24. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 24
    Research Coverage AltaCorp Capital Laurentian Bank Securities BMO Capital Markets National Bank Financial Canaccord Genuity Peters & Co. CIBC World Markets Raymond James Cormark Securities RBC Capital Markets Desjardins Capital…
  25. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 25
    TSX:WCP www.wcap.ca June 1, 2020 25
  26. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Slide Notes Slide 2 1. Shares and dilutives outstanding as at May 31, 2020. 2. See Oil and Gas Advisory in the Advisories for additional information on production. Slide 3 1. A copy of Whitecaps first quarter 2020 press release dated…
  27. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Slide Notes (contd) Slide 7 1. Hedge positions current to May 25, 2020. 2. Full hedge positions by product are: Volume Bought Put Price Sold Call Price Swap Price WTI Crude Oil Term (bbls/d) (C/bbl) (i) (C/bbl) (i) (C/bbl) (i) Swap…
  28. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 28
    Slide Notes (contd) Slide 19 1. See Oil and Gas Advisory in the Advisories for additional information on estimated well economics. 2. Viking well economics based on type curve for mile (1.5 ERH) fracture stimulated horizontal oil well. 3.…
  29. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 29
    Advisories (contd) Drilling Locations This presentation also discloses drilling inventory in three categories: (i) proved locations; (ii) probable locations and (iii) unbooked locations. Proved locations and probable locations are…
  30. June 2020 Corporate Presentation – Whitecap Resources Inc. – slide 30
    Advisories (contd) Reserves Disclosure of reserves on a per boe basis in this presentation consists of the constituent product types and their respective quantities disclosed in the following table. Crude Oil NGLs Natural Gas Total…

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