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April 2020 Investor Presentation – Peyto Exploration & Development Corp

Peyto Exploration & Development Corp · Apr 30, 2020 · 52 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. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 1
  2. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 2
    Agenda Interesting Times PEYTO Exploration & Development Corp. Who we are The importance and what we of Canadas do Energy Industry What does Oil & Gas do The Peyto for you Strategy Our Assets Our Future and Returns 3…
  3. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 3
    PEY.TO Who We Are PEYTO Exploration & Development Corp. N Pure Play Alberta Deep Basin - 405 mmcf/d Gas, 11,000 bbl/d NGLs N Returns Focused Strategy - Avg ROCE 15%, ROE 28% over last 21 yrs, among highest in the industry N…
  4. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 4
    PEY.TO What We Do PEYTO Exploration & Development Corp. 5 7/6/2020
  5. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 5
    PEY.TO How Were Handling COVID19 PEYTO Exploration & Development Corp. 1. Office Preparations All staff set up with remote desktop working capabilities (multiple communication tools: email, text, phone, conference, Webex, etc)…
  6. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 6
    Canadian Energy Industry Energy Industry Equals Healthcare PEYTO Exploration & Development Corp. Health to GDP ratio in Canada 10.7% in 2018 7…
  7. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 7
    Canadian Energy Industry What Oil and Gas Becomes PEYTO Exploration & Development Corp. 8 www.Oilandgasinfo.ca 7/6/2020
  8. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 8
    Canadian Energy Industry The World Needs More Canadian Energy PEYTO Exploration & Development Corp. Environmental Regulations Worker Safety Russia Saudi Iran Iraq Human Rights Ethical Standards Gender Equality…
  9. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 9
    Canadian Energy Industry Supplier for an Energy Hungry World PEYTO Exploration & Development Corp. 10 Source: BP Energy Outlook 2019 7/6/2020
  10. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 10
    Canadian Energy Industry Continuously Improving Peyto Leading the Way PEYTO Exploration & Development Corp. Emission Intensity by Source Type for Canadian Oil and Gas (1990, 2005, 2016) 140 140 121.4 Emmission Intensity per…
  11. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 11
    Peytos GHG Emissions Continuously Improving Environmental Performance PEYTO Exploration & Development Corp. Peyto GHG Emissions Intensity KgCO2eq/boe (direct and 29.0 26.0 24.7 23.9 22.3 21.1 20.9 indirect) in GHG…
  12. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 12
    The Peyto Strategy PEYTO Exploration & Development Corp. 13 7/6/2020
  13. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 13
    Peytos Strategy What We Continue To Believe PEYTO Exploration & Development Corp. N Natures gas is the fuel for the future. N Our gas and NGLs have some of the lowest emissions of any hydrocarbons produced in Canada. N Our business…
  14. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 14
    Peytos Strategy 20 Year Growth Per Share PEYTO Exploration & Development Corp. Production/share Reserves/share FFO/share 2P (NPV5-debt)/share (/sh) (MMcfe/d/mm sh) (2P Bcfe/mm sh) (/sh) 1363 29.229.6 4.33 1289 4040 38 1222…
  15. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 15
    Peytos Strategy Total Shareholder Return Model PEYTO Exploration & Development Corp. Future Prospects Past Profits 16 BOE factor - 6 mcf = 1 bbl of oil equivalent 7/6/2020
  16. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 16
    The Peyto Strategy Fund Growth From Cashflow PEYTO Exploration & Development Corp. 7,000 6,258 120,000 6,000 100,000 5,000 6,165 80,000 Peyto FFO 4,000 60,000 CTD Q4/19 3,000 40,000 2,000 1,000 20,000 0 1999 - 2000…
  17. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 17
    The Peyto Strategy High Operating Margins PEYTO Exploration & Development Corp. 90% 9.00 80% 8.00 70% 7.00 60% 6.00 50% 5.00 40% 4.00 30% 3.00 20% 2.00 10% 1.00 Peyto Operating Margin 0% 0.00 20 Year Avg. FFO/Revenue…
  18. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 18
    The Peyto Strategy Invest For Profit Not Growth PEYTO Exploration & Development Corp. 800 700 600 500 Peyto Capital 400 CTD Q4/19 300 200 100 - 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 CAPEX (MM) Earnings…
  19. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 19
    The Peyto Strategy Dividend Sustainability PEYTO Exploration & Development Corp. 3,000 2,500 2,000 Peyto Ctd. Earnings (MM) 1,500 Q4/19 1,000 500 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009…
  20. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 20
    The Peyto Strategy 21 Year Cycle of Value Creation PEYTO Exploration & Development Corp. 6.2B Capital Investment 55% retained FFO YE 2019 27% equity 18% debt 2P NPV5 2.59B 8.5B Value Earnings 6.818B 2.45B in div/dist 0.38B to…
  21. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 21
    Peytos Strategy Growing North American Gas Market PEYTO Exploration & Development Corp. North America Gas Consumption (BCF/d) (BP Statistical Review of World Energy 2019) 140 140 120 120 100 100 32% growth 80 2008-2018 80…
  22. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 22
    Peytos Strategy Canadian Gas Egress Is Expanding PEYTO Exploration & Development Corp. Dry Natural Gas Production - Canada 25 (EIA) 9 LNG Export 8 2.0 Bcf/d 21 7 LNG Canada 20 6 NGTL Expansion 5+40% BCF/D 19 4 15…
  23. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 23
    Peytos Unique Assets PEYTO Exploration & Development Corp.
  24. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 24
    Peytos Assets Geographically Focused Core Areas PEYTO Exploration & Development Corp. 563,500 net acres 9 operated gas plants Cutbank ---(835 mmcf/d net capacity) 2,000+ km pipelines 1,250+ producing zones Kakwa 80,000 boe/d…
  25. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 25
    Peytos Assets Multi Zone Stacked Sandstone Reservoirs PEYTO Exploration & Development Corp. Detailed Petrophysical work on the Spirit River sands revealed 30% more reserves per section Up to per section* 26 *NGL…
  26. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 26
    Peytos Assets Large Hz MSF Inventory PEYTO Exploration & Development Corp. Done1 To Do Total Total Total Total Hz(Vt) Hz Locations Vertical Hz Locations Unbooked3 Wells Wells Booked2 (2) 2 440 163 430(12) 419 5 1 2 4 1…
  27. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 27
    Peytos Assets Deep Basin Lands Go A Long Way PEYTO Exploration & Development Corp. 1,000 Peyto Lands 900 800 700 Net Sections 600 500 Net Peyto Sections 400 300 200 100 - Net Sections of Cardium, Dunvegan,…
  28. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 28
    Peytos Assets Facility Ownership And Control PEYTO Exploration & Development Corp. Cutbank Kakwa Oldman (with Deep Cut) & Oldman North Nosehill Wildhay Galloway Swanson Peyto Gas Plants YE 2014 YE 2015 YE 2016 YE…
  29. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 29
    Peytos Assets Valuable Midstream Processing Capacity PEYTO Exploration & Development Corp. Peyto Processing Capacity is currently limited to 715 MMCF/d* 700,000 2P Reserves 815 MMBoes Go Forward Processing Capacity Forecast…
  30. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 30
    Peytos Assets What Shareholders Currently Own PEYTO Exploration & Development Corp. Tangible Infrastructure (Replacement Value as at Dec 31, 2019) 80 Compressors (3.25MM each) 259 MM 17 Inlets (1.8MM each) 31 MM 20 Refrigeration…
  31. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 31
    Peytos Assets Big Sunny Natural Gas Storage Scheme PEYTO Exploration & Development Corp. R.25 R.24 R.23 R.22 R.21 R.20 R.19 R.18 Nosehill Creek North Meter Station 139 mmcfd Capacity T.56 T.56 Obed North Oldman Meter…
  32. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 32
    Peytos Assets Unique Infrastructure Location PEYTO Exploration & Development Corp. Alliance Oldman & Oldman North Nosehill Wildhay Big Sunny Galloway Swanson 240 kV Power Lines Highway 16 Cascade Power Project Greater…
  33. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 33
    Peytos Assets Long Reserve Life Asset PEYTO Exploration & Development Corp. RESERVE LIFE INDEX 30 YEARS AT Q4 PRODUCTION 25 28.8 20 15 18.7 10 Years PDP 5 9.4 0 2001 2002 2003 2004 2005 2006 2007 2008…
  34. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 34
    Peytos Assets First 2 Cardium Hzs Have Reached Terminal Decline PEYTO Exploration & Development Corp. 6 Years There is nothing appealing about a 200 mcf/d gas well, except when it doesnt decline. Then it becomes an…
  35. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 35
    Peytos Assets Organic Reserves Growth PEYTO Exploration & Development Corp. 8,000 7,000 6,000 5,000 17% CAGR 4,000 3,000 1,600 2,000 1,000 1,859 TCFe of Discovered Reserves 0 Cum Production BCFE Proved Developed…
  36. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 36
    Peytos Profitable Business PEYTO Exploration & Development Corp. 37 7/6/2020
  37. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 37
    Peytos Profitable Business Build it for less than we sell it PEYTO Exploration & Development Corp. 2019 PEY 2014 PEY 2015 PEY 2016 PEY 2017 PEY 2018 PEY 2019 Land/Acq/Disp Capex 690MM Capex 594MM Capex 469MM Capex 521MM Capex 232MM…
  38. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 38
    Peytos Profitable Business 2019 Cardium Additions PEYTO Exploration & Development Corp. 2019 Cardium New Drills 12,000 10,000 Production (BOE/D) 8,000 6,000 90 bbl/mmcf of 4,000 Condy and NGLs 2,000 0 2019-01…
  39. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 39
    Peytos Profitable Business 20th 1998-2018 2019 Post-Mortem Returns Analysis 40 Full cycle IRR is determined using actual capital spent on each well, including a 825k provision for land, seismic, and facilities in order to total…
  40. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 40
    Peytos Profitable Business Peytos Moat is a Low-Cost Advantage PEYTO Exploration & Development Corp. 2.60 4.61 (0.16) 1.00 41 BOE factor - 6 mcf = 1 bbl of oil equivalent Data from Peters & Co. 7/6/2020 Gas…
  41. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 41
    Peytos Returns High Returns On Your Capital And Equity PEYTO Exploration & Development Corp. 60% 12 50% 10 40% 8 21 yr Avg ROE to 2019 30% 6 20% 4 4.0% 8.0% 10% 2 0% 0 Return On Capital Employed (%) Return On…
  42. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 42
    Peytos Returns Template Economics At Strip PEYTO Exploration & Development Corp. Gross IP3 Gross EUR Gross DCET Type Entity (boe/d) (mboe) % Liquids (M) IRR (%) 2020 Brazeau Cardium 790 600 21% 3,560 50% 2020 Brazeau Notikewin…
  43. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 43
    Peytos Future PEYTO Exploration & Development Corp.
  44. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 44
    Peytos Future 2020 Outlook PEYTO Exploration & Development Corp. Drill 65Hz Wells (Liquids Rich Natural Gas) vs 50 in 2019 Market 3rd Party Capacity Offer Excess Capacity to Other Operators Increase Opportunities Undeveloped…
  45. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 45
    Peytos Future Gas Price Stability Before Returning to Growth PEYTO Exploration & Development Corp. 14 bbl/mmcf 14 bbl/mmcf 17 bbl/mmcf 20 bbl/mmcf 27 bbl/mmcf 30 bbl/mmcf 5 4.19 4 100,000 12,000/boe/d 16,800/boe/d…
  46. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 46
    Peytos Future Lower Costs and Increase Liquids to Preserve Profit PEYTO Exploration & Development Corp. PEY 2017 PEY 2018 PEY 2019 PEY Goals 86% Gas 1.54/GJ*1.15 14% NGLs45/bbl=(60%of 75oil) 84% Gas 2.00/GJ*1.15 Revenue…
  47. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 47
    Gas Marketing Future Market Diversification and Gas Price Protection PEYTO Exploration & Development Corp. 48 *Average Heating Value of approximately 1.15 GJ/mcf for Peytos gas 7/6/2020
  48. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 48
    Gas Marketing Successful Hedging Strategy Smoothes Volatility PEYTO Exploration & Development Corp. Gas Price (/mcf) 10.00 10.00 9.00 Peyto has beat the AECO 9.00 8.00 monthly price in 12 of the 8.00 last 14 years using a 7.00…
  49. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 49
    Gas Marketing Fixed Price Swaps For Gas and Liquids PEYTO Exploration & Development Corp. Peyto Marketing Summary AECO 7A Fixed Price Swaps (CAD/GJ) TOTAL TOTAL TOTAL TOTAL TOTAL Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1…
  50. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 50
    Gas Marketing LNG Consortium and Export Potential PEYTO Exploration & Development Corp. 51 7/6/2020
  51. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 51
    Stay Safe, Stay Healthy PEYTO Exploration & Development Corp. 52 7/6/2020
  52. April 2020 Investor Presentation – Peyto Exploration & Development Corp – slide 52
    Gas Marketing Balanced Revenue Stream PEYTO Exploration & Development Corp. 2019 ACTUALS Condy & C5+ Gas - AECO - Fixed Peyto Quarterly Revenue Breakdown (5a/7a) 11% 5% 300,000 60% 250,000 50% 200,000 40% Gas - AECO…

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