CORPORATE PRESENTATION / JULY 2020 NAVIGATING VOLATILITY AND DELIVERING A SUSTAINABLE INCOME GROWTH MODEL
Whitecap Profile TSX: WCP Shares Outstanding (MM) Basic 408.2 Fully diluted 417.1 2020 Guidance Production (boe/d) 65,000 67,000 Capital (MM) 190 Dividend per share (annual) 0.171 Per share (monthly) 0.01425 Refer to…
Generating Free Funds Flow Despite Volatility Solid Q2 Results free funds flow of 56.8 MM funds flow of 78.1 MM (0.19 per share) Q2 Actuals Forecast Production (boe/d) 70,807 69,000 70,000 Capital investment (MM) 21.3 20 - 30…
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…
Whitecap Competitive Advantages Strong Financial Position: Committed facility with no near-term maturities and ample liquidity. Robust Hedge Portfolio: Realized crude oil hedging gains of 51 million in Q2. High funds flow…
Financial Strength Strong credit profile and ample available liquidity Q2 Actuals Covenants Debt / EBITDA 2.0x < 4.0x EBITDA / Interest 12.7x 3.5x Net Debt Total Credit Unused Capacity 1.24B 1.77B 530MM 100% of debt termed out…
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 2H/2020…
Premium Assets High operating income netbacks Only 1% (1,000 boe/d) of production currently shut-in 99% of production generates positive operating income Operating income break-even at 16.50 US WTI Low production decline rate…
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…
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…
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 - -…
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…
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…
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.…
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…
Strength of Inventory High Quality Inventory 100% 90% 80% 70% % Inventory 60% 50% 40% 30% 20% 10% 0% 40 45 50 55 60 ROR 30% Payout < 3 Yrs P/I 0.5 Exceptional full cycle returns drives fully funded model At 50…
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…
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…
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…
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…
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…
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%…
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…
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…
TSX:WCP www.wcap.ca July 30, 2020 25
Slide Notes Slide 2 1. Shares and dilutives outstanding as at June 30, 2020. 2. See Oil and Gas Advisory in the Advisories for additional information on production. Slide 3 1. A copy of Whitecaps second quarter 2020 press release dated…
Slide Notes (contd) Slide 7 1. Hedge positions current to July 30, 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) (US/bbl) (i) Swap…
Slide Notes (contd) Slide 17 1. See Oil and Gas Advisory in the Advisories for additional information on estimated well economics. 2. Wapiti Cardium well economics based on type curve for 1 mile fracture stimulated horizontal oil well. 3.…
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…
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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