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Q3 2020 Earnings Presentation – Tourmaline Oil Corp.

Tourmaline Oil Corp. · Nov 5, 2020 · 43 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. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 1
    Corporate Presentation November 2020
  2. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 2
    Tourmaline Overview 2 The Scale, Resource, and Infrastructure Required to Profitably Grow in the WCSB and Provide Returns to Shareholders Nov 2020 Tourmaline Overview 2.2MM Net Acres, 2.6 Billion Boe 2P Reserves(1) Conroy Largest…
  3. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 3
    3 GHG Emissions Peer Comparison Mar 2020 Tourmaline has the lowest GHG emissions intensity (CO2/boe) among Canadian Senior E&P peers Canadian E&P GHG Emissions 2018 25,000,000 0.12 Tourmaline has achieved a 46% reduction in C02…
  4. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 4
    4 Diesel Displacement Initiatives Sept 2020 Initiative Annual Emissions Impact Net Savings Highline Power 1.4mm litres/yr fuel displaced 400,000/yr savings PRH rig running on 100% electricity 3,100 tC02e/yr Natural Gas Fuel Gas…
  5. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 5
    5 A History of Full Cycle Profitability Mar 2020 400 6.00 * 350 Earnings before taxes (mm) 5.00 AECO (CAD/mcf) Earnings before tax ( millions) 300 4.00 250 AECO (/mcf) 200 3.00 150 2.00 100 1.00 50 -…
  6. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 6
    6 Largest North American Natural Gas Producers Nov 2020 Tourmaline is the largest natural gas producer in Canada, and the fifth largest gas focused producer in North America MMcf/d 2021E Natural Gas Production Canada & US 4,000…
  7. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 7
    7 Tourmaline: A Significant Canadian Liquids Producer Nov 2020 Tourmaline is a significant liquids producer in Canada, with continued peer leading growth Tourmaline is the 7th largest producer of conventional liquids, the second…
  8. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 8
    8 Current 5 Year Plan(1) Nov 2020 600,000 500,000 400,000 Spirit River Boe/d 300,000 NEBC 200,000 Deep Basin 100,000 - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Ending E&P Surplus After-tax After-tax…
  9. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 9
    9 Alberta Deep Basin Nov 2020 The contiguous Tourmaline interconnected Deep Basin T65 R9 R7 R5 Cretaceous gas asset is effectively Albertas Largest Gas Field. T63 Current Production 175,000 - 180,000 boepd Current Reserves…
  10. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 10
    10 Alberta Deep Basin 2020 Acquisitions Nov 2020 R13 R11 R9 The R7 contiguous R5 R3 Tourmaline R1W6 R25 interconnected R23 R21 R19 Deep R17 Basin R15 R13 R11 TCPL Main Line Cretaceous gas asset is effectively Albertas…
  11. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 11
    11 Jupiter / Modern Transaction Overview(1) Nov 2020 A material addition to the Tourmaline Deep Basin asset growing total complex production to approximately 250,000 boepd in 2021 Strong acquisition metrics: 2021 cash flow metrics…
  12. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 12
    12 NEBC Montney Gas/Condensate Complex Nov 2020 TOU Land Current Prod. 580-600 mmcf/d 14,000-15,000 bpd condensate C-60-A Gas Plant TOU Wells 200 MMCF/D 13,000-14,000 bpd ngl Q2 2019 TOU Pipelines Current Reserves 1,344.1…
  13. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 13
    boe 20,000 40,000 60,000 80,000 100,000 120,000 140,000 0 Tourmaline d-010 Tourmaline b-020 Tourmaline a-020 Tourmaline liquids data as per internal data Source: Peer data as per National Bank of Canada,…
  14. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 14
    14 NEBC Montney Consolidation Mar 2020 Polar Star Canadian Oil and Gas Inc. Polar Star Lands Chinook Lands Polar Star Facility 2,500 boe/d 19% Liquids Chinook Martin Ck Polar Star Lands 20 MMcf/d 106,000 Net acres of Montney…
  15. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 15
    15 Peace River High Complex Triassic Oil Charlie Lake and Montney Plays Mar 2020 Peace River High R. 11 R. 9 R. 7 R. 5 1,826 Horizontal Locations* along Regional Play Mulligan/Earring Upper Charlie Lake 15-13 Mulligan Fairways…
  16. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 16
    16 Tourmaline Mid-Stream Assets Nov 2020 The infrastructure skeleton in all three core operated complexes is now complete. This infrastructure is essentially R. 15W6 R. 1W6 all newR.and 15W5in the growth areas of the WCSB. NE…
  17. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 17
    17 Tourmaline 2020 Acquisitions, Accretive by 2021 Sept 2020 Transaction Attributes 2020 Development 2021 Outlook LT Plans Gundy Land Acquisition (Q4/19) Drill 8 well pad (1H20) Drill & Complete 6 well Continue to ramp 8,460 net…
  18. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 18
    18 Historical Reserves Summary Mar 2020 Reserves (GLJ) Reserves 2015 2016 2017 2018 2019 2012 2013 2014 2015 2016 2017 2018 2019 3,000 (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) (mmboe) 2,500 PDP 91.9 122.3 177.8…
  19. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 19
    19 Gas Development Location Inventory and Economics Mar 2020 AB Deep Outer AB Deep B.C. Gundy B.C. PRH PRH Basin Foothills Basin Montney Montney Charlie Lake Montney Vertical Vertical Horizontal Horizontal Horizontal Horizontal…
  20. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 20
    20 The TOU Engineering Execution Machine Mar 2020 Drill & Complete Costs 8.00 Tourmaline has the lowest completed per stage (Equipping not included) well costs in the overall Montney play in 7.00 Western Canada and the Alberta…
  21. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 21
    21 Continuous Capital Efficiency Improvements Nov 2020 22,500 2020 will yield the best capital efficiency metrics in company history. 20,000 2018 was affected by the major Gundy Phase 1 Deep Cut gas plant expenditure.…
  22. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 22
    22 Continuous Cost Reduction Strategy July 2020 Operating Costs General and Administrative Costs 7.00 6.50 6.34 1.50 6.00 1.29 5.58 5.50 1.02 4.87 1.00 5.00 /boe /boe 0.79 4.43 4.35 4.37 0.74 4.50 0.60 0.60…
  23. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 23
    23 2021 Guidance Nov 2020 2021(1) Production Boe/d 400,000 Cash Flow(i) - MM 2,000 CFPS - Diluted(i) 6.74 E&P Capital Program(ii) - MM 1,100 Free Cash Flow(iii) - MM 856 Exit Net Debt(i) - MM 1,032 Debt to CF 0.5x…
  24. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 24
    24 Cash Flow & Free Cash Flow Sensitivity Nov 2020 Tourmaline has excellent free cash flow resiliency in 2021, with significant free cash flow on a modest growth budget at current strip Tourmalines 2021 growth budget is FCF…
  25. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 25
    25 Tourmaline Financial Position Excellent Liquidity, Resiliency & Capacity Nov 2020 Tourmaline has ample liquidity and capacity to weather adverse commodity prices Debt Profile & Cash Flow Sensitivities Credit Facility & Term Loan…
  26. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 26
    26 2020 Natural Gas Transportation and Marketing Overview October 2020 2020 Average Natural Gas Portfolio Diversification 2020 Exit: 506 mmcf/d of gas will be to US/Other Markets 2022 Exit: 620 mmcf/d of gas will be to US/Other…
  27. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 27
    27 Tourmaline will not rapidly grow supply to increase scale, We will accretively acquire more of it Nov 2020 Our strategy is to pursue gradual organic production growth of 5% through the base EP program, but continuing adding…
  28. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 28
    APPENDIX
  29. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 29
    29 Historical EP Performance Mar 2020 Production Growth Per Share* Reserves Growth Per Share* 500 10 Production per Thousand Shares Reserves per Share (BOEs) 400 8 300 6 (BOEs) 200 4 100 2 0 0 2009 2010 2011 2012…
  30. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 30
    30 Natural Gas Flows From Western Canada
  31. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 31
    31 Independently Recognized Canadian 2P Reserves(1) Mar 2020 14.00 12.00 Natural Gas Tourmaline has booked only 15% of Natural Gas (1) 10.00 existing drilling inventory (2,305 of 14,919 locations See Schedule A). 8.00…
  32. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 32
    32 EP Growth Plan (Original Business Plan) Sep 2008 This is essentially the same business plan that was executed for Duvernay Oil Corp. (2001-2008) Primary growth mechanism will be a conventional EP Program (including Resource…
  33. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 33
    33 Alberta Deep Basin Liquids Rich Cardium Fairway Nov 2019 Only the initial Cardium delineation 16-20-50-22W5 PAD (2 Hztl) 6-1-51-23W5 PAD (2 Hztl) 12-36-50-23W5 PAD (1 Hztl) locations are depicted, the potential IP 90 16.8 mmcfpd…
  34. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 34
    34 Evolving into Canadas Largest Montney Producer Mar 2020 Tourmaline to become the largest Montney producer through fully delineated assets that are economic on current strip. Tourmaline is already the largest Alberta Deep Basin…
  35. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 35
    35 Gundy Creek Phase 1 Deep Cut Plant May 2019 Plant Start-up in May 2019, constructed in 6 months, 200 mmcfpd/13,500 bpd capacity, on budget and ahead of schedule
  36. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 36
    Tourmaline Montney 36 Efficiency + Execution May 2020 Montney Net Production (MMcfe/d) 1,400 1,200 1,000 800 600 400 200 0 Source: Goldman Sachs (2019A) except for Tourmaline (2020 Exit) Select Montney Peers ARC…
  37. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 37
    37 Tourmaline Environmental Performance Tourmaline strives to continually improve all aspects of environmental performance including the impact of its operations on air, land and water. Tourmaline ranks as a top decile performer…
  38. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 38
    38 Sustainability Performance Highlights Feb 2020 Tourmaline has been aggressively and successfully pursuing a comprehensive environmental performance improvement strategy for over six years. The Company is systematically improving…
  39. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 39
    Continuous Environmental Performance Improvement 39 Through Innovative Application of New Technologies Massive reduction in flaring Water recycling for fracs Tech Service Gas fired drilling rigs/fracs Methane leakage elimination…
  40. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 40
    Tourmaline Environmental Performance 40 Improvement Highlights June 2019 BC Water Management Alberta Water Management 95-100% of all water sourced for stimulation operations is 1st, and only, company in Alberta to be licenced…
  41. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 41
    41 Tourmaline Technology Curve/Future Concepts, Requirements & Opportunities Cost saving via novel frac water sourcing/recycling New Waste heat recovery technology Alternative hz frac programs/processes Concurrent pairs, delayed…
  42. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 42
    42 Schedule A DRILLING LOCATIONS Estimated Drilling Inventory This presentation discloses drilling locations in four categories: (i) proved undeveloped locations; (ii) probable undeveloped locations; (iii) unbooked locations; and…
  43. Q3 2020 Earnings Presentation – Tourmaline Oil Corp. – slide 43
    43 Schedule A continued Deep Basin Vertical well count : Approximately 2,499 gross prospective sections at approximately 1.5 wells per section minus 10% for areas that are inaccessible or limited by spacing requirements minus…

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