CORPORATE PRESENTATION / OCTOBER 2020 ENHANCING OUR SUSTAINABLE INCOME GROWTH MODEL
Whitecap Profile TSX: WCP Current Pro Forma Shares Outstanding (MM) Basic 408.3 466.6 Fully diluted 417.2 475.5 2020 Guidance Production (boe/d) 67,500 68,000 unchanged Capital (MM) 190 unchanged 2021 Base Case Production…
Strategic Combination Overview Low Transaction All-stock transaction valued at 155 million and NAL Metrics and All-Stock anticipated to have no debt on closing Consideration Whitecap will issue 58.3 million shares to Manulife…
Strategic Rationale 2021 Production at 22,000 boe/d Consolidates assets in core areas 2,500 boe/d Strengthens financial position NAL has no debt 15,000 boe/d Accretive on all key metrics 2,500 boe/d Enhances long-term…
Low Transaction Metrics NAL Summary Transaction Metrics Purchase Price 155 million Production 7,000 per flowing BOE 2021 Average 22,000 boe/d Net Operating Income 1.5 Times CF Multiple 2021 100 million Reserves MMboe NPV10…
Positioned for Long-Term Sustainability 2020 Pre-Acquisition Average Production (boe/d) 67,500 68,000 Q4/20 Production (boe/d) 59,000 61,000 (MM) Funds Flow 423 Development Capital (190) Free Funds Flow 233 Basic shares…
Delivering Free Funds Flow 2021 Pro Forma Outlook Base production of 81,000 83,000 boe/d Planned capital investments of 250 - 270 million Significant Free Funds Flow Generating Ability 500 450 Fully funded income growth model…
Corporate Synergies Track record of reducing costs on acquisitions 84% of asset overlap provides opportunities to optimize and eliminate redundancies Reducing OPEX on Acquisitions (/boe) 15.36 16.71 12.99 16.00 Target 7%…
Financial Strength Strong credit profile and ample available liquidity Q3 Actuals Covenants Debt / EBITDA 2.0x < 4.0x EBITDA / Interest 12.5x 3.5x Net Debt Total Credit Unused Capacity 1.15B 1.77B 600MM 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 Q4/2020…
Whitecap Competitive Advantages Strong Financial Position: Low leverage, ample liquidity and no near-term maturities. Prudent Risk Management: Realized crude oil hedging gains of 10.1 million in Q3 and 80.3 million year-to-date.…
Our Priorities Optimize Maintain Enhance Returning costs while Focus on balance sheet value through cash to operating shareholder strength and creative shareholders safely and returns liquidity structures responsibly…
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 TPP 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 CO2 Capture and Sequestration Works 1. Collecting Waste Emissions 1 CO2 captured We purchase CO2 from coal plants in Saskatchewan and North Dakota. Without the Weyburn Unit, the majority of CO2 would oil to market 4 otherwise be…
How CO2 Capture and Sequestration Works 3. Sustainable Oil Production 1 CO2 captured The CO2 acts likes a solvent to flush otherwise unrecoverable oil from pores in the rock. This results in incremental oil production oil to market…
Core Areas of Operations 2,895 (3,390 pro forma) drilling locations provides 10 years growth BRITISH COLUMBIA Drilling Inventory ALBERTA SASKATCHEWAN Current Pro forma Northwest West Central Sask 825 949 Alberta & BC…
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 ATB Capital Markets National Bank Financial BMO Capital Markets Peters & Co. Canaccord Genuity Raymond James CIBC World Markets RBC Capital Markets Cormark Securities Scotiabank Global Desjardins Capital Markets…
TSX:WCP www.wcap.ca October 29, 2020 21
APPENDIX 22
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 TPP recovery factor 19.5% Possible recovery factor 24.5%…
Slide Notes (contd) Slide 10 1. Hedge positions current to October 26, 2020. 2. Full hedge positions by product are: Volume Bought Put Price Sold Call Price WTI Crude Oil Term (bbls/d) (C/bbl) (i) (C/bbl) (i) Collar 2020 Oct Dec…
Advisories (contd) The assumptions used for the 2020 forecast funds flow netbacks (/boe) used on slide 6 of this presentation are as follows: 2020 Forecast Petroleum and natural gas revenues 35.77 Tariffs (0.46) Processing income…
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) Drilling Locations (contd) The following table provides a detailed breakdown of the acquired gross drilling locations included in this presentation: Proved Probable Unbooked Acquired Total Drilling Inventory…
Advisories (contd) Production References to crude oil or natural gas production in the following table and elsewhere in this presentation refer to the light and medium crude oil and conventional natural gas, respectively, product types…
Advisories (contd) Reserves NAL Reserves estimates are based on Whitecaps internal evaluation and were prepared by a member of Whitecaps management who is a qualified reserves evaluator in accordance with NI 51-101 effective December 31,…
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