CORPORATE PRESENTATION / DECEMBER 2020 ENHANCING FREE FUNDS FLOW RESPONSIBLE RESOURCE DEVELOPMENT
Whitecap Profile TSX: WCP WCP NAL + TORC Stand-alone Pro Forma Shares Outstanding (MM) Basic 408 597 Fully diluted 417 605 Enterprise Value (B) 2.7 3.8 2021 Base Case Production (boe/d) 60,000 100,000 Capital (MM) 200 - 250…
Strategic Combinations (NAL + TORC) Material Size and Leading pure play conventional light oil producer in Canada Scale Corporate production over 100,000 boe/d (79% of oil and NGLs) Improved Free Funds Increases free funds flow to…
Dominant Land Position in Core Areas Increases production by 44,000 boe/d Consolidates assets in core areas 5,500 Significant overlap creates 17,000 corporate and operational synergies 2,500 Inventory optimization…
Corporate & Operational Synergies Track record of reducing costs on acquisitions 92% of asset overlap provides opportunities to optimize and eliminate redundancies Reducing OPEX on Acquisitions (/boe) 15.36 12.52 16.71 12.86…
Significant Accretion WCP + NAL +TORC WCP Stand-alone Pro Forma Accretion Production per MM shares 144 165 15% Funds flow netbacks (/boe) 16.00 16.50 3% Funds flow per share 0.84 1.00 19% Free funds flow per share 0.30 0.51…
Enhanced Free Funds Flow Profile WCP NAL + TORC Preliminary 2021 Outlook Stand-alone Combination Pro Forma % Change Average Production (boe/d) 60,000 40,000 100,000 67% (MM) Funds Flow 350 602 72% Capital Expenditures 200 -…
Financial Strength Strong credit profile and ample available liquidity Q3 Actuals Covenants Debt / EBITDA 2.0x < 4.0x EBITDA / Interest 12.5x 3.5x Bank Debt is a 4-year committed facility with annual 1 year extensions Low cost of…
Robust Hedge Portfolio Objectives: Mitigate price volatility and protect economic returns Protect downside while providing significant upside participation Current oil hedges 1H/2021 2H/2021 Percent of production hedged 38% 5% Pro…
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 - -…
Returning Value to Shareholders 6% 0.01425 83 million 1.1 billion March 2021 dividend Monthly dividend Share repurchases completed Total dividends paid increase (Increasing to 0.01508 (as at Nov 30, 2020) (3.57/share) in March 2021)…
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 (5,070 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…
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 December 8, 2020 21
Slide Notes (contd) Slide 10 1. Hedge positions current to December 8, 2020, 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)…
Advisories (contd) The assumptions used for the 2021 forecast funds flow netbacks (/boe) used on slide 6 of this presentation are as follows: WCP + NAL +TORC WCP Stand-alone Pro Forma Petroleum and natural gas revenues 39.98 40.98…
Advisories (contd) The assumptions used for the sensitivities on slide 8 in this presentation are as follows: WTI (US/bbl) 40.00 50.00 60.00 Petroleum and natural gas revenues 36.39 44.94 53.15 Tariffs (0.30) (0.30) (0.30)…
Advisories (contd) Drilling Locations (contd) The following table provides a detailed breakdown of the pro forma gross drilling locations included in this presentation: Proved Probable Unbooked Pro Forma 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) Non-GAAP Measures This presentation includes discretionary funds flow, enterprise value, free funds flow, market capitalization and total payout ratio which are non-GAAP measures. Non- GAAP measures do not have a…
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