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March 2021 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Mar 1, 2021 · 32 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. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / MARCH 2021 GENERATING FREE FUNDS FLOW WHILE RESPONSIBLY DEVELOPING OUR RESOURCES
  2. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares Outstanding (MM) Basic 597.3 Fully diluted 604.8 Enterprise Value (B) 4.6 2021 Guidance Production (boe/d) 100,000 Capital (MM) 280 - 300 Dividend per share (annual) 0.18096 Per share…
  3. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Our Principles Strong credit metrics and ample liquidity Debt/EBITDA 1 1.5x Balance Sheet Fully Internally Funded Strength income and growth model Total Sustainable Production Shareholder and growing per share Returns…
  4. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 4
    2020 Deliverables 3% Production Preserved Balance Sheet Strength 52% Capital Net Debt Reduced 110 million Reduced Costs 4% Operating 15% G&A Prudent Risk Management 91 million realized gain on commodity hedges Refer…
  5. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 5
    2020 Sustainability Environment Health & Safety 2,000,000 tonnes 37% of CO2 captured provides Whitecap with decrease to total recordable our net negative emissions status injury frequency (TRIF) TRIF of 0.26 15% reduction to…
  6. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Strategic Combinations (NAL + TORC) Leading pure play conventional light oil producer in Canada Material Size and Scale Corporate production over 100,000 boe/d (78% of oil and NGLs) 17% Production per share Highly Accretive 21%…
  7. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 7
    Disciplined Capital Allocation 2021 Objectives Maintain and strengthen balance sheet Reduced net debt 110 million in 2020 and target 200 million in 2021 Organic production per share growth of 3% to 5% Expand core operating regions…
  8. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Enhanced Free Funds Flow Profile 2020 2021 % Change Average Production (boe/d) 68,662 100,000 46% Production per share 167 172 3% (MM) Funds Flow 434 810 87% Capital Expenditures 196 290 48% Free Funds Flow 238 520 118%…
  9. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 9
    2021 Sensitivities Price Assumptions Oil (USWTI) 40 50 60 70 FX (C/US) 0.75 0.77 0.79 0.81 Oil (C/bbl) 53.33 64.94 75.95 86.42 AECO (C/GJ) 2.50 2.50 2.50 2.50 Financial Impact (MM) Funds Flow 518 684 810 920 Per share 0.88…
  10. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Balanced Capital Allocation millions % Business Unit Primary Targets Eastern SK CO2 Flood, Midale, Frobisher 87 30 Western SK Atlas, Shaunavon, Viking 81 28 Central AB Cardium, Ellerslie 44 15 Northern AB Cardium, Charlie Lake 67 23…
  11. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Financial Strength Strong credit profile and ample available liquidity 2020 Actuals 2021 Estimate Covenants Debt / EBITDA 2.2x 1.1x < 4.0x EBITDA / Interest 11.2x 17x 3.5x Net Debt Total Credit Unused Capacity 1.0B 2.0B 1.0B…
  12. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Robust Hedge Portfolio Objectives: Mitigate price volatility and protect economic returns Protect downside while providing significant upside participation Oil hedges 1H/2021 2H/2021 1H/2022 Percent of production hedged 42% 41% 14%…
  13. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Whitecap Competitive Advantages Top Tier Balance Sheet: Low leverage with ample liquidity. Secured covenant-based credit facility not subject to annual redeterminations. Significant free funds flow profile: Premium assets…
  14. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Our Priorities Maintain balance Enhance Return Focus on sheet strength per share cash to shareholder and liquidity growth shareholders returns Whitecap is well positioned to accelerate new energy opportunities including carbon…
  15. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 15
    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…
  16. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Track Record of Per Share Growth Production TPP Reserves 80,000 600,000 70,000 60,000 11% CAGR per share 500,000 15% CAGR per share 50,000 400,000 Boe/d Mboe 40,000 300,000 30,000 200,000 20,000 10,000 100,000 - -…
  17. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 17
    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 Dec 31, 2020) (3.58/share) in March 2021)…
  18. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 18
    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…
  19. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 19
    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…
  20. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 20
    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…
  21. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Core Areas of Operations 5,265 drilling locations provides 10 years growth BRITISH COLUMBIA Production Locations ALBERTA SASKATCHEWAN (boe/d) () Northern AB & BC 19,000 651 Northern Alberta & BC Central AB 28,000 1,312…
  22. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Premium Assets High Funds Flow Netbacks Low Production Decline Rate (Q3/20 Actuals) 20.00 17.09 40% 15.00 30% 26% 9.40 10.00 20% 17% 5.00 10% 0.00 0% WCP WCP -5.00 Higher netbacks generates Lower capital intensity…
  23. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 23
    Crude Oil Marketing Active seller and shipper on 7 oil feeder pipelines connected to Enbridge mainline 60% of production is protected from Enbridge apportionment rail and direct sales to refineries Price diversification is a…
  24. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 24
    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…
  25. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 25
    TSX:WCP www.wcap.ca March 9, 2021 25
  26. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Slide Notes (contd) Slide 12 1. Hedge positions current to March 5, 2021. 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) (i) Collar…
  27. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Slide Notes (contd) Slide 12 1. Hedge positions current to March 5, 2021. Full hedge positions by product are: WCS(iii) Volume Swap Price Differential Term (bbls/d) (/bbl) (i) Swap 2021 Jan Jun 3,000 C15.33 Swap 2021 Apr Jun 1,000…
  28. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 28
    Slide Notes (contd) Slide 22 1. Funds flow netbacks per CanOils. 2. Decline rates per National Bank Financial research. 3. Peers include AAV, ARX, BTE, BIR, CNQ, CVE, CPG, ERF, MEG, NVA, ECA, POU, PEY, VII, SU, TOU, and VET. 4. See Oil…
  29. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 29
    Advisories (contd) The assumptions used for the 2021 forecast funds flow netbacks (/boe) used on slide 8 of this presentation are as follows: 2021 Petroleum and natural gas revenues 52.85 Tariffs (0.35) Processing income 0.84…
  30. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 30
    Advisories (contd) The assumptions used for the sensitivities on slide 9 in this presentation are as follows: WTI (US/bbl) 40.00 50.00 60.00 70.00 Petroleum and natural gas revenues 37.22 45.29 52.85 60.03 Tariffs (0.35) (0.35)…
  31. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 31
    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…
  32. March 2021 Corporate Presentation – Whitecap Resources Inc. – slide 32
    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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