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June 2021 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jun 1, 2021 · 37 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. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / JUNE 2021 DISCIPLINED FREE FUNDS FLOW ALLOCATION FOCUSED ON RETURNING CAPITAL TO SHAREHOLDERS
  2. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares Outstanding (MM) Basic 630.9 Fully diluted 637.9 Enterprise Value (B) 5.2 Increased 2021 Guidance Production (boe/d) 108,000 Capital (MM) 355 - 375 Previous New Dividend per share (annual)…
  3. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 3
    First Quarter Highlights Strong Execution driving funds flow of 188 MM (0.36 per share) Q1 Actuals Forecast Production (boe/d) 95,828 90,000 92,000 Capital investment (MM) 119 125 - 130 Significant Free Funds Flow and…
  4. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Commitment to Sustainability Well on our way to reduce direct emissions intensity by 50% by 2023 from 2017 levels through the following 5 initiatives Venting Flare and Fugitive Replace Equipment Reductions Vent to…
  5. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 5
    CCUS Capabilities Weyburn CCUS Project SE SK Whitecap CCUS Total MT CO2 MT CO2 125 115 300 250 250 100 86 200 75 150 50 36 100 88 25 37 50 0 0 Sequestered To-Date Current Capacity Potential Capacity Sequestered To-Date…
  6. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Generating Significant Free Funds Flow 2020 2021 % Change Production (boe/d) 68,662 108,000 57% per million shares 167 179 7% (MM) Funds Flow 434 876 102% per share 1.06 1.45 37% Capital Expenditures 196 365 86% Free Funds…
  7. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 7
    2021 Sensitivities Price Assumptions (May Dec) Oil (USWTI) 40 60 65 70 FX (C/US) 0.78 0.82 0.83 0.84 Oil (C/bbl) 51.28 73.17 78.31 83.33 AECO (C/GJ) 3.00 3.00 3.00 3.00 Financial Impact (MM) Funds Flow 682 876 907 943 Per…
  8. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Disciplined Capital Allocation 2021 Objectives Maintain and strengthen balance sheet Reduced net debt 110 million in 2020 and target 200 million in 2021 Production per share growth of 3% to 5% Expand core operating regions through…
  9. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 9
    Balanced Capital Allocation millions % Business Unit Primary Targets Eastern SK CO2 Flood, Midale, Frobisher 87 24 Western SK Atlas, Shaunavon, Viking 81 22 Central AB Cardium, Ellerslie 44 12 Northern AB Cardium, Charlie Lake, Montney…
  10. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Financial Strength Strong credit profile and ample available liquidity 2020 Actuals 2021 Estimate Covenants Debt / EBITDA 2.2x 1.3x < 4.0x EBITDA / Interest 11.2x 19x 3.5x Net Debt Total Credit Unused Capacity 1.2B 2.0B 0.8B…
  11. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Robust Hedge Portfolio Objectives: Fully fund capital program and dividend Protect downside while providing significant upside participation Oil hedges 2H/2021 1H/2022 2H/2022 Percent of production hedged 43% 24% 8% Swaps hedged…
  12. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 12
    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…
  13. June 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. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Improved Global Supply & Demand Outlook Global oil demand forecasted to return to pre-pandemic levels by early 2022, outpacing supply growth Forced discipline on producers limits future supply growth Global Oil Supply/Demand…
  15. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Focus on Increasing Shareholder Returns Our Priorities: Reduce net debt Grow 3-5% Return cash Total shareholder to 1.2B per share to shareholders returns Our competitive advantages along with a favourable macro outlook…
  16. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 16
    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…
  17. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Track Record of Per Share Growth Funds Flow Production 1,000 12% CAGR per share 120,000 10% CAGR per share 800 100,000 80,000 600 Boe/d million 60,000 400 40,000 200 20,000 0 - 2010 2011 2012 2013 2014 2015…
  18. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 18
    Returning Value to Shareholders 8% 0.01625 91 million 1.1 billion Total dividends paid June 2021 dividend Current Monthly Share repurchases completed (3.64/share) increase dividend (as at May 14, 2021) (as at April 30, 2021)…
  19. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 19
    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 2MT of CO2 CO2 Storage & Emissions (tonnes/year) 2018…
  20. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 20
    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…
  21. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 21
    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…
  22. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Core Areas of Operations 5,840 drilling locations provides 10 years growth BRITISH COLUMBIA 2021 Avg. Locations ALBERTA (boe/d) () SASKATCHEWAN Northern AB & BC 25,000 1,226 Northern Alberta & BC Central AB 29,000 1,312…
  23. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 23
    Premium Assets High Funds Flow Netbacks Low Production Decline Rate (Q1/21 Actuals) 40.00 40% 30.00 30% 26% 21.78 20.00 20% 20% 10.00 10% 0.00 0% Higher netbacks generates Lower capital intensity drives higher higher funds…
  24. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 24
    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…
  25. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 25
    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…
  26. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 26
    TSX:WCP www.wcap.ca June 18, 2021 26
  27. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Appendix 27
  28. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 28
    Strategic Transactions NAL TORC Kicking Horse Purchase Price (MM) 155 900 300 8,000 increasing to Production (boe/d) 22,000 22,000 18,500 Closing Date Jan 4, 2021 Feb 24, 2021 May 14, 2021 Low Transaction Metrics Highly…
  29. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 29
    Kicking Horse Summary Asset Highlights: Production June December 2021: 9,500-10,000 boe/d 32% liquids of which 90% Is C5+ 99% operated with 65% Avg. WI 92 (60 net) sections of Montney rights 92% of production is Montney…
  30. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 30
    Kicking Horse Type Curves Kakwa Region Liquids-Rich Montney with significant offsetting activity High Pressure, high gas deliverability with significant free condensate Total inventory of 575 locations Tier 1: 178 locations (77%…
  31. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 31
    Kicking Horse - Significant Free Funds Flow Current Production: 8,000 boe/d, increasing to US55/B WTI 160 C2.50/GJ AECO 18,000 19,000 boe/d 72 MM annual Free Funds Flow at US55/B and 120 72 million Funds Flow C2.50/GJ…
  32. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 32
    Slide Notes (contd) Slide 11 1. Hedge positions current to June 4, 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…
  33. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 33
    Slide Notes (contd) Slide 11 1. Hedge positions current to June 4, 2021. Full hedge positions by product are: WCS(iii) Volume Swap Price Differential Term (bbls/d) (/bbl) (i) Swap 2021 Apr Jun 4,000 C15.65 Swap 2021 Jul Sep 2,000…
  34. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 34
    Advisories (contd) The assumptions used for the 2021 forecast funds flow netbacks (/boe) used on slide 6 of this presentation are as follows: 2021 Petroleum and natural gas revenues 52.01 Tariffs (0.35) Processing income 0.82…
  35. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 35
    Advisories (contd) The assumptions used for the sensitivities on slide 7 in this presentation are as follows: WTI (US/bbl) (Apr Dec) 40 60 65 70 Petroleum and natural gas revenues 40.99 52.01 54.62 57.12 Tariffs (0.35) (0.35) (0.35)…
  36. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 36
    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…
  37. June 2021 Corporate Presentation – Whitecap Resources Inc. – slide 37
    Advisories (contd) Initial Production Rates Any references in this presentation to initial production rates (IP(365)) are useful in confirming the presence of hydrocarbons, however, such rates are not determinative of the rates at which…

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