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January 2022 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Jan 6, 2022 · 34 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. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / JANUARY 2022 ACCELERATING CASH RETURNS TO SHAREHOLDERS
  2. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares Outstanding (MM) Basic 628.3 Fully diluted 636.4 Enterprise Value (B) 6.3 2022 Guidance (mid-point) Production (boe/d) 131,000 Capital (MM) 520 Dividend per share (annual) 0.27 Per share…
  3. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Positioned for Strong Shareholder Returns 73% liquids drives low cash break-evens Industry leading G&A per boe at 1.00 High Cash Netbacks 3 year cumulative free funds flow of 2.9B or 4.62/share 21% base decline rate drives…
  4. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Increasing Profitability Through Consolidation Whitecap is Well Positioned for Accretive Acquisitions Strong Balance Sheet provides Financial Flexibility Further opportunities await in 2022 2021 Consolidation Increased…
  5. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 5
    Significant Free Funds Flow Growth in 2022 2021 2022 % Change Production (boe/d) 111,950 131,000 17% per million shares 186 206 11% (MM) Funds Flow 1,087 1,485 37% per share 1.81 2.33 29% Capital Expenditures 430 520 21% Free…
  6. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 6
    Discretionary Funds Flow Allocation Strategy 2022 Discretionary Funds Flow Forecast = 795 million 50% to Balance Sheet 400 MM 50% Returned to Shareholders 400 MM Central AB Acquisition 190 MM 19.2 MM Share Repurchase 134 MM…
  7. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 7
    2022 Funds Flow Sensitivity 2022 Funds Flow Breakdown million Capital Spending 1,800 Dividends (0.27/share) 1,600 Discretionary Funds Flow 1,400 1,200 1,027 925 795 1,000 686 545 800 US40/B WTI Break-Even 600 170 170 170…
  8. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Balance Sheet Strength Top Tier Balance Sheet 2021e Net Debt Total Credit Unused Capacity D/EBITDA of only 1.5x 1.2B 2.0B 0.8B at US45/bbl WTI Bank Debt is a committed facility to May 2026 Average cost of debt 3.25% Amount…
  9. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 9
    Risk Management Objectives: Fully fund capital program and annual dividend payments Downside price protection with upside participation Outcome: Based on current hedges in place, Whitecap can fully fund the 2022 capital program and…
  10. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 10
    Base 3-Year Plan 3%-5% Production Per Share Growth 135,000 139,000 Disciplined Capital Program & 131,000 111,700 Targeted Acquisitions Enhance Growth 2021 2022 2023 2024 Cumulative Free Funds Flow of 2.9 B or 4.62/share at…
  11. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Incremental Return of Capital 24.3 MM Shares Repurchased in Total in 2021 Equates to 0.27 per share, incremental to our current dividend level of 0.27/share Cumulative Dividends Dec. 2021 19.2 MM Repurchase Millions /share…
  12. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Foundation for Increasing Shareholder Returns Total Shareholder Returns Leaders in ESG performance ESG Sequesters 2MT CO2 annually Excellence Fully Internally Funded 3-5% Production per income and growth model Share Growth…
  13. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Commitment to Sustainability Whitecap is a Net-Negative Producer Permanently sequesters 2 million tonnes of CO2 annually compared to corporate emissions of 1.2 million (scope 1 and 2) Target to reduce direct GHG emission…
  14. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Advancing New Energy Opportunities CO2 Emission Sources EOR Pools Saline Storage (BC 50m) Potential CO2 Pipelines Existing CO2 Pipelines Centralized Compression Sask. CCUS Opportunities Emitter CO2 Volume (Mtpa) FCL MOU…
  15. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 15
    Leading Canada and the World in CO2 Sequestration Weyburn represents 42% of all sequestered volumes in Canada over the past year EOR projects represent 74% of all sequestered volumes in Canada over the past year Weyburn is the…
  16. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 16
    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…
  17. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 17
    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…
  18. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 18
    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…
  19. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 19
    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…
  20. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 20
    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…
  21. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Track Record of Per Share Growth Funds Flow Production 1,600 140,000 13% CAGR per share 1,400 16% CAGR per share 120,000 1,200 100,000 1,000 80,000 Boe/d million 800 60,000 600 400 40,000 200 20,000 0 - 2010…
  22. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 22
    Core Areas of Operations 6,272 drilling locations provides 10 years growth BRITISH COLUMBIA 2022 Avg. Locations ALBERTA (boe/d) () SASKATCHEWAN Northern AB & BC 36,500 1,226 Northern Alberta & BC Central AB 36,200 1,377…
  23. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 23
    Balanced 2022 Capital Allocation millions % Business Unit Primary Targets Northern AB Cardium, Charlie Lake, Montney 163 31 Central AB Cardium, Ellerslie, Glauconite 108 21 Western SK Atlas, Shaunavon, Viking 102 20 Eastern SK CO2…
  24. January 2022 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. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 25
    TSX:WCP www.wcap.ca InvestorRelationswcap.ca January 6, 2022 25
  26. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 26
    Slide Notes Slide 7 Price Assumptions Oil (USWTI) 60 65 70 75 80 FX (C/US) 0.78 0.78 0.79 0.79 0.80 Oil (C/bbl) 76.92 83.33 88.61 94.94 100.00 AECO (C/GJ) 3.50 3.50 3.50 3.50 3.50 Slide 8 1. The debt used in the Debt to EBITDA…
  27. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 27
    Slide Notes (contd) Slide 9 1. Hedge positions current to January 5, 2022. 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…
  28. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 28
    Slide Notes (contd) Slide 10 1. Hedge positions current to January 5, 2022. Full hedge positions by product are: WCS(iii) Volume Swap Price Differential Term (bbls/d) (/bbl) (i) Swap 2021 Oct Dec 4,000 C16.74 Swap 2022 Jan Dec 3,000…
  29. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 29
    Advisories (contd) The assumptions used for the 2021/22 forecast funds flow netbacks (/boe) used on slide 4 of this presentation are as follows: 2021 (Pre-M&A) 2022 Petroleum and natural gas revenues 66.15 61.45 Tariffs (0.42)…
  30. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 30
    Advisories (contd) The assumptions used for the 2021/22 forecast funds flow netbacks (/boe) used on slide 5 of this presentation are as follows: 2021 2022 Petroleum and natural gas revenues 61.65 61.45 Tariffs (0.45) (0.55)…
  31. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 31
    Advisories (contd) The assumptions used for the sensitivities on slide 7 in this presentation are as follows: 2022 WTI (US/bbl) 60 65 70 75 80 Petroleum and natural gas revenues 53.47 57.84 61.45 65.76 69.24 Tariffs (0.55) (0.55)…
  32. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 32
    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…
  33. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 33
    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…
  34. January 2022 Corporate Presentation – Whitecap Resources Inc. – slide 34
    Research Coverage ATB Capital Markets Peters & Co. BMO Capital Markets Raymond James Canaccord Genuity RBC Capital Markets CIBC World Markets Scotiabank Global Cormark Securities STIFEL FirstEnergy Desjardins Capital Markets TD…

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