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March 2022 Corporate Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Mar 8, 2022 · 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. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 1
    CORPORATE PRESENTATION / MARCH 2022 ACCELERATING CASH RETURNS TO SHAREHOLDERS
  2. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares Outstanding (MM) Basic 628.3 Fully diluted 635.0 Enterprise Value (B) 7.8 2022 Guidance (mid-point) Production (boe/d) 131,000 Capital (MM) 520 Dividend Increased 33% From 0.27 per share to…
  3. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 3
    Our Principles Balancing return of capital with Strong credit metrics Strong Return on and ample liquidity Capital Investing Debt/EBITDA 1 1.5x Leaders in ESG performance Capital Discipline Sequesters 2MT CO2 annually drives…
  4. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 4
    Record Performance in 2021 Operational Momentum Results in Strong Financial Performance Q4/21 Q4/20 % Change Production (boe/d) 120,020 63,783 88% Per (MM) share 189 154 23% Funds Flow (MM) 351 105 234% Per share 0.55 0.25 120%…
  5. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 5
    2021 Reserves Reflect Improved Profitability Significant Reserve Additions PDP TP TPP 53% 50% 51% Reserve additions along with attractive FD&A metrics Strong FD&A Metrics improves our PDP TP TPP profitability 14.95/boe…
  6. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 6
    High Quality Inventory Drives Profitability Inventory Payout Sensitivity Inventory Profit / Investment Sensitivity 100%…
  7. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 7
    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 3.6B or 5.66/share 21% base decline rate drives…
  8. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 8
    Significant Free Funds Flow Growth in 2022 2021 2022 % Change Production (boe/d) 112,222 131,000 17% per million shares 186 206 11% (MM) Funds Flow 1,099 2,085 90% per share 1.82 3.28 80% Capital Expenditures 428 520 21% Free…
  9. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 9
    Discretionary Funds Flow Allocation Strategy Allocation to-date 50% to Balance Sheet 700 MM 50% Returned to Shareholders 700 MM Central AB Acquisition 190 MM 19.2 MM Share Repurchase 134 MM 33% Dividend Increase 56 MM Remaining…
  10. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 10
    2022 Funds Flow Sensitivity 2022 Funds Flow Breakdown million Capital Spending 2,500 Dividends (0.36/share annually) Discretionary Funds Flow 2,000 1,708 1,500 1,532 1,348 1,159 950 1,000 US40/B WTI Break-Even 217 217…
  11. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 11
    Balance Sheet Strength Top Tier Balance Sheet 2021 Net Debt Total Credit Unused Capacity Target D/EBITDA of 1.2B 2.0B…
  12. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 12
    Risk Management Objectives: Fully fund capital program and annual dividend payments Downside price protection with upside participation Outcome: 2022 capital and dividend fully funded at US40/bbl WTI 2023 capital and dividend fully…
  13. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 13
    Base 3-Year Plan 3%-5% Production Per Share Growth 131,000 135,000 139,000 Disciplined Capital Program & Targeted 112,222 Acquisitions Enhance Growth 2021 2022 2023 2024 Cumulative Free Funds Flow of 3.6 B or 5.66/share at…
  14. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 14
    Return of Capital Strategy Base Dividend + NCIB 33% 0.03 247 million 1.2 billion Total dividends paid March 2022 dividend Current Monthly Share repurchases completed (4.04/share) increase dividend (as at December 31, 2021) (at…
  15. March 2022 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 2022 Corporate Presentation – Whitecap Resources Inc. – slide 16
    Track Record of Per Share Growth Funds Flow Production 2,500 140,000 11% CAGR per share 17% CAGR per share 120,000 2,000 100,000 1,500 80,000 Boe/d million 1,000 60,000 40,000 500 20,000 0 - 2010 2011 2012…
  17. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 17
    Core Areas of Operations 5,434 (4,330 net) drilling locations provides 10 years growth Total Undrilled % of Internally Estimated 2022 Avg. (boe/d) Locations ( - net) Reserves Potential Northern AB & BC 36,500 860 67%…
  18. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 18
    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…
  19. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 19
    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…
  20. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 20
    Advancing New Energy Opportunities Eliminating CO2 Cost At Joffre Successfully applied for Alberta TIER Program Credits generated under TIER to offset CO2 supply cost Saskatchewan Carbon Hub Signed MOUs with 3 counterparties…
  21. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 21
    Saskatchewan Carbon Hub 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 0.5 1.0 K+S…
  22. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 22
    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…
  23. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 23
    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 38 100 88 25 39 50 0 0 Sequestered To-Date Current Capacity Potential Capacity Sequestered To-Date…
  24. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 24
    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…
  25. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 25
    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…
  26. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 26
    TSX:WCP www.wcap.ca InvestorRelationswcap.ca March 8, 2022 26
  27. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 27
    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…
  28. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 28
    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…
  29. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 29
    Slide Notes Slide 2 1. Current shares outstanding as at December 31, 2021 and 6.7 million share awards outstanding, pro forma the share issuances from the Central Alberta Acquisition (12.5 million shares). 2. Enterprise value is a…
  30. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 30
    Slide Notes Slide 8 1. See Oil and Gas Advisory in the Advisories for additional information on production. 2. Funds flow is a non-GAAP measure. See non-GAAP and Other Financial Measures in the Advisories. 3. Free funds flow is a non-GAAP…
  31. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 31
    Slide Notes (contd) Slide 12 1. Hedge positions current to March 7, 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…
  32. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 32
    Slide Notes (contd) Slide 12 (contd) 1. Hedge positions current to March 7, 2022. Full hedge positions by product are (contd): Notes (i) Prices reported are the weighted average prices for the period. (ii) Western Canadian Select…
  33. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 33
    Slide Notes Slide 20 1. Wolf is Wolf Midstream 2. Indigenous Owners consists of First Nation Capital Investment Partnership (consisting of Alexander First Nation, Alexis Nakota Sioux Nation, Enoch Cree Nation and Paul First Nation) and…
  34. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 34
    Advisories (contd) The assumptions used for the 2021/22 forecast funds flow netbacks (/boe) used on slide 8 and slide 10 of this presentation are as follows: 2021 2022 Petroleum and natural gas revenues 61.59 81.84 Tariffs (0.45)…
  35. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 35
    Advisories (contd) Production & Product Type Information This presentation includes references to petroleum, crude oil, NGLs, natural gas and total average daily production. NI 51-101 includes condensate within the natural gas liquids…
  36. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 36
    Advisories (contd) Specified Financial Measures Payout is a non-GAAP measure and is calculated as the point in time in which the cumulative monthly operating netback equates to the all-in capital investment of an individual well or a…
  37. March 2022 Corporate Presentation – Whitecap Resources Inc. – slide 37
    Research Coverage ATB Capital Markets Peters & Co. BMO Capital Markets Raymond James CIBC World Markets RBC Capital Markets Cormark Securities Scotiabank Global Desjardins Capital Markets STIFEL FirstEnergy Haywood Securities TD…

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