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Kaybob Duvernay Acquisition – Crescent Point Energy Corp.

Crescent Point Energy Corp. · Mar 21, 2023 · 69 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. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 1
    CORPORATE PRESENTATION March 21, 2023 Kaybob Duvernay Analyst Teach-In CRESCENT POINT CRESCENT POINT Bringing Energy To Our World - The Right Way
  2. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 2
    Agenda Introduction Shant Madian, VP Capital Markets CORPORATE PRESENTATION Kaybob Duvernay Geology Mike Blair, VP Exploration & New Ventures Operations Justin Foraie, VP Engineering & Marketing Market Access and…
  3. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 3
    Presenters CORPORATE PRESENTATION Craig Bryksa Justin Foraie President & Chief Executive Officer VP, Engineering & Marketing Over 20 years of O&G experience 20 years of O&G experience Bachelor of Applied Science in petroleum…
  4. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 4
    Crescent Point At A Glance CPG (TSX and NYSE) CORPORATE PRESENTATION Market Capitalization 5.1 billion Net Debt 1.5 billion Kaybob Duvernay Average Daily Trading Volume 13.6 million shares (Trailing 3-months) Viewfield…
  5. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 5
    Committed to a Strong Balance Sheet & Competitive Shareholder Returns Since 2018, CPG has transformed its balance sheet and returned 1.5B directly to shareholders all within a disciplined capital allocation framework CORPORATE…
  6. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 6
    Crescent Point Advantage Operational Excellence CORPORATE PRESENTATION Premier operator with a strong track record of execution Innovative and highly technical team unlocking value Extensive knowledge in secondary recovery…
  7. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 7
    CPGs Portfolio Optimization Continually optimizing portfolio around key pillars of balance sheet strength and sustainability CORPORATE PRESENTATION The Kaybob Duvernay asset, bolstered by our Asset Criteria technical expertise,…
  8. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 8
    Key Takeaways CORPORATE PRESENTATION Executing a disciplined corporate strategy to create long-term shareholder value Focused on maintaining balance sheet strength and driving long-term sustainability Disciplined A&D strategy with…
  9. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 9
    Agenda Introduction Shant Madian, VP Capital Markets CORPORATE PRESENTATION Kaybob Duvernay Geology Mike Blair, VP Exploration & New Ventures Operations Justin Foraie, VP Engineering & Marketing Market Access and…
  10. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 10
    Kaybob Duvernay A Consistent, Predictable Shale Basin Targeting Duvernay (black) shale, characterized as consistent, extensive & predictable throughout the basin CORPORATE PRESENTATION Kaybob Duvernay Leduc Reef Leduc Reef…
  11. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 11
    Kaybob Duvernay Comparison from a Geological Perspective The Kaybob Duvernay compares favourably with other high-quality resource plays CORPORATE PRESENTATION Key Attributes of High-Quality Resource Plays CPG's Alberta Montney…
  12. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 12
    Geological Attributes of CPG's Kaybob Asset Within the Duvernay Fairway CORPORATE PRESENTATION Thickness (Net Pay) (Meters) Pressure (MPa) 60 80 55 70 50 60 45 50 40 40 35 30 30 20 25 20 Reef 15 10 Optimal cutoff…
  13. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 13
    Depiction of Asset Quality When Combining Pressure x Thickness 280 CPGs lands are strategically positioned within the 240 CORPORATE PRESENTATION 200 Duvernay fairway with optimum reservoir thickness 160 120 and pressure 80…
  14. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 14
    Geological Attributes of CPG's Kaybob Asset Within the Duvernay Fairway CORPORATE PRESENTATION Maturity Depth (Meters) 100 Lean gas 4150-4900 300 Liquids-rich 3400-3900 1000 Volatile oil 2900-3150 2500 Black oil 1400-2650…
  15. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 15
    Kaybob Duvernay Reservoir Regions Illustrate Condensate-Rich Production CORPORATE PRESENTATION Volatile Oil EUR (per well) Condy 400 Mbbl Pressure 40 Mpa Pressure is 1.4x greater…
  16. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 16
    Comparison to the Montney (2019 2022) Geology in the Duvernay has resulted in a statistically tighter band of EUR ranges and more consistent results CORPORATE PRESENTATION Oil/Condensate EURs are very 800 similar to a typical…
  17. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 17
    Q2 2021: Strategic Entry Into the Basin to Acquire a Strong Foothold Acquired assets from Shell CORPORATE PRESENTATION Canada for 900MM (fully paid off in Q1 2023, within 2 years) Strategic rationale: Dominant position in the…
  18. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 18
    Q3 2021: Farm-In Agreement to Gain Additional Knowledge Entered into a farm-in CORPORATE PRESENTATION agreement to complete a certain number of wells to earn 50% working interest in such wells and additional lands in the play…
  19. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 19
    Q3 2022 to Q1 2023: Opportunistic Transactions Acquired 50,000 net acres CORPORATE PRESENTATION from Repsol and associated infrastructure (87MM) Acquired 65,000 net acres from Paramount Resources, in addition to 4,000 boe/d…
  20. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 20
    CPG's Current Kaybob Duvernay Position Change CORPORATE PRESENTATION Key Metrics Current Since Entry Production (boe/d) 45,000 +50% Net Acres 400,000 +35% Net Locations 500 +175% CPG Wells Drilled / 32 / 48…
  21. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 21
    Agenda Introduction Shant Madian, VP Capital Markets CORPORATE PRESENTATION Kaybob Duvernay Geology Mike Blair, VP Exploration & New Ventures Operations Justin Foraie, VP Engineering & Marketing Market Access and…
  22. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 22
    Kaybob Duvernay Increased Basin Production from Fewer Wells Returns and well results have improved over the years due to new technologies and efficiency improvements CORPORATE PRESENTATION Total basin production of 150,000 boe/d…
  23. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 23
    Advancements in Drilling & Completions Practices Driving Increased EURs 800 CORPORATE PRESENTATION Average oil EUR has increased 200% during the past decade 600 Oil : EUR (Mbbl) 400 CRESCENT POINT 200 0 2010-2012…
  24. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 24
    Track Record of Realizing Efficiencies in Plays Similar to Kaybob Duvernay Experienced Operator CORPORATE PRESENTATION Hz Wells Drilled & Completed Top 15 North American operators 10,000 CPG has a history of operational…
  25. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 25
    Demonstrating Technical Expertise New CPG landing depth helps to contain the hydraulic fractures to target additional higher quality rock CORPORATE PRESENTATION Prior Operator Landing Zone 15-1-63-18w5 Well Log CRESCENT…
  26. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 26
    Experience & Expertise Driving Reduced Drilling Days Lowered drilling days 40% since entering the play, ranging 11 13 days per well on most recent pads CORPORATE PRESENTATION Average Drilling Days Per Well Phase 1 Changes to…
  27. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 27
    Experience & Expertise Driving Lower Completion Costs Reduced frac days per well 20% while enhancing completions design since entering the play in Q2 2021 CORPORATE PRESENTATION Average Frac Days Per Well 6 4 2 0…
  28. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 28
    Enhanced Performance vs. Prior Operator CORPORATE PRESENTATION Volatile Oil Window Example 200,000 D&C optimization by CPG resulted in improved well results versus an offset well from the prior operator 150,000 +27%…
  29. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 29
    Kaybob Duvernay Results & Booked EURs Highlights Condensate Mix Production Results Since Entering the Play (Per Well) CORPORATE PRESENTATION Pad IP30 boe/d IP90 boe/d Booked EUR mboe (On Prod) (% Condy, NGLs) (% Condy, NGLs) (%…
  30. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 30
    Public Data Underestimates High Condensate Production Levels Condensate volume is publicly reported on a gas-equivalent basis when condensate volumes are recombined with gas at the wellhead (as per the AER and Directive 17) CORPORATE…
  31. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 31
    Kaybob Duvernay Operated Results Volatile Oil High-return, quick payout wells performing in-line or ahead of booked type well expectations CORPORATE PRESENTATION 1 1 2 2 2 3 3 4 4 4 5 5 6 6 6 7 7 8 8 8 9 9 1…
  32. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 32
    Kaybob Duvernay Operated Results Liquids-Rich High-return, quick payout wells performing in-line or ahead of booked type well expectations CORPORATE PRESENTATION Pad 5 Production vs. 2P Booked Type Well Pad 6 Production vs. 2P…
  33. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 33
    Kaybob Duvernay Farm-in Results Liquids-Rich High-return, quick payout wells performing in-line or ahead of booked type well expectations CORPORATE PRESENTATION 1 32 60 91 121 152 182 213 244 274 305 335 366 1 32 60 91 121 152 182…
  34. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 34
    Kaybob Duvernay Reservoir Regions & Economics Kaybob Duvernay returns are top-quartile within the portfolio and underpin the corporate 10-year plan CORPORATE PRESENTATION Volatile Oil Black Oil IP30 (boe/d) (% Liquids) 700 1,000…
  35. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 35
    Strong Industry Results Offsetting CPGs Undeveloped Land Position On-stream: 2019 / 2020 On-stream: 2018 IP30: 1,205 boe/d IP30: 1,307 boe/d CORPORATE PRESENTATION IP90: 819 boe/d IP90: 1,018 boe/d IP365: 481 boe/d IP365: 715…
  36. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 36
    Agenda Introduction Shant Madian, VP Capital Markets CORPORATE PRESENTATION Kaybob Duvernay Geology Mike Blair, VP Exploration & New Ventures Operations Justin Foraie, VP Engineering & Marketing Market Access and…
  37. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 37
    Kaybob Duvernay Geographical & Market Access Advantage Kaybob Duvernay is downstream of Montney and is very well connected to all major product lines CORPORATE PRESENTATION CRESCENT POINT CPG Lands Fort Sask. Pembina Peace…
  38. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 38
    Kaybob Area Well Established Infrastructure & Egress Numerous large facilities in place and well connected to major gas and liquids transportation lines CORPORATE PRESENTATION Access to major liquids pipelines from all major…
  39. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 39
    Kaybob Duvernay Infield Infrastructure Significant CPG ownership and egress in place CORPORATE PRESENTATION Swing CPG Segments 01-19 AOC Booster 16-3 Battery CPG CPG C5+ Peace P/L Smoky NGTL Kaybob 6-16 5-33 Gas Plant…
  40. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 40
    Kaybob Liquids Egress are Well Connected to Key Markets Condensate is directly connected to the oil sands while other liquids flow directly to major fractionation plants CORPORATE PRESENTATION Oil Sands Condensate (C5) Pembina…
  41. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 41
    Significant Condensate Exposure with a Strong Supply / Demand Outlook 20% of CPGs 2023E liquids production is condensate and receives strong pricing relative to WTI CORPORATE PRESENTATION WCSB Condensate Supply / Demand Balance…
  42. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 42
    WCSB Natural Gas Egress & CPG Diversification CPG's strong gas market diversification is further enhanced by a positive egress outlook for WCSB natural gas CRESCENT POINT Montney, Montney, Deep Deep Basin Basin & Duvernay and…
  43. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 43
    Crescent Point Energy Infrastructure Kaybob Duvernay Land Position CRESCENT POINT CORPORATE PRESENTATION 43
  44. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 44
    Kaybob Area All Pipelines & Gas Plants Very significant Kaybob Duvernay and non-Duvernay infrastructure already in place CRESCENT POINT CORPORATE PRESENTATION 44
  45. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 45
    Crescent Point Energy Kaybob Duvernay Current Infrastructure Kaybob Duvernay CPG owned and major third-party infrastructure already in place CRESCENT POINT CORPORATE PRESENTATION 45
  46. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 46
    Crescent Point Energy Kaybob Duvernay Gas Plant Utilization Significant gas processing capacity available throughout the basin (55% unutilized) CRESCENT POINT Keyera 9-6 GP Capacity: 450 MMcf/d Utilization: 41% CORPORATE…
  47. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 47
    Crescent Point Energy Kaybob Duvernay Water Infrastructure CPG has significant water storage across the field of 1,700,000 m3 already in place CRESCENT POINT CORPORATE PRESENTATION 47
  48. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 48
    Crescent Point Energy Kaybob Duvernay Future Infrastructure CRESCENT POINT CORPORATE PRESENTATION Minimal future capital required to facilitate 10-yr development 200MM over 10 years or 20MM/yr on…
  49. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 49
    Agenda Introduction Shant Madian, VP Capital Markets CORPORATE PRESENTATION Kaybob Duvernay Geology Mike Blair, VP Exploration & New Ventures Operations Justin Foraie, VP Engineering & Marketing Market Access and…
  50. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 50
    Solid Corporate Inventory Drives Long-Term Sustainability Solid 10-year plan which has been enhanced through addition of Kaybob Duvernay assets CORPORATE PRESENTATION Excess Cash Flow & Excess Cash Flow & Excess Cash Flow &…
  51. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 51
    Kaybob Duvernay Provides A Combination of Excess Cash Flow & Growth Kaybob's attractive netbacks are driven by its high-margin condensate mix and low-cost structure CORPORATE PRESENTATION Viewfield Bakken & 2023 Metrics Kaybob…
  52. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 52
    Highly Economic Long-Term Development Plan Strong corporate inventory supports a highly economic and long-term development plan CORPORATE PRESENTATION Corporate Inventory vs 10-Year Plan Economics of Premium Locations (Well Payout…
  53. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 53
    Premium Locations by Major Operating Area & 5-Year Development Plan Kaybob Duvernay Saskatchewan North Dakota CORPORATE PRESENTATION 500 86 2,008 Locations Locations Locations 18 195 762 738 Unbooked Drilled Unbooked…
  54. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 54
    5 & 10-Year Outlooks (2023 2032) 5-year plan generates 3.0 - 5.8B of cumulative excess cash flow, which more than doubles in 10-year plan CORPORATE PRESENTATION Production (Boe/d) 5-Year Plan (2023 - 2027) 165,000 152,000 3.0…
  55. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 55
    Agenda Introduction Shant Madian, VP Capital Markets CORPORATE PRESENTATION Kaybob Duvernay Mike Blair, VP Exploration & New Ventures Operations Justin Foraie, VP Engineering & Marketing Market Access and Infrastructure Ryan…
  56. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 56
    Balance Sheet Strength & Long-Term Sustainability Drive Shareholder Returns CORPORATE PRESENTATION Our strategy to create value for our shareholders is centered around our key pillars of balance sheet strength and…
  57. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 57
    Creating Shareholder Value in a Strategic & Disciplined Manner Kaybob Duvernay is a prime example of how CPG's strategy creates value for shareholders CORPORATE PRESENTATION 1. Identified Kaybob Duvernay as a new core area based on…
  58. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 58
    Two-Year Payback on Original Kaybob Duvernay Acquisition Kaybob Duvernay asset provides a combination of organic growth and significant excess cash flow generation CORPORATE PRESENTATION driven by its high netback Achieved a…
  59. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 59
    Kaybob Duvernay Has Created Significant Value, With More Still to Come Created value on per-share basis through organic reserves additions, realized efficiencies & opportunistic acquisitions CORPORATE PRESENTATION Value creation…
  60. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 60
    Summary CORPORATE PRESENTATION Executing a disciplined corporate strategy to create long-term shareholder value Focused on balance sheet strength and sustainability and a defined asset criteria in place for portfolio…
  61. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 61
    Q&A CORPORATE PRESENTATION Bringing Energy To Our World CRESCENT POINT The Right Way 61
  62. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 62
    CRESCENT POINT CORPORATE PRESENTATION Appendix October 2018 62
  63. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 63
    Capital Markets Summary & Guidance Capital Markets Summary 2023 Guidance CPG (TSX and NYSE) CORPORATE PRESENTATION Trading Price (Mar. 10, 2023) C9.34 (TSX), US6.75 (NYSE) Annual Avg. Production (mboe/d)(1) 138 142 Shares…
  64. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 64
    Major Operating Area Economics CORPORATE PRESENTATION US75 WTI & 3.50 AECO IP30 boe/d EUR Mboe Cost Per Well Payout Area IRR% (Liquids %) (Liquids %) (CMM) (Months) Kaybob Duvernay 700 1,000 (75%) 700 1,000 (65%)…
  65. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 65
    Returns Based Capital Allocation Framework & Excess Cash Flow Priorities ASSET LEVEL CORPORATE LEVEL CORPORATE PRESENTATION Funds Flow (Maximize with a cost discipline) Base Plan Risk Adjusted Returns and Value Added (Well &…
  66. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 66
    Definitions / Specified Financial Measures For an explanation of the composition of operating netback, adjusted funds flow, excess cash flow, discretionary excess cash flow, net debt and net debt / funds flow, how they provide useful…
  67. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 67
    Reserves and Drilling Data All reserves data contained in this presentation, and effective for the year ended 2022, is contained in the Corporations AIF for the year ended, December 31, 2022, available on SEDAR (the Reserves Report)…
  68. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 68
    Reserves and Drilling Data Years of corporate inventory figures include proved and probable locations, as derived from the independently evaluated (by McDaniel & Associates Consultants Ltd.) Reserves Report in accordance with NI 51-101…
  69. Kaybob Duvernay Acquisition – Crescent Point Energy Corp. – slide 69
    CORPORATE PRESENTATION Crescent Point Energy Corp. Suite 2000, 585 8th Ave SW Calgary, AB T2P 1G1 Investor Relations (403) 767-6930 CRESCENT POINT (855) 767-6923 investorcrescentpointenergy.com Other Contacts…

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