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Investor Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Oct 1, 2014 · 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. Investor Presentation – Whitecap Resources Inc. – slide 1
    SUCCESS FOCUS = + + MOTIVATED PEOPLE QUALITY ASSETS SUSTAINABLE LIGHT OIL GROWTH + INCOME PLATFORM October 2014
  2. Investor Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Shares outstanding (MM) Basic 253.2 Fully diluted 258.6 Enterprise value (B) 5.1 Annual dividend (/share)(1) 0.84 2014 average production (boe/d) 32,050 Netback (/boe) 2015 Operating 46.00 49.00 Cash…
  3. Investor Presentation – Whitecap Resources Inc. – slide 3
    Whitecap Acquisition Purchase Price - 266.7MM Production 240MM attributed to Elnora Current 2,500 boe/d (90% oil + NGLs) 2,000 boe/d attributed to Elnora Decline: 0 for 2 years, 8 - 16% after Transaction Metrics Reserves 2015 cash…
  4. Investor Presentation – Whitecap Resources Inc. – slide 4
    Whitecap Acquisition Rationale Increases WCP sustainable growth + dividend model Adds significant free cash flow: 42MM in 2015 and 68MM in 2016 Reduce corporate decline rate by 1%: 23% base decline in 2015 Increases light oil…
  5. Investor Presentation – Whitecap Resources Inc. – slide 5
    Elnora Nisku Oil Acquisition - Fits WCP Growth Model Operated, 35o API light sweet oil, focused asset Now with one single partner 2,000 boe/d current production Nisku zone at 1,900m depth 47/boe netback (91% oil + NGLs)…
  6. Investor Presentation – Whitecap Resources Inc. – slide 6
    Elnora Nisku Oil Acquisition - Fits WCP Growth Model 6,000 Low cost, controllable growth 5,000 Low decline flat for 2 years, 8 - 16% after 4,000 6.00/boe current operating costs 3,000 Optimized operating cost…
  7. Investor Presentation – Whitecap Resources Inc. – slide 7
    Founding Principles Total Shareholder Return MOTIVATED PEOPLE + QUALITY ASSETS + FOCUS = SUCCESS Founding Principles Employees are shareholders Light oil focus (80 to 100 WTI platform) Per share growth (cash flow, production,…
  8. Investor Presentation – Whitecap Resources Inc. – slide 8
    WCP Employee Share Ownership Total Employee Ownership 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2010 2011 2012 2013 2014 Since 2010 insiders increased common share…
  9. Investor Presentation – Whitecap Resources Inc. – slide 9
    Results and Track Record Annual Production Growth Annual 2P Reserves Growth 45,000 180 250,000 2013 F&D Costs 900 TP P+P 793 154 40,000 160 Incl. FDC 20.31 16.96 746 800 137 200,000 P+P Recycle Ratio = 2.3x 35,000 130 140 643…
  10. Investor Presentation – Whitecap Resources Inc. – slide 10
    Results and Track Record Annual Cash Flow Growth 700.0 3.00 2.50 600.0 2.50 2.10 500.0 1.84 2.00 (Cash Flow / share fd) 1.68 400.0 1.34 1.50 (MM) 648.0 300.0 492.0 1.00 200.0 0.48 278.8 0.50 100.0 193.9…
  11. Investor Presentation – Whitecap Resources Inc. – slide 11
    7 Key Attributes to WCP Dividend-Growth Strategy Focus on organic per share growth (5 - 6% per year), supplement with accretive acquisitions Provide sustainable dividend without DRIP, increase prudently Maintain predictable and…
  12. Investor Presentation – Whitecap Resources Inc. – slide 12
    Sustainable Asset Base 2014 Free Cash Flow by Area 250 221 200 104 152 150 116 77 100 100 69 36 117 50 75 64 10 47 6 4 0 Saskatchewan Garrington/Ferrier Pembina NW AB/BC Acquisition Operating Income Development…
  13. Investor Presentation – Whitecap Resources Inc. – slide 13
    2014 Development Capital 2014 Capex by Area (%) 2014 Well Count (gross) 130 Garrington/Ferrier Saskatchewan 107 120 38% 110 100 90 24% 80 2% 70 Other 60 50 21% 25 15% 40 18 30 11 20 1 10 NW AB/BC 0 Pembina Sask…
  14. Investor Presentation – Whitecap Resources Inc. – slide 14
    Predictable and Stable Production Base Base and new well production is predictable and repeatable High level of certainty of achieving forecasted volumes Key characteristics: Areally consistent reservoirs Large resource in place,…
  15. Investor Presentation – Whitecap Resources Inc. – slide 15
    Financial Prudence and Risk Management C99.22 C98.00 C97.71 17,500 105.00 15,000 100.00 Oil Hedges 12,500 95.00 C/bbl WTI 10,000 bbls/d 90.00 7,500 5,000 85.00 Objective: 2,500 80.00 1) Mitigate price…
  16. Investor Presentation – Whitecap Resources Inc. – slide 16
    Core Areas of Operations Boundary Oil weighting 91% Drilling inventory 114 Light Oil Development Inventory 2,187 Oil New well netback (/boe) 58 Oil weighting 59% Montney Drilling inventory 53 BRITISH COLUMBIA Oil New well netback…
  17. Investor Presentation – Whitecap Resources Inc. – slide 17
    West Pembina Cardium Legacy Characteristics Unitized waterfloods, operated, 38o API light oil, 1,700m depth 6 Units (46 100% WI) Industry Hz Wells Acquired Hz Wells 83% oil + NGLs WCP Drilling CPDU1 79.1% Non-Unit Lands Average…
  18. Investor Presentation – Whitecap Resources Inc. – slide 18
    Cardium Horizontal Resource Play Cardium oil resource play repeatable and expandable Edmonton Light sweet oil (39 API) West Pembina East Pembina Industry leading capital efficiencies (2011 to current) Low operating costs (<…
  19. Investor Presentation – Whitecap Resources Inc. – slide 19
    Exceptional Type Curve Economics East Pembina Garrington Garrington West Pembina Type Well Economics Cardium Cardium (Standard) Cardium (ERH) Cardium DCE&T (MM) 2.50 3.00 3.60 3.00 Production, IP30 (boe/d) 230 320 476 317…
  20. Investor Presentation – Whitecap Resources Inc. – slide 20
    Western Saskatchewan Viking Oil Light oil (36 API) Viking resource play Lucky Hills/ True resource play, statistically quantified Type Well Economics Whiteside Viking Strong capital efficiencies Decline mitigation via waterflood…
  21. Investor Presentation – Whitecap Resources Inc. – slide 21
    Deep Basin Dunvegan Oil New light oil Hz resource play Valhalla North Play characteristics Light oil (39 - 42 API) Thick pay section: 2 - 3x times Cardium DOIIP/section Grande Prairie Exceptional reservoir quality: more perm…
  22. Investor Presentation – Whitecap Resources Inc. – slide 22
    Exceptional Type Curve Economics Elmworth Karr/Simonette Type Well Economics Dunvegan Dunvegan DCE&T (MM) 3.25 4.30 Production, IP30 (boe/d) 293 543 Production, IP365 (boe/d) 174 264 P+PA Reserves (Mboe) 431 514 Year 1 Oil +…
  23. Investor Presentation – Whitecap Resources Inc. – slide 23
    Boundary Lake Asset Characteristics Operated, 35o API light oil, focused land base Avg 54% WI with 3 operated units Unit 2 2,200 boe/d productivity Boundary Lake zone at 1,300m depth Triassic E 46/boe netback (91% oil + NGLs)…
  24. Investor Presentation – Whitecap Resources Inc. – slide 24
    Exceptional Type Curve Economics Boundary Boundary Type Well Economics Vertical Horizontal DCE&T (MM) 1.20 1.80 Production, IP30 (boe/d) 32 80 Production, IP365 (boe/d) 30 74 P+PA Reserves (Mboe) 107 214 Year 1 Oil + NGLs (%)…
  25. Investor Presentation – Whitecap Resources Inc. – slide 25
    2014 Outlook 2013 2014e % Increase Operational Average production (boe/d) 19,769 32,050 62% Development capital (MM) 190 311 64% Wells drilled (gross) 100 162 62% Financial Cash flow netback (/boe) 38.64 42.00 9% Cash flow (MM) 279 492…
  26. Investor Presentation – Whitecap Resources Inc. – slide 26
    The Whitecap Investment Opportunity Visible growth per share; CF, production, reserves, NAV Growth 10+ years high netback light oil development drilling locations Meaningful and consistent monthly dividends without DRIP Income…
  27. Investor Presentation – Whitecap Resources Inc. – slide 27
    Research Coverage Current Price Targets AltaCorp Capital Inc. 19.50 GMP Securities 19.75 Barclays 20.00 Macquarie Equity Research 24.00 BMO 18.50 National Bank Financial 21.00 CIBC World Markets Inc. 21.00 Peters & Co. 20.00…
  28. Investor Presentation – Whitecap Resources Inc. – slide 28
    TSX:WCP www.wcap.ca October 7, 2014 28
  29. Investor Presentation – Whitecap Resources Inc. – slide 29
    Whitecap Acquisition Purchase Price - 692.7MM Boundary Lake Production Current 6,500 boe/d (83% oil + NGLs) Valhalla Capability 7,550 boe/d (83% oil + NGLs) 92,000 / boe/d 16% base decline 96% operated 60.5% average working…
  30. Investor Presentation – Whitecap Resources Inc. – slide 30
    Whitecap Acquisition Rationale Increases WCP sustainable growth + dividend model Reduce corporate decline rate by 3%: 27% base decline in 2014 and 24% in 2015 Increases light oil development drilling inventory by 13%: Total 2,372…
  31. Investor Presentation – Whitecap Resources Inc. – slide 31
    Growth + Free Cash Flow Viking Type Economics Increases Whitecap sustainability + Outstanding capital efficiency of 17,000/boe/d (930K DCE&T, 56 boe/d IP(365)) + Excellent netbacks - 58.00/boe (79% oil & liquids) = Payout of initial…
  32. Investor Presentation – Whitecap Resources Inc. – slide 32
    Footnotes 2014 price assumptions throughout this presentation are actual commodity prices for January to September and WTI US95.00/bbl, C/US0.91, Edmonton Par Differential (6.00) and AECO C3.75/GJ for the balance of the year. 2015 price…

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