CORPORATE PRESENTATION December 2014 www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
CORPORATE OVERVIEW Parallel is a high-yield distribution-paying oil and gas producer Highly qualified Board and management team with considerable oil and gas experience On-track to achieve 2014 production guidance of 7,100 to 7,300…
OBJECTIVE & STRATEGIES Corporate Objective To provide Parallels unitholders with a sustainable monthly distribution while strategically growing our asset base and operations Corporate Strategies Manage a sustainable business model by…
LOCATION OF ASSETS Texas Assets Greater Panhandle / Hugoton Field Parallels Assets and Operating Areas Oklahoma Assets Location Estimated % of Total Production Texas Carson 63% Texas Sneed 30% Texas Cargray 3% Texas SE…
OPERATING AREAS Operating Area Production Type Acreage Wells (net acres) (gross count) Condensate / NGLs Carson Natural Gas 91,000 220+ Condensate / NGLs Sneed Natural Gas 52,000 200+ Texas Condensate / NGLs Cargray…
INFRASTRUCTURE Parallels operating areas have extensive oil and gas infrastructure in place to support long-term production growth Primary and back-up processing agreements in place at both Carson and Sneed Pipeline, compressors,…
PRODUCTION Parallel has demonstrated historical growth in its quarterly production Gross production growth of 36% from IPO to Q3-2014 (production growth per unit 65%) 2014 year-to-date (nine month) average daily production of 7,070…
REVENUE & OPERATING NETBACK Breakdown of Gross Revenue (US) (Before Realized Hedges) Parallel recorded an average operating netback (before realized hedges) of US25.52 for the nine months ended September 30, 2014…
PRODUCTION MIX & REVENUE Production Mix Parallel is considered to be a liquids-weighted producer as condensate and NGLs account for approximately two-thirds of the total production mix Revenue Split Condensate and NGLs…
PRODUCTION MIX NGL SPLIT Parallels Estimated NGL Production Split & the Weighted Average Price at Conway in Q3-2014 Weighted Average Parallels Estimated Price in Q3-2014 NGL Production Split (US/boe at Conway) Ethane 21% 8.45…
FY-2015 CAPITAL BUDGET Total 2015 Capital Budget of US10.5 million 2015 Drilling Program US6.8 million Drill, complete and tie-in 9 gross wells in the Carson and Sneed operating areas Single lateral wells using Parallels…
FY-2015 OUTLOOK & GUIDANCE 2015 Production Guidance 2015 annual average daily production guidance of 7,100 boe/day Production mix to average 68% condensate and natural gas liquids (NGLs) and 32% natural gas 2015 Cash Flow…
EFFICIENCIES & DECLINE RATES Parallel has very low capital efficiencies compared to the average Canadian listed Junior & Intermediate dividend-paying E&P Parallels production decline rate is the lowest in the industry at 8%…
PAYOUT RATIOS Parallels estimated total payout ratio in 2015 is less than 80% (pre-DRIP) Parallel has one of the most sustainable business models relative to other Canadian listed Junior & Intermediate dividend-paying E&Ps in terms…
IMPACT OF A LOW DECLINE RATE Comparison of TDs Estimate of Parallels Decline Rate vs. the Industry Average* Decline Rate Parallel Energy Trust Production (boe/d) 1 year production loss of 568 boe/day CAPEX of approx. 8.5…
INVESTMENT SUMMARY The Ideal Business Model for a High-yield Distribution-paying Oil and Gas Producer Total forecasted payout ratio of less than 80% (pre-DRIP) in 2015 which supports a sustainable 0.025 monthly distribution Pursuing…
MARKET DATA (As at December 1, 2014) Ticker Symbols TSX: PLT.UN, PLT.DB Units Outstanding 55.2 million 52 Week Range 1.15 4.84 Closing Price (December 1, 2014) 1.41 Distribution declared since IPO 2.69 Monthly Distribution 0.025 per…
MANAGEMENT & DIRECTORS Management Rick Alexander Tony Swindell President and CEO Chief Operating Officer Rick Miller Nancy Dilts Chief Financial Officer VP, Legal and Corporate Secretary Directors Chris Burley F.H. Mim James…
CORPORATE STRUCTURE Unitholders Investment in Units Distributions Tax efficient Mutual Fund Parallel Principal and Investment in CT Notes Energy Trust Interest on CT Administrator Shareholders Trust structure and CT Units…
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