CORPORATE PRESENTATION August 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 annual production guidance of 7,100…
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 31% Texas Cargray 3% Texas SE…
OPERATING AREAS Operating Area Production Type Acreage Wells (net acres) (gross count) Condensate / NGLs Carson Natural Gas 91,000 210+ 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,…
OPERATOR OF ASSETS Parallel is the Operator of its Texas Assets Parallels U.S. based operating team is led by Tony Swindell, Parallels Chief Operating Officer U.S. Office Locations Operating Office Tulsa, Oklahoma Field Offices…
DRILLING SUMMARY Low-Risk, Development & Delineation Drilling Parallels Traditional Drilling Single Lateral Wells Technique Air No Mud Open Hole No Frac Average Cost Per Well 675,000 725,000 Estimated IP30 Rate(1) 35 40 boe/day…
RESERVE SUMMARY Summary of Reserves at December 31, 2013 Reserves PV10 (mboe) % (USMM) % Proved Developed Producing (PDP) 32,985 67 374 76 Proved Undeveloped 9,521 19 51 10 Total Proved 42,506 86 425 86 Probable 6,994 14 66 14…
ACTUALS & OUTLOOK www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
2014 DRILLING & WORKOVERS Q1-Q2 2014 Drilling & Workover Program Results Drilled and completed 10 wells in the Carson operating area Recorded an average 30 day initial production (IP30) rate of 55 boe/day Results were 40% higher…
PRODUCTION Parallel has demonstrated historical growth in its quarterly production Gross production growth of 32% from IPO to Q2-2014 (production growth per unit 60%) Q2-2014 average daily production of 7,183 boe/day is consistent…
REVENUE & OPERATING NETBACK Breakdown of Gross Revenue (US) (Before Realized Hedges) Parallels operating netback (before realized hedges) has steadily improved throughout 2013 and 2014 www.parallelenergy.ca TSX: PLT.UN 14
PRODUCTION MIX & REVENUE Production Mix Condensate and NGLs accounted for 64% of total production to date in 2014 Revenue Split Condensate and NGLs accounted for 75% of total revenue to date in 2014 primarily due to high…
PRODUCTION MIX NGL SPLIT Parallels Estimated NGL Production Split & the Weighted Average Price at Conway in Q2-2014 Weighted Average Parallels Estimated Price in Q2-2014 NGL Production Split (US/boe at Conway) Ethane 21%…
FY-2014 OUTLOOK & GUIDANCE 2014 Production Guidance 2014 annual average daily production guidance of 7,100 to 7,300 boe/day Production mix to average 24% condensate, 42% natural gas liquids (NGLs) and 34% natural gas 2014 Cash…
FY-2014 CAPITAL PLANS 2014 Drilling Program 9.5 million Drill, complete and tie-in 13 gross wells in the Carson operating area Single lateral wells with an average drilling cost of 675,000 725,000 per well Estimated average 30 day…
LONG-TERM DEBT REDUCTION Parallels long-term debt reduction goal is to have sufficient availability under its bank facility to fund its outstanding convertible debentures when they mature on June 30, 2017 Parallel has a number of…
INDUSTRY COMPARISONS www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
EFFICIENCIES & DECLINE RATES Parallel realized capital efficiencies of 14,000 per flowing boe/day year-to- date in 2014 Parallels 2014 estimated capital efficiencies are 20,000 per flowing boe/day Parallels production decline rate…
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 720 boe/day CAPEX of approx. 14.6…
PAYOUT RATIOS Parallels estimated total payout ratio in 2014 is expected to be less than 100% (pre-DRIP) Parallel has one of the most sustainable business models relative to other Canadian listed Junior and Intermediate…
NATURAL GAS PRICES Natural Gas Price Comparison NYMEX vs. AECO (Source: Bloomberg and CAPP Natural Gas Report) www.parallelenergy.ca TSX: PLT.UN 24
CRUDE OIL PRICES Crude Oil Price Comparison WTI on NYMEX vs. Edmonton Par (Source: Bloomberg and CAPP Crude Oil Report) www.parallelenergy.ca TSX: PLT.UN 25
SUMMARY Parallel has the ideal business model for a high-yield distribution-paying oil and gas producer Total forecasted payout ratio of less than 100% (pre-DRIP) in 2014 which supports a sustainable distribution Attractive cash…
MARKET DATA (As at August 15, 2014) Ticker Symbol TSX: PLT.UN Units Outstanding 54.2 million 52 Week Range 3.47 4.84 Closing Price (August 15, 2014) 4.01 Distribution declared since IPO 2.49 Distribution Yield (0.05 per unit per month)…
MANAGEMENT & DIRECTORS Management Henry Sykes, Q.C. Tony Swindell Executive Chairman Chief Operating Officer Rick Alexander Nancy Dilts President and CEO VP, Legal and Corporate Secretary Rick Miller Chief Financial Officer…
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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