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Investor Presentation – Whitecap Resources Inc.

Whitecap Resources Inc. · Sep 1, 2014 · 35 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 September 2014
  2. Investor Presentation – Whitecap Resources Inc. – slide 2
    Whitecap Profile TSX: WCP Pre-Transaction Post-Transaction(1) Shares outstanding (MM) Basic 245.7 253.2 Fully diluted 251.1 258.6 Enterprise value (B) 5.1 5.3 Annual dividend (/share)(2) 0.75 0.84 2014 average production (boe/d)…
  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 76MM 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 Avg 85% WI with a single partner 2,000 boe/d current production Nisku zone at 1,900m depth 46/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 104 120 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 2,377 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 Pattern waterfloods, operated, 38o API light oil 8 Units (46 100% WI) 83% oil + NGLs Average base decline of 5% CPOU1 1,700m depth 69.5% CPDU1 79.1% Primary focus PCU11 and CCU1…
  18. Investor Presentation – Whitecap Resources Inc. – slide 18
    West Pembina Cardium Non-Unit Lands Significant land position offsetting mature waterfloods 87% avg WI Acquired New Hz Wells 91% oil + NGLs Proximity to pressure support results in shallower decline than typical Cardium Hz type…
  19. Investor Presentation – Whitecap Resources Inc. – slide 19
    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 45/boe netback (91% oil + NGLs)…
  20. Investor Presentation – Whitecap Resources Inc. – slide 20
    Exceptional Type Curve Economics West Pembina Boundary Boundary Type Well Economics Cardium Vertical Horizontal DCE&T (MM) 3.00 1.20 1.80 Production, IP30 (boe/d) 317 32 80 Production, IP365 (boe/d) 159 30 74 P+PA Reserves (Mboe)…
  21. Investor Presentation – Whitecap Resources Inc. – slide 21
    PRA Valhalla Region Montney Oil Waterflood WCPs original asset low risk light oil (36 API) Primary asset: Montney Oil large oil in place Valhalla North Montney Oil Pool Shallow-base decline of 12% Ongoing optimization and…
  22. Investor Presentation – Whitecap Resources Inc. – slide 22
    Cardium Horizontal Resource Play Cardium oil resource play repeatable and expandable Edmonton Light sweet oil (40 API) West Pembina East Pembina Industry leading capital efficiencies (2011 to 2013) Low operating costs (<…
  23. Investor Presentation – Whitecap Resources Inc. – slide 23
    Western Saskatchewan Viking Oil Light oil (36 API) Viking resource play True resource play, statistically quantified WC Sask Viking - Type Curve 140 Strong capital efficiencies 120 118 boe/d Decline mitigation via waterflood 100…
  24. Investor Presentation – Whitecap Resources Inc. – slide 24
    Exceptional Type Curve Economics Lucky Hills/ East Pembina Garrington Garrington Type Well Economics Whiteside Viking Cardium Cardium (Standard) Cardium (ERH) DCE&T (MM) 0.93 2.50 3.00 3.60 Production, IP30 (boe/d) 118 230 320 476…
  25. Investor Presentation – Whitecap Resources Inc. – slide 25
    PRA 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…
  26. Investor Presentation – Whitecap Resources Inc. – slide 26
    Exceptional Type Curve Economics Elmworth Karr 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 + NGLs (%)…
  27. Investor Presentation – Whitecap Resources Inc. – slide 27
    Upside Potential WCP Oil Resource Plays Avg To Date 2P Booked Upside Locations WI DOOIP Cum Recovered Reserves Recovery Resource Recovery Total Booked Unbooked Formations % (Gross) (Gross) % (WI) % (WI) % (Gross) Viking 86.2 1,314.1…
  28. Investor Presentation – Whitecap Resources Inc. – slide 28
    2014 Outlook 2013 2014(PF) % Increase Operational Average production (boe/d) 19,769 32,050 62% Development capital (MM) 190 311 64% Wells drilled (gross) 100 159 59% Financial Cash flow netback (/boe) 38.64 42.00 9% Cash flow (MM) 279…
  29. Investor Presentation – Whitecap Resources Inc. – slide 29
    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…
  30. Investor Presentation – Whitecap Resources Inc. – slide 30
    Research Coverage Current Price Targets AltaCorp Capital Inc. 19.50 FirstEnergy Capital 21.00 Barclays 20.00 GMP Securities 19.75 BMO 18.50 Macquarie Equity Research 24.00 Canaccord Genuity 20.00 National Bank Financial 21.00 CIBC…
  31. Investor Presentation – Whitecap Resources Inc. – slide 31
    TSX:WCP www.wcap.ca September 16, 2014 31
  32. Investor Presentation – Whitecap Resources Inc. – slide 32
    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…
  33. Investor Presentation – Whitecap Resources Inc. – slide 33
    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…
  34. Investor Presentation – Whitecap Resources Inc. – slide 34
    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…
  35. Investor Presentation – Whitecap Resources Inc. – slide 35
    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. Slide 2:…

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