OUR FOCUS We are an upstream energy company, focused on light oil development in western Canada EXTENSIVE PORTFOLIO SUSTAINABLE SHAREHOLDER VALUE OF ASSETS BUSINESS MODEL CREATION Drilling inventory of 10+ Long term growth…
OUR ASSET BASE Oil Gas 9 Month Average Production 41,750 boepd Business Units Q3 Production1 Drilling Inventory1 (boepd) (locations) Bakken and Conventional 16,941 1,075 October 2014 Cardium 17,699 520 Average Production:…
CORPORATE STRATEGY Preserve long-term value and maintain financial viability in this low oil price environment Capital program of 190 210 million to be funded by internally generated cash flow Two-rig drilling program, one each in…
2015 CAPITAL & DILLING PROGRAM For 2015, we will be executing a 2-rig drilling program 2015 Planned Capital Activity Capital Expenditures by Play Capital Net Wells 1 (millions) (2015e) BAKKEN 83 million CARDIUM 30 Net Wells…
GROWING FREE CASH FLOW Our long term light-oil business model Initial capital investment in light oil resource plays generates near-term FUTURE GROWTH production growth and early payout GROWING INTO FREE CASH FLOW Maturing…
DEBT AND LIQUIDITY Term debt provides certainty; balance sheet liquidity (target: 200 - 500 million) provides flexibility 600 million of available DEBT CAPITAL COMPOSITION Term Secured Debt liquidity 2 Term subject to 1.15…
DISPOSITION ACTIVITY 2014 asset sales total 729 million Dispositions To-Date Metric Production 6,315 boepd 115,400/boepd 1 Reserves (2P) 20.9 mmboe 39.12/boe Annualized Net Operating 2 112 million 6.5x Income We exceeded…
GUIDANCE We are taking a conservative approach to 2015 2015 2014 Average Production (boe/d) 30,000 32,000 40,000 41,0001 Exit Production (boe/d) 30,000 32,000 36,000 37,0001 Liquids Weighting 77% 78% Funds Flow 2 Funds Flow from…
CONTINUED FOCUS ON SUSTAINABILITY All-in Sustainability 2015 sustainability ratio, including 200% 190% cash dividend and without any divestitures, is targeted from 96% 161% 150% to 105% 150% 134% 127% 2014 sustainability ratio…
FUNDS FLOW PROTECTION Our 2015 WTI hedge position helps protect our downside in the current pricing environment Commodity 1H 2015 2H 2015 Oil hedged - WTI (bbl/d) 7,750 4,795 Net production hedged 1,2 38% 24% Ceiling (US/bbl) 104 103…
Economic Sensitivities Sensitivities and assumptions on annualized 2015 funds flow from operations Impact Parameter Assumption Change of: ( millions) WTI Oil Price1 US65.00/bbl +/- 1.00 5.2 Production 31,000 boepd +/- 1,000 11.2…
BAKKEN ASSETS Focus on optimization and EOR Our assets produce light oil from the Bakken and the conventional Mississippian formations with a relatively low decline rate. With a moderate drilling program in 2014, we focused on optimizing…
IMPROVING TIGHT OIL RECOVERIES Future value generation through natural gas flooding With Bakken EOR projects we Bakken Creelman EOR Performance 1600 12 expect to: Attenuate declines and extend 1400 production life Increase…
CARDIUM ASSETS Generating positive operating cash flow Our extensive land base stretches from Calgary to LTS Land Edmonton and our assets primarily produce light oil LTS Batteries from the Cardium formation. We are continuously Sales…
CARDIUM GROWTH Cardium Production and Cumulative Well Count 25,000 500 20,000 400 Net Wells on Production Production (boepd) 15,000 300 10,000 200 5,000 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3…
PROVEN RESULTS THROUGH INNOVATION Innovations in drilling and completion techniques improve production and lower costs Performance in West Pembina Slickwater fracturing has 100,000 reduced costs and improved production Cumulative…
AB / BC ASSETS The Swan Hills is our next growth target Grown production rates to 2,500 boepd New 3,500 bopd battery operational in Q2 2014 Future Operations Completion and flow-back protocols have been revised following Q1 2014…
GROWING SWAN HILLS PRODUCTION Swan Hills production growth has increased our liquids weighting for the Alberta/BC business unit 5,000 25 4,000 20 Net Wells on Production Production (boepd) 3,000 15 2,000 10 1,000…
LONG-TERM WELL ECONOMICS We focus on well economics that reinforce our business model with quick payouts and strong capital efficiencies < 2 year capital payout 2 recycle ratio Bakken Business Unit Cardium Alberta/BC Business Unit Type…
LONG-TERM OPPORTUNITY EXTENSIVE ASSETS SUSTAINABILITY SHAREHOLDER VALUE Drilling inventory of 10+ 2014-15 capital and 600 million of liquidity years dividend funded by to maintain financial cash flow viability Undeveloped land…
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CONSISTENTLY DELIVERING RESULTS Our assets have built a reliable foundation providing consistent results year-over-year Average Production (boepd) Operating Netback (/boe) 46,438 42,784 54.76 41,688 40,998 40,500 50.00 47.76…
CASH NETBACK Our strong cash netbacks are the result of our light oil focus 2014 Q3 Cash Netback 50 40 30 /boe 20 10 0 CPG BNE* TOG VET* WCP* BTE* SGY LTS* ARX PWT PEY ERF* PGF* BNP Cash netback = funds flow from…
DIVIDEND PAYOUT RATIO Lightstream maintains the lowest dividend payout ratio in our peer group 2014 Q3 Dividend Payout Ratio 60% 50% % of Cash Flow 40% 30% 20% 10% 0% LTS TOG ERF PEY PWT BNP ARX VET WCP BTE PGF SGY…
CASH NETBACK AFTER DIVIDENDS Our low dividend payout ratio and high cash netbacks generate significant discretionary cash 2014 Q3 Cash Netbacks Including Declared Dividend 40 30 /boe 20 10 0 TOG LTS* VET* WCP* CPG…
SUSTAINABILITY We are targeting a sustainability ratio of 100% for 2014 2014 (e) Consensus All-in Susatainability 189% 150% 125% 100% 75% 50% 25% 0% SGY LTS* VET* TOG ARX PWT WCP* CPG BNE* ERF* PEY BTE* BNP PGF* All-in…
Trading Symbol LTS: TSX Market Capitalization 275 million Share Price (December 18, 2014) 1.39 Total Debt 1.56 billion Shares Outstanding (Nov 2014 Basic) 198 MM Enterprise Value 1.84 billion Options/Incentive shares 6.0 MM Annual…
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