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Q3 2014 – Twin Butte Energy Ltd.

Twin Butte Energy Ltd. · Sep 30, 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. Q3 2014 – Twin Butte Energy Ltd. – slide 1
    Printer-friendly version Q3 2014 Financial Discipline Drives Dividend Sustainability TSX: TBE www.twinbutteenergy.com
  2. Q3 2014 – Twin Butte Energy Ltd. – slide 2
    Corporate Snapshot Basic shares 349 MM FD 357 MM Insiders own - Basic / FD 2.8 /3.9% Average daily trading volume (2) 4 800 000 4,800,000 Share price 1.85 Market cap 645 MM Enterprise value (1) 997 MM Current production (boe/d)…
  3. Q3 2014 – Twin Butte Energy Ltd. – slide 3
    Twin Butte Attributes Oil leveraged production (91% liquids) Current production 21,000 boe/d (53% heavy oil, 38% medium oil & NGLs NGL s, 9% gas) Base decline of 30 percent Historic Hi t i capital it l efficiency ffi i off…
  4. Q3 2014 – Twin Butte Energy Ltd. – slide 4
    Twin Butte Strategy Acquire, Exploit, Expand Provide shareholders with long term total returns comprised of both income and moderate growth (target 10% total return) Focus on dividend sustainability Maintain a conservative financial…
  5. Q3 2014 – Twin Butte Energy Ltd. – slide 5
    Financial & Operational Performance 2014* 2012 Actual 2013 Actual Forecast Average g Production (boe/d) ( ) 14,681 , 17,585 , 22,000 , Liquids Production (%) 84 88 92 Production (boe/d per MM shares) 71 66 64 Capital…
  6. Q3 2014 – Twin Butte Energy Ltd. – slide 6
    Active Hedging Program Reduces Cash Flow Volatility 100% 90% oduction 80% 70% Percenttage of Oil Pro 60% 50% 40% 103.20 102 49 102.49 30% 74.03 74.22 20% 101.22 101.22 10% 77.80 78.19 78.29 78.29 0% Q3 2014…
  7. Q3 2014 – Twin Butte Energy Ltd. – slide 7
    Twin Butte Strategic Next Steps Key Objectives Improve Netbacks Focus on operating costs Continue transition from heavy to medium production Maintain capital efficiency Continue with lower cost drill opportunities Repeatable p…
  8. Q3 2014 – Twin Butte Energy Ltd. – slide 8
    Focused Asset Base 91% of Corporate production Q2 medium/light oil production of 7,700 b/d (Provost focused) 2014 plans for 63 medium oil horizontals Q2 heavy oil production of 11,400 b/d Edmonton Heavy 2014 plans for 23…
  9. Q3 2014 – Twin Butte Energy Ltd. – slide 9
    Production Mix Transition TBE Production Mix Transition Heavy Base predictable d li decline Objective 7% 15% Heavy Hz large resource, low Heavy Hz 9% 8% recovery pools, moderate 15% Heavy Base deliverability wells Heavy…
  10. Q3 2014 – Twin Butte Energy Ltd. – slide 10
    Production Transition Increases Cash Flow Cash flow effect of increasing medium oil % while holding total production flat Y+D Netback /boe Heavy 34 Medium 55 290.0 270.0 Cash Flow MM M 250.0 230.0 C 210.0…
  11. Q3 2014 – Twin Butte Energy Ltd. – slide 11
    Focused Drilling Inventory Medium Core (Provost) Frog AB SK Dina/Cummings: in-fills, in fills, new pools Lake Sparky: new pools and extensions Celtic Lithic channels: new pools and extensions S i Swimming i Lloydminster…
  12. Q3 2014 – Twin Butte Energy Ltd. – slide 12
    Multi Year Drilling Inventory Provost Heavy Low Heavy High Per Well Provost Provost Heavy Dina/ Viscosity Viscosity Estimates Sparky Lithic Horizontals Cummings Verticals Verticals D,C,E and 850 1,400 1,400 950 550 550 Tie In…
  13. Q3 2014 – Twin Butte Energy Ltd. – slide 13
    Capital Allocation Transition 2014 drills 1st Half 2nd Half 100% Hz Provost 23 35-40 90% Hz Heavy 11 13-16 80% Verticals 23 3-5 70% 60% 50% 40% 30% 20% 10% 0% 2012 2013 2014 2015 2016 2017 2018 Heavy Vertical Provost…
  14. Q3 2014 – Twin Butte Energy Ltd. – slide 14
    Medium Oil Core Area (Provost) Acquired 7,000 boed Nov/13 Targeting 9,500+ boed Dec/14 Low decline, high netback ( 40/boe) base production New wells netback 50/boe Ownership in key area infrastructure 100 HZ wells drilled into…
  15. Q3 2014 – Twin Butte Energy Ltd. – slide 15
    Provost Oil Production History TBE Provost Production 10000 Bopd Total Production Pre2010 RR Wells 10% Decline 1000 200001 200101 200201 200301 200401 200501 200601 200701 200801 200901…
  16. Q3 2014 – Twin Butte Energy Ltd. – slide 16
    Provost Multi-zone Potential Viking 500m Regional shore face, primarily gas, minor light oil Joli Fou Shale Lithic channels, heavy oil…
  17. Q3 2014 – Twin Butte Energy Ltd. – slide 17
    Provost HZ Dina Infill R3W4 D I A E Tight geological & geophysical LSD 16-5-40-3W4 E EA control G A E A E A EE AI J U Unsweptt oilil in i multiple lti l area I E pools A J D A E J EA E Natural…
  18. Q3 2014 – Twin Butte Energy Ltd. – slide 18
    Provost HZ Oil Well Production 100 90 80 70 Oil Rate (bopd) 60 50 YTD results are consistent 40 30 20 10 0 1 4 7 100 103 106 109 112 115 118 10 13 16 19 22 25 28 31 34 37 40 43…
  19. Q3 2014 – Twin Butte Energy Ltd. – slide 19
    Provost Sparky Rapidly evolving play TBE controls significant land base Existing vertical well control and production Successful direct offset competitor wells with average IP3 100 boed Horizontal multi stage fracing p…
  20. Q3 2014 – Twin Butte Energy Ltd. – slide 20
    Provost Lithic Channel Play Thick (10m) oil charged channel siltstones crisscross TBE land base Multiple prospective intervals (Lloyd, Rex, GP, Waseca, McLaren) Existing vertical well control and production Successful offset…
  21. Q3 2014 – Twin Butte Energy Ltd. – slide 21
    Heavy Oil Core Area Frog AB SK Backbone of Twin Butte since 2009 Lake production increased from zero to 12,700 bbl/d through drilling and acquisitions Celtic S i Swimming i Drilling evolving from 3% HZ wells in Lloydminster…
  22. Q3 2014 – Twin Butte Energy Ltd. – slide 22
    Wildmere Horizontal Program Asset acquired in October 2012 producing 420 boe/d, currently producing 1,800 boe/d Auburndale focus of 2014 activity ( 12 wells per section), Wildmere nearing full development To date IP (3 month)…
  23. Q3 2014 – Twin Butte Energy Ltd. – slide 23
    Twin Butte - Sustainable Income Plus Growth Total returns to shareholders via sustainable income and moderate growth (target 10% combined yield plus growth) Sustainable monthly dividend at an annual rate of 0.192/year, with a…
  24. Q3 2014 – Twin Butte Energy Ltd. – slide 24
    Appendix 24 TSX: TBE
  25. Q3 2014 – Twin Butte Energy Ltd. – slide 25
    Analyst Coverage Company Analyst Target Action Acumen Trevor Reynolds 2.35 Spec Buy BMO Capital Gordon Tait 2.50 Market Perform Canaccord Steve Toth 3.00 Buy CIBC Capital Jeremy Kaliel 2.25 Sector Perform Cormark Securities Todd…
  26. Q3 2014 – Twin Butte Energy Ltd. – slide 26
    Team and Board That Can Execute Jim Saunders Chief Executive Officer (CEO) Rob Wollmann President Alan Steele Vice President, Finance & CFO David Middleton Chief Operating Officer Claude Gamache Vice President, Geosciences Gord…
  27. Q3 2014 – Twin Butte Energy Ltd. – slide 27
    Twin Butte Payout Ratio Benchmarked 180% Estimated 2014 All -in payout ratio 170% Capital portion 160% 150% Dividend payout (with DRIP) 140% Average 130% Sustaining 120% o (%) 110% Payout ratio 100% 90% 80% 70%…
  28. Q3 2014 – Twin Butte Energy Ltd. – slide 28
    Heavy Oil Differential 2014 WCS USD Heavy Crude Oil Monthly Basis Forecasts - (5) (10) (15) USSD per Bbl (20) Avg 20.97 (25) (30) (35) (40) (45) Sep-10 Sep-11 Dec-10 Mar-11 Jun-11 Dec-11…
  29. Q3 2014 – Twin Butte Energy Ltd. – slide 29
    Financial Sensitivity 2014 Annualized Cash Flow Sensitivity and Assumptions Input p Base Sensitivityy CF Impact p CF Impact p (000) (000) Before hedging After Hedging Oil price C WTI 105.00 +/- 1.00 13,400 3,000 WCS…
  30. Q3 2014 – Twin Butte Energy Ltd. – slide 30
    Drilling Inventory Characterization Provost Heavy Low Heavy High Provost Provost Heavy Dina/ Viscosity Viscosity Sparky Lithic Horizontals Cummings Verticals Verticals Clean Clean Clean high Mixed lower Lower sandstones Clean,…
  31. Q3 2014 – Twin Butte Energy Ltd. – slide 31
    Inventory Production Profile Historical Production/ New Play Type Curves 120 100 80 Rate (bopd) 60 40 20 0 0 6 12 18 24 30 36 Month Heavy Horizontals Hvy Vert High Rate Hvy Vert Low Rate Provost Dina Hz…
  32. Q3 2014 – Twin Butte Energy Ltd. – slide 32
    Provost Cummings I Pool R4 R3W4 E S J D I E I S E I I E I S S E S I S G I I S E G J I I E E S S C Cummings I Pool E S I E E I E I A EEC I M S D J D I I I E I E I E I Red G - 2010 to 2013 HZ I E G G S E EG K…
  33. Q3 2014 – Twin Butte Energy Ltd. – slide 33
    Twin Butte Acquisition History Company/ Date Buffalo Oct09 Frog lake assets Nov10 Emerge Jan12 Swimming assets Apr12 A l Avalon Aug12 Wildmere assets Oct12 Waseca Nov12 Black Shire Nov13 33 TSX: TBE
  34. Q3 2014 – Twin Butte Energy Ltd. – slide 34
    2013 Year End Reserves Summary McDaniel's Jan 1, 2014 Price Deck Lt&Med Oil Hvy Oil Gas NGLs BOE % of PV10 % of FDC RLI (Mbbls) (Mbbls) (MMcf) (Mbbls) (Mboe) P + P MM P + P MM years Proved Dev Prod 2,656 14,254 41,311 1,789 25,584…
  35. Q3 2014 – Twin Butte Energy Ltd. – slide 35
    A Long Term Sustainable Model Jim Saunders - CEO jsaunderstwinbutteenergy.com Rob Wollmann President rwollmanntwinbutteenergy.com Alan Steele CFO asteeletwinbutteenergy.com TSX TBE TSX: www twinbutteenergy com…

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