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Investor Presentation – Pacific Rubiales Energy Corp.

Pacific Rubiales Energy Corp. · Jan 8, 2015 · 49 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 – Pacific Rubiales Energy Corp. – slide 1
    Investor Presentation JANUARY 2015
  2. Investor Presentation – Pacific Rubiales Energy Corp. – slide 2
    The Company and Assets Production Mix 7% Heavy Oil 27% 2014 L&M Oil Base Natural Gas 67% Leading Latin American focused E&P 95 E&P blocks in seven countries (32 million gross (21 million net) acres Diversified across…
  3. Investor Presentation – Pacific Rubiales Energy Corp. – slide 3
    Industry Leading Production, Reserves and Financial Growth Net Production Net Reserves Mboe/d Net Production MMboe P1 P2 2P 160 700 613 140 600 514 120 59% 36% 500 CAGR 407 224 CAGR* 100 183 400 80 281 269 103 148 300 60 129…
  4. Investor Presentation – Pacific Rubiales Energy Corp. – slide 4
    Reserves Growth Feeds Future Production Net 2P Reserves Peru PMG Light Oil RESERVES AND NETBACK COMPARISON(1) Colombia Light Oil Rio Ariari CPE-6 Quifa* La Creciente & Guama Rubiales 2P RLI P1/2P Ratio Oil Netback(1) MMboe 2007…
  5. Investor Presentation – Pacific Rubiales Energy Corp. – slide 5
    Production Profile Net Production Growth Continues Mboe/d Rubiales Heavy Oil Other Heavy Oil Producon PAP L&M Oil Producon Gas Producon 350 307 310 311 316 325 320 308 12 11 11 12 11 12 11 300 29 28 29 39 61 59 58 250…
  6. Investor Presentation – Pacific Rubiales Energy Corp. – slide 6
    Rubiales / Quifa SW Fields An Oil Giant Discovered by Super Major in 1981. Today, holds three large producing oil fields: Rubiales, Quifa SW and Caja Very large Original Oil In Place: Rubiales: 4.6 Billion barrels Quifa: 2.8…
  7. Investor Presentation – Pacific Rubiales Energy Corp. – slide 7
    Rubiales Still an Option Mbbl/d Existing contract Proposed new contract 200 196 Wells + Infield drilling Diferential Enhanced Oil Recovery Investment (infraestructure) + Base production line Agrocascada Jan-14…
  8. Investor Presentation – Pacific Rubiales Energy Corp. – slide 8
    CPE-6 Development Moving Along the Trend PRE 50% WI and operator (Talisman 50% WI partner) 63 MMbbl certified net 2P reserves on drilled portion of Hamaca prospect; plus 171 MMbbl Prospective Resources* Same producing…
  9. Investor Presentation – Pacific Rubiales Energy Corp. – slide 9
    New Heavy Oil Field Developments Rubiales vs. CPE-6 Vertical Wells Behaviour Rubiales Wells CPE-6H-2 CPE6-1X Qo (bbl/d) Total of 16 appraisal wells drilled year to date; heavy crude oil production facilities driven CPE-6 Seven…
  10. Investor Presentation – Pacific Rubiales Energy Corp. – slide 10
    Rio Ariari Development Moving Along the Trend PRE 100% WI and operator Progressing with development of Mochelo Mochelo Prospect prospect 46 MMbbl certified net 2P reserves + early low case resources support 50 - 60 Mbbl/d…
  11. Investor Presentation – Pacific Rubiales Energy Corp. – slide 11
    Light Oil Field Development Net Production Mbbl/d Light / Medium oil Risked Exploration 80 Colombia 70 60 50 Light Colombia oil provides secure lower 40 cost diluent source 30 20 97 MMbbl Net 2P reserves light / medium 10 0…
  12. Investor Presentation – Pacific Rubiales Energy Corp. – slide 12
    PRE Light-Medium Oil & Gas Growing Production Colombia Net Light-Medium Oil & Gas (boe/d) As Nov 2, 2014 2014 (Exit) TOTAL 55,000 59,000-60,000 Peru Net Production (bbl/d) Block As Nov 2, 2014 2014 (Exit) TOTAL* 3,200…
  13. Investor Presentation – Pacific Rubiales Energy Corp. – slide 13
    Mexico The Next Frontier Opportunies Summary Migration of existing service contracts Expected 2P Reserves Contracts Investment Fields Timing (Bboe) (B) Poza Rica - First Stage: 22 First Set 0.6 2.6 Altamira and Aug / Dec 14…
  14. Investor Presentation – Pacific Rubiales Energy Corp. – slide 14
    STAR (EOR) Technology Key to Increased Recovery Factors in Colombian Heavy Oil Fields Multiphase commercial development proposed to Ecopetrol Phase one: Small scale commercial project 6 Mbbl/d Employing facilities and…
  15. Investor Presentation – Pacific Rubiales Energy Corp. – slide 15
    Caribbean Floating LNG Worlds First Floating LNG Facility Floating Liquefaction Barge (FLNG) Expected arrival Mid-year 2015 Capacity: 70 MMcf/d Owned by Exmar Tolling agreement with PRE Gas Pipeline (Pacific Midstream Projects)…
  16. Investor Presentation – Pacific Rubiales Energy Corp. – slide 16
    Pacific Midstream / Infrastructure Monetization of Infrastructure Assets Pacific Midstream Assets: PEL (100%), ODL (35%), BIC (41.5%), La Creciente gas pipeline (100%) IFC acquisition (43%) of Pacific Midstream closed on…
  17. Investor Presentation – Pacific Rubiales Energy Corp. – slide 17
    Cost Reduction Initiatives Natural Gasoline Own Light Crude Heavy Oil Crude Diluent Cost Per Sold Barrel (/Boe) Diluent cost Distribution /bbl 100% 12% 6% 4% 2% 3% 3% 2% 10.0 Diluent Cost Reduction 8.6 10% 14% 19% 17% 19% Continued…
  18. Investor Presentation – Pacific Rubiales Energy Corp. – slide 18
    Oil Operating Costs (/bbl) (/bbl) Operating cost (lifting cost) Transportation Cost Diluent 36.84 35.24 34.43 33.89 3.83 32.77 30.41 5.46 2.90 2.19 2.30 2.32 15.73 15.02 14.99 14.13 14.54 13.29 17.28 16.51 16.71…
  19. Investor Presentation – Pacific Rubiales Energy Corp. – slide 19
    Operational Efficiency (/bbl) Robust Oil Netbacks /bbl Netback Total Operating Cost 120 103.00 100 99.05 98.44 99.76 95.54 92.14 Company enjoys high oil netbacks and 80 operating margins Robust Oil netback margin: 65% YTD…
  20. Investor Presentation – Pacific Rubiales Energy Corp. – slide 20
    Exploration Opportunities Large and Diversified Resources Portfolio Feeds Future Exploration PRE Total Acres 33.4 MM Gross 24.5 MM Net 95 36 Assets 166 82 Prospects* 84 Leads* 6,240 MMboe E&P Exploration Total Prospective…
  21. Investor Presentation – Pacific Rubiales Energy Corp. – slide 21
    Corporate Social Responsibility and Sustainability The New Way of Doing Business Our goal is to generate economic growth under social and shared value We work towards the satisfaction of our stakeholder's expectation and beyond…
  22. Investor Presentation – Pacific Rubiales Energy Corp. – slide 22
    Pacific Rubiales Advantage 1 Sustainable Cash Flow and Strong Netbacks Cash flow to invest in large development and exploration portfolio Self funded growth from internally generated cash flow Production linked to international…
  23. Investor Presentation – Pacific Rubiales Energy Corp. – slide 23
    2015 Guidance 70- 75 Oil realiza9on price: Expected to average approximately WTI benchmark price assumpon /bbl 155 - 160 Mboe/d Target average net production: 5-8% growth over estimated 2014 production levels 30…
  24. Investor Presentation – Pacific Rubiales Energy Corp. – slide 24
    2015 Budget Strategy (When Cash is King) Restrict capital expenditures to +/- equal internally generated cash flow Defer discretionary exploration expenditures Allocate capital to best projects based on ranking: economic returns,…
  25. Investor Presentation – Pacific Rubiales Energy Corp. – slide 25
    2014 vs. 2015 E&D Capital Expenditure 2014 Net Capital Program 2015 Net Capital Program 2% 10% 15% 23% 2.3 65%* 32% 1.5 31% Billion Billion 37% 51% Exploration Development Drilling Facilities Other Exploration Development…
  26. Investor Presentation – Pacific Rubiales Energy Corp. – slide 26
    Positioned For a Low Price Environment Low Cost Producer Sustainable cash operating costs of +/- 30/boe Reduced diluent purchases, field electricity costs (PEL), transportation costs, Agrocascada driven down costs Approximately half…
  27. Investor Presentation – Pacific Rubiales Energy Corp. – slide 27
    ADDITIONAL INFORMATION 27
  28. Investor Presentation – Pacific Rubiales Energy Corp. – slide 28
    Long-term Strategic Vision Targeting Material Resource Capture Focus on prospective Latin American basins with potential to provide material resource capture Active in countries with right balance of above and below ground risks…
  29. Investor Presentation – Pacific Rubiales Energy Corp. – slide 29
    Sub-Andean Basins in Latin America Massive Hydrocarbon Resources One of the great oil-rich hydrocarbon trends in the world. Sharing similar geologic and petroleum systems Runs from Trinidad through Venezuela, Colombia, Ecuador and…
  30. Investor Presentation – Pacific Rubiales Energy Corp. – slide 30
    PRE as the Main Engine in Colombias Production Growth Light/Medium Oil Fields (Other) Heavy Oil Fields (Other) Light/Medium Oil Fields (PRE) Heavy Oil Fields (PRE) Mbbl/d 1,200 Large Light Fiscal & 1,000 Oil Field Regulatory…
  31. Investor Presentation – Pacific Rubiales Energy Corp. – slide 31
    CPE-6 Block Development Plans Facility Project Phases Phase 1: 8 Mbbl/d Phase 2: 10 Mbbl/d additional Phase 3: 15 - 25 Mbbl/d additional Phase 4: 15 - 25 Mbbl/d additional Total estimated Capex: 1.5 - 2.0 Billion Current…
  32. Investor Presentation – Pacific Rubiales Energy Corp. – slide 32
    Rio Ariari Block Development Plans Facility Project Phases Early production facilities Phase 1: 12 Mbbl/d Phase 2: 25 - 35 Mbbl/d additional Estimated total Capex: 1.2 - 1.7 Billion Mochelo South Current Project Status Early…
  33. Investor Presentation – Pacific Rubiales Energy Corp. – slide 33
    Organic Growth Through the Drill Bit Net 2P Reserves Exploration Net 2P Reserves Total Net 2P Reserves % Company is focused on organic reserves MMboe % Incorporated by Exploration Exploration and production growth 700 100% 94%…
  34. Investor Presentation – Pacific Rubiales Energy Corp. – slide 34
    Strategic M&A Provides Elements Unavailable Organically COLOMBIA M&A ACQUISITIONS Net 2P Net Cost Acquisition Reserves Production /2Pbbl M/bbl/d (B) (MMbbl) (Mbbl/d) PetroMagdalena (Mid 2012) 0.2 16.6 3 14 71 C&C (Late 2012)…
  35. Investor Presentation – Pacific Rubiales Energy Corp. – slide 35
    PRE Net Pipelines Capacities Pipeline Capacity* 1. Oleoducto de los Llanos (ODL): 119,000 bbl/d 2. OCENSA: 100,750 bbl/d (18 - 24API) BICENTENARIO: 47,334 bbl/d (24API) 3. Oleoducto Guaduas la Dorada (OGD): 38,000 bbl/d 4.…
  36. Investor Presentation – Pacific Rubiales Energy Corp. – slide 36
    Oil Exports Capturing Premium Pricing Growing exports to Asia (82% 3Q 2014) 2013 2012 WTI Nymex 98.1 WTI Differential 94.2 WTI Differential ICE BRENT 108.7 -10.6 111.9 -17.7 Region Price /bbl Volume MMbbl Price /bbl Volume…
  37. Investor Presentation – Pacific Rubiales Energy Corp. – slide 37
    3Q 2014 Highlights 88.05 /boe Combined Realized price: 10% decrease vs. 3Q 2013 163,617 Sales Volume: 33% and 6% increase vs. 3Q 2013 Boe/d and 2Q 2014 respectively 1,330 Million Revenue: 20% higher vs. 3Q 2013 144,722…
  38. Investor Presentation – Pacific Rubiales Energy Corp. – slide 38
    3Q 2014 Exploration Activity - Wells 2014 3Q 2014 Explora9on Wells Results Block Wells Block Well Name Well Type Result Net Pay (])* 1Q 2Q 3Q 4Q Canaguaro Tapi Exploratory Successful 24 Arrendajo 2 2 Mapache Erizo-1 Exploratory…
  39. Investor Presentation – Pacific Rubiales Energy Corp. – slide 39
    Exploration Assets Portfolio Llanos Stratigraphic Play Analysis 39
  40. Investor Presentation – Pacific Rubiales Energy Corp. – slide 40
    Peru 131 Block Los Angeles Discovery Los Angeles discovery well on long-term test, currently producing 2,258 bbl/d, no water nta Top Cho Cushabatay batay The well has produced 60,000 bbl of 45 Top Cusha Noi API to date ne…
  41. Investor Presentation – Pacific Rubiales Energy Corp. – slide 41
    Brazil Santos Basin Resource Diversification Kangaroo-1 and Bilby-1 exploration wells, drilled to a total depth of 10,004 ft. MD and 14,489 ft. MD, encountering an oil pay oil bearing column 58 ft. and 230 ft., respectively…
  42. Investor Presentation – Pacific Rubiales Energy Corp. – slide 42
    Raptor-1 Well Location, Map & Seismic Profile PPL475 42
  43. Investor Presentation – Pacific Rubiales Energy Corp. – slide 43
    2014 Financial Highlights 3Q Financial Results 9M Financial Results Million Earnings from Million Earnings from Revenues Adjusted EBITDA FFO Operations Revenues Adjusted EBITDA FFO Operations 1,400 4,500 1,330 3,959 4,000 1,200…
  44. Investor Presentation – Pacific Rubiales Energy Corp. – slide 44
    2014 Operational Highlights 3Q Operating Netbacks 9M Operating Netbacks /boe /boe Oil Netback Gas Netback Combined Netback Oil Netback Gas Netback Combined Netback 70 70 65.73 64.09 62.52 63.08 61.28 60.44 60 60 57.11 55.08 50…
  45. Investor Presentation – Pacific Rubiales Energy Corp. – slide 45
    2014 YTD Financial Results Breakdown Million 3,959 1,632 Cash Non-cash 262 2,065 188 268 2 1,611 3 100 9 1,166 351 Revenues Operating G&A EBITDA Finance Cash Taxes Other Cash Funds Flow Other Non- Non-cash Foreign…
  46. Investor Presentation – Pacific Rubiales Energy Corp. – slide 46
    Balance Growth with Returns Dividend Distribution MM Dividends paid % from CFO* 250 20% 200 Dividend distribution 15% 150 Discretionary 10% 100 Consistently paid and increased dividend 5% since 2010 50 0 0% Dividend yield…
  47. Investor Presentation – Pacific Rubiales Energy Corp. – slide 47
    Solid Debt Profile Current Debt Maturity Profile (1) Debt/Adjusted EBITDA 1,284.4 Banks 12% 544 Exchange 2.1x Exchange 363.7 321.7 (3) 990.6 1.7x 1.7x 4,522 Bonds 3,978 88% 735.8 645.6 0.8x Bonds Banks 0.8x 0.6x 0.6x…
  48. Investor Presentation – Pacific Rubiales Energy Corp. – slide 48
    Credit Ratings Upgrade What Does it Take to Become Grade Standard & Poors: we believe that the combined production from the new heavy-oil fields, CPE-6 and Rio Ariari, and Pacifics active exploration program will help the company…
  49. Investor Presentation – Pacific Rubiales Energy Corp. – slide 49
    Christopher LeGallais Corporate VP, Investor Relations clegallaispacificrubiales.com +1 (647) 2953700 J. Frederick Kozak Corporate VP, Investor Relations +1 (403) 6063165 +57 (1) 5117992 fkozakpacificrubiales.com Roberto…

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