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Investor Presentation – Bonavista Energy Corp

Bonavista Energy Corp · Jan 13, 2014 · 47 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 – Bonavista Energy Corp – slide 1
    Investor Presentation January 2014
  2. Investor Presentation – Bonavista Energy Corp – slide 2
    Corporate Overview
  3. Investor Presentation – Bonavista Energy Corp – slide 3
    CORPORATE IDENTITY Our foundation: 3.9B Enterprise Value PEOPLE RESERVES PRODUCTION OPPORTUNITIES 376 Employees 372 mmboe* 76,000 boe/d 1,650 Locations 13% Insider Ownership 14 year RLI 90% Operated 89% Horizontal 4 * 2P at…
  4. Investor Presentation – Bonavista Energy Corp – slide 4
    CORPORATE IDENTITY Our asset base: British Columbia Alberta Ft St John Edmonton Focus Areas Calgary Exclusively western Canada 2.9 million total net acres Vancouver BNP Lands 5
  5. Investor Presentation – Bonavista Energy Corp – slide 5
    BUSINESS PLAN Investment thesis: 10+% TOTAL RETURN TOTAL SHAREHOLDER RETURN TARGET = 5+% GROWTH ANNUAL GROWTH TARGET + 5% INCOME DIVIDEND YIELD TARGET 6
  6. Investor Presentation – Bonavista Energy Corp – slide 6
    BUSINESS PLAN A delicate balance: 10% 20% 10% 10% 5% 10% 5% SPENDING 0% 0% 0% Income Return Target Total Return Target Growth Return Target VALUE CREATION 7
  7. Investor Presentation – Bonavista Energy Corp – slide 7
    CORPORATE STRATEGY The right ingredients: CONCENTRATE OPERATIONS ON EXCELLENT ASSETS TOP QUALITY RESERVOIRS + IDENTIFY AND EXECUTE WITH EXCELLENT PEOPLE EFFICIENCY AND PRECISION = VALUE CREATION 8
  8. Investor Presentation – Bonavista Energy Corp – slide 8
    CONCENTRATION Concentration of land: 2009 2013 815,000 acres 2,130,000 acres British Columbia Alberta Deep Basin Deep Basin Edmonton Calgary Vancouver West Central West Central 160% increase in acreage 9
  9. Investor Presentation – Bonavista Energy Corp – slide 9
    CONCENTRATION Concentration of E&D expenditures: 100% 90% 80% 86% 82% Expenditures (% of total) 70% 76% 76% 60% 63% 50% 51% 40% 30% 29% 20% 10% 0% 2008 2009 2010 2011 2012 2013E 2014F Focus Areas Other…
  10. Investor Presentation – Bonavista Energy Corp – slide 10
    CONCENTRATION Concentration of production and reserves: 80,000 400 70,000 350 60,000 300 Production (boe/d) Reserves (mmboe) 50,000 68% 250 80% 30% 40,000 200 16% 30,000 150 20,000 100 10,000 50 0 0 2008…
  11. Investor Presentation – Bonavista Energy Corp – slide 11
    EFFICIENCY Finding, development and acquisition costs*: 35.00 30.00 3-year Average (/boe) 25.00 20.00 15.00 10.00 5.00 0.00 BNP Bonavista Peer Group 12 *Proved + probable, including FDC
  12. Investor Presentation – Bonavista Energy Corp – slide 12
    EFFICIENCY Cash costs*: 30.00 25.00 Q3 2013, Cash costs (/boe) 20.00 15.00 10.00 5.00 0.00 BNP Bonavista Peer Group 13 *Includes transportation, operating, G&A and interest/financing expense
  13. Investor Presentation – Bonavista Energy Corp – slide 13
    EFFICIENCY Adding production more efficiently: 40% more efficient than 2012 E&D efficiency (/boed, trailing 12-mos) 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1…
  14. Investor Presentation – Bonavista Energy Corp – slide 14
    VALUE CREATION Drilling inventory: 2009 2013 Focus areas inventory grew from 59% of the 23% 41% total in 2009 to 77% in 2013 55% 12% Six key plays account for 65% 1,019 horizontal 4% locations, up 200% from 2009 West…
  15. Investor Presentation – Bonavista Energy Corp – slide 15
    VALUE CREATION Building value with liquids rich natural gas plays: 70 bbls/mmcf 90 bbls/mmcf 38 bbls/mmcf 155 bbls/mmcf 0% C2 22% 23% 29% C3 35% 35% 42% 29% C4 18% 52% C5 37% 29% 13% 10% 20% 6% 9.00 Revenues*…
  16. Investor Presentation – Bonavista Energy Corp – slide 16
    VALUE CREATION Economics of key plays in focus areas*: Recycle Ratio On-stream Cost IP12** (/boed) 4 25,000 20,000 3 15,000 2 10,000 1 5,000 0 0 Glauconite Glauconite Montney Ellerslie Bluesky…
  17. Investor Presentation – Bonavista Energy Corp – slide 17
    VALUE CREATION Solid foundation for growth in focus areas: MONTNEY, 49 gross wells / 319 million spending ELLERSLIE, 138 gross wells / 552 million spending WILRICH, 103 gross wells / 314 million spending BLUESKY, 42 gross wells…
  18. Investor Presentation – Bonavista Energy Corp – slide 18
    VALUE CREATION Production growth: 120,000 2018 110,000 boe/d 110,000 100,000 Production (boe/d) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 2014 2015 2016 2017 2018 Base Glauconite Cardium…
  19. Investor Presentation – Bonavista Energy Corp – slide 19
    Key Plays
  20. Investor Presentation – Bonavista Energy Corp – slide 20
    GLAUCONITE Glauconite portfolio: 300 sections of land 186 horizontal wells drilled Operating costs of 3.00/boe 400 horizontal locations 58 well drilling program in 2014 21
  21. Investor Presentation – Bonavista Energy Corp – slide 21
    GLAUCONITE Near-term growth: 40,000 250 35,000 200 30,000 Production (boe/d) millions 25,000 150 20,000 100 15,000 10,000 50 5,000 Double production by H2 2015 0 0 2014 2015 2016 2017 2018 Base Growth Net…
  22. Investor Presentation – Bonavista Energy Corp – slide 22
    GLAUCONITE Glauconite type curve: Type Curve Capex ( millions) 3.1 600 IP12 (boe/d) 278 EUR (mboe) 513 500 IRR (%) 47 Production (boe/d) F&D (/boe) 6.10 400 P/I 0.91 Recycle Ratio 3.80 300 Payout (years) 1.9 200…
  23. Investor Presentation – Bonavista Energy Corp – slide 23
    GLAUCONITE Infrastructure advantage: Gas Sales Capacity 250 Proposed pipeline 200 (2014) Gas Sales and Capacity (mmcf/d) 150 Keyera Rimbey 100 Carlos pipeline (built 2011) 50 0 2009 2010 2011 2012 2013…
  24. Investor Presentation – Bonavista Energy Corp – slide 24
    CARDIUM CA E E E E E E EE EEA EE C E E EE A EE C CE E A D A EE E EA EE E E AE E E E E EEEE C EE E E A A C SE E AE E E C EE E E E E E EEEEEE E E E E EE E E EE E EEE E E E EE E E E E EG E E E E E EG E E ES A E E E E E E E…
  25. Investor Presentation – Bonavista Energy Corp – slide 25
    CARDIUM Near-term growth: 6,000 90 80 5,000 70 Production (boe/d) 4,000 60 millions 50 3,000 40 2,000 30 Free cash flow by 2015 20 1,000 10 0 0 2014 2015 2016 2017 2018 Net Operating Income Expenditures…
  26. Investor Presentation – Bonavista Energy Corp – slide 26
    CARDIUM Lochend Cardium type curve: 500 Type Curve Capex ( millions) 3.4 450 IP12 (boe/d) 194 400 EUR (mboe) 176 Production (boe/d) 350 IRR (%) 148 300 F&D (/boe) 19.30 250 P/I 1.0 Recycle Ratio 3.16 200 Payout…
  27. Investor Presentation – Bonavista Energy Corp – slide 27
    Extensive resource: ELLERSLIE A F F F F F F F FF J K F F F F F F F F F A K F K F F F J F F F F J L L F LF G F FF K E F F I F F A FF F K L F A F E FA LJ A F A F K F A I K K F BONAVISTA L L F F EE E F F F I L F…
  28. Investor Presentation – Bonavista Energy Corp – slide 28
    ELLERSLIE Mid-term growth: 18,000 160 16,000 140 14,000 120 Production (boe/d) 12,000 100 millions 10,000 80 8,000 Oil/liquids drive income 60 6,000 40 4,000 Significant growth 2,000 20 0 0 2014 2015…
  29. Investor Presentation – Bonavista Energy Corp – slide 29
    ELLERSLIE Ellerslie type curve: Solid production performance 800 Type Curve Actuals 700 Capex ( millions) 5.4 5.4 IP12 (boe/d) 348 496 600 EUR (mboe) 542 650 Production (boe/d) 500 IRR (%) 40 100 F&D (/boe) 9.90 8.23 400…
  30. Investor Presentation – Bonavista Energy Corp – slide 30
    Building a second focus area: DEEP BASIN Bluesky Initial acquisition of 235 million Wilrich in Rosevear/Pine Creek in 2010 In 2012, 157 million acquisition of Marlboro / McLeod properties In 2013, 74 million acquisition in Edson…
  31. Investor Presentation – Bonavista Energy Corp – slide 31
    BLUESKY Near-term growth: 70 sections of land 65 horizontal locations 7 well drilling program in 2014 9,000 70 8,000 60 7,000 Production (boe/d) 50 6,000 millions 5,000 40 4,000 30 3,000 20 2,000 Free cash…
  32. Investor Presentation – Bonavista Energy Corp – slide 32
    BLUESKY Bluesky type curve: Type Curve 700 Capex ( millions) 4.5 IP12 (boe/d) 395 600 EUR (mboe) 515 IRR (%) 66 Production (boe/d) 500 F&D (/boe) 8.79 400 P/I 0.9 Recycle Ratio 2.9 300 Payout (years) 1.5 200 100…
  33. Investor Presentation – Bonavista Energy Corp – slide 33
    WILRICH Mid-term growth: 75 sections of land 120 horizontal locations 11 well drilling program in 2014 20,000 140 18,000 120 16,000 14,000 100 Production (boe/d) millions 12,000 80 10,000 60 8,000 6,000 40…
  34. Investor Presentation – Bonavista Energy Corp – slide 34
    WILRICH Ansell type curve: Latest well tested at 2,500 boe/d 1,400 Type Curve Capex ( millions) 6.0 1,200 IP12 (boe/d) 659 EUR (mboe) 872 Production (boe/d) 1,000 IRR (%) 55 800 F&D (/boe) 6.82 P/I 0.78 600 Recycle…
  35. Investor Presentation – Bonavista Energy Corp – slide 35
    Montney portfolio: MONTNEY AA A A A C A C A A CC A C A AC A A A A C AC A AA C A A CC C F AA CC AC C C A CA A C A A C AA F FA A AAA CA FF A A C A A C C AC F AF AAF FACC A C A F FF CA AA A A A FF CF AF A C…
  36. Investor Presentation – Bonavista Energy Corp – slide 36
    MONTNEY Long-term growth: 12,000 250 Free Condensate (bbls/mmcf) 10,000 200 Production (boe/d) 8,000 150 6,000 100 4,000 50 2,000 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27…
  37. Investor Presentation – Bonavista Energy Corp – slide 37
    MONTNEY Economic impact of condensate rich Montney: Oil/Condensate Play Typical NGL Play IP1 (mcf/d) 1,820 5,500 Natural gas EUR (Bcf) 1.8 5.4 Liquids (bbls/mmcf) 155 18 F&D (/boe) 12.96 7.97 Netback (/boe) 29.43 16.71 Recycle…
  38. Investor Presentation – Bonavista Energy Corp – slide 38
    MONTNEY Montney type curve: 700 Type Curve Hybrid Capex ( millions) 6.5 6.5 600 IP12 (boe/d) 284 377 EUR (mboe) 502 555 Production (boe/d) 500 IRR (%) 19 42 400 F&D (/boe) 12.96 11.71 P/I 0.3 0.7 300 Recycle Ratio 2.5…
  39. Investor Presentation – Bonavista Energy Corp – slide 39
    2014 BUDGET Capital allocation: Capital % of Value Gross Wells ( millions) Capital Glauconite 58 161 39% Cardium 21 53 13% Ellerslie 11 44 11% Bluesky 8 21 5% Wilrich 11 42 10% Montney 2 13 3% Additional Deep Basin…
  40. Investor Presentation – Bonavista Energy Corp – slide 40
    Financial Strategy and Guidance
  41. Investor Presentation – Bonavista Energy Corp – slide 41
    FINANCIAL STRATEGY Senior debt composition: (as at September 30, 2013) ( millions) Senior Notes (CAD) 70 Unutilized Bank Capacity 412 Bank Credit Facility - 600 million 11 banks in Bonavista bank credit facility Unsecured,…
  42. Investor Presentation – Bonavista Energy Corp – slide 42
    Senior debt maturities: FINANCIAL STRATEGY (as at September 30, 2013) 50 million Nov 2, 2010 (3.79%) Senior notes average 7.6 years 4.1% 25 million June 4, 2010 (4.86%) Bank credit facility 3 years 3.25% 188 million Bank Debt…
  43. Investor Presentation – Bonavista Energy Corp – slide 43
    GUIDANCE 2014 Guidance: 2012 2013 2014 Actual Estimate Forecast Capital expenditures ( millions): Exploration and development 402 437 500 550 Acquisitions and divestitures (11) 23 - Total 391 460 500 550 Production (boe/d)…
  44. Investor Presentation – Bonavista Energy Corp – slide 44
    Appendix
  45. Investor Presentation – Bonavista Energy Corp – slide 45
    HEDGING STRATEGY Hedging Strategy: Manage Risk Ensure natural gas, liquids and oil production moves to markets in an orderly manner Stabilize pricing from volatile commodity prices Safeguard cash flow to fund our capex budget and…
  46. Investor Presentation – Bonavista Energy Corp – slide 46
    HEDGING STRATEGY NATURAL GAS 250 5.00 Hedged Volumes (thousand GJ/d) 200 4.50 150 4.00 C/GJ 100 3.50 50 3.00 64% 23% 78% 23% 22% 27% 76% 47% 0 2.50 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2…
  47. Investor Presentation – Bonavista Energy Corp – slide 47
    HEDGING STRATEGY CRUDE OIL 12 120 10 110 Hedged Volumes (mbbls/d) 8 100 C/bbl 6 90 4 80 2 70 69% 26% 24% 24% 76% 25% 73% 75% 0 60 2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3…

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