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+ Growth platform with a…
OUR ASSET BASE Oil Gas Business Units Q2 Production Drilling Inventory1 Q2 Average Production (boepd) (locations) 42,513 boepd2 Bakken and Conventional 19,7052 1,080 Drilling Inventory Cardium 19,277 530 1,950 locations AB /…
GROWING FREE CASH FLOW Initial capital investment in light oil resource plays generates near-term FUTURE GROWTH production growth and early payout Maturing production base GROWING INTO FREE CASH FLOW generates growing free…
DEBT AND LIQUIDITY Term debt provides certainty; balance sheet liquidity provides flexibility DEBT CAPITAL COMPOSITION 2 650 million of available liquidity Term Secured Debt Term subject to 1.15 billion Credit further…
TOTAL DEBT POSITION 2010 2011 2012 2013 Total Year-End Debt Q2 2014 Pro Forma 2,500 50,000 2,000 40,000 Production (boepd) Debt and Liquidity (mm) 1,500 30,000 1,000 20,000 500 10,000 0 0 1 2010 2011 2012 2013…
DISPOSITION ACTIVITY Our 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 112 million 6.5x Income 1. Including…
CURRENT GUIDANCE 2014 Guidance reflects dispositions of 729 million, representing 6,315 boepd GUIDANCE (Sep. 2, 2014 ) Current Average Production (boe/d) 40,000 42,000 Exit Production (boe/d) 36,500 39,500 Liquids Weighting 78%…
WE HEDGE OUR RISK We methodically layer on commodity contracts up to three years in the future to hedge between 25-50% of net production Hedging Outlook 2014(e) Production 41,000 boepd 20,000 125 16,000 100 Royalties 3 Hedged…
MATURING ASSET BASE As our remaining assets mature, our declines are expected to decrease. Our 2014 dispositions have increased our base decline range slightly. Annual Corporate Decline Rate 50% 40% 30% 20% 10% 0% 2010…
PRODUCTION PLATFORM In 2014, we reduced our capital expenditures and applied disposition proceeds to our balance sheet 50,000 1,000 Extensive light oil assets 78% light oil and liquids 40,000 800 Asset base underpins our…
IMPROVING SUSTAINABILITY Our sustainability ratio continues to improve as our production matures All-in Sustainability Maturing production 200% 190% attenuates the base decline rate and generates higher free 161% 150% 150% operating…
BAKKEN ASSETS We are maximizing the value of our assets by focusing on optimization and EOR Our assets have lower decline, light oil production from the Bakken and the conventional Mississippian formations. With a moderate drilling…
IMPROVING TIGHT OIL RECOVERIES Future value generation through natural gas flooding With Bakken EOR projects we expect to: Bakken Creelman EOR Performance 1600 12 Attenuate declines and extend production life 1400 Increase DPIIP…
CARDIUM ASSETS Now 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 evolving our…
CARDIUM GROWTH We grew production in the Cardium quickly and have maintained it at 20,000 boepd for more than a year 25,000 500 20,000 400 Net Wells on Production Production (boepd) 15,000 300 10,000 200 5,000…
PROVEN RESULTS THROUGH INNOVATION Innovations in drilling and completion techniques improve productivity and lower costs Performance in West Pembina Slickwater fracturing has 80,000 reduced costs and improved productivity…
AB / BC ASSETS The Swan Hills has become our next growth target Our focus for new growth is in the Swan Hills area of northern Alberta. We started drilling in the area in 2012, and have since grown production rates to 2,700 boepd (2013…
GROWING SWAN HILLS PRODUCTION In 2013/14 drilled 7 new wells which were tied-in to our new 3,500 bopd battery in June. Swan Hills production for August averaged 2,928 boepd. 5,000 25 * 4,000 20 Net Wells on Production…
SWAN HILLS RESULTS Our historical experience in the Swan Hills formation, at Deer Mountain, has generated results outperforming our projections Swan Hills Production Until recently, our 100,000 results exceeded expectations for…
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 Type Well Mississippian Bakken Cardium Swan…
LONG-TERM OPPORTUNITY EXTENSIVE ASSETS SUSTAINABILITY SHAREHOLDER VALUE Drilling inventory of 10+ 2014 sustainability ratio Strong cash netbacks years of 100% Long-term growth with Undeveloped land of Attractive annual a…
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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 41,000 50.00 47.76…
OPERATING NETBACK Our assets combined with our operational expertise deliver leading operating netbacks 2014 Q2 Operating Netback 70 60 50 40 /boe 30 20 10 0 1 VET LTS BNE CPG TOG SGY WCP BTE PWT ARX ERF PEY PGF BNP…
CASH NETBACK Our strong cash netbacks are the result of our light oil focus 2014 Q2 Cash Netback 60 50 40 /boe 30 20 10 0 1 BNE CPG TOG LTS VET WCP SGY BTE ARX PWT PEY BNP PGF ERF Cash netback = funds flow from…
DIVIDEND PAYOUT RATIO Lightstream maintains the lowest dividend payout ratio in our peer group at 15% 2014 Q2 Dividend Payout Ratio 60% 50% % of Cash Flow 40% 30% 20% 10% 0% 1 LTS PWT TOG BNP PEY ERF ARX VET WCP…
CASH NETBACK AFTER DIVIDENDS Our low dividend payout ratio and high cash netbacks generate significant discretionary cash 2014 Q2 Cash Netbacks Including Declared Dividend 40 30 /boe 20 10 0 1 LTS TOG BNE VET CPG…
SUSTAINABILITY We are targeting a sustainability ratio of 100% for 2014 2014(e) Consensus All-in Sustainability 174% 150% 125% 100% 75% 50% 25% 0% 1 BTE VET LTS ARX BNE PWT BNP ERF SGY CPG TOG PEY WCP PGF All-in…
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