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January 2015 Corporate Presentation – Crescent Point Energy Corp.

Crescent Point Energy Corp. · Jan 1, 2015 · 29 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. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 1
    CORPORATE PRESENTATION January 2015
  2. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 2
    COMPANY SNAPSHOT: CPG (TSX AND NYSE) Market Capitalization: 12.0 billion (447.0 million shares fully diluted)(1) Net Debt: 2.8 billion(2) Enterprise Value: 14.8 billion 2015 Average Production: 152,500 boe/d (90% oil weighted)(3)…
  3. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 3
    2015 CAPEX AND PRODUCTION GUIDANCE Facilities, Land and Seismic 180 M 1.45 billion total 1.27 B Drilling and Development Conservative budget of 1.45 billion targeting a 28% reduction in overall spend versus 2014(1) Average…
  4. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 4
    2015 CAPEX FOCUS Play Net Wells % of 2015 Drilling Capital Budget Viewfield 185 30% Shaunavon 109 21% Flat Lake (Torquay) 44 13% Uinta 36 10% TOTAL OF FOUR PLAYS 374 74% Other 242 26% TOTAL 616 100% 2015 capital…
  5. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 5
    KEY MESSAGES Conservative capital program continues track record of growth and income World-class assets with a large drilling inventory of wells that generate high-returns and strong payback periods High quality assets provide…
  6. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 6
    BUSINESS STRATEGY Develop and Exploit Increase recovery factors through step-out and infill drilling, waterflood optimization and improved technology Acquire Focus on high-quality, large resource-in-place pools with the…
  7. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 7
    PROVEN TRACK RECORD 160,000 3,000 Production (boe/d) Funds Flow (millions) 2,500 120,000 2,000 80,000 1,500 1,000 40,000 500 0 0 2014E 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E 2004…
  8. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 8
    HEDGING STRATEGY Total Oil Hedges 70,000 60% 70% 50% 60,000 2015 average floor price 90/bbl 60% 50,000 50% Percent hedged 40,000 40% 22% bbl/d 30,000 30% 20,000 20% 10,000 2% 10% - 0% Q4 14 Q1 15 Q2 15 Q3 15 Q4…
  9. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 9
    HEDGING POSITION 2015 Large Producer and Dividend Company Oil Hedges(1) 70% 60% 50% 40% 30% 20% 10% 0% Well hedged during current oil price environment CRESCENT POINT ENERGY CORPORATE PRESENTATION 10
  10. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 10
    BALANCE SHEET STRENGTH 6.0x Canadian E&P Leverage(1) Forward 2014E Debt to 2015E Cash Flow (Futures Strip) 5.0x 4.0x 3.0x Average 1.8x CPG 2.0x 1.3x 1.0x 0.0x Strong balance sheet provides added…
  11. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 11
    FOCUSED GROWTH Strategic positions in four of the top seven medium to light oil resource pools in Canada (including Viking)(1) Largest player in the OOIP 5.3 billion Canadian Bakken, which has barrels the strongest break-even…
  12. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 12
    VIEWFIELD BAKKEN Created over 7.2 billion of value since entering the play in 2007 through increased reserve growth of 200% and cash flow growth of over 650%(1)(2) Free cash flow positive asset of 900 million forecasted in…
  13. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 13
    SHAUNAVON Increased reserves by 70% and cash flow by 300 million since entering the play in 2009(1) Recovery factor of only 0.8% to date and asset is now entering free cash flow stage of life cycle(2) 650 gross wells on…
  14. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 14
    UINTA BASIN SIGNIFICANT OPPORTUNITY 5,000 ft Mahogany Garden Gulch Douglas Creek Potential zones for horizontal drilling Black Shale Castle Peak Uteland Butte Recent successful industry horizontal wells Wasatch 10,000 ft…
  15. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 15
    FLAT LAKE: TORQUAY (THREE FORKS) & BAKKEN Crescent Point Energy lands Recently acquired lands as part of a 99.1 million acquisition Torquay edge Bakken wells Torquay wells Consolidated resource play with a core area…
  16. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 16
    BREAK-EVEN ECONOMICS Average Break-Even Economics for Major Canadian and US Light to Medium Oil Plays (1) 100.00 CPG Core Areas 80.00 WTI (US/bbl) 60.00 40.00 20.00 0.00 Crescent Points highest return type…
  17. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 17
    SUMMARY Focused growth strategy and a disciplined capital allocation program High rate of return inventory that provides flexibility in low oil price environments while protecting the balance sheet and dividend Strong hedging…
  18. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 18
    APPENDIX
  19. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 19
    PER SHARE FOCUS Production per Share Reserves per Share 2.25 360 CAGR 5.3% 2 CAGR 4.7% 320 1.75 280 1.5 240 1.25 200 1 (1) (1) (1) (1) 2010 2011 2012 2013 2010 2011 2012 2013…
  20. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 20
    PIONEER IN ADVANCING NEW TECHNOLOGY 2008 - 2009 2010 - 2012 2013 - 2014 Completed first cemented liner in the Bakken Expanded waterflood area within the core of the Became the largest driller of horizontal wells in oil resource…
  21. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 21
    TECHNOLOGY + PATIENCE CREATES VALUE Technology has shown to be a significant value creator over time Rewarded for a patient drilling strategy, which is supported by our dividend plus growth model In-house technology expertise…
  22. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 22
    IMPACT OF TECHNOLOGY IMPROVEMENTS Viewfield Bakken Fresh Water Usage per well Viewfield Bakken Drilling Progression Spud to Rig Release 900 16 750 12 600 Days Water (m3) 450 8 300 4 150 0 0 2009 2010 2011 2012…
  23. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 23
    TRANSFER OF KNOWLEDGE Viewfield Shaunavon Uinta Basin Flat Lake Initial Year of Entry Early 2007 Early 2009 Late 2012 Mid 2013 Q3/14 Production (boe/d) 60,000 23,000 14,000 6,800 2013 Cash Flow (millions) 1,216 329 151 55 (1)…
  24. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 24
    BUILDING FREE CASH FLOW ASSETS Viewfield Bakken Cash Flow vs Capex (MM) Shaunavon Cash Flow vs Capex (MM) 1,600 600 1,200 450 800 300 400 150 - - Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8E(1) Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6E(1)…
  25. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 25
    18 BILLION INVENTORY DRIVES LONG-TERM GROWTH Total Reserves and resources Potential Total other than First Month Risked Finding & Capital(1) Reserves(2) Production Rate Development Cost Risked per Area Net Wells (MM) (Mboe)…
  26. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 26
    ACQUISITION HISTORY: RESERVES MORE THAN DOUBLED Initial P+P Estimated Current P+P Total P+P Reserves Production Reserves Reserves Increase in P+P % Increase in Property (Mboe) (Mboe)(1) (Mboe)(1)(2) (Mboe)(1) Reserves (Mboe)…
  27. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 27
    CASH FLOW IS A BETTER PROXY FOR PERFORMANCE Peer analysis solely on net income does not account for various non-cash charges such as Crescent Points hedging strategy Crescent Point Energy Corp. (millions) Q3/14A 2013A Net income…
  28. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 28
    THE IMPORTANCE OF PAYOUTS: CASE STUDY 12 Month Payout Well (1) 3.5 Cumulative Free Cash Flow ( millions) 3.0 2.5 2.0 Hypothetical Economics 1.5 1.0 NPV10% 3.4 MM 0.5 0.0 Well cost 2.0 MM (0.5) (1.0) EUR/well (Mbbls) 150 (1.5)…
  29. January 2015 Corporate Presentation – Crescent Point Energy Corp. – slide 29
    www.crescentpointenergy.com BANKER Bank of Nova Scotia AUDITOR PricewaterhouseCoopers LLP LEGAL COUNSEL Norton Rose Fulbright Canada LLP EVALUATION ENGINEERS GLJ Petroleum Consultants Ltd Sproule Associates Ltd REGISTRAR &…

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