CORPORATE PRESENTATION January 2015 All amounts in Canadian dollars unless indicated otherwise
2015 Focus: Flexibility and Strength 1. Balance Sheet in excellent shape 2015 plans shaped around maintaining this 2. 2015 Guidance 22,500 to 24,000 boe/d & capex reduced to 270-290MM WAPITI Grande Prairie 3. Strong Economics -…
NuVista: Adjusting to Current World Pricing This too shall pass but the duration is uncertain. In the meantime, NVA has critical success factors in place for times like this Strong balance sheet and it comes first Play economics…
The Alberta Condensate-Rich Montney A sweet spot in a world class play 1. Scalable/Repeatable Deposition on the shelf edge - not isolated pockets Gas charged top to bottom Over-pressured low water saturation High Quality 2.…
The Alberta Condensate-rich Montney Production and HZ Well Count Increasing Dramatically Elmworth to Kakwa Montney HZ Activity Update* T71 High level of industry activity 500 Montney HZ wells licensed and/or T70 drilled to date…
2015 Business Plan High capital flexibility for low commodity price period Capital reduced, production guidance maintained long term plans intact Using our flexibility to reduce drilling pace and only drill the best Finish North…
NuVista 2015 Capital Guidance Original Guidance Revised Guidance 4% 6% 7% 19% Other 24% W6 Sweet Montney DCT 2/3 South Wells, 71% Montney Fac / Water 69% North Wells, 1/3 North Wells South Wells Remove 7 Montney Wells…
NuVista Wapiti Montney Our activity and landholdings Flexibility in drilling pace focus on Lowest- Pipestone risk most economic PDP Additions 33 wells on production year end 2014 15-20 additional wells on-stream in 2015 Elmworth…
Bilbo Development Block The best plays still add value while weathering the commodity price storm Liquids Typecurve 100* total locations in development area Bbls/MMcf Well performance continues to improve Condensate 8 5 Butane…
Montney Performance South Block (Bilbo) 1,800 24 Cumulative-to-Date Bbls/MMcf Condensate 8 7 Continue to see 1,500 20 Butane strong condensate Propane 80 yield 75 Bbls/MMcf 2014 YTD September Field Netbacks 60 1,200 16…
Elmworth Development Block The best plays still add value while weathering the commodity price storm NVA Montney IP30's Liquids Typecurve Bbls/MMcf NVA Drilled / Completed Montney Horizontal Wells Condensate 13 NVA 7-22 Compressor…
Montney Performance North Block (Elmworth) Outperforms 4.4 bcf Type Curve 6 bcf Type Curve First 3 NVA Wells Last 5 NVA Wells (Big Fracs) 10,000 Cumulative-to-Date Bbls/MMcf 9,000 Condensate 10 Butane 9 41 8,000 Propane 7,000…
Wapiti Montney Egress Built-in growth with high capital flexibility in the short term and still more options for the long term Loop pipeline to existing SemCAMS K3 gas plant; expected startup mid-2015 SemCAMS compressor station on…
Wapiti Montney Processing Capacity Firm Capacity and line-of-sight to long term growth With TOP flexibility built in Wapiti Montney Raw Gas Processing Capacity And Estimated Equivalent Montney Production 200 New Sour Gas Plant…
Commodity Price Risk Management WTI Oil Very strong hedge position Crude Oil Hedge Position 4,500 98.00 4,000 96.00 3,500 94.00 Oil hedging very Hedged Volume, Bbl/d 3,000 92.00 strong through Price, C/Bbl 2,500 2015…
Commodity Price Risk Management AECO natural gas Very strong hedge position Natural Gas Hedge Position 100,000 4.50 90,000 4.00 80,000 3.50 Hedged Volume, GJ/d 70,000 and Hedging for 3.00 Price, C/GJ 60,000 gas is…
Driving down costs on all fronts Right on Track Total Cash Costs (/Boe)* 17 16 15 14 General and Administrative (/Boe) 13 3.50 12 11 3.00 10 2.50 2013 2014E 2015E 2.00 Royalties (%) 12% 1.50 10% 1.00 2013 2014E…
NuVista 2014 Guidance Still expecting to meet Cashflow and Production Guidance Range despite the commodity price storm Production Guidance Actual Production (Boe/d) (Boe/d) Full Year 17,750 - 18,500 On track Q4 21,000 22,500 On…
NuVista Revised 2015 Guidance Commodity Prices It's a New World Very strong Hedge Book mitigates the impact We will finish what we started Q1 winter drilling program reduced prudently but still intact North (Elmworth) compressor…
NuVista: Looking Forward Flexibility for Defensive Environment Strength for the eventual commodity price return Balance sheet comes first we will use our flexibility to weather the storm Top plays win at any price Focused capital…
APPENDIX January 2015 21
The Montney - A World Class Play EURs and investment growing, capital efficiency improving, and sub plays expanding Why is the Montney Getting Better 1. The Scale stretching from NE BC into AB, difficult to find an analogue commercial…
The Montney - A World Class Play Competitive with US plays and increasing activity Massive Thickness: Montney is akin to stacking four separate shale plays on top of one another All Montney Lithology and Fracability: Low clay content,…
Montney D&C Drilling Drilling time and cost reduction continues and low commodity price environment will surely bring additional service/supplier cost reductions Steady Steady progress reducing drilling times progress reducing and…
Montney D&C - Completions Focused on optimizing recovery Montney IP30 Progress NuVista's Completion Process Open-hole completion with ball-drop frac technology 1,500 Large volume slickwater fracs Boe/d Longer Laterals With More…
Well Clean-outs Example of recent success with Coil Tubing Mill-outs Coil tubing mill-out operation yields significantly increased gas rate and pressure January 2015 26
Line-of-Sight to Significant Production and Cash Flow Growth when commodities rebound Capital Expenditures (MM) Production (MBoe/d) 750 60 Accelerated Case Base Case Accelerated Case Base Case 600 50 40 450 30 300 20 150 10…
Operating and Financial Results Understanding the financial power of the Montney Corporate Cash Flow Corporate Cash Flow Netback 35 31 25 30 27 19.26 20 25 23 22 16.47 Million 20 19 15 13.59 12.99 /Boe 15 11.72…
Condensate Pricing Strong demand and premium price for the long term Crude and Condensate Prices 130 Condensate is used in Alberta as a 120 110 diluent to ship heavy oil on pipelines Price, C/Bbl 100 90 Condensate in Alberta…
Montney IP30's Well IP30* Cumulative to date (Jan 14, 2015) CGR Cumulative Raw Gas Condensate Total Sales CGR Bbl/MMcf Condensate Total Days on Prod. Bbls/MMcf Sales Gas (MMcf/d) (Bbls/d) (Boe/d) (raw/C5+) (MBbls) (Mboe) (raw/C5+)…
Montney IP30's Well IP30* Cumulative to date (Jan 14, 2015) CGR Cumulative Raw Gas Condensate Total Sales CGR Bbl/MMcf Condensate Total Days on Prod. Bbls/MMcf Sales Gas (MMcf/d) (Bbls/d) (Boe/d) (raw/C5+) (MBbls) (Mboe) (raw/C5+)…
Montney IP30's Improving annually Well IP30* Cumulative to date (Jan 14, 2015) CGR Cumulative Raw Gas Condensate Total Sales CGR Bbl/MMcf Condensate Total Days on Prod. Bbls/MMcf Sales Gas (MMcf/d) (Bbls/d) (Boe/d) (raw/C5+)…
Focus on Wapiti Our lands contain the Montney with the bonus of significant Deep Basin uphole potential CARDIUM Acres 000's Nikanassin Dunvegan MONTNEY Cadomin Falher FAIRWAY DUNVEGAN CADOTTE NOTIKEWIN Gross 79…
Lower Montney Activity NuVista data collection in progress Industry Hz well results coming available early 2015 Multiple pilot wells in progress by industry no public test results yet Pipestone NVA 15-13-68-7W6 Vertical NuVista has…
Contingent Resource and Reserves Significant delineation of resource and conversion to reserves in 2014 Middle Montney 'C' Middle Montney 'B' *DPIIP: 115 Sections 51% of Current Gross Sections *DPIIP: 140 Sections 63% of Current Gross…
Resources & Reserves Rising Fast Independent Study Updated as of August 2014* Discovered Petroleum Initially-In-Place(1) Cumulative Production(2) 0.02 Tcfe Reserves (Proved Plus Probable)(2)(3) 0.81Tcfe Economic Contingent Resource…
2014 July Reserves Report Montney Transition in full-swing ..growth proven to be continuing 2014 Mid-year Reserves Report GLJ Petroleum Consultants Ltd. Montney DPIIP increased by 40% Montney 2P reserves volume increased by 57%…
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