Corporate Presentation March 2014 www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
Corporate Overview Parallel Energy Trust is a Distribution-paying Energy Income Trust Parallels distribution receives a favourable tax treatment as all assets are located in the U.S. (not subject to specified investment flow-through…
Objective and Strategies Corporate Objective To provide our unitholders with a sustainable monthly distribution while strategically growing the base level of our assets and operations Strategies Manage a sustainable business model by…
Location of Assets Greater Panhandle / Hugoton Field U.S. Mid-Continent Oil and Gas Areas Kansas Oklahoma Kansas Texas Oklahoma Texas Parallels Assets Location Estimated % of Total Production SE Roberts Carson…
Operating Areas Carson (Total of approximately 91,000 net acres) Produces liquids-rich natural gas from over 210 wells targeting the Granite Texas (100% Operated) Wash & Brown Dolomite formations Sneed (Total of approximately…
Infrastructure Parallel has a solid foundation of infrastructure in place to support long- term production growth Pipeline, drip tanks, cooling equipment and compressors in place Primary and back-up processing agreements in place at…
Operator of Assets Parallel is the operator of its Texas assets Parallels operating team is led by Tony Swindell, Chief Operating Officer (COO) Fully-staffed U.S. operating office located in Tulsa, Oklahoma Fully-staffed field…
Drilling Summary Low-Risk, Efficient Drilling Type of Drilling Air No Mud Completion Open Hole No Fracturing Average Depth* True Vertical Depth 800 metres Measured Depth 1,500 metres Timing Spud to Rig Release 10 days Rig Release…
Reserve Summary Summary of Reserves at December 31, 2013 Reserves PV10 (mboe) % (USMM) % Proved Developed Producing (PDP) 32,985 67 374 76 Proved Undeveloped 9,521 19 51 10 Total Proved 42,506 86 425 86 Probable 6,994 14 66 14…
Actuals & Outlook www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
Production History & Forecast Parallel has demonstrated historical growth in its quarterly production Gross production growth of 32% from IPO to Q4-2013 (production growth per unit 60%) 2013 annual production of 7,147 boe/day exceeded…
Production Mix & Revenue Split Production Mix Condensate and NGLs accounted for 66% of total production in 2013 Revenue Split Condensate and NGLs accounted for 82% of total revenue in 2013 www.parallelenergy.ca TSX:…
NGL Production Breakdown & Pricing Parallels Estimated NGL Production Split & the Weighted Average Price at Conway in Q4-2013 Weighted Average Parallels Estimated Price in Q4-2013 NGL Production Split (US/boe at Conway) Ethane…
Revenue & Operating Netbacks Breakdown of Gross Revenue (Before Realized Hedges) Parallels operating netbacks have steadily improved for five consecutive quarters (Q3-2012 to Q4-2013) www.parallelenergy.ca TSX: PLT.UN 15
2014 Capital Expenditure Plans 2014 Drilling Program 9.5 million Drill, complete and tie-in 14 gross wells in the Carson operating area Single lateral wells with an average drilling cost of 675,000 per well Estimated average 30 day…
2014 Outlook & Guidance 2014 Production Guidance 2014 annual average daily production guidance of 7,100 to 7,300 boe/day Production mix to average 24% condensate, 42% natural gas liquids (NGLs) and 34% natural gas 2014 Cash Flow…
Long-Term Debt Reduction Goal Parallels long-term debt reduction goal is to have sufficient availability under the bank facility to fund the convertible debentures when they mature on June 30, 2017 Additional Amount Availability…
Industry Comparisons www.parallelenergy.ca TSX: PLT.UN www.parallelenergy.ca TSX: PLT.UN
Payout Ratios Parallels estimated total payout ratio in 2014 is expected to be less than 100% (pre-DRIP) Parallel has one of the most sustainable business models relative to other Canadian listed Junior and Intermediate…
Capital Efficiencies & Decline Rates Parallel realized capital efficiencies of 14,000 per flowing boe/day in 2013 Parallels 2014 estimated capital efficiencies are 20,000 per flowing boe/day Parallels production decline rates are…
Impact of Low Decline Rates Comparison of TDs Estimate of Parallels Decline Rate vs. the Industry Average* Decline Rate Parallel Energy Trust Production (boe/d) 1 year production loss of 720 boe/day CAPEX of approx. 15.1…
Natural Gas Prices Canada vs. U.S. Natural Gas Price Comparison NYMEX vs. AECO (Source: Bloomberg and CAPP Natural Gas Report) www.parallelenergy.ca TSX: PLT.UN 23
Crude Oil Prices Canada vs. U.S. Crude Oil Price Comparison WTI on NYMEX vs. Edmonton Par (Source: Bloomberg and CAPP Crude Oil Report) www.parallelenergy.ca TSX: PLT.UN 24
Summary Attractive cash yield (15%) given the low risk profile of the assets Income Trust with ideal assets to create predictable cash flow Industry leading corporate decline rate of approximately 8 to 10% provides a solid base for…
Market Data (As at March 19, 2014) Ticker Symbol PLT.UN Units Outstanding 53.6 million 52 Week Range 3.47 4.66 Closing Price (March 19, 2014) 4.02 Distribution declared since IPO 2.29 Distribution Yield (0.05 per unit per month) 14.9%…
Management & Directors Henry Sykes, Q.C. Henry Sykes, Q.C. Executive Chairman Executive Chairman of Parallel Energy Trust and President of MGM Energy Rick Alexander President and CEO Rick Alexander President and CEO of Parallel…
Cross Border Trust Structure Unitholders Investment in Units Distributions Tax efficient Mutual Fund Trust structure Parallel Principal and Administrator Investment in CT Notes and CT Units Energy Trust (Alberta Trust) Interest…
Parallel Energy Trust Corporate Office Investor & Media Contact 4100, 350 7th Avenue SW, Curtis Pelletier Manager, Investor Relations Calgary, Alberta T2P 3N9 Main: (403) 781-7888 Parallel Energy LP Tulsa Office Toll-Free: (855)…
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