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TD Securities 2015 London Energy Conference – Bonavista Energy Corp

Bonavista Energy Corp · Jan 15, 2015 · 50 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. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 1
    TD SECURITIES 2015 LONDON ENERGY CONFERENCE January 2015
  2. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 2
    CORPORATE IDENTITY
  3. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 3
    THIS IS BONAVISTA FOCUSED EFFICIENT A DECADE OF OPPORTUNITIES 4
  4. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 4
    THIS IS BONAVISTA We control our assets: 6,500 kms of 91% of 750 mmcf/d of pipeline and 70 production is operated facilities are operated compression facilities operated 5
  5. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 5
    THIS IS BONAVISTA We are focused in our core areas: 85% of our 1.4 million 95% of our production net acres in forecast and reserves our core 2015 E&D areas spending 6
  6. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 6
    THIS IS BONAVISTA We are experienced and aligned: 17 years of 12 year average tenure 11% insider operational of our leadership team ownership presence 7
  7. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 7
    BUSINESS PLAN Total return model: +10% Annual shareholder return target Achievable through Reinvesting Distributing 75-85% 15-25% of funds from of funds from operations operations 8
  8. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 8
    CONCENTRATION Focusing in our core areas: In 2009, 0.4 million net acres in our core MONTNEY areas DEEP BASIN Today, 1.4 million net WEST CENTRAL acres in our core areas Bonavista lands Core areas 9
  9. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 9
    CONCENTRATION Concentrated Spending: 100% 95% 90% 85% E&D Spending (%) 80% 75% 70% 65% 60% 55% 50% 2011 2012 2013 2014 E Core Areas Other 10
  10. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 10
    CONCENTRATION Improved capital efficiency with concentration: E&D Capital Efficiency* (/boed) Finding and Development Costs** (/boe) 35,000 16.00 30,000 14.00 12.00 25,000 10.00 20,000 8.00 15,000 6.00 10,000 4.00 5,000 2.00…
  11. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 11
    CONCENTRATION Improved operating efficiency with concentration: 10.00 9.50 Operating Cost (/boe) 9.00 8.50 8.00 7.50 7.00 6.50 2011 201120112011 2011 2012 20122012 2012 2012 2013 20132013 2013 2013 2014…
  12. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 12
    VALUE PROPOSITION
  13. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 13
    DRILLING INVENTORY Highlights include: 1,550 Locations Quantity: greater than 10 years inventory Concentration: 95% in core areas Quality: 78% of inventory in key plays 14
  14. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 14
    DRILLING INVENTORY Key plays 1,164 locations: West Central Deep Basin Montney 450 400 350 300 Drilling Locations 250 200 150 100 50 424 142 198 254 61 85 0 Glauconite Cardium Ellerslie Spirit River* Bluesky…
  15. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 15
    DRILLING INVENTORY Significant inventory with unbooked upside: West Central Deep Basin Montney 100% 90% 80% 70% 60% 50% 40% 30% 20% Only 28% 10% booked 209 16 22 37 32 13 329 0% Glauconite Cardium Ellerslie Spirit River*…
  16. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 16
    VALUE CREATION Key play metrics at 3.25/gj AECO and US65.00/bbl WTI*: Recycle Ratio** (x:1) Payout (months) Glauconite Glauconite Cardium Cardium Ellerslie Ellerslie Notikewan/Falher Notikewan/Falher Spirit River Spirit River…
  17. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 17
    ASSET QUALITY
  18. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 18
    WEST CENTRAL Multi-zone potential: Belly River CARDIUM Second White Specs Viking Notikewin FALHER GLAUCONITE ELLERSLIE Rock Creek Elkton 845 locations in key plays 19 File: File: Analyst File: AnalystDay…
  19. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 19
    GLAUCONITE Reliable, productive resource: Since 2008, drilled 250 horizontal wells 11 extended reach wells drilled 52 wells planned for 2015 Type curve economics*: Capex: 3.1 MM EUR**: 522 mboe IP12***: 283 boe/d Natural…
  20. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 20
    GLAUCONITE Foundation of our five year production growth: Scalable, profitable growth 40,000 35,000 30,000 Production (boe/d) 25,000 20,000 15,000 10,000 5,000 0 2009 2010 2011 2012 2013 2014 E 2015 F 2016 F 2017…
  21. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 21
    GLAUCONITE Profitable development: Significant free cash flow over next five years 400 350 300 250 ( millions) 200 150 100 50 0 2009 2010 2011 2012 2013 2014 E 2015 F 2016 F 2017 F 2018 F 2019 F E&D Spending Net…
  22. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 22
    SPIRIT RIVER FALHER Prolific channel system: R4 R3 R2 R1W5 R28 R27 R26 R25W4 T47 T47 T46 T46 Drilled 8 wells in Falher since 2010 WESTEROSE 2014 production growth of 600% T45 T45 to approximately 3,400 boe/d 42…
  23. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 23
    DEEP BASIN Multi-zone potential: R23 R22 R21 R20 R19 R18 R17 R16 R15 R14 R13 R12 R11 R10 R9 R8 R7W5 T59 17m17m 21m T58 T57 Belly River T56 Cardium Second White Specs Viking T55 NOTIKEWIN FALHER T54…
  24. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 24
    SPIRIT RIVER WILRICH Pine Creek Marlboro 12 wells drilled since 2012 McLeod 3 wells planned in 2015 South Rosevear Ansell 18 wells drilled since 2013 900% production growth in 2014 Currently producing 8,000 boe/d 20 wells…
  25. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 25
    SPIRIT RIVER - WILRICH Rapid production growth in the Deep Basin: 14,000 12,000 10,000 Production (boe/d) 8,000 6,000 4,000 2,000 0 2013 - 01 2013 - 04 2014 - 07 2013 - 07 2013 - 10 2014…
  26. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 26
    DEEP BASIN - NOTIKEWIN / FALHER Extensive channeling Multiple stratigraphic levels of channels: Notikewin (upper and lower) Falher (upper and lower) Notikewin channels visible on 3D seismic Spudded first Notikewin well in…
  27. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 27
    SPIRIT RIVER Wilrich, Falher and Notikewin (West Central and Deep Basin): 40,000 35,000 30,000 Production (boe/d) 25,000 20,000 15,000 10,000 5,000 0 2012 2013 2014 E 2015 F 2016 F 2017 F 2018 F 2019 F Base…
  28. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 28
    MONTNEY A source of long term growth: 59 net sections (39,569 acres) Drilled 8 wells since 2010 Two wells planned in 2015 Blueberry reservoir characteristics: Gross reservoir thickness 250 - 300 meters Estimated 200 - 240…
  29. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 29
    2015 E&D SPENDING ALLOCATION Concentrated spending on profitable plays: Wells Expenditures % of Value Gross Net ( millions) Capital West Central: Glauconite 52 40.9 153 45 Spirit River 9 8.5 33 10 Other 2 1.0 4 1 Deep Basin:…
  30. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 30
    LOOKING FORWARD
  31. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 31
    LOOKING FORWARD Operating Guidance: 2013 2014 2015 Actual Estimate Forecast Capital expenditures ( millions): Exploration and development 444 630 640 375 425 Divestitures, net of acquisitions 20 (110) - Total 464 520 - 530 375 -…
  32. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 32
    LOOKING FORWARD Financial Guidance: 2013 2014 2015 Actual Estimate Forecast Funds from operations (FFO): millions 478 555 - 565 430 - 450 per share 2.42 2.68 2.03 Dividends: millions 153 165 85 per share 0.84 0.84 0.42…
  33. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 33
    FIVE YEAR PLAN Foundation for growth: ELLERSLIE 21 (19.8 net) wells / 102 million spending MONTNEY 38 (38.0 net) wells / 274 million spending CARDIUM 21 (18.1 net) wells / 63 million spending BLUESKY 29 (19.6 net) wells / 102…
  34. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 34
    FIVE YEAR PLAN Production growth: 120,000 100,000 Production (boe/d) 80,000 60,000 40,000 20,000 0 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Base Other Glauconite Spirit River Bluesky Cardium Ellerslie…
  35. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 35
    FIVE YEAR PLAN Extensive drilling inventory: Current 5-year plan Inventory Glauconite 242 424 Cardium 21 142 Bluesky 29 61 Spirit River Group 180 254 Ellerslie 21 198 Montney 38 85 TOTAL KEY PLAYS 531 1,164 Other 9 386…
  36. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 36
    WHY INVEST IN BONAVISTA BUSINESS PLAN 10%+ Total Shareholder Return FOCUSED Maximizing efficiency with a concentrated asset base EFFICIENT Finding a better way A DECADE OF INVENTORY High quality, long life assets with…
  37. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 37
    APPENDIX
  38. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 38
    2015 REVENUE EXPOSURE By volume By value 9% 3% 6% 7% 6% 4% 11% 5% 54% 8% 67% 20% Ethane Propane Butane Pentane Oil Gas 39
  39. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 39
    FINANCIAL STRATEGY Natural gas hedging: 250 4.10 Hedged Volumes (thousands gjs/d) 200 3.90 150 3.70 CDN/gj 100 3.50 50 3.30 62% 60% 61% 66% 71% 0 3.10 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16…
  40. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 40
    FINANCIAL STRATEGY Oil hedging: 12 120 10 100 Hedged Volumes (mbbls/d) 8 80 CDN/bbl 6 60 4 40 2 20 64% 87% 54% 51% 51% 0 0 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Collars…
  41. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 41
    LOOKING FORWARD Sensitivities - 2015 forecast: Impact on 2015 Impact on 2015 FFO forecast FFO per Share ( millions) (/share) Change of 0.10 per gj at AECO natural gas 6.8 0.03 Change of CDN 1.00 WTI oil 3.1 0.02 Change of…
  42. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 42
    VALUE CREATION Building value with liquids rich natural gas plays: 100 bbls/mmcf 90 bbls/mmcf 38 bbls/mmcf 155 bbls/mmcf 0% C2 14% 35% 35% 29% 29% C3 13% 42% C4 52% 47% 13% C5 26% 10% 20% 29% 6% 6.00 Revenues*…
  43. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 43
    GLAUCONITE Type curve: 700 Current Turbo Capex ( millions) 3.1 3.1 600 IP12 (boe/d) 252 283 /boed 12,285 10,959 500 EUR (mboe) 466 522 Production (boe/d) IRR (%) 36 37 400 F&D (/boe) 6.65 5.94 P/I 0.6 0.7 300 Recycle…
  44. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 44
    SPIRIT RIVER - WILRICH Ansell Wilrich type curve: Type Curve 800 Capex ( millions) 5.7 700 IP12 (boe/d) 426 /boed 13,373 600 EUR (mboe) 850 Production (boe/d) IRR (%) 39 500 F&D (/boe) 6.71 400 P/I 0.7 Recycle Ratio 3.1…
  45. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 45
    SPIRIT RIVER - FALHER Morningside Falher type curve: Type Curve 1,200 Capex ( millions) 3.0 50 bbls/mmcf IP12 (boe/d) 302 1,000 of liquids /boed 9,785 EUR (mboe) 484 Production (boe/d) 800 IRR (%) 43 F&D (/boe) 6.11 600 P/I…
  46. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 46
    DEEP BASIN BLUESKY Type curve: 800 Type Curve Capex ( millions) 5.0 700 IP12 (boe/d) 381 /boed 13,134 600 EUR (mboe) 545 Production (boe/d) 500 IRR (%) 30 F&D (/boe) 9.17 400 P/I 0.4 300 Recycle Ratio 2.4 Payout…
  47. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 47
    MONTNEY Type curve: 900 Type Curve Capex ( millions) 7.2 800 IP12 (boe/d) 426 700 /boed 16,895 EUR (mboe) 671 Production (boe/d) 600 IRR (%) 13 500 F&D (/boe) 10.79 P/I 0.1 400 Recycle Ratio 2.3 300 Payout (years)…
  48. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 48
    FINANCIAL STRATEGY Senior debt composition (as at September 30, 2014)*: Average term approximately 6.2 years at 3.97% Senior Notes (CDN) 70 Unutilized Bank Capacity (CDN) 443 Bank Credit Facility - 600 million 11 banks in…
  49. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 49
    FINANCIAL STRATEGY Estimated tax pools (as at September 30, 2014): Category millions % of Total Canadian Oil & Gas Property Expense 868 32% Canadian Development Expense 867 32% Canadian Exploration Expense 293 10% Undepreciated…
  50. TD Securities 2015 London Energy Conference – Bonavista Energy Corp – slide 50
    1500, 525 8th Ave. SW Calgary, Alberta T2P 1G1 Tel: (403) 213-4300 Fax: (403) 262-5184 investor.relationsbonavistaenergy.com 51

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